(October 14, 2014)

On October 14, 2014 the Swiss Federal Deparment of Finance (FDF) on its internet website published a press release in which it states that the Swiss Federal Councilor and representatives of the 28 EU member states signed a mutual understanding in the form of a joint statement on business taxation.

FDF states that the agreement signed on October 14, 2014 between Switzerland and the EU was initiated in Bern on July 1, 2014 and ends a bilateral controversy which according the FDF has led to friction and to threats of severe countermeasures from the EU since 2005.

The FDF furthermore states that the Federal Council reaffirmed its intention to propose abolishing certain tax regimes within the framework of the third series of corporate tax reforms, particularly those that provide for different treatment of domestic and foreign revenue ("ring-fencing"). New tax measures should be based on the OECD international standards. According to the FDF, the EU member states in return confirmed that they will lift any countermeasures taken against these regimes as soon as the regimes in question have been abolished.

For further information click here and you will be forwarded to the press release as published on the site of the Swiss Federal Department of Finance (FDF), which will open in an new window and attached to which you can find the joint statement. Or click here to be directly forwarded to the joint statement as published on the website of the Swiss FDF, which will open in a new window.

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