07.11.2019
On 6 November 2019 in Bern, Switzerland and Kuwait signed a protocol of amendment to the agreement for the avoidance of double taxation with respect to taxes on income and capital (DTA). The protocol improves matters for cross-border investments, enhances the dispute resolution mechanism and implements significant parts of the minimum standard for double taxation agreements.
The protocol of amendment contains new rules for the taxation of dividends, interest and capital gains. It also adds an arbitration clause to the DTA. Finally, it contains an abuse clause which refers to the main purpose of an arrangement or transaction and thus ensures that the DTA is not abused, as well as a provision on the exchange of information upon request.
The cantons and the business circles concerned have welcomed the conclusion of the protocol of amendment. It still has to be approved by the legislator in both countries before it can come into force.
Address for enquiries:
Bilateral Tax Issues and Double Taxation Treaties Section, State Secretariat for International Finance SIF
Tel. +41 58 462 71 29, dba@sif.admin.ch