Switzerland and Portugal signed revised double taxation agreement

26.06.2012 On 25th of June, 2012 the Governments of Portugal and Switzerland have signed an updated double taxation agreement, under which the withholding tax on dividends, interest and royalties will be zero.

According to new provisions withholding tax of will be no more than 15% on gross dividend amounts. If, however, a company holds a stake of at least 25% in the capital of the distributing company for at least two years, the dividends will be exempt from withholding tax.

From 1 July 2013 the taxation of savings income for interest and royalty payments: interest and royalties paid amongst associated enterprises (stakes of 25% held for at least two years) will benefit from a withholding tax rate of zero.
OECD standards are reflected in the new tax information exchange between countries.

Expert’s opinion

Portugal has not the most successful and developed economy. This signed agreement will attract capital from Switzerland to Portugal with more favorable terms. It will give an impetus to the arrival of capital from around the world to Portugal, via Swiss bank accounts and companies with a minimum expenditure on taxes.

Thus, capital of the regulated economy with a high level of business taxation and / or corruption will flow into the civilized Switzerland and then to the Atlantic coast in Portugal.

Take advantage of the agreements on avoidance of double taxation!

Our specialists know when, where, and how to apply these benefits.

On the basis: www.admin.ch

Lomakin Yaroslav ( Managing Partner of Honest & Bright Company Ltd)