Flag of Switzerland>

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 person, resident 35.0 %35.0 %
Natural person, non-resident 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 (for agreements which came into force after 1 January 2013 the date of coming into force is given in brackets):

 Albania
 Algeria
 Antigua and Barbuda
 Armenia
 Australia
 Austria
 Azerbaijan
 Bangladesh
 Barbados
 Belarus
 Belgium
 British Virgin Islands
 Bulgaria (Oct 2013)
 Canada
 Chile
 China
 Colombia
 Cote D'Ivoire
 Croatia
 Czech Republic
 Denmark
 Dominica
 Ecuador
 Egypt
 Estonia
 Faroe Islands
 Finland
 France
 Georgia
 Germany
 Ghana
 Greece
 Grenada
 Hong Kong
 Hungary
 Iceland
 India
 Indonesia
 Iran, Islamic Republic of
 Ireland
 Israel
 Italy
 Jamaica
 Japan
 Kazakhstan
 Korea, Republic of
 Kuwait
 Kyrgyzstan
 Latvia
 Liechtenstein
 Lithuania
 Luxembourg
 Macedonia
 Malaysia
 Malta
 Mexico
 Moldova, Republic of
 Mongolia
 Montenegro
 Montserrat
 Morocco
 Netherlands
 New Zealand
 Norway
 Pakistan
 Peru (Mar 2014)
 Philippines
 Poland
 Portugal
 Qatar
 Romania
 Russian Federation
 Saint Kitts and Nevis
 Saint Lucia
 Serbia
 Singapore
 Slovakia
 Slovenia
 South Africa
 Spain
 Sri Lanka
 Sweden
 Tajikistan
 Thailand
 Trinidad and Tobago
 Tunisia
 Turkey
 Turkmenistan (Dec 2013)
 Ukraine
 United Arab Emirates
 United Kingdom
 United States
 Uruguay
 Uzbekistan
 Venezuela
 Vietnam

There are also several agreements between Switzerland and other jurisdictions which were signed but haven't yet come into force (for agreements signed after after 1 January 2013 of signing the agreement is given in brackets):

 Argentina (Mar 2014)
 Australia (Jul 2013)
 China (Sep 2013)
 Hungary (Sep 2013)

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 (for agreements signed after 1 January 2013 of signing the agreement is given in brackets):

 Andorra (Mar 2014)
 Guernsey (Sep 2013)
 Isle of Man (Aug 2013)
 Jersey (Sep 2013)
 San Marino (May 2014)
 Seychelles (May 2014)

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:

 Australia
 Austria
 Belgium
 Bonaire, Saint Eustatius and Saba
 Bulgaria
 Canada
 Croatia
 Cyprus
 Czech Republic
 Denmark
 Estonia
 Finland
 France
 Germany
 Gibraltar
 Greece
 Guernsey
 Hungary
 Iceland
 Ireland
 Isle of Man
 Italy
 Japan
 Jersey
 Korea, Republic of
 Latvia
 Lithuania
 Luxembourg
 Malta
 Netherlands
 Norway
 Poland
 Portugal
 Romania
 Slovakia
 Slovenia
 Spain
 Sweden
 United Kingdom

Automatic Excnange: 39 Bilateral Agreements to Send Information

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

 Australia
 Austria
 Belgium
 Bonaire, Saint Eustatius and Saba
 Bulgaria
 Canada
 Croatia
 Cyprus
 Czech Republic
 Denmark
 Estonia
 Finland
 France
 Germany
 Gibraltar
 Greece
 Guernsey
 Hungary
 Iceland
 Ireland
 Isle of Man
 Italy
 Japan
 Jersey
 Korea, Republic of
 Latvia
 Lithuania
 Luxembourg
 Malta
 Netherlands
 Norway
 Poland
 Portugal
 Romania
 Slovakia
 Slovenia
 Spain
 Sweden
 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