Tax treaties

Tax treaties are bilateral or multilateral agreements that coordinate domestic tax systems. Switzerland has an extensive treaty network, mainly addressing income and capital taxes. Treaties may limit source-state withholding taxes, define permanent establishments, allocate business profits, and provide methods to relieve double taxation. They do not usually create taxes; they restrict or coordinate taxing rights granted by domestic law. Modern treaties also include anti-abuse rules, exchange of information, and mutual agreement procedures for cross-border disputes.