Double taxation agreement with Qatar in force

Bern, 17.12.2010 - The double taxation agreement (DTA) between Switzerland and Qatar is now in force. Aside from a provision on the exchange of information in accordance with the OECD standard, the DTA includes a low withholding tax rate for dividends on substantial holdings. Interest and royalty payments are exempt from withholding tax. The DTA will contribute to promoting bilateral economic relations.

Switzerland and Qatar informed one another via diplomatic channels that all of the conditions and legal procedures for this DTA's entry into force had been met. The DTA thus came into force. The provisions of the DTA will apply to withholding tax on amounts paid or credited on or after 1 January 2011. Concerning all other taxes, the DTA will have effect for tax years starting on or after 1 January 2011. This also applies to the exchange of information.

The DTA specifies that dividends on stakes of 10% or more can be taxed at a maximum of 5% in the source state. Dividend payments made by a company to the state or state institutions and pension funds cannot be taxed in the source state. Interest and royalty payments are exempt from withholding tax.

The DTA with Qatar was signed in New York on 24 September 2009 and was approved by parliament on 18 June 2010. The referendum deadline expired unused on 7 October 2010.

Address for enquiries

Alexandra Storckmeijer Sansonetti, Division for International Affairs, Federal Tax Administration, tel. 031 322 85 74


Federal Department of Finance