February' 2015 | Archive | Blog
Switzerland has concluded negotiations for a new double taxation agreement with Liechtenstein that should be enabled at the beginning of 2017. The Swiss Federal Department of Finance announced the end of discussions at the beginning of February and the agreement should be signed this summer. Based on all national approval procedures in both states, the agreement should be enforced at the beginning of 2017.
The Federal Department of Finance released a new report based on which Switzerland still faces many challenges regarding its domestic taxation system. There are also international regulations the country must abide by. The FDF’s annual report on international tax policy and financial market regulation has been approved by the Swiss Federal Council. The FDF report also presents Switzerland’s commitment in the activities of international financial authorities. The Federal Council announced two parallel consultations regarding the automatic system for exchange of tax information that will be enabled in 2018. Discussions will take place until the 21st of April.
Zug is the smallest canton in Switzerland, but it is also the best canton to invest in. The advantages this canton offers are its geographic position right in the heart of Europe, the low taxes applied to companies and political stability. Zug canton is also a very business-friendly region. It is currently the most economically powerful canton in Switzerland, registering an average annual growth of 4%. The canton’s success lies mostly within the tax optimization solutions provided by the local authorities for companies.
Switzerland has decided to cooperate with India on tax exchange information at the beginning of the year. Switzerland’s Finance Minister, Eveline Widmer-Schlumpf has made the information public at the World Economic Forum in Davos when she met the Indian Minister of Finance, Arun Jaitley. The Swiss Minister of Finance also said Switzerland will automatize its exchange information system. As a response, Mr. Arun Jaitley said that India is gathering information and evidence about Swiss bank accounts that will be forwarded to the Swiss authorities in the negotiation process for tax exchange information.