Switzerland’s Federal Council approves amendments to tax treaties with New Zealand, Netherlands, Norway, Sweden

Switzerland’s Federal Council on November 6 approved four tax treaty protocols to amend Switzerland’s treaties with New Zealand, the Netherlands, Norway, and Sweden.

According to the Federal Council, each protocols implements minimum standards for tax treaties developed in the OECD/G20 base erosion profit shifting (BEPS) plan, adding an anti-abuse clause to prevent tax treaty shopping.

The Switzerland-New Zealand tax treaty protocol adds an arbitration clause and the Switzerland-Netherlands tax treaty protocol clarifies the concept of a pension scheme and creates a non-exclusive right for the source state to tax pensions, Switzerland’s Federal Council added.

The protocols are not yet in force; they still must be approved by the parliaments of New Zealand, the Netherlands, Norway, and Sweden.