The protocol became necessary to appease the European Commission, which considered that the agreement could be contrary to the European treaty. Threatened by a possible challenge before the Court of Justice of the European Communities, Britain and Switzerland have agreed that account holders who have already paid the 35% withholding tax due under the EU Savings Tax Directive will be subject to a final withholding tax of 13% to honour the tax debt on interest payments. HMRC has reached an agreement with the Swiss tax authorities. The agreement allows for close cooperation between the UK and Switzerland and there is an important exchange of information between the two countries. The agreement provides for a historic tax on Swiss funds held by residents in the United Kingdom and from 31 December 2010 or 31 December 2010. Keep up to 34% of the balance in an account on December 1, 2012. UK residents with Swiss accounts can also be subject to a WHT of up to 48% on their accounts. With regard to inheritance tax, Swiss paying agencies are obliged to withhold 40% of taxes or to carry out publicity in the event of the death of a data subject, as well as other measures. The protocol also provides for the inclusion of inheritance in the agreement. Beneficiaries of an undisclosed Swiss bank account must either pay inheritance tax or consent to the disclosure to the UK authorities. This agreement largely follows the OECD Model Agreement and Swiss policy in this regard. Double taxation refers to the fact that two countries simultaneously levy taxes on the same item.
This situation can occur when companies or individuals have their headquarters in different countries or when they receive income from another country. Treaties reduce double taxation and thus help to overcome obstacles to cross-border economic transactions. In addition, they regulate administrative assistance in tax matters. The transfer tax agreement between Switzerland and the United Kingdom was terminated on 1 January 2017 due to the entry into force of the agreement between Switzerland and the EU on the automatic exchange of information in tax matters. . . .