Switzerland and Georgia sign double taxation agreement
June 16, 2010 | by Schweizerische Eidgenossenschaft
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June 16, 2010, Today the President of the Swiss Confederation, Doris Leuthard, and the Prime Minister of Georgia, Nika Gilauri, signed a double taxation agreement (DTA) in the field of income tax and assets. The new DTA will contribute to the further positive development of bilateral economic relations. The agreement is in line with Switzerland's agreements policy at the time of the negotiations, and contains no provisions on the exchange of information in accordance with the OECD standard.
The agreement largely follows the OECD Model Convention and Switzerland's agreements policy. In the case of dividend payments to beneficial owner companies which have a stake of at least 10% in the capital of the company making the payment and in the case of all interest and royalty payments, it was possible to agree on taxation exclusively in the contracting state of the recipient of the payment (so-called zero rate). In this way, important objectives of Switzerland?s agreements policy have been achieved. The conclusion of the DTA with Georgia promotes mutual trade and economic relations.
Thanks to the DTA, new markets have been opened up and favourable conditions for future investments have been created. Up to now, there had been no DTA between Switzerland and Georgia. The DTA should come into effect as soon as possible. Switzerland and Georgia therefore agreed that the negotiated agreement would not be supplemented with an extended administrative assistance clause in accordance with the OECD standard.
After negotiations finish, a report on the agreement with Georgia was submitted to the cantons and business associations concerned for their comments. The Conference of Cantonal Finance Directors and the business associations have approved the signing of the agreement.
Contact
Schweizerische Eidgenossenschaft Martin Hess Federal Tax Administration International Division tel. 031 322 71 58 www.admin.ch
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Source: Schweizerische Eidgenossenschaft, Press release