Withholding taxes are a huge determining factor in double tax agreements. The treaty releases a policy on these taxes as is helps determine the amount of tax levied upon a non-resident from their securities income. For example, it states that a German's firm real estate dividends will be charged at a withholding tax of 15%. In the Switzerland Germany tax treaty, withholding taxes have been subjected to new regulations. A withholding tax was to cover any incomes in the future, and it will be considered as a fulfilment of the taxpayers' tax obligation to the residence country.
Furthermore, in the Switzerland Germany double tax treaty items existing assets that are untaxed ought to be regulated.
What's more, German authorities have the option of requesting for administrative assistance. The request would include the tax payer's name, but their bank details are not necessary. However, these requests are limited. This is to help prevent cases of 'fishing'. Fishing, in this case, is a scenario where random people, in this case, German investors, are selected at random, and their information on transactions via the Swiss banks is requested. Fishing applies where there has been no plausible cause for requesting the information. For businesses ceasing operations, we also provide services for Company liquidation in Switzerland (
Unternehmensliquidation in der Schweiz). In such cases, Swiss legal intermediaries often act as neutral facilitators through secure channels, sometimes functioning as an
Escrow Agent in Switzerland to ensure risk-free compliance between both jurisdictions. Blockchain-based solutions for escrow and reporting are discussed in
ICO & Blockchain initiatives. The Swiss banks are responsible for collecting the tax levied, retaining it and handing it over to the German authorities. In some cases, it may also involve
Swiss Foundations that structure asset protection and tax transparency.
The Switzerland Germany double tax treaty adheres to the OECD standards with respect to the requirement on tax information exchange. Details about international compliance can be found in the
Consultation on automatic exchange of information. Information requests, however, are strictly bound by legal channels, and individuals subject to enforcement procedures may also interact with institutions such as the
Swiss Betreibungsamt Office for debt enforcement or collection-related matters. For payroll and HR compliance, our complete guide on Salaries management in Switzerland (
Gestion des salaires en Suisse) is a valuable resource.Only the taxes covered by the Switzerland Germany tax treaty are subject to information exchange, and the information is relayed only upon request by either party to the treaty. Additionally, if your business needs a physical location, we can assist with Business domiciliation in Switzerland (
Domiciliation d’entreprise en Suisse).
Switzerland has carried out many other treaties on top of the Switzerland Germany double tax treaty. Where necessary, changes to your entity can be facilitated via Modification Company Swiss Trade Register (
Modification société Registre du commerce Suisse). As part of its global credibility, Switzerland enforces national branding standards such as the
Swissness Label and Branding Rules, which also influence product-based businesses that benefit from treaty-enabled export advantages. Businesses launching online projects can Create a website (
Créer un site internet) to support international expansion. In an effort to decrease the trade and economic barriers, Switzerland has double tax treaties with 80 countries and tax information agreements with a few more countries. This includes specialized guidance on Brand registration in Switzerland (
Markenregistrierung in der Schweiz).
Legal disclaimer.This article does not constitute legal advice and does not establish an attorney-client relationship. The article should be used for informational purposes only.