Switzerland Adopts EU Savings Tax Mandate

By ExpatBriefing.com Editorial 20 December, 2013

The Swiss Federal Council has adopted the mandate for negotiations regarding a revision of the taxation of savings agreement with the European Union (EU). The competent parliamentary committees and the cantons were consulted on the draft mandate beforehand.

In May 2013, the ECOFIN Council (Council of EU finance ministers) instructed the European Commission to initiate negotiations on the revision of the existing taxation of savings agreement with Switzerland.

The EU's aim is to ensure that the amendment of this agreement is in line with the planned revision of the European Union Savings Directive. The revision is designed to close loopholes in order to prevent the taxation of interest income from being circumvented by using intermediary companies or certain financial instruments.

Commenting, the Swiss Federal Department of Finance (FDF) said that: "Switzerland has been willing to discuss a revision of the agreement since 2009. However, an amendment of the accord should be agreed only if, within the framework of the EU's MiFID regulatory project, a satisfactory solution is found with respect to how the regulation of third country regimes is structured for the provision of cross-border financial services."

The FDF explained: "In terms of content, the taxation of savings agreement is to be amended from a technical viewpoint, based on the existing coexistence model, i.e. retention tax with voluntary disclosure as an alternative. The precise content of the negotiation mandate is confidential."

Negotiations between the Confederation and the European Commission are due to commence at the start of 2014.

Tags: Compliance | Finance | Tax | European Commission | Tax Compliance | Tax Avoidance | Interest | Financial Services | Switzerland | Regulation | Individual Income Tax | European Union (EU) | Services | Expats | Europe | Tax | Tax Evasion |


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