Federal Council adopts dispatch on double taxation agreement with Pakistan
Bern, 25.10.2017 - On 25 October 2017, the Federal Council adopted the dispatch on a double taxation agreement (DTA) with Pakistan with respect to taxes on income. The dispatch was submitted to Parliament for approval.
Switzerland and Pakistan signed a new DTA on 21 March 2017 in Islamabad. It contains improvements regarding the taxation of service fees and capital gains from the disposal of participations in companies exceeding 20 percent of the capital. Furthermore, the DTA implements several provisions from the OECD and G20 project to combat base erosion and profit shifting (BEPS project). In particular, it provides for an anti-abuse clause to prevent unwarranted claims of treaty benefits and an arbitration clause to increase legal certainty for taxpayers.
Moreover, the DTA contains an administrative assistance clause in accordance with the current international standard for the exchange of information upon request.
The cantons and the interested business circles welcomed the conclusion of the DTA.
Address for enquiries
Bilateral Tax Issues and Double Taxation Treaties Section, State Secretariat for International Financial Matters SIF
Tel. +41 58 462 71 29, dba@sif.admin.ch
Publisher
The Federal Council
https://www.admin.ch/gov/en/start.html
Federal Department of Finance
https://www.efd.admin.ch/efd/en/home.html
