The Federal Tax Administration (FTA) in Switzerland has for the first time transmitted information on advance tax rulings to spontaneous exchange of information partner states. For the first batch, Switzerland has transmitted 82 reports to a total of 41 states, including France, Germany, the United Kingdom, the Netherlands, and Russia. Private tax rulings that were still effective on 1 January 2018 are those being affected in this exchange. In this way, Switzerland continuously demonstrates its commitment to expand tax transparency.
As a partner country of the OECD/Council of Europe Convention on Mutual Administrative Assistance in Tax Matters, Switzerland has to identify the tax rulings and the beneficiary states on its own initiative and to transmit the information to the partner states. According to the Convention, the content of tax rulings, not the tax rulings themselves, should be spontaneously exchanged in the form of a template.
In Switzerland, advance tax rulings are usually agreed and issued by the cantonal tax administrations. The cantons must forward the rulings to the FTA who carries out the administrative assistance procedure and transmits the information in the agreed template to the partner states. In all, the FTA has transmitted a first batch of 82 reports to a total of 41 states, including France, Germany, the United Kingdom, the Netherlands and Russia. Certain reports are exchanged with several partner states. Advance tax rulings which were still effective on 1 January 2018 are concerned.
With the fast growth of China’s economy and the continuous improvement of the comprehensive strength of domestic enterprises, as well as the implementation of the “One Belt, One Road” policy, an increasing amount of Chinese enterprises are beginning to expand their global footprint and establish their presence in Europe.
TPA Global has developed a practical roadmap of 6 steps meant to guide CFOs in their Journey of rising above troubles to reach a situation of full control. These steps are presented in a series of short video clips (3-5 minutes):