Ireland and Switzerland signed the first treaty for the avoidance of double taxation in 1965, but the document was amended several years ago, on 26th of January 2012. The authorities of the two countries signed a revised edition, reducing the level of several income taxes applicable to natural persons and legal entities, tax residents of the two states. Our team of Irish attorneys can provide legal assistance to Swiss investors who are interested in the main benefits and obligations they have when investing on the local market.
Taxes under the Ireland – Switzerland double taxation treaty
Swiss investors who want to open a company in Ireland should be familiar with the legal system applicable to income taxes.
According to the stipulations of the treaty, the Irish authorities will apply the following taxes:
- the income tax;
- the corporation tax;
- the capital gains tax.
Swiss authorities will impose the federal, the cantonal and the communal taxes on the following:
- on income, which is comprised of the total income, the earned income, income from capital, industrial and commercial profits, capital gains;
- on capital, which refers to the total movable and immovable property, business assets, paid up capital and reserves;
- on other taxes stipulated in the Article 24 of the agreement.
It is important to know that Switzerland is not a member state of the European Union (EU), but it had signed various agreements for the avoidance of double taxation or free trade treaties, which can provide a similar business market with the one available in the EU; our team of Irish lawyers can offer more details on such documents.
The provisions of the Swiss- Irish double tax agreement (amended version)
The treaty for the avoidance of double taxation became effective starting with 1st of January 2014. Several taxes have been lowered or eliminated, such as the withholding tax on dividends, from which investors can be exempted. The provision is applicable in respect with the proportion of the shares owned by the investors.
You can reach out to our Irish accountants for more information about the provisions of the DTA between Ireland and Switzerland. We provide complete accountancy services to non-resident companies or to Irish companies doing business both in Ireland and in Switzerland. You can rely on us for bookkeeping services and the timely preparation and submission of the annual financial statements.
Businessmen interested in receiving more details on the Ireland – Switzerland double tax treaty can address to our Irish law firm for legal assistance.