Does the DTA cover VAT or inheritance taxes?

No. It covers only taxes on income and capital. VAT and inheritance/gift taxes are outside the treaty and governed by domestic law. Swiss VAT 8.1% standard; China VAT 6%–13%; these are not affected by the DTA.

What happens if beneficial owner status is denied?

China withholds at the standard 10% instead of reduced rates. You can submit further substance evidence or pursue a mutual agreement procedure (MAP) under Article 25.

How long does Swiss anticipatory tax refund take?

Typically 2–6 months after complete filing. Delays arise from missing Chinese tax authority certification or extra proof of beneficial ownership. Use recent certification (≤12 months) and submit in the proper Swiss language.

What changed with the 2013 protocol?

OECD-standard information exchange, tightened capital gains (10% on ≥25% shareholdings held 12 months), extended PE thresholds (12-month construction, 183-day services), and LOB anti-abuse provisions.

Can I apply treaty benefits retroactively?

Yes, within three years of payment. For China, file a refund with residency and beneficial ownership proof. For Swiss anticipatory tax, Chinese residents also have three years to claim.

How do I prove substance for beneficial owner status?

Provide a Swiss office lease, staff contracts, board minutes showing Swiss decision-making, audited financials, and genuine bank transaction flows. Avoid pass-through features; single-employee or virtual offices raise red flags.

16.12.2025

Switzerland-China double taxation agreement: comprehensive guide

The Double Taxation Agreement (DTA) between Switzerland and China prevents dual fiscal burdens on income and capital for residents of both countries. This treaty reduces withholding taxes on dividends, interest, and royalties, while establishing clear rules for business profit taxation. The 2013 protocol significantly expanded information exchange provisions and aligned the agreement with OECD standards.

Taxes in Switzerland

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