Saturday, April 20, 2024
spot_imgspot_img
HomeBilateral agreementsDouble taxation: Switzerland confirms agreement with Malta

Double taxation: Switzerland confirms agreement with Malta

Switzerland’s Federal Council, at its November 11 meeting, approved protocols to its existing bilateral tax treaties with Liechtenstein, Malta, and Cyprus. The amendments add a ‘main purpose clause’ to each tax treaty, designed to prevent a form of multinational group tax avoidance known as ‘tax treaty shopping.’

The protocols also strengthen the mutual agreement procedure (MAP) for cross-border tax disputes provided for in each tax treaty.

The MAP is available to multinational groups that are taxed on the same income by two different countries. The procedure allows the taxpayer to bring together both countries’ tax authorities to figure out which country is in fact entitled to tax the income.

The addition of provisions countering tax treaty shopping and strengthening MAP are global “minimum standards” for tax treaties adopted in the OECD/G20 base erosion profit shifting package. 137 nations that have joined the OECD-led “Inclusive Framework on BEPS” have agreed to follow these standards, including Switzerland, Liechtenstein, and Malta. Cyprus is not an Inclusive Framework member.

The protocols are not yet in force; each must now be considered by the legislative bodies of each country.

To develop your business project in Malta rely on the strategic consultancy of Malta Business Agency.

  •  
  • DISCLAIMER

    This article provides general information only and does not replace professional advice in any way. It is recommended to consult a qualified professional before making any important decisions regarding financial, legal or other matters. The author and the publication are not responsible for any errors or damages caused by the use of the information contained in this article.

    We are memberspot_img
    spot_img

    Related articles

    ASSOMALTA strengthens the link between Italy and Malta by opening a representative office in Naples.

    Among the objectives of the association, that to make to become the new office of Naples, an operational hub between Italy and Malta, in order to strengthen commercial exchanges and collaborations in the field of the shipping and beyond.

    Strengthening educational ties: Malta and Estonia’s commitment to higher education excellence

    Malta and Estonia are innovating the higher education sector through a collaboration that aims to share experiences and participate in international projects.

    Malta and Ghana renew their relationship after 50 years

    Ghana and Malta strengthen cooperation on trade, education, and investment, marking a historic moment on the 50th anniversary of their diplomatic ties.

    Funding focus
    Discover the news in the dedicated section