22.07.2015. Switzerland and Liechtenstein Sign Double Tax Deal


On July 10 Switzerland and Liechtenstein have signed a new double taxation agreement (DTA), which lowers the withholding tax rates applicable to dividend and interest payments. The new treaty will enter into force on January 1, 2017.

Under the new DTA, the withholding tax rate on interest payments will be reduced to zero, if the shareholder is resident in the other state. The withholding tax rate on portfolio dividends and dividends paid to individuals will fall from 35 percent to 15 percent. Exceptions apply.

In the case of cross-border workers, the country of residence will retain the right to tax.

In addition, the DTA contains provisions for the exchange of information that are in line with the Organisation for Economic Cooperation and Development standard.