Switzerland Signs Double Tax Agreement With Qatar

10-06-2009 | Source: International Tax Review Week

Switzerland has signed a double tax treaty with Qatar, bringing its total number of tax treaties to 12, taking it off the OECD's grey list of partially-compliant jurisdictions.

The new treaty contains provisions including a zero rate of dividends payments from a Swiss company to a Qatar institution, a 5% withholding tax for participations above 10% and a zero rate of withholding tax on interest payments and royalties.

Switzerland has stepped up its pace of negotiation of double tax treaties since March, when the G20 countries signaled their intent to get tough with who they described as non-cooperative jurisdictions, and have so far concluded agreements with Denmark, Luxembourg, France, Norway, Austria, UK, Mexico, Finland, Faroe Islands, US and Spain.

Despite signing these agreements, Switzerland is still under pressure from EU member states which are looking to secure an automatic exchange of tax information with the country.

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