Switzerland ratifies withholding tax agreements with the United Kingdom and Austria

Bern, 20.12.2012 - Yesterday, Switzerland concluded the approval process for the withholding tax agreements with the United Kingdom and Austria. The agreements will thus enter into force as planned on 1 January 2013. The Federal Act on International Withholding Tax, which governs the implementation of the withholding tax agreements, entered into force today.

Yesterday, Switzerland informed the United Kingdom and Austria that all of the prerequisites for entry into force of the withholding tax agreements concluded with those countries had been met. The referendums initiated against the agreements did not take place. The agreements will thus enter into force as planned on 1 January 2013.

The actual implementation of the tax agreements will be governed by the Federal Act on International Withholding Tax (IWTA), which contains provisions on organisation, procedure, judicial channels, criminal law provisions and domestic procedural rules for the upfront payment.

Although the withholding tax agreements with the United Kingdom and Austria will not enter into force until 1 January 2013, the IWTA entered into force already today. This will ensure that the upfront payment by Swiss paying agents set out in the agreement with the United Kingdom can be transferred to the United Kingdom by the deadline of 31 January 2013. Two additional ordinances were required for implementation of the IWTA, and these also became effective today.

Address for enquiries

Mario Tuor, Head of SIF Communications
+41 31 322 46 16, mario.tuor@sif.admin.ch