Switzerland and China sign new double taxation agreement

Bern, 25.09.2013 - Today in Beijing, Switzerland and China signed a new double taxation agreement (DTA) in the area of taxes on income and assets. It replaces the agreement applicable since 1991 and contains provisions on the exchange of information in accordance with the currently applicable international standard. The new DTA will contribute to the further positive development of bilateral economic relations between Switzerland and China, which is a member of the G20.

Aside from an OECD administrative assistance clause, Switzerland and China have agreed to reduce the maximum rate of withholding tax on dividends from 10% to 5% if the company receiving the dividends holds a stake of at least 25% in the distributing company. The withholding tax rate for royalties has been lowered from 10% to 9%. Furthermore, China will not be entitled to levy any business tax or any value added tax on international transport services provided by Swiss shipping companies and airlines.

After negotiations finished, a report on the new DTA with China was submitted to the cantons and the business associations concerned for their comments. They approved the contents. The new agreement still has to be approved by parliament in both countries before it can come into force. It is subject to an optional referendum in Switzerland.

Address for enquiries

Fran├žois Bastian, Bilateral Tax Issues Section, SIF,
tel. +41 31 322 71 52, francoisluc.bastian@sif.admin.ch


Federal Department of Finance

State Secretariat for International Financial Matters

Last modification 03.10.2018

Top of page