Swiss and Saudis ink double-taxation accord

Swiss and Saudi Arabian officials have initialled the first double-taxation treaty that eases portions of Switzerland's banking secrecy laws.

During a state visit to the Middle East, Hans-Rudolf Merz, the Swiss finance minister, said the countries had also moved closer to concluding a free trade agreement and bilateral air-traffic accords.

Earlier on Sunday the finance ministry confirmed reports that Switzerland was ready to sign two tax accords that met standards set by the Organisation for Economic Co-operation and Development (OECD).

Officials would not name the other country with which they had made an agreement.

Merz has said 23 countries are interested in forging new double-taxation treaties with Switzerland. The OECD had cracked down on the country’s banking secrecy laws and had threatened to put Switzerland on a black list of tax havens.

Swiss authorities say they will negotiate new treaties with countries that have large business interests in Switzerland first. Officials have already held two rounds of talks with the United States.

Parliament and most likely the country as a whole will have to ratify the accords before they could go into effect.

swissinfo.ch with agencies