Double Taxation Agreement Germany Switzerland

Among the main provisions of the double taxation convention is the new exemption threshold for the distribution of dividends, which has been reduced from 20% to 10%, which means that a beneficiary must hold at least 10% of the voting rights within a German or Swiss company that distributes the dividends to benefit from the tax exemption. At the end of 2011, Switzerland and Germany revised and updated an existing double taxation agreement. One of the main provisions of the new tax treaty is that there is a new threshold for the distribution of tax-exempt dividends. The threshold has been lowered from 20% to 10%, which means that the dividend beneficiary must have at least 10% of voting rights in a German or Swiss company that distributes the dividends and can therefore benefit from a tax exemption. It is important to note that the dividend recipient must hold at least 10% of the stake in a German or Swiss company for an uninterrupted period of at least 12 months to qualify for the tax exemption. Thus, double taxation conventions can be defined as the wish of States to clarify, standardize and confirm the tax situation of taxable persons engaged in commercial, industrial, financial or other activities in other countries, applying a uniform solution in identical cases of double taxation in States that are signatories to double taxation conventions. These deductions can be obtained in Switzerland in the form of tax credits. On this page you will find information on German double taxation conventions and other country-by-country publications on double taxation conventions. The original texts can be viewed via our German website. As regards capital income, the revised double taxation agreement provides for a flat-rate withholding tax of 26.375% corresponding to the flat-rate withholding tax for capital and capital income in Germany.

In this situation, Swiss banks are also responsible for withholding tax and transferring money to Germany. .