The deal was signed by Swiss President Eveline Widmer-Schlumpf and Austria’s Federal Minister of Finance Maria Fekter in Berne.
The current deal is the third such deal signed by Berne and follows similar agreements with Germany and the UK.
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The agreement also opens up the Austrian financial services market to Swiss companies.
Under the tax agreement, people resident in Austria can retrospectively tax their existing banking relationships in Switzerland either by making a one-off tax payment or by disclosing their accounts.
The future investment income of Austrian bank clients in Switzerland will be subject to a withholding tax, with the proceeds transferred anonymously to the Austrian authorities by Switzerland.
Under the agreement, the rate for the flat-rate one-off payment for regularizing existing accounts will be between 15% and 38%, depending on the duration of the banking relationship and the amount of assets concerned. A single rate of 25% will be applied for the taxation of future investment income.
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By GlobalDataThough the agreement has been signed, it requires the approval of parliament in both countries and is expected to be implemented at the start of 2013.
