Federal Council adopts dispatches on new double taxation agreement with Bahrain and amendments to DTA with Kuwait

Bern, 26.08.2020 - During its meeting on 26 August 2020, the Federal Council adopted the dispatches on a new double taxation agreement (DTA) with Bahrain and on the protocol of amendment to the DTA with Kuwait.

The new DTA with Bahrain in the area of taxes on income and capital improves matters for cross-border investments. It also contains an administrative assistance provision in accordance with the international standard concerning the exchange of information upon request and implements the minimum standards in accordance with the OECD/G20 project on base erosion and profit shifting (BEPS). This includes in particular an anti-abuse provision.

Similarly, the protocol of amendment to the DTA with Kuwait in the area of taxes on income and capital significantly improves matters for cross-border investments. Moreover, it enhances the dispute resolution mechanism by means of an arbitration clause and contains substantial components of the minimum standards for double taxation agreements.

The cantons and the business circles concerned have welcomed the conclusion of both the DTA and the protocol of amendment. The DTA and protocol of amendment have to be approved by the legislative bodies of the countries in question before they can come into force.

Address for enquiries

Media enquiries:
Anne Césard, Communications,
State Secretariat for International Finance SIF
Tel.+41 58 462 62 91, anne.cesard@sif.admin.ch

Specialist information:
Bilateral Tax Issues and Double Taxation Treaties Section, SIF
Tel. +41 58 462 71 29, dba@sif.admin.ch