In a media release issued on 24 October 2014, the Assistant Treasurer, Mathias Cormann, announced that Australia’s new tax treaty with Switzerland entered into force on 14 October 2014.
The treaty, which was signed on 30 July 2013, replaces the existing Australia-Switzerland tax treaty which was signed in 1980.
The provisions of the new treaty will take effect as specified in the treaty itself.
In relation to cross-border payments of dividends, interest and royalties, new rates of source country taxation will apply from 1 January 2015.
In relation to fringe benefits tax and other Australian taxes covered, the new treaty will take effect for taxation years commencing on or after 1 April 2015 and 1 July 2015 respectively.
In relation to Swiss taxes covered, the new treaty will take effect for taxation years commencing on or after 1 January 2015.