Swiss Council Adopts Dispatch On Albania DTA Protocol

The Swiss Federal Council has adopted a dispatch on a protocol to the double tax agreement (DTA) with Albania.

The protocol was signed on September 9 and the dispatch was adopted on November 11. Its aim is to bring the DTA into line with Switzerland’s current policy on tax agreements.

The protocol provides for the inclusion of an arbitration clause that will ensure the avoidance of double taxation. An “evolutionary” clause on royalty payments means that any more advantageous agreements concluded by Albania with members of the European Union or the European Economic Area will also be applicable to cross-border dealings with Switzerland.

The protocol also updates the tax information exchange provisions and introduces an anti-abuse clause to prevent the agreement being used by people who are not entitled to its benefits.

The Swiss cantons and business associations welcomed the protocol. The dispatch has now been sent to Parliament for approval.