Withholding Tax according to the ACT

The withholding tax with substitutive effectiveness is calculated at a flat rate against the source and transferred to the tax authority of the partner state. It promotes the tax honesty of customers resident abroad and of customers of Swiss paying agents. Due to this reason Switzerland has concluded a withholding tax agreement with the United Kingdom as well as with Austria.

With the introduction of the automatic exchange of information between Switzerland and the European Union as of 1 January 2017, the withholding tax agreements between the Swiss Confederation and the United Kingdom and Austria lose their reason to exist. Accordingly, termination agreements were signed with the two States.

Besides the flate rate tax there are also administrative assistance provisions in the withholding tax agreements, which regulate the exchange of information between Switzerland and its partner countries. To date there is an agreement on the exchange of information between the United Kingdom of Great Britain and Northern Ireland and Switzerland. Further information can be found under

Last modification 01.10.2019

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