Both the countries have signed a joint declaration on the introduction of the automatic exchange of information (AEOI) in tax matters on a reciprocal basis.
As per the joint declaration, Switzerland will share with India the details of bank accounts held by Indian in Swiss banks as of September 2018 and onwards.
The first exchange of such information is scheduled to happen in September 2019.
The Swiss Federal Department of Finance said in a statement: “Both countries intend to start collecting data in accordance with the global AEOI standard in 2018 and to exchange it from 2019 onwards.
“The signing of the joint declaration with India confirms Switzerland's international commitment to implementing the AEOI standard. Switzerland is thus strengthening its network of AEOI partner states.”
The Swiss department said that the sharing of information with India will be implemented based on the Multilateral Competent Authority Agreement on the Automatic Exchange of Financial Account Information (MCAA), from a legal viewpoint.
It said: “India meets in particular the high demands in terms of adherence to the principle of speciality and the safeguarding of confidentiality for the data delivered, which are prerequisites for the introduction of the AEOI.”
The Swiss Federal Council has authorised the Federal Department of Finance (FDF) to conduct a consultation for the introduction of the AEOI with India and other countries.
The statement said: “It will be initiated soon. Thereafter, the corresponding federal decrees will be submitted to Parliament for approval.”
India has obtained information regarding 628 Indian persons holding bank accounts in HSBC bank in Switzerland from the Government of France under Double Taxation Avoidance Convention (DTAC) between India and France in 2011, according to a Finance Ministry statement.
Image: The first exchange of such information is scheduled to happen in September 2019. Photo: courtesy of adamr/FreeDigitalPhotos.net.
