–German and Swiss Finance Ministers To Sign Treaty This Afternoon
–Still Unclear If Bill Will Pass In Opposition-Controlled Upper House
BERLIN (MNI) – The German government cabinet on Wednesday approved
a tax treaty with Switzerland that settles a dispute over tax evasion by
German citizens.
The treaty is to be signed by German Finance Minister Wolfgang
Schaeuble and Swiss Finance Minister Eveline Widmer-Schlumpf this
afternoon in Berlin.
Under the treaty, a withholding tax on German assets in Swiss banks
will be set at 26.375%. This is the same tax rate applied on interest
earnings in Germany.
In order to legalize German citizens’ untaxed deposits in
Switzerland, retroactive taxation at a rate of 19% to 34% will be
applied for the past decade.
However, it remains unclear if the German government will be able
to muster the necessary support for the treaty in parliament. The
opposition, which controls the upper house, has announced previously
that it will block the treaty.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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