Following the global outreach for automatic exchange announced by the OECD and the Common Reporting Standard (CRS) last year; Switzerland has signed up for the automatic exchange of bank account information with the EU for the next three years.
The agreement requires Switzerland and all other 28 EU member states to accumulate data from 2017 and exchange it with data from 2018. It will replace the existing EU-Swiss Savings Taxation Treaty, which has been effective since 2005. That treaty’s withholding tax exemption for cross-border payments of dividends, interest and royalties between related entities are being carried over into the new agreement.
As a result of this, EU member states will receive the names, addresses, tax identification numbers and dates of birth of their residents with accounts in Switzerland, as well as other account balance information annually. The Swiss authorities will also be able to receive the same information from other EU countries.
Pierre Moscovici the European tax commissioner gave his opinion stating his confidence that the EU’s other neighbours (meaning Liechtenstein, Monaco and Andorra) would soon follow Switzerland’s example.
The agreement will simultaneously provide improved access for Swiss banks to EU members, on which the viability is being discussed. It is to be submitted to the Swiss parliament for approval, and may also be put forward for referendum.