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Switzerland-UK Double Tax Treaty

Switzerland-UK Double Tax Treaty

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 taxes for which the Agreement applies in case of Switzerland are the federal, cantonal and communal taxes on income:

– 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. In case you need an accountant in Switzerland for your business, our team is ready to assist you.

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. 

For more information about the taxation laws or if you want to open a company in Switzerland you can contact our Swiss company formation experts.