Germany did not sign the DTA with Switzerland

29.11.2012

The upper House of Parliament of Germany did not agree to sign tax agreement with Switzerland. The German government is not sure in the provisions that were offered by the Swiss side of the agreement.

By contrast, the Swiss government has expressed its commitment to bring the negotiations to end. Swiss President emphasized that the DTA between Switzerland and Germany will help solve a number of problems, such as issues of tax-German funds in Switzerland. The solution of these problems will help to improve relations between these two countries, will ensure the legal requirements in Germany and at the same time will protect the privacy of bank customers.

The process of ratification of such agreements with the United Kingdom and Austria has already been completed, and they will come into effect from 1 January 2013. In addition, Switzerland is currently in negotiations with Italy and Greece on the same agreements. Other countries in Europe and beyond it, also show interest in such tax treaties with Switzerland.

On the basis of: http://www.admin.ch/aktuell/00089/index.html?lang=en&msg-id=46841

Expert’s opinion

«Life dictates its own rules. Throughout the century, Switzerland remains a unique country and not only because of its geographical location. It is in this alpine summit private banking and bank security were appeared, what was impossible for many businessmen in the world in their own country. For centuries not only millionaires but also the usual and ordinary citizens kept their millions in Switzerland, considering that it never failing.

Not long ago the neighboring countries with black envy looked around at it. Switzerland quietly and with the dignity remains to be the center of the Europe not becoming in the EU. It seems that nothing will break and shatter it.

But America after the crisis could not long tolerate this situation, especially since the money was not enough and Switzerland is not too far away. And Germany, France, Italy also took a piece of this prosperous country.

Nothing stands still, so Switzerland choose the path of least resistance: the signing of agreements of double taxation avoidance will allow it to maintain the status of an interesting jurisdiction for tax purposes, as well as keep bank secrecy. Germany, of course, could not fail to show his face refusing to sign the agreement. Let's see how diplomatical will be Switzerland. "

Irina Lomakina ( Director of Moscow office “Honest&Bright”)