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Economy and Banking Sector of Switzerland

Withholding Tax

Withholding taxes are imposed at source of income and are often applied to dividends, interest, royalties, rent and similar payments. The rates of withholding tax are often reduced by double taxation agreements.

Withholding Tax Rates in Switzerland: 0.0 - 35.0%

Withholding tax rates applied on payments of interest and dividends in Switzerland are shown in Table 1.

Dividends Interest
Natural Persons (residents) 35.0 %35.0 %
Natural Persons (non-residents) 35.0 %35.0 %
Table 1. Withholding tax rates in Switzerland.

Double Taxation Agreements

Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.

DTAs of Switzerland: 101 Signed Agreements

Switzerland signed DTAs which already came info force with the following jurisdictions:

AL Albania
DZ Algeria
AG Antigua and Barbuda
AM Armenia
AU Australia
AT Austria
AZ Azerbaijan
BD Bangladesh
BB Barbados
BY Belarus
BE Belgium
VG British Virgin Islands
BG Bulgaria
CA Canada
CL Chile
CN China
CO Colombia
CI Cote D'Ivoire
HR Croatia
CZ Czech Republic
DK Denmark
DM Dominica
EC Ecuador
EG Egypt
EE Estonia
FO Faroe Islands
FI Finland
FR France
GE Georgia
DE Germany
GH Ghana
GR Greece
GD Grenada
HK Hong Kong
HU Hungary
IS Iceland
IN India
ID Indonesia
IR Iran, Islamic Republic of
IE Ireland
IL Israel
IT Italy
JM Jamaica
JP Japan
KZ Kazakhstan
KR Korea, Republic of
KW Kuwait
KG Kyrgyzstan
LV Latvia
LI Liechtenstein
LT Lithuania
LU Luxembourg
MK Macedonia
MY Malaysia
MT Malta
MX Mexico
MD Moldova, Republic of
MN Mongolia
ME Montenegro
MS Montserrat
MA Morocco
NL Netherlands
NZ New Zealand
NO Norway
PK Pakistan
PE Peru
PH Philippines
PL Poland
PT Portugal
QA Qatar
RO Romania
RU Russian Federation
KN Saint Kitts and Nevis
LC Saint Lucia
RS Serbia
SG Singapore
SK Slovakia
SI Slovenia
ZA South Africa
ES Spain
LK Sri Lanka
SE Sweden
TJ Tajikistan
TH Thailand
TT Trinidad and Tobago
TN Tunisia
TR Turkey
TM Turkmenistan
UA Ukraine
AE United Arab Emirates
GB United Kingdom
US United States
UY Uruguay
UZ Uzbekistan
VE Venezuela
VN Vietnam

There are also several agreements between Switzerland and other jurisdictions which were signed but haven't yet come into force:

AR Argentina
AU Australia
CN China
HU Hungary

Information Exchange

There are 3 ways for jusrisdictions to exchange information on tax matters:

  • spontaneously;
  • on request;
  • automatically.

Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.

Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.

Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.

Exchange on Request: 6 Signed Agreements

There are also several agreements between Switzerland and other jurisdictions which was signed but haven't yet come into force:

AD Andorra
GG Guernsey
IM Isle of Man
JE Jersey
SM San Marino
SC Seychelles

Automatic Exchange: Starts in September 2018

Switzerland signed the automatic information exchange agreement on 29 October 2015 and committed to start the automatic information exchange in September 2018.

Automatic Excnange: 39 Bilateral Agreements to Receive Information

Switzerland has signed bilateral agreements with 39 jurisdictions to automatically receive information:

AU Australia
AT Austria
BE Belgium
BQ Bonaire, Saint Eustatius and Saba
BG Bulgaria
CA Canada
HR Croatia
CY Cyprus
CZ Czech Republic
DK Denmark
EE Estonia
FI Finland
FR France
DE Germany
GI Gibraltar
GR Greece
GG Guernsey
HU Hungary
IS Iceland
IE Ireland
IM Isle of Man
IT Italy
JP Japan
JE Jersey
KR Korea, Republic of
LV Latvia
LT Lithuania
LU Luxembourg
MT Malta
NL Netherlands
NO Norway
PL Poland
PT Portugal
RO Romania
SK Slovakia
SI Slovenia
ES Spain
SE Sweden
GB United Kingdom

Automatic Excnange: 39 Bilateral Agreements to Send Information

Switzerland has signed bilateral agreements with 39 jurisdictions to automatically send information:

AU Australia
AT Austria
BE Belgium
BQ Bonaire, Saint Eustatius and Saba
BG Bulgaria
CA Canada
HR Croatia
CY Cyprus
CZ Czech Republic
DK Denmark
EE Estonia
FI Finland
FR France
DE Germany
GI Gibraltar
GR Greece
GG Guernsey
HU Hungary
IS Iceland
IE Ireland
IM Isle of Man
IT Italy
JP Japan
JE Jersey
KR Korea, Republic of
LV Latvia
LT Lithuania
LU Luxembourg
MT Malta
NL Netherlands
NO Norway
PL Poland
PT Portugal
RO Romania
SK Slovakia
SI Slovenia
ES Spain
SE Sweden
GB United Kingdom

Further Information

FATCA

Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).

FATCA Status in Switzerland
IGA in effect since 14 February 2013, Model 2

Switzerland has FATCA agreement with the U.S. in effect since 14 February 2013 (Intergovernmental Agreement Model 2).

Further Information