Switzerland - Ireland Double Tax Treaty
Switzerland - Ireland Double Tax TreatyUpdated on Tuesday 17th January 2017
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Switzerland and Ireland signed a treaty for the avoidance of double taxation, applicable to the natural persons and legal entities of a contracting state, performing taxable activities in the other contracting state. The authorities of the two states have concluded a protocol on the existing treaty, which was signed in 1965. Irish businessmen and natural persons who will perform various taxable activities in this country can directly benefit from the effects of the new double taxation agreement (DTA) and our team of lawyers in Switzerland can offer legal assistance on the main provisions.
Taxes covered by the Switzerland- Ireland DTA
The authorities of the two states have concluded the treaty aiming at the legal framework applicable to income taxes.
In Ireland, Swiss businessmen will be imposed with the following taxes:
• the income tax;
• the capital gains tax.
In Switzerland, the taxation system is comprised of three main levels:
Thus, the taxes on income will be imposed on these three levels. At the level of Switzerland, under the regulations of the treaty, the following taxes are taken into consideration:
• taxes on income (which can refer to the total income, income deriving from capital, capital gains);
• taxes on capital.
Taxes on capital in Switzerland refer to income from movable and immovable property, company’s assets, paid up capital and parts of capital.
Our team of attorneys in Switzerland can offer more details on the manner in which such taxes are imposed to Irish tax residents.
According to the stipulations of the treaty, the taxes imposed are similar in both jurisdictions. Differences may arise due to the tax legislation available in each country. However, when new tax regulations concerning the taxes under the treaty are imposed in a contracting state, the authorities are obliged to announce the other parties on the changes.
Residency under the Swiss – Irish DTA
Under the stipulations of the treaty, the residency of a party (natural person or legal entity) refers to a person who is liable for taxation in one of the states. Tax residency is determined in accordance with the domicile of the person, residency, or place of management (in case of a company).
Persons interested in finding out further information on the stipulations of the Swiss – Irish double taxation treaty are invited to contact our law firm in Switzerland.