Switzerland, Estonia Agree Double Tax Pact Change
by Ulrika Lomas, Lowtax.net, Brussels
02 September, 2014
Switzerland and Estonia have signed a protocol to their double taxation agreement (DTA) to cut withholding tax rates and provide for the exchange of information on request.
The protocol places a maximum tax withholding tax rate on dividends of ten percent. The dividend income will not be taxed at source if the recipient has owned at least ten percent of the capital of the company that is making the distribution for at least one year. There will be no withholding tax on dividends paid to the national banks of each country or to pension funds, and interest and royalty payments will no longer be subject to withholding tax.
The exchange of information provisions have been brought into line with international standards, and the protocol also contains an administrative assistance clause.
Swiss cantons and business organizations have approved the amendment. Both countries' parliaments must complete their domestic ratification procedures before the text can enter into force.
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