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Switzerland has been removed from the Brazilian blacklist of tax havens, and will enter into negotiations on signing a double taxation agreement with the South American state, the Swiss State Secretariat for International Financial Matters confirmed.
The Alpine state was removed from the list, which contains countries with a low income tax and some form of corporate secrecy, on Friday last week and is now in talks to set a starting date for discussions on the DTA.
The new DTA will conform to the standards on information exchange set by the Organisation for Economic Co-operation and Development, which will allow Brazil to ask Switzerland to hand over data in individual cases of Brazilian nationals suspected of tax evasion through accounts in Switzerland. Recently, due to pressure from the OECD and Group of 20 collection of major economic powers, more and more countries have adopted this standard.
When put on the list earlier this month, one of the consequences Switzerland faced immediately was a 20 per cent flat tax on corporate earnings, instead of the common 15 per cent, according to the Brazilian media reports at the time.
After finding the Alpine state on the list, a Swiss official told this publication that he felt rather alienated by the Brazilian decision.
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