Green light for the entry into force of the DTA between Switzerland and Argentina
Bern, 10.29.2015 – The double taxation agreement (DTA) in the area of taxes on income and on capital between Switzerland and Argentina is on 27 November 2015 to enter into force after the ratification procedures in Switzerland has been completed. It will replace the agreement of 1997 and corresponds to the current international standard for the exchange of information.
National Council President Stéphane Rossini has presented on Wednesday, October 28, 2015 in Buenos Aires a diplomatic note in which shall be notified that the internal procedures in Switzerland have been completed. According to contract will come into force between the two countries within 30 days of receipt of the later of the two notifications the DBA. In the present case, this means within 30 days after the delivery of the diplomatic note.
The new agreement ends the contract-free state between Switzerland and the G20 member Argentina, and for taxpayers is again legal certainty. 2012 Argentina had terminated the previously provisionally applied by both countries agreement in 1997. Switzerland and Argentina have the new DBA signed in Bern on 20 March 2014th In Switzerland, it was adopted by the Federal Assembly in June 2015th The referendum deadline of 100 days has elapsed unused. In Argentina, the ratification procedures have been completed.
The new agreement aims at avoiding the double taxation with respect to taxes on income and on capital in particular dividends, interest and royalties. It accepts most provisions of the previous agreement and meets the latest international standard for information exchange on request. The new agreement will be effective from 1 January 2016 with the exception of withholding taxes, for which come under the agreement already in 2015 relief on the application.
At the same time strengthens the new DBA the good economic relations between Switzerland and Argentina. Switzerland is ranked the rank 8 as an investor. About 70 Swiss companies with a total of around 25,000 employees operating in Argentina.
Switzerland has so far 53 DBA and 9 Tax Information Exchange Agreement (TIEA) signed that meet international standard in terms of exchange of information; of these 42 DBA (incl. DTA with Argentina) and 7 TIEA into force.
