Switzerland-UK Double Tax Treaty

Switzerland and Great Britain have concluded a double tax treaty to provide relief from double taxation. Find our how it influences investments from this article.
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An agreement for the avoidance of double taxation

The United Kingdom and Switzerland have a double taxation agreement in legislation in both countries which creates a comprehensive list of double taxation exemptions for individuals and businesses. There have been a number of additions and revisions since its first introduction into law. This document should be looked over by all individuals planning on developing a business in Switzerland.

If you're planning on establishing a Swiss business, it would be a good idea to look at the document or speak to an expert on the Swiss-UK double taxation treaty.

Taxes covered by the UK-Switzerland treaty

There is a range of taxes in which the agreement covers and looks to eradicate double taxation on, which are on all levels – federal, cantonal and communal taxes.

  • the tax on total income;
  • the tax on earned income;
  • the tax on income from capital, industrial and commercial profits;
  • the tax on capital gains and other types of income;
There are taxes also covered in the treaty inside Ireland and Great Britain, which are:

  • the income tax;
  • the corporation tax;
  • the capital gains tax;
  • the development land tax;
  • the petroleum revenue tax.
The treaty is also applied to taxes which are not listed in the Convention or were added after signing, only in the event that they are similar to existing taxes in the Convention.

Check more about taxes types in Switzerland.

General provisions of the Switzerland-UK treaty

In general, the taxation agreement signed by the UK and Switzerland provides a double tax relief to a range of different types of income as well as businesses. The types of income which are exempt from double taxation across both treaty countries include; property income, profits from business, income provided by shipping and air transport, dividends, royalties, interest as well as capital gains and personal services and pensions along with directors fees.

All of the incomes above are able to be exempt from double taxation. Our business consultants are able to assist with more information on this. There are also additional benefits for branches in Switzerland which are able to reduce dividend tax from 15% to 5% if the recipient is a UK based business that is meeting certain requirements.

We have more information on Swiss investments, tax and other information available on our website. For further information or assistance, feel free to contact one of our consultants.