Swiss Gov’t Agrees Double Tax Avoidance Deal With Kosovo

The Swiss Federal Council has adopted a dispatch on the implementation of a new double tax agreement (DTA) with Kosovo.

The agreement was signed in May. A previous DTA was in force until 2011.

The DTA caps the maximum withholding tax rate for dividends being taxed at source at 15 percent, with a reduced five percent rate applicable in certain circumstances. Royalties will be taxed only in the beneficial owner’s state of residence.

According to the Federal Council, the DTA “takes account of the developments from the OECD’s BEPS project.” In particular, it includes an abuse clause and an arbitration clause.

The DTA also includes an administrative assistance clause in accordance with the international standard for the exchange of information upon request.

The agreement must now be ratified by the Swiss Parliament.