On 20 July 2020, Switzerland and Cyprus signed a protocol amending the agreement to avoid double taxation (DTA) in the area of taxes on income and wealth. The protocol implements the minimum standards from the BEPS project with regard to double taxation agreements.
The Protocol of Amendment contains a misuse clause which is based on the main purpose of a design or transaction and thus ensures that the DBA is not misused. It also supplements the provision on the mutual agreement procedure in accordance with the minimum standard.
The cantons and interested business circles have welcomed the conclusion of the Protocol of Amendment. Before the Protocol can enter into force, it must be approved by the legislature in both countries.
The press release and the related documents are available here.
