Switzerland and Japan sign protocol of amendment to double taxation agreement

On 16 July 2021 in Bern, Switzerland and Japan signed a protocol amending the double taxation agreement (DTA) on income tax. This protocol implements the minimum standards for double taxation agreements.

This protocol implements the minimum standards of the BEPS project for DTAs. Specifically, the protocol of amendment contains an anti-abuse clause which refers to the main purpose of an arrangement or transaction and thus ensures that the DTA is not abused. It also supplements the provision on the mutual agreement procedure in accordance with the minimum standard and introduces the arbitration procedure.

In addition, the protocol standardises the exemptions provided for in the source state for dividends in the case of qualified participations (exempt as soon as the stake in a company reaches the 10% threshold) and interest (exempt, except where it is defined with reference to receipts, sales or profits).

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.

 

Last modification 16.07.2021

Top of page

https://www.sif.admin.ch/content/sif/en/home/dokumentation/fachinformationen/schweiz_japan_dba.html