Switzerland Adopts Mandate For Tax Talks With Italy

By ExpatBriefing.com Editorial 03 September, 2012

During a recent sitting, the Swiss Federal Council adopted a mandate pertaining to fiscal and financial negotiations with Italy.

According to the Swiss Federal Department of Finance (FDF), the text sets out the essential points on which the negotiations are to be based. The aim is to pursue the Federal Council’s strategy designed to ensure a competitive and tax compliant financial centre, as well as to consolidate bilateral economic relations with Italy.

On May 9, 2012, Switzerland and Italy resumed bilateral dialogue in the area of financial and fiscal matters. The parties concerned underlined their determination to address five key issues, namely the regularization of Italian residents’ assets held in the Confederation, as well as the taxation at source of future income from capital, market access, the revision of the existing bilateral double taxation agreement (DTA) between the two countries, Italy’s “black lists”, and the taxation of cross-border workers.

A bilateral steering group was set up to lead these negotiations.

Swiss President Eveline Widmer-Schlumpf and Italian Prime Minister Mario Monti have held two meetings, the first on June 12 in Rome and the second on August 17 in Silvaplana. During the course of the meetings, both leaders expressed their commitment to making swift progress on the negotiations, requesting that the steering group present its concrete proposals by the end of the autumn.

The Swiss Federal Council has also recently adopted a mandate for negotiations with the United States on a framework agreement on simplified implementation of the Foreign Account Tax Compliance Act (FATCA). The relevant Federal Assembly committees approved the mandate. Corresponding negotiations are due to commence soon.

On June 21, 2012, Switzerland and the United States published a joint declaration containing key points for possible simplifications in implementing the FATCA. The aim of the negotiations is to ensure an optimum framework for the Swiss financial industry with regard to the implementation of FATCA and strengthening of the financial centre strategy.

Tags: Expatriates | Compliance | Finance | Tax | Investment | Double Tax Agreement (DTA) | Tax Compliance | Banking | Offshore | Agreements | Offshore Banking | Banking Secrecy | Withholding Tax | Italy | Switzerland | United States |

 





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