Switzerland and China Sign New Double Taxation Agreement

by swisscham in Bilateral Relations

On 25 September, Switzerland and China signed a new double taxation agreement (DTA) in the area of taxes on income and assets in Beijing. It replaces the agreement applicable since 1991 and contains provisions on the exchange of information in accordance with the currently applicable international standard. The new DTA will contribute to the further positive development of bilateral economic relations between Switzerland and China, which is a member of the G20. Aside from an OECD administrative assistance clause, Switzerland and China have agreed to reduce the maximum rate of withholding tax on dividends from 10% to 5% if the company receiving the dividends holds a stake of at least 25% in the distributing company. The withholding tax rate for royalties has been lowered from 10% to 9%. Furthermore, China will not be entitled to levy any business tax or any value added tax on international transport services provided by Swiss shipping companies and airlines.

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