BASEL: Switzerland and Argentina signed a joint declaration on the introduction of automatic exchange of information (AEOI) in tax matters on a reciprocal basis.
The aim of the declaration is to introduce, on a reciprocal basis, automatic exchange of financial account information in tax matters based on the OECD Common Reporting Standard and the Commentaries thereon beginning 2018, with the first transmission of data in 2019.
With the signing of the joint declaration with Argentina, Switzerland has affirmed its commitment to implement the AEOI standard in the international environment. In fact, Switzerland is strengthening its network of AEOI partner states.
Switzerland decided to sign the joint declaration with Argentina because Argentina meets high standards in terms of adherence to the principle of speciality and the safeguarding of the confidentiality of the data delivered, which are prerequisites for the introduction of the AEOI.
The AEOI will be grounded on the international standard for the exchange of information developed by the OECD included in the Multilateral Competent Authority Agreement on the Automatic Exchange of Financial Account Information (MCAA).
Furthermore, the signing of the AEOI has accompanied negotiations on the framework conditions for Swiss investment and market access in Argentina for financial services as well as the basic principles of Swiss financial market policy.
In the joint declaration it is stated that “Both jurisdictions recognise the importance and potential benefits of cross-border investment and financial services. They will thus strive to facilitate and improve the conditions for providing financial services between their jurisdictions and strengthen their cooperation on financial sector issues through regular dialogue.”
Considering that Argentina will take over the G20 presidency in 2018, Swiss State Secretary for International Finance Matters Jörg Gasser’s visit to Argentina has also been an opportunity to discuss the framework conditions for investments, structural reforms in Argentina, market access for financial service providers, the viewpoint of international financial bodies, and the possibility for structural reform.
The Swiss Federal Department of Finance is required by the Federal Council to conduct a consultation for the introduction of the AEOI with Argentina. Thereafter, corresponding federal decrees will be submitted to Parliament for approval.
