| | |  Business News | September 2009 
Switzerland, Mexico Sign Revised Double Tax Agreement
 Dow Jones
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 |  | Mexico is the seventh country with which Switzerland has signed a DTA containing the extended administrative assistance clause in accordance with OECD standards. |  | | |
Zurich - Switzerland and Mexico signed a protocol to amend the double taxation agreement, DTA, in the area of taxes on income in Mexico City, the Swiss government said Monday. The Protocol of Amendment also contains a provision on the exchange of information in accordance with the OECD standard which was negotiated in line with parameters decided by the Federal Council.
MAIN FACTS:
Following the Federal Council decision on 13 March 2009, Mexico is the seventh country with which Switzerland has signed a DTA containing the extended administrative assistance clause in accordance with OECD standards.
The Protocol of Amendment also contains further provisions of benefit to Swiss businesses.
Dividends on participations over 10% will only be taxed in the state of residence. And under certain conditions, withholding tax on interest will be lowered to 5% and 10%.
It has been possible to agree on a nation treatment with regard to interest payments and license fees. This clause guarantees Switzerland equal treatment with all other OECD countries with which Mexico agrees a more advantageous arrangement in relation to the taxation of these revenues.
Following the conclusion of the agreement a report on the Protocol of Amendment was submitted to the cantons and the business associations concerned for their comments. The signing of the revised agreement was broadly welcomed.
Swiss government Web Site: efd.admin.ch
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