Austria and Switzerland signed the tax agreement

17.04.2012

The president of the Swiss confederation and the federal Minister of Finance of Austria signed the agreement regarding regulation of income tax. Positions are directed on permission of a question of not declared accounts opened by resident citizens of Austria in the territory of Switzerland, at preservation of traditional Swiss bank secret.

This document contains provisions according to which residents of Austria have the right to declare the foreign account in local tax authorities and, respectively, to pay taxes, or to keep confidentiality, but having paid a tax.  

The rate of future tax within the signed agreement will vary between 15 % and 38 % depending on duration of relationship with banking institutions and the sums of the means placed on their accounts. The uniform rate 25 % will be applied to future accumulation and profit.

It is supposed that this agreement will be ratified soon and will come into force already in 2013. 

Expert’s opinion

«Agreement operation between Austria and Switzerland is created on the basis of model of similar contracts earlier already concluded by Switzerland with Great Britain and Germany. Clearly, Austria wasn't original after America, France and Germany, it wished to receive all hidden income of the taxpayers. According to the government on accounts of Switzerland there is not less than 20 billion euros hidden from the taxation.»

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Andrianova Irina ( the leading lawyer of legal support and banking consulting department of Honest & Bright )