Italy and Switzerland have signed their first double taxation treaty in 1979. The convention was reviewed at the beginning of 2015, when new provisions were added. Among these, the Italian and the Swiss Finance Ministers agreed upon new provisions on the exchange of tax information, in order to remove Switzerland from Italy’s blacklist of tax havens. The agreement is considered to improve significantly trade relations between Italy and Switzerland.
The new double taxation agreement between Italy and Switzerland was amended with the following clauses:
At a later stage, Italy and Switzerland have planned to agree upon the reduction of tax rates on dividends and interest payments. A new arbitration clause will also be included in the double taxation treaty.
Our Italian lawyers will provide you with more information about the new amendments brought to the double taxation treaty with Switzerland.
The current double tax treaty between Italy and Switzerland covers the following taxes:
Swiss and Italian companies will be taxed only in their resident countries, according to the Italy-Switzerland double tax agreement. Dividends will be taxed in the country where they are received and according to that country’s legislation at a 15% tax rate on the gross amount of the dividends.
Interests will be taxed at a maximum rate of 12.5% on the gross amount of the interest. Royalties will be taxed at a maximum rate of 5% on the gross amount.
For complete information about the applicable tax rates under the tax agreement with Switzerland, please contact our law firm in Italy.
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