Bern, Switzerland (GenevaLunch) – Switzerland and the United States “initialed” a revised double taxation agreement (DTA) in Washington, DC 18 June. According to the US government, “Official signing of the protocol is expected in the next few months.” A new agreement was necessary following the Swiss government’s decision 13 March to adopt the OECD’s (Organisation for Economic Co-operation and Development) Model Convention standard under which countries provide each other with tax assistance.
The decision followed pressure on Switzerland from other OECD member countries to ease its strict banking secrecy laws. The OECD has told Switzerland it must have 12 new bilateral tax agreements in place by the end of 2009 if it does not want to appear on a “gray list” of countries that are considered non-compliant.
