Aside from an OECD administrative assistance clause,
Switzerland and Peru have agreed that both countries may
levy withholding tax of no more than 15% on gross dividend
amounts. If, however, a company holds a stake of at least
10% in the capital of the distributing company, this tax
will be reduced to 10%. Withholding tax on interest may
amount to 15% at most; on bank loans 10% at most. A
residual tax of no more than 15% can be levied on royalty
payments. A most favoured nation clause has been agreed for
if Peru provides lower residual tax rates to another
country.
After negotiations finished, a report on the DTA with Peru
was submitted to the cantons and business associations
concerned for their comments. They largely approved the
signing of the agreement. The agreement still has to be
approved by parliament in both countries before it can come
into force.
Pierre Nikolic, State Secretariat for International
Financial Matters SIF, tel. +41 (0)31 323 00 36,
pierre.nikolic@sif.admin.ch
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