On May 1, 2024, the Federal Council adopted the dispatch on the protocol of amendment to the double taxation agreement (DTA) signed with Serbia between Switzerland and Serbia-Montenegro.
The DTA was concluded at a time when Serbia and Montenegro still formed a single state. In the meantime, the federation has dissolved and Serbia and Montenegro form two separate states. The provisions of this Protocol of Amendment apply only to Serbia, but not to Montenegro, for which the existing agreement continues to apply.
The protocol implements the minimum standards from the Base Erosion and Profit Shifting (BEPS) project in terms of DTAs and, in particular, contains an abuse clause that is based on the main purpose of a tax arrangement or transaction and thus ensures that the DTA is not abused. It also contains an administrative assistance clause in accordance with international standards on the exchange of information on request.
Before the protocol can enter into force, it must be approved by the legislature in both countries.
The message is available here and the minutes here.
The full press release with further information is available here .
