Switzerland
A. Progress in the implementation of the minimum standard
Switzerland has 108 tax agreements in force as reported in its response to the Peer Review questionnaire. Twenty of those agreements comply with the minimum standard.
Switzerland signed the MLI in 2017 and deposited its instrument of ratification on 29 August 2019. The MLI entered into force for Switzerland on 1 December 2019. The agreements modified by the MLI come into compliance with the minimum standard once the provisions of the MLI take effect. Switzerland has listed twelve of its agreements under the MLI and indicated in its response to the Peer Review questionnaire that it would only list an agreement under the MLI if it agrees with its treaty partner on how the MLI modifies their agreement. Switzerland considers that the MLI amends a covered tax agreement like an amending protocol. An agreement with the other contracting jurisdiction on the precise wording of the amendments to the corresponding tax agreement through the MLI is therefore a requirement for Switzerland to include a tax agreement under the MLI.
Switzerland reserved the right to delay the entry into effect of the provisions of the MLI until Switzerland has completed its internal procedures for this purpose with respect to each of its listed agreements.1 Switzerland notified that it completed its internal procedures for the entry into effect of the MLI with respect to its agreements with Luxembourg on 27 May 2020 and with respect to its agreements with the Czech Republic and Lithuania on 18 December 2020.
Switzerland has not listed its agreements with Albania, Antigua and Barbuda, Armenia, Australia, Barbados, Belarus, Belgium, Belize, British Virgin Islands, Bulgaria, Canada, China (People's Republic of), Colombia, Côte d’Ivoire, Croatia, Denmark, Dominica, Egypt, Estonia, Finland, France, Georgia, Germany, Greece, Grenada, Hong Kong (China), Hungary, India, Indonesia, Israel, Jamaica, Japan, Kazakhstan, Korea, Liechtenstein, Malaysia, Malta, Mongolia, Montenegro, Montserrat, Morocco, North Macedonia, Oman, Pakistan, Peru, Poland, Qatar, Romania, Russia, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Serbia, Singapore, Slovak Republic, Slovenia, Spain, Sri Lanka, Thailand, Tunisia, United Arab Emirates, Uruguay and Viet Nam. These agreements will therefore not, at this stage, be modified under the MLI. Albania, Armenia, Australia, Barbados, Belize, China (People's Republic of), Colombia, Croatia, Egypt, Finland, France, Greece, Hong Kong (China), Hungary, India, Indonesia, Jamaica, Kazakhstan, Malaysia, Morocco, Oman, Pakistan, Peru, Poland, Romania, Serbia, Singapore, Slovak Republic, Slovenia, Spain, Tunisia, United Arab Emirates and Uruguay have listed their agreement with Switzerland under the MLI.
Switzerland has signed a bilateral complying instrument with respect to its agreements with Armenia, Iran*, Japan, Kuwait* and North Macedonia.
Switzerland indicated in its response to the Peer Review questionnaire that steps have been taken (other than under the MLI) to implement the minimum standard in its agreements with Albania, Algeria*, Australia, Austria, Bangladesh*, Belarus, Belgium, Bulgaria, Canada, China (People’s Republic of), Colombia, Côte d’Ivoire, Croatia, Denmark, Egypt, Estonia, Finland, France, Georgia, Germany, Greece, Hong Kong (China), Hungary, India, Indonesia, Israel, Jamaica, Kazakhstan, Kyrgyzstan*, Malaysia, Mongolia, Montenegro, Morocco, Oman, Pakistan, Peru, Philippines*, Poland, Qatar, Romania, Russia, Serbia, Singapore, the Slovak Republic, Slovenia, Spain, Sri Lanka, Tajikistan*, Thailand, Trinidad and Tobago, Tunisia, the United Arab Emirates, the United States, Uruguay and Viet Nam.
Switzerland further indicated in its response to the Peer Review questionnaire that the agreements with Antigua and Barbuda, Azerbaijan*, Barbados, Belize, British Virgin Islands, Chinese Taipei*, Dominica, Ecuador*, Gambia*, Ghana*, Grenada, Malawi*, Moldova*, Montserrat, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Turkmenistan*, Uzbekistan* and Venezuela* do not give rise to material treaty-shopping concerns for Switzerland.
Switzerland is implementing the minimum standard through the inclusion of the preamble statement and the PPT.2
In their responses to the Peer Review Questionnaire, Saint Kitts and Nevis, Saint Lucia and Saint Vincent and the Grenadines indicated that their agreements with Switzerland did not give rise to material treaty shopping concerns for their respective jurisdictions.
B. Conclusion
Albania, Australia, Barbados, Belize, China (People's Republic of), Colombia, Croatia, Egypt, Finland, France, Greece, Hong Kong (China), Hungary, India, Indonesia, Kazakhstan, Malaysia, Morocco, Oman, Pakistan, Peru, Poland, Romania, Serbia, Singapore, Slovak Republic, Slovenia, Spain, Tunisia, United Arab Emirates and Uruguay have listed their agreements with Switzerland under the MLI, which amount to requests to implement the minimum standard.
Switzerland is encouraged to complete and notify its internal procedures for the entry into effect of the MLI with respect to its agreements that are covered tax agreements under the MLI and for which no such notification has yet been made.