The DTA allows Switzerland to expand its network of double taxation agreements in southern Africa, ensuring a reliable legal framework that will positively impact the development of economic ties between Switzerland and Angola. Aligned with the Model Convention of the Organisation for Economic Co-operation and Development, the agreement follows standard Swiss practices for such agreements, preventing double taxation of individuals and entities with international connections, particularly in the taxation of dividends, interest, and royalties.
Furthermore, the DTA incorporates the outcomes of the OECD's base erosion and profit shifting project, featuring an anti-abuse clause to deter individuals not residing in Switzerland or Angola from exploiting benefits outlined in the DTA. Additionally, it includes an administrative assistance clause in line with the current international standard for information exchange upon request, showcasing Switzerland's support for global efforts towards transparency and fair taxation practices for multinational corporations.
The conclusion of this DTA has been met with approval from the cantons and relevant business associations, signaling its importance in enhancing economic cooperation. However, before the agreement can come into effect, it requires approval from the Swiss Parliament and the competent authority in Angola.
