Some income, such as dividends, interest and licences, benefit from reduced rates under the Double Taxation Agreement between Singapore and Switzerland. These sentences apply as follows: the protocol has become 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. Specific provisions apply to stable establishments, such as subsidiaries or branches, registered by Singapore and Swiss companies abroad. Our Singaporean business start-up agents inform you of the prevention of double taxation under the swiss contract. In countries with which Switzerland has no DTT, taxes levied on income and wealth cannot be credited with Swiss taxes and the underlying income or assets are not exempt from Swiss tax. However, the taxpayer can claim an irrecreative foreign tax deduction. Switzerland and Singapore signed their first double taxation agreement (DBA) in 1975 and renewed it in early 2011. The new Swiss double taxation agreement with Singapore contains provisions to avoid double taxation of income tax.
The new agreement was ratified in 2012 and implemented in early 2013. The agreement applies to Singapore businesses as well as Swiss businesses and citizens. Switzerland currently has a network of social security agreements with more than 30 countries. Switzerland has also concluded a bilateral agreement with the European Union that covers all 27 EU countries and more or less adapts the rules in force in the European Union. There is a similar agreement with the EFTA countries. Whether or not a social security contract is applicable is often related to the nationality of the individual. If necessary, affected workers can normally remain (for a limited time) in the social security system of the country of origin and are exempt from the host country`s scheme. Switzerland has also signed tax information agreements with ten countries to exchange tax information between Switzerland and the countries concerned. The new Singapore-Switzerland double taxation agreement covers the following taxes: taking into account all these aspects, it is important to take advantage of the double taxation agreements between Switzerland and its partners – countries – as they offer a great opportunity for companies to avoid excessive taxes or double taxation for their profits. The Double Taxation Convention covers all income taxes collected by the federal state and the municipalities of the two contracting states.
Income taxes in Singapore or Switzerland, subject to the DBA, are levied on total income or other income, such as capital gains tax or wealth tax. On 13 March 2009, the Federal Council announced its intention to introduce OECD standards for mutual tax assistance, in accordance with Article 26 of the OECD Model Tax Convention.