2011-12-20 17:42:31

Taiwan-Switzerland tax agreement entered into force on December 13^th, 2011.  Switzerland agreed to exchange information on tax matters in the agreement.  Therefore, Taiwan can ask Switzerland to provide income information received by Taiwanese from Swiss banks, and vice versa.  This will assist investigation in tax evasion.  In addition, the tax that Taiwanese pay in Switzerland will be lowered because double taxation is abolished under the tax agreement.  Because the agreement abolishes double-taxation, Taiwanese and Swiss will both avoid double taxation.  In addition, tax on business income, dividends, interests, royalties, etc. that Taiwanese have to pay in Switzerland may also be lowered.

Tax rates and related rules under Taiwan-Switzerland tax agreement
Category	Tax rates before the agreement (%)		Tax rates under the agreement (%)
	Taiwan	Switzerland
Business income	17	11.6 - 24.4	Income tax of foreign companies with permanent establishment (PE) in the host country should be levied by the host country
Dividends	20	35	10
Interests	15 – 20	35	10
Royalties	20	35	10
Sea-air transportation	17	11.6 – 24.4	Tax free