Switzerland signs an agreement on the exchange of information on tax matters with Brazil
Bern, 24.11.2015 – On 23 November 2015, Switzerland and Brazil signed in Brasilia an agreement on the exchange of information on tax matters (“Tax Information Exchange Agreement” TIEA). The Agreement with Brazil is the tenth TIEA signed by Switzerland.
The agreement deepens the bilateral relations between Switzerland and Brazil. Switzerland will also be eliminated from the Brazilian blacklist of countries that have an exchange of tax information insufficient, providing Swiss companies active in Brazil increased legal certainty and security regarding investments. The TIEA regulates the exchange of information on tax matters in question. The Swiss authorities and Brazilian aspire to a further deepening of cooperation in tax matters, which will also include the conclusion of provisions to avoid double taxation.
Before entering into force, the TIEA must be approved by Parliament and submitted to a referendum. On the occasion of the hearings conducted after the conclusion of the negotiations, the cantons and other interested business globally we have spoken in favor of the text.
April 4, 2012, the Federal Council has decided to resume the international standard regarding administrative assistance not only in the conventions for the avoidance of double taxation (DTA) but also in the TIEA. DTAs and TIEAs are equivalents to agree on an administrative assistance clause in compliance with the international standard. Unlike the CDI, which are primarily designed to avoid double taxation and thus contain other provisions in this regard, the TIEA merely regulate the exchange of information on request.
