Federal Council adopts dispatch on double taxation agreement with Italy

Bern, 12.08.2015 - Today, the Federal Council adopted the dispatch concerning a protocol of amendment to the double taxation agreement with Italy for the attention of Parliament. The protocol of amendment supplements the agreement of 1976 and contains provisions on the exchange of information upon request in accordance with the internationally applicable standard.

On 23 February 2015, Switzerland and Italy signed a protocol of amendment to the agreement between the two countries for the avoidance of double taxation, as well as a roadmap in the area of taxation and finance.

The protocol of amendment to the double taxation agreement contains a provision on the exchange of information in accordance with Article 26 of the OECD Model Convention. During the consultation, the cantons and interested business circles generally welcomed the conclusion of the protocol of amendment. The federal decree on the approval of the protocol of amendment is subject to an optional referendum.

This protocol of amendment implements the new policy decided by the Federal Council on 13 March 2009 with regard to the exchange of tax-related information. It will support bilateral economic relations and their further expansion, as well as facilitate the regularisation of Swiss banks' Italian clients under Italy's voluntary disclosure programme.

The protocol of amendment is in line with the applicable international standard for the exchange of information upon request. To date, Switzerland has signed 52 double taxation agreements that are in line with this standard; 41 of them are in force.

Work is currently under way on the implementation and detailed specification of the roadmap that was also signed with Italy on 23 February 2015. This deals primarily with issues concerning the taxation of cross-border commuters and market access.