Ministers sign Italian-Swiss tax treaty

The handshake between Widmer-Schlumpf (left) and her Italian counterpart Padoan seals a major tax deal between the two countries Keystone

Switzerland and neighbouring Italy have revised a double taxation agreement which includes provisions for the exchange of information in line with the standards of the Organisation for Economic Development and Co-operation (OECD).

The accord and a roadmap for the amendment of tax rules on cross-border workers as well as improved access to Italy’s financial market for Swiss banks and insurers were signed by Finance Minister Eveline Widmer-Schlumpf and her Italian counterpart, Pier Carlo Padoan, in Milan on Monday.

The agreement also foresees participation in a voluntary disclosure programme for suspected Italian tax dodgers.

The Swiss State Secretariat for International Financial Matters said the accord would pave the way for Switzerland’s removal from an Italian blacklist of tax havens which seriously hampered bilateral business relations.

“This is an important day for the bilateral relations between Italy and Switzerland,” said Widmer-Schlumpf.

“Such an accord between our countries would have been unthinkable before the financial crisis,” added Padoan.

The signature came after three years of negotiations. The amendment, which is subject to parliamentary approval, is the first to the tax agreement with Italy in nearly four decades.

Last month, the Swiss finance ministry announced that Switzerland and Italy reached agreement in principle on future cooperation in tax matters.