The OECD`s Multilateral Convention on the Implementation of Measures to Prevent Erosion and Profit Transfer (“Multilateral Instrument” or “MLI”) of the OECD came into force in the United Kingdom on 1 October 2018 and will have a fundamental influence on how taxpayers have access to the double taxation (DT) conventions to which they apply. It began from 1 January 2019 (z.B with regard to WHT) for the UK DT, with the territories also ratified before 1 October 2018, in which these are tax treaties. The specific dates on which the MLI takes effect for other purposes or for other TDAs depend on when other contracting parties submit their ratification instruments to the OECD and the options and reservations they have submitted. In Switzerland, there is no interest-rate WHT from regular loan contracts. Swiss WHT of 35% is levied only on interest paid by banking institutions (or by companies that are tax-qualified as “banks”) to non-banks, interest on bonds and interest on bond-like loans. The residual rates in the table below indicate standard contract rates and do not reflect other facilities available in some TDS (. B, for example, for traded bonds or other traded securities). The protocol became necessary to appease the European Commission, which had considered that the agreement could be contrary to the European Treaty. By threatening to refer the matter to the European Court of Justice, the United Kingdom and Switzerland have agreed that account holders who have already paid the 35% withholding tax due under the European Savings Tax will be subject to a final withholding tax of 13% in order to reduce the tax debt on interest payments. To learn more about Swiss withholding tax, see www.gov.co.uk The UK has concluded a series of bilateral tax cooperation agreements through the exchange of information. Double taxation refers to the fact that two countries tax taxes on the same item.
This can happen when companies or individuals reside in different countries or when they receive income from another country. The agreements reduce double taxation and thus help to overcome obstacles to cross-border economic transactions. In addition, they govern mutual tax assistance. I have noticed that the dividends paid on my holdings in Swiss companies have been subject to a tax rate of 35% of the gross dividend. In addition, I will suffer another tax debt on this income in the United Kingdom. It looks very high. Is there anything I can do to reduce the amount of taxes I pay? If you would like to discuss VAT upstream, please send an email firstname.lastname@example.org to agree on a call with a tax specialist who will guide you through what we need to submit the corresponding claims. The UK has mutual agreements with a number of countries on the EU Directive on the taxation of savings income in the form of interest. The United Kingdom has also concluded a number of non-reciprocal agreements on the European Savings Tax Directive. In October 2010, an agreement was signed to begin negotiations for an agreement to tax unreported British accounts in Switzerland and other information regarding tax and banking information shared between the two states.