superannuation and tax exempt Swiss pension schemes. The existing treaty prescribes a Article 12 will limit source country source country tax rate limit on taxation of cross-border royalties to 5 outbound royalties of 10 per cent. per cent. The definition of includes The definition of excludes ‘royalties’ ‘royalties’ such payments. payments for the right to use industrial, commercial or scientific equipment. Income, profits or from the No substantive change (the existing alienation of immovable property treaty applies to income or gains may be taxed in the country where the made from the alienation of real property is situated. property). Income profits or gains from the No substantive change. alienation of interests in land-rich entities will be taxable in the country where the underlying land is situated. Residual capital gains will be taxable only in the country of residence of the No equivalent. alienator. Australia may continue to tax its former resident individuals on the No equivalent. capital if they alienate property within four years of ceasing to be a resident. No equivalent. Taxing rights over fringe benefits provided to employees will be allocated exclusively to the country that has the sole or primary taxing right over the underlying employment income to which the benefit relates. The existing treaty allocates exclusive Pensions and similar payments will taxing rights over pensions to the be taxable only in the recipient’s country of residence of the recipient, country of residence, provided the without regard to whether such recipient is taxable on those payments income is taxable in that country. in that country. If not, the other country may also tax the income. No equivalent. Lump sum payments in respect of retirement, invalidity, disability, or injury may also be taxed in the source (paying) country. Government pensions paid in respect Government pensions paid in respect of past government service are of past government service will be taxable in the country of residence of taxable only in the source country, the recipient. subject to certain conditions.
superannuation and tax exempt Swiss pension schemes. Article 12 will limit source country taxation of cross-border royalties to 5 per cent. The definition of ‘royalties’ excludes payments for the right to use industrial, commercial or scientific equipment. The existing treaty prescribes a source country tax rate limit on outbound royalties of 10 per cent. The definition of ‘royalties’ includes such payments. Income, profits or from the alienation of immovable property may be taxed in the country where the property is situated. Income profits or gains from the alienation of interests in land-rich entities will be taxable in the country where the underlying land is situated. Residual capital gains will be taxable only in the country of residence of the alienator. Australia may continue to tax its former resident individuals on the capital if they alienate property within four years of ceasing to be a resident. No substantive change (the existing treaty applies to income or gains made from the alienation of real property). No substantive change. No equivalent. No equivalent. Taxing rights over fringe benefits provided to employees will be allocated exclusively to the country that has the sole or primary taxing right over the underlying employment income to which the benefit relates. No equivalent. Pensions and similar payments will be taxable only in the recipient’s country of residence, provided the recipient is taxable on those payments in that country. If not, the other country may also tax the income. Lump sum payments in respect of retirement, invalidity, disability, or injury may also be taxed in the source (paying) country. The existing treaty allocates exclusive taxing rights over pensions to the country of residence of the recipient, without regard to whether such income is taxable in that country. No equivalent. Government pensions paid in respect of past government service will be taxable only in the source country, subject to certain conditions. Government pensions paid in respect of past government service are taxable in the country of residence of the recipient.
C2014-031_Explanatory-Memorandum-Revised-Tax-Treaty-Switzerland.docx