BERN: The European Union (EU) and Switzerland will automatically exchange information on the financial accounts of each other’s residents from 2018, under a new tax transparency agreement signed on May 27, 2015.
The agreement was signed by EU Tax Commissioner Pierre Moscovici, Latvian Finance Minister Janis Reirs (on behalf of the Latvian Presidency of the EU Council), and Jacques de Watteveille, the Swiss Secretary for International Finance Matters. It will replace the EU-Switzerland taxation of savings agreement that has been in force since 2005. It includes the existing withholding tax exemption for cross-border payments of dividends, interest, and royalties between related entities.
Under the deal, the parties will receive, on an annual basis, the names, addresses, tax identification numbers, and dates of birth of their residents with accounts in contracting states, along with other financial and account balance information. The agreement is expected to enter into force on January 1, 2017. Switzerland and the 28 EU member states intend to collect account data from 2017.
Moscovici said: “Today’s agreement heralds a new era of tax transparency and cooperation between the EU and Switzerland. It is another blow against tax evaders, and another leap towards fairer taxation in Europe. The EU led the way on the automatic exchange of information in the hope that our international partners would follow. This agreement is proof of what EU ambition and determination can achieve.”
