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FINANCIAL NEWS
Qatar, Switzerland activate taxation deal
18 Dec 2010
(MENAFN) The Swiss Federal Tax Administration announced Friday the double taxation agreement (DTA) with Qatar is now in force.
Aside from a provision on the exchange of information in accordance with the OECD standard, the DTA includes a low withholding tax rate for dividends on substantial holding, said the division for International Affairs, at the Swiss Federal Tax Administration.
Interest and royalty payments are exempt from withholding tax, it noted.
It added that the DTA will contribute to promoting bilateral economic relations between Switzerland and Qatar. The two countries informed one another via diplomatic channels that all of the conditions and legal procedures for this DTA’s entry into force had been met. Hence, The DTA came into force, it pointed out.
The provisions of the DTA will apply to withholding tax on amounts paid or credited on or after 1 January 2011. Concerning all other taxes, the DTA will have effect for tax years starting on or after 1 January 2011. This also applies to the exchange of information.
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