An agreement for the avoidance of double taxation
Switzerland and the United Kingdom have signed a comprehensive double taxation agreement
. Since its entry into force, the treaty has been amended by a series of agreements and by a Protocol. The document is useful for foreign investors
from the United Kingdom in Switzerland and vice versa as it offers relief from double taxation
on certain types of income.
If you want to open a company in Switzerland and are interested in knowing more about how such bilateral agreements can influence your business, our experts can help you.
Taxes covered by the UK-Switzerland treaty
- the tax on total income;
- the tax on earned income;
- the tax on income from capital, industrial and commercial profits;
- the tax on capital gains and other types of income;
In the United Kingdom of Great Britain and Northern Ireland the taxes covered by the treaty are:
- the income tax;
- the corporation tax;
- the capital gains tax;
- the development land tax;
- the petroleum revenue tax.
The Convention will also apply on any similar or identical taxes levied in place of or in addition to the existing taxes, imposed after the signature date of the Convention.
General provisions of the Switzerland-UK treaty
The double taxation agreement between the UK and Switzerland
offers double taxation relief for a number of types of income, including: income from immovable property, business profits, income derived from shipping and air transport, dividends
, royalties, interest and capital gains, independent and dependent personal services, pensions or director’s fees.
If you produce any of these types of income, our company registration experts in Switzerland
can help you with tax compliance. Branches in Switzerland
are also influenced by the treaty with respect to the taxation of dividends. The agreement rate for the taxation of dividends is 15% or 5% of the recipient is an UK company that fulfills certain conditions.