Switzerland and South Korea recently signed a protocol to amend the double taxation agreement in the area of taxes on income.
The DTA contains provisions on the exchange of information which are in accordance with the Organisation for Economic Cooperation and Development standard.
“The revised DTA will contribute to the further positive development of bilateral economic relations,” explained Swiss Ambassador Thomas Kupfer.
Aside from the exchange of information in accordance with the OECD standard, Korea and Switzerland have agreed that interest paid to banks will be taxed at no more than 5 percent.
Provided that companies have a stake of at least 10 percent in other companies, dividend payments in the source state may be taxed at a rate of no more than 5 percent.
In future, the tax withheld at source on royalty payments may not exceed 5 percent.
It was also agreed that Switzerland would negotiate the inclusion of an arbitration clause with Korea provided that, in the future, Korea agrees to the possibility of arbitration proceedings with a third state in a DTA.
More information can be found at www.eda.admin.ch/seoul.