Switzerland: Swiss-US double tax treaty protocol enters into force

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Switzerland: Swiss-US double tax treaty protocol enters into force

Sponsored by

Sponsored_Firms_deloitte.png
ib-switzerland.jpg

Brandi Caruso and Robin King of Deloitte summarise the notable changes introduced under the recently ratified 2009 protocol to the Swiss-US double tax treaty.

On 20 September 2019, the long-overdue 2009 protocol, the core element of which concerns administrative assistance, was ratified and came into force with immediate effect

Key provisions of 2009 protocol

Most notably, the protocol brings in the following changes:

  • It allows the US to make group requests under the Foreign Account Tax Compliance Act (FATCA) concerning non-consenting US accounts and non-consenting non-participating foreign financial institutions (NPFFIs). While it remains to be seen when the IRS will start submitting these group requests, affected Swiss financial institutions should prepare the relevant data now. Once the Swiss Federal Tax Authority receives the group requests and forwards them to the financial institutions, the financial institutions only have 10 days to respond and deliver the data.

  • Further, the protocol generally erases the differentiation between tax evasion and tax fraud in the context of administrative assistance and also applies to other types of information requests, for example, the ones the US may make in connection with data that was provided to the US Department of Justice (DOJ) in the context of the Swiss bank programme.

  • For Pillar 3a solutions, it provides for a withholding tax exemption in relation to dividends from US stocks (while they previously suffered a 15% withholding tax).

  • It implements dispute resolution through mandatory binding arbitration, in cases where the competent authorities cannot conclude in the mutual agreement procedure.

Outlook

The ratification of the protocol finally paves the way for negotiations about future revisions of the treaty, most notably a potential withholding tax exemption for qualified dividends to corporate shareholders, which would make Switzerland an even more attractive location for US multinationals.

Deloitte

T: +41 58 279 6397

E: bcaruso@deloitte.ch

W: www.deloitte.ch

more across site & shared bottom lb ros

More from across our site

Canadian Prime Minister Mark Carney and US President Donald Trump have agreed that the countries will look to conclude a deal by July 21, 2025
The firm’s lack of transparency regarding its tax leaks scandal should see the ban extended beyond June 30, senators Deborah O’Neill and Barbara Pocock tell ITR
Despite posing significant administrative hurdles, digital services taxes remain ‘the best way forward’ for emerging economies, says Neil Kelley, COO of Ascoria
A ‘joint understanding’ among G7 countries that ‘defends American interests’ is set to be announced, Scott Bessent claimed
The ‘big four’ firm’s inaugural annual report unveiled a sharp drop in profits for 2024; in other news, Baker McKenzie and Perkins Coie expanded their US tax benches
Representatives from the two countries focused on TP as they met this week to evaluate progress under a previously signed agreement – it is understood
The UK accountancy firm’s transfer pricing lead tells ITR about his expat lifestyle, taking risks, and what makes tax cool
Dolphin Drilling intends to discuss the final liability amount and manner of settlement with HM Revenue and Customs
Winning the case against the 20% VAT imposition was always going to be an uphill challenge for the claimants, UK tax advisers argue
A ‘paradigm shift’ in Chile’s tax enforcement requires compliance architecture built on proactive governance, strategic documentation and active monitoring of judicial developments
Gift this article