Switzerland Federal Council approves tax treaty with Bahrain, amendments to Kuwait tax treaty

The Swiss Federal Council on August 26 adopted laws approving a new tax treaty with Bahrain and an amending protocol to the 1999 tax treaty with Kuwait.

The Council said the treaty with Bahrain would improve cross-border investment, add provisions for exchange of information upon request, and add an anti-abuse provision in accordance with OECD/G20 base erosion and profit shifting (BEPS) project minimum standards.

The Kuwait amendments bring that treaty in line with the BEPS minimum standards and add an arbitration clause, the Council said.

Further steps must be taken by both countries, including approval by the countries’ legislatures, before the treaty will come into force.