Switzerland, Zambia sign tax treaty

Switzerland and Zambia today signed a new tax treaty the Swiss Federal Council has announced.

The treaty, signed in Lusaka, Switzerland, is not yet in force. It would replace a 1954 agreement between Switzerland and the United Kingdom which has continued to apply to Switzerland and Zambia.

The new agreement reduces withholding tax on dividends to a maximum of 15% with qualified participations being taxed at no more than 5%.

Withholding tax on interest is reduced  to a maximum of 15 percent.

The new agreement also provides for arbitration of tax disputes and includes an administrative assistance clause.