Switzerland amends the Ordinance on Automatic Exchange of Information. Attention apartment owners!!!
Following the recommendation of the Global Forum on Transparency and Exchange of Information on Tax Purposes (GFTEI), on 11th November, the Swiss Federal Council approved the entry into force of an amendment to the actual rules on Automatic Exchange of Information, with effect from 1st January 2021.
Since January 2017, Switzerland has been providing financial information concerning individuals and companies to other countries on a reciprocal and annual basis. From 1st January, 2021, Swiss condominium associations (apartment owners’ associations) will have to disclose and share information on apartment owners, many of whom are foreign investors. Swiss financial institutions will also be required to retain related documents that could be useful in any tax investigation.
In addition, with the new amendments, the Federal Tax Administration will be able to suspend automatic exchange of information with any State which does not meet international requirements on data confidentiality and security.
However, not all the transparency recommendations made by the GFTEI were adopted by Switzerland. Therefore, Digital currency accounts, Foundations, and associations will continue not to be subject to the automatic exchange of information.