In recent years, Singapore has signed or amended its list of double taxation agreements to improve trade and economic relations with other countries and increase the number of potential foreign investors. Switzerland is one of the European countries with which Singapore has good economic relations. The first double taxation agreement between Singapore and Switzerland dates back to 1975. The convention was last amended in 2011 and implemented by both States Parties in 2013. The protocol became necessary to appease the European Commission, which had considered that the agreement could be contrary to the European Treaty. By threatening to refer the matter to the European Court of Justice, the United Kingdom and Switzerland have agreed that account holders who have already paid the 35% withholding tax due under the European Savings Tax will be subject to a final withholding tax of 13% in order to reduce the tax debt on interest payments. Bern, 24.02.2011 – Switzerland and Singapore today signed a double taxation agreement (DBA) in Singapore in the area of income and capital taxes, which will replace the current 1975 agreement. The DBA will contribute to the positive development of bilateral economic relations. The DBA also contains provisions for the exchange of information in accordance with international standards. The general effect of these contracts for non-residents of the contracting states is that they can benefit from a full or partial refund of the tax withheld by the Swiss paying body. In addition, no withholding tax is applied on royalties paid to foreign beneficiaries. Profits redistributed abroad by a Swiss branch or subsidiary do not attract withholding tax, regardless of a double taxation agreement.
In order to avoid double taxation for businesses, Switzerland has signed double taxation agreements with most industrialized countries, including the United States and The European Union. Switzerland applies organisation for economic co-operation and development (OECD) standards for its double taxation conventions. An overview of the comprehensive bilateral tax treaty between Singapore and India to avoid double taxation of income. Find out more here. Switzerland currently has a network of social security agreements with more than 30 countries. Switzerland has also concluded a bilateral agreement with the European Union that covers all 27 EU countries and more or less adapts the rules in force in the European Union. There is a similar agreement with the EFTA countries. Whether or not a social security contract is applicable is often related to the nationality of the individual. If necessary, affected workers can normally remain (for a limited time) in the social security system of the country of origin and are exempt from the host country`s scheme.