Switzerland’s Tax Cooperation Agreements With the U.K. and Germany - Regularizing the Past
In September and October 2011, Switzerland concluded bilateral agreements with Germany and the U.K. to enforce the Federal Council’s ‘‘white money strategy.’’ So far, the treaties intend to ensure that in the future only tax-compliant assets are invested in Switzerland and that German and U.K. citizens’ assets stashed in Swiss bank accounts are handled properly.
Under these agreements, individuals resident in Germany or the U.K. can retrospectively tax their existing banking relationships in Switzerland either by making a one-off tax payment or by disclosing their accounts. Further, future investment income and capital gains of a German or a U.K. bank account holder in Switzerland will be subject to a final withholding tax, and proceeds of this will be transferred to the competent authorities of the contracting states. Also, mutual market access for financial services will be improved. (...)