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18
Apr

Switzerland and Austria sign withholding tax agreement

13.04.2012 in Bern

The tax agreement between Switzerland and Austria corresponds largely to the agreements with Germany and the United Kingdom. Under this agreement, persons resident in Austria can retrospectively tax their existing banking relationships in Switzerland either by making a one-off tax payment or by disclosing their accounts.

The rate for the flat-rate one-off payment for regularising the past is between 15% and 38% depending on the duration of the banking relationship and the amount of assets concerned.

Future investment income of Austrian bank clients in Switzerland will be subject to a withholding tax, and the proceeds of this will be transferred anonymously to the Austrian authorities by Switzerland. A single rate of 25% applies for the taxation of future investment income. This corresponds to Austria’s capital gains tax.

The agreement requires the approval of parliament in both countries, and should enter into force at the start of 2013.

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