On August 21, 2023, Switzerland and Germany signed a Protocol of Amendment to the DTA of August 11, 1971 with the following key points:
- The concluded revision protocol will adapt the agreement to interim results of international work against "Base Erosion and Profit Shifting (BEPS)" and to developments in the OECD Model Tax Convention and the agreement policies of the two contracting states.
- Of the treaty-related recommendations of the G20/OECD Action Plan against BEPS, the inclusion of a general clause against treaty abuse(Principal Purpose Test - PPT) and the obligation to counter-adjust profit adjustments for associated companies are among the provisions. In addition, a clarifying reference to the applicability of future domestic minimum taxation rules corresponding to the so-called global anti-base erosion rule according to the international two-pillar solution to the tax challenges of digitalization is also included.
- Furthermore, adjustments were made to the current OECD model convention for double taxation agreements.
- Furthermore, agreement was reached, among other things, on a definition of public service as distinct from entrepreneurial activities of public employers, as well as on the complex of taxation of public service pensions. This will enable a balanced and practicable division of taxation rights in two areas that are characterized by fundamental systemic differences between the two states.
- Finally, the Protocol to the Agreement is supplemented by the content of various consultation agreements concluded in the past by the competent authorities to resolve difficulties or doubts in the interpretation or application of the Agreement (in particular on cross-border commuters).
The amendment protocol is available here .