On 13 March 2009 the Federal Council decided that Switzerland would change policy on international cooperation in tax matters and adopt the OECD standard on administrative assistance in tax matters under Art. 26 of the OECD Model Convention. The decision will permit an exchange of information on tax matters in individual cases where a specific and justified request has been made.

Following the Federal Council decision in March 2009 Finland is the twelfth country with which Switzerland has initialled a DTA containing the extended administrative assistance clause after Denmark, Luxembourg, Norway, France, Mexico, the USA, Japan, the Netherlands, Poland, the United Kingdom and Austria.. The initialling is the first stage on the way to a new or a revised DTA. In order to be removed from the "grey list" drawn up by the OECD Secretariat for the G20, the next step is for twelve agreements based on the OECD standard on administrative assistance to be signed. According to the OECD, it is only then that a state substantially implements the internationally agreed standard on administrative assistance in tax matters.

The initialled text is still confidential. The cantons and business associations will now have the opportunity to submit their views. The Federal Council will then decide on whether to authorise the signature, after which the agreement will be published.

Initialling and ensuing stages before entry into force

Initialling is defined as the approval of a contractual text by appending initials. Negotiators can in this way provisionally draw up the negotiated contractual text of DTAs (and other agreements based on international law). The initialled text is at first confidential. The cantons and the business associations concerned are notified of the content in a brief report and invited to submit their comments.

The agreement is only published after being signed. The Federal Council provides authorisation for the agreement to be signed. A DTA can enter into force only after it has been approved by parliament. In addition the partner state must also have approved the agreement.

Under current practice, DTAs that provide for significant additional obligations are subject to an optional referendum. In the view of the Federal Council, the first double taxation agreement with the new administrative assistance provisions approved by parliament should therefore be subject to an optional referendum. However, the decision as to whether or not a double taxation agreement is subject to an optional referendum rests with parliament.

Switzerland and Finland initial revised double taxation agreement