18.3 C
Valletta
Friday, 15 October 2021
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.

  •  
  • We are partners ofspot_img
    spot_img
    spot_img

    Related articles

    New Malta-Libya agreements: stronger trade relations

    Trade relations between Malta and Libya have been strengthened thanks to a series of agreements recently signed between the Maltese Embassy in Tripoli and...

    The Malta Chamber signed new agreement for sustainable mobility

    The Malta Chamber of Commerce, Enterprise and Industry, and the Foundation for Transport signed a cooperation agreement to promote forms of mobility that are...

    University of Cassino and MACTT reach a new agreement for training with an international vocation

    The University of Cassino and Southern Lazio, in Italy, and the Mediterranean Academy of Culture, Technology and Trade (MACTT), a Malta-based Institute of Higher...

    Funding focus
    Discover the news in the dedicated section