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By Peter Kleingarn*, Atoz
On 8 August 2011 Germany and Switzerland initialed an agreement on open tax issues in relation to undeclared savings of German taxpayers held with banks in Switzerland. The complete agreement will be published once it has been signed by the two governments. This is expected to happen in a few weeks time. The agreement is expected to enter into force the beginning of 2013.
The key elements of the agreement are:
- The Swiss banks withhold a final tax of 26,375% on income from capital. This rate is equal to the domestic German final withholding tax rate on capital income.
- German authorities can submit information requests including the name of the suspected taxpayer. The requested...
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