Switzerland Fed Council Approves Double Taxation A...

Switzerland Fed Council Approves Double Taxation Agreement With Zimbabwe — Deal Now Awaits Swiss Parliamentary Vote

Switzerland has taken a major step toward strengthening economic ties with Zimbabwe after its Federal Council on Wednesday adopted the dispatch on a new Double Taxation Agreement (DTA) between the two countries.

The agreement — which still awaits approval by the Swiss Parliament — is designed to prevent individuals and companies from being taxed twice on the same income, a key requirement for boosting cross-border investment.

Zimbabwe has already approved the agreement on its side.

The DTA closely follows the international standards set by the Organisation for Economic Co-operation and Development (OECD). Once in force, it will:

Prevent double taxation on income such as dividends, interest, and royalties.
Provide greater legal certainty for businesses operating across both jurisdictions.
Offer a clear contractual framework expected to stimulate bilateral trade and investment.
Strengthen tax cooperation between Zimbabwe and Switzerland.

Analysts say this could make Zimbabwe more attractive to Swiss investors and multinational firms who often avoid jurisdictions with unclear or overlapping tax regimes.

The Swiss government emphasised that the agreement incorporates the outcomes of the OECD’s Base Erosion and Profit Shifting (BEPS) project — global measures designed to curb tax avoidance.

Key provisions include:

An anti-abuse clause preventing entities from outside both countries from exploiting the agreement.
An administrative assistance clause allowing the exchange of tax-related information upon request, in line with current international transparency standards.

Switzerland says the measures ensure a level playing field and support global efforts to curb illicit tax practices.

The Federal Council noted that Swiss cantons and relevant business associations have welcomed the conclusion of the DTA, signalling broad support from industry players who see potential for improved investment flows.

If approved by Parliament, the agreement will add to Switzerland’s expanding network of DTAs in southern Africa and potentially open the door to new partnerships in mining, manufacturing, financial services, and agriculture.