04/09/20

SWITZERLAND: Federal Council approves tax treaty with Bahrain.

As published on transferpricingnews.com, Friday 4 September, 2020.

The Swiss Federal Council has adopted the dispatches on a new tax treaty with Bahrain and on the protocol of amendment to the tax treaty with Kuwait.

The new tax treaty with Bahrain contains an administrative assistance provision in accordance with the international standard concerning the exchange of information upon request and implements the minimum standards in accordance with the OECD’s project on base erosion and profit shifting. This includes in particular an anti-abuse provision.

Similarly, the protocol of amendment to the tax treaty with Kuwait enhances the dispute resolution mechanism by means of an arbitration clause and contains substantial components of the minimum standards for tax treaties.

The tax treaty and protocol of amendment have to be approved by the legislative bodies of the countries in question before they can come into force.