December 6, 2018
UBS Custody News
Priority: Medium – Market: Switzerland
Entry into force of the new double taxation agreement between
Switzerland and Pakistan
On November 29, 2018, the new double taxation treaty
between Switzerland and Pakistan entered into force. It
replaces the former agreement dated from 2008. Its
provisions are effective from January 1, 2019.
Under the new treaty the following reduced withholding tax
rates are applicable:
•
Dividends: 20%
(no change compared to the former treaty)
•
Interest: 10%
(no change compared to the former treaty)
The standard withholding tax rate on Swiss dividends and
interest is 35%. As Switzerland is a reclaim-only investment
country, the application of a reduced tax rate under the treaty
can still only be achieved by way of a tax reclaim.
Entry into force
The provisions of the new double taxation treaty between
Switzerland and Pakistan are applicable for dividends and
interest payable as of January 1, 2019.
Impact
Eligible investors resident in Pakistan may benefit from lower
tax rates when receiving dividends and interest from Swiss
securities.
Sources:
Swiss Federal Tax Administration (ESTV)
International Bureau of Fiscal Documentation (IBFD)
Should you have any questions, please contact your
UBS Custody Relationship or Client Service Manager.
UBS Switzerland AG
Global Custody Banks
P.O. Box
CH-8098 Zurich
Switzerland
Phone: +41-44-236 10 84
While the facts in this publication have been carefully researched, UBS cannot be
held responsible for their accuracy. The opinions expressed may differ from
official UBS views.
© UBS 2018. All rights reserved.
