Implementation of global minimum taxation - safe harbor transitional rules for investment entities
On January 1, 2024, Switzerland partially introduced the OECD minimum tax by means of the Minimum Tax Ordinance (MindStV). The implementation of the global legal requirements poses considerable challenges for companies due to the complexity of the regulations and the technical implementation in the accounting systems. For this reason, many companies fall back on safe harbor regulations provided by the OECD. In this context, the following article examines whether these also apply to investment entities that are part of the corporate group.
The new double taxation agreement between Italy and Liechtenstein - advantages and specific cases of application
On July 12, 2023, Liechtenstein and Italy signed a double taxation agreement (DTA). The agreement is based on the international standard of the OECD Model Tax Convention 2017, takes into account the results of the BEPS project and follows the agreement on the exchange of information (TIEA) that was concluded with Italy in 2015. The DTA increases legal certainty, leads to significant withholding tax reductions, reduces existing barriers to investment and financing and will make a decisive contribution to further strengthening cooperation between the two countries.
The definition of turnover according to the Minimum Tax Ordinance
According to the Minimum Tax Ordinance (MindStV), business units belonging to Switzerland are subject to Swiss supplementary tax if they belong to a group of companies with a turnover of at least EUR 750 million. The concept of turnover as a central prerequisite for subjective tax liability is only rudimentarily regulated in the ordinance. This article examines this concept from different perspectives with reference to various OECD/G20 documents and identifies open questions.
Taxation of spouses in international relations - tax segregation issues
In the zsis) issue of November 2019, the authors dealt with tax law stumbling blocks in the taxation of spouses in international relationships. In this article, they have focused on the tax segregation of international spouses. On the basis of a test scheme with three questions, they show that a systematic procedure is essential for correct tax segregation and that there is still a need for action here on the part of the assessment authority and the courts.
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Switzerland and Armenia sign Protocol of Amendment to the Double Taxation Agreement
Switzerland and Armenia signed a Protocol of Amendment to the corresponding DTA on 12 November 2021. The protocol implements the minimum standards from the BEPS project in matters of double taxation agreements as well as the international standard in matters of information exchange.
FTA publishes final ruling on the FATCA agreement
On 19 November 2021, the Federal Tax Administration (FTA) notified the issuance of a final ruling pursuant to Art. 5 No. 3 lit. b FATCA Agreement.
Federal Councillor Ueli Maurer meets Russian Finance Minister Anton Siluanov
Federal Councillor Ueli Maurer met the Russian Finance Minister Anton Siluanov in Bern on 19 November 2021. One of the topics discussed was the revision of the existing double taxation agreement demanded by Russia.
Federal Council adopts report on relations with Italy in the financial and tax area
At its meeting on 27 October 2021, the Federal Council adopted the report on relations with Italy in the financial and tax area.
Entry into force of the double taxation agreement with Bahrain
On 05 November, SIF announced that the DTA between Switzerland and Bahrain had entered into force and that the provisions would apply from 01 January 2022.
Federal Council enacts new legal basis for the implementation of international agreements in the tax area
In the StADG, the provisions of the existing national federal law of 22 June 1951 on the implementation of federal intergovernmental agreements for the avoidance of double taxation and the ordinances based on it are taken over as far as necessary and supplemented with new provisions. It now regulates the essential points for the relief of withholding tax as well as penalty provisions in connection with the relief of withholding taxes on investment income. It also regulates how mutual agreement procedures are to be carried out domestically if the applicable agreement does not contain any provisions to the contrary.
FTA publishes final rulings on the FATCA agreement
On 22 October 2021, the Federal Tax Administration (FTA) notified the issuance of final rulings pursuant to Art. 5 No. 3 lit. b FATCA Agreement.
Chair of the OECD Forum on Tax Administration (FTA) and the Joint International Task Force on Shared Intelligence and Collaboration (JITSIC) release statement on Pandora Papers
On 14 October 2021, the Chair of the OECD Forum on Tax Administration (FTA) and the Chair of its Joint International Task Force on Shared Intelligence and Collaboration (JITSIC) issued a joint statement on the Pandora Papers.
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