The initialed double taxation agreement (DTA) with Denmark is to be submitted to the cantons and business associations concerned for their comments. It will then be submitted to the Federal Council, which will decide on the authorisation for signing. After the DTA has been signed, the Federal Assembly must approve it before it can come into force. According to the Federal Council the first double taxation agreement with the new administrative assistance provisions should be subject to an optional referendum. However, as has been the case to date, this decision rests with parliament.

The Federal Council decided on 13 March 2009 that Switzerland would change policy on international cooperation in tax matters and adopt the OECD standard on administrative assistance in tax matters under Art. 26 of the OECD Model Convention. The decision will permit an exchange of information on tax matters in individual cases where a specific and justified request has been made. The Federal Council instructed the Federal Department of Finance FDF to immediately enter into negotiations on the revision of the DTAs with the USA and Japan and then with other OECD and EU States.

Initialing
Initialing is defined as the approval of a contractual text by appending initials. Negotiators can in this way provisionally draw up the negotiated contractual text of DTAs (and other agreements based on international law). A DTA can, however, only come into force if it has been signed on the authorisation of the Federal Council and then approved by parliament. In addition, the partner State must also have approved the agreement. DTAs that provide for significant additional obligations are subject to an optional referendum.

Address for enquiries:

Editor:

Federal Department of Finance

http://www.efd.admin.ch