Switzerland and Kosovo on May 26 signed a tax treaty, agreeing to reduce withholding tax on dividends and royalties, the Swiss government has announced.
The withholding tax rate for dividends under the treaty would be 15 percent with qualifying participations taxed at no more that 5 percent. Zero withholding tax would be imposed on royalties.
The agreement, which must be ratified by the two countries before it enters into force, also includes and arbitration clause and anti abuse provisions,
No tax treaty has been in effect between the two countries since 2011.
