In addition, in accordance with existing jurisprudence, the bill would enshrine in law the timeframes for recovery. At present, these deadlines are the same as those provided for by existing national legislation. Therefore, an application for recovery must be made within three years from the end of the calendar year in which taxable income was collected. Additional time may be granted if the withholding tax in question was paid only after an objection from the ESTV and if other conditions are met. I have noticed that the dividends paid on my holdings in Swiss companies have been subject to a tax rate of 35% of the gross dividend. In addition, I will suffer another tax debt on this income in the United Kingdom. It looks very high. Is there anything I can do to reduce the amount of taxes I pay? On 13 March 2009, the Federal Council announced that Switzerland intends to adopt OECD standards for mutual tax assistance, in accordance with Article 26 of the OECD Model Tax Convention. The decision allows the exchange of information with other countries in individual cases where a concrete and reasoned request has been made. The Federal Council has decided to withdraw the reserve for the OECD`s model tax treaty and to begin negotiations on the revision of double taxation conventions. However, Swiss banking secrecy remains intact.
The United Kingdom has concluded a series of bilateral tax cooperation agreements through the exchange of information. On 6 October 2011, the United Kingdom and Switzerland signed and published the text of their tax agreement for UK residents with accounts in Switzerland (the “agreement”). The publication of the agreement is good news, as it provides a welcome clarification on a number of issues that (as noted in our previous Stop Press of 13 September 2011) were not clear from the previously published information. On the other hand, it also confirmed that the agreement had some important restrictions. Statistics from January to July 2010 show that imports from Switzerland amounted to 72 million euros (mainly pharmaceuticals, 91.2 million euros in the same period in 2009, while Malta`s exports increased to 9.3 million euros (mainly machinery and pharmaceuticals) compared to 5.7 million euros in the first half of 2009. The agreement will enter into force after ratification by both countries. The withholding agreement between Switzerland and the United Kingdom was denounced on 1 January 2017, with the agreement between Switzerland and the EU on the automatic exchange of tax information having entered into force on that date. For more information on this topic, please click on the links below.
EsSTVistika is responsible for the process of exempting Swiss withholding tax on the basis of an applicable double taxation agreement and may adopt general directives and decrees necessary in specific cases. In addition, EsTV will continue to be responsible for defining how to file a reclaim application, such as the designation of forms. B questionnaires and identification of evidence that applicants are required to file to confirm their economic property. HMRC has reached an agreement with the Swiss tax authorities. The agreement allows for close cooperation between the UK and Switzerland, and there is an important exchange of information between the two countries. The agreement provides for a historic tax on Swiss funds held by residents in the UK, up to 34% of the balance in an account as of 31 December 2010 or 31 December 2012. UK residents with Swiss accounts may also be subject to a WHT of up to 48% on their accounts.