U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1 

99–112 

" ! SENATE 

112TH CONGRESS

1st Session 

TREATY DOC. 

2011

112–1 

PROTOCOL AMENDING TAX CONVENTION WITH 

SWISS CONFEDERATION 

MESSAGE 

FROM

THE PRESIDENT OF THE UNITED STATES 

TRANSMITTING

PROTOCOL AMENDING THE CONVENTION BETWEEN THE UNITED 

STATES OF AMERICA AND THE SWISS CONFEDERATION FOR 

THE AVOIDANCE OF DOUBLE TAXATION WITH RESPECT TO 

TAXES ON INCOME, SIGNED AT WASHINGTON ON OCTOBER 2, 

1996 

JANUARY 26, 2011.—Treaty was read the first time, and together with 

the accompanying papers, referred to the Committee on Foreign Relations and ordered to be printed for the use of the Senate 


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LETTER OF TRANSMITTAL 

THE WHITE HOUSE, January 26, 2011. 

To the Senate of the United States: 

I transmit herewith, for the advice and consent of the Senate to 

their ratification, the Protocol Amending the Convention between 

the United States of America and the Swiss Confederation for the 

Avoidance of Double Taxation with Respect to Taxes on Income, 

signed at Washington on October 2, 1996, signed on September 23, 

2009, at Washington, as corrected by an exchange of notes effected 

November 16, 2010 (the ‘‘proposed Protocol’’) and a related agreement effected by an exchange of notes on September 23, 2009 (the 

‘‘related Agreement’’). I also transmit for the information of the 

Senate the report of the Department of State, which includes an 

Overview of the proposed Protocol and related Agreement. 

The proposed Protocol and related Agreement provide for more 

robust exchange of information between tax authorities in the two 

countries to facilitate the administration of each country’s tax laws. 

They generally follow the current U.S. Model Income Tex Convention and the Organization for Economic Cooperation and Development standards for exchange of tax information. The proposed Protocol and related Agreement also provide for mandatory arbitration 

of certain cases that the competent authorities of each country 

have been unable to resolve after a reasonable period of time. 

I recommend that the Senate give early and favorable consideration to the proposed Protocol and related Agreement and give its 

advice and consent to their ratification. 

BARACK OBAMA. 


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LETTER OF SUBMITTAL 

DEPARTMENT OF STATE, Washington, December 8, 2010. 

The PRESIDENT, 

The White House. 

THE PRESIDENT: I have the honor to submit to you, with a view 

to their transmission to the Senate for advice and consent to ratification, the Protocol Amending the Convention between the United 

States of America and the Swiss Confederation for the Avoidance 

of Double Taxation with Respect to Taxes on Income, Signed at 

Washington on October 2, 1996, signed on September 23, 2009, at 

Washington, as corrected by an exchange of notes effected November 16, 2010 (‘‘proposed Protocol’’), together with a related agreement effected by an exchange of notes on the same day (‘‘related 

Agreement’’). The proposed Protocol and related Agreement were 

negotiated to bring the existing income tax Convention with Switzerland into closer conformity with current U.S. tax treaty policy, 

and in recognition of the importance of the United States’ economic 

relations with Switzerland. I recommend that the proposed Protocol 

and related Agreement be transmitted to the Senate for its advice 

and consent to ratification. 

The proposed Protocol and related Agreement provide for more 

robust exchange of information between tax authorities in the two 

countries to facilitate the administration of each country’s tax laws. 

They generally follow the current U.S. Model Income Tax Convention and the current Organization for Economic Cooperation and 

Development standards for exchange of information. The proposed 

Protocol and related Agreement also provide for mandatory arbitration of certain cases that the competent authorities of each country 

have been unable to resolve after a reasonable period of time. An 

overview of key provisions of the proposed Protocol and related 

Agreement is enclosed with this report. 

The proposed Protocol is self-executing. The Department of the 

Treasury and the Department of State cooperated in the negotiation of the proposed Protocol and related Agreement, and the Department of the Treasury joins the Department of State in recommending that the proposed Protocol and related Agreement be 

transmitted to the Senate as soon as possible for its advice and 

consent to ratification. 

Respectfully submitted. 

HILLARY RODHAM CLINTON. 

Enclosures: as stated. 


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OVERVIEW

The proposed Protocol amending the Convention between the 

United States of America and the Swiss Confederation for the 

Avoidance of Double Taxation with Respect to Taxes on Income 

(‘‘proposed Protocol’’) and the related agreement effected by exchange of notes (‘‘related Agreement’’) were negotiated to bring the 

existing convention (‘‘existing Convention’’), signed in 1996, into 

closer conformity with current U.S. tax treaty policy regarding exchange of information and to include mandatory arbitration procedures for certain cases that the competent authorities of the countries have been unable to resolve after a reasonable period of time. 

There are, as with all bilateral tax conventions, some variations 

from the language of the current U.S. Model Income Tax Convention. In the proposed Protocol and related Agreement, these minor 

differences reflect particular aspects of Swiss law and treaty policy. 

However, the proposed Protocol and related Agreement and generally follow the current U.S. Model Income Tax Convention and 

the Organization for Economic Cooperation and Development 

standard for exchange of tax information. 

EXCHANGE OF INFORMATION

The proposed Protocol and related Agreement would replace the 

existing Convention’s tax information exchange provisions with updated rules that are consistent with current U.S. tax treaty practice. The proposed Protocol and related Agreement allow the tax 

authorities of each country to exchange information relevant to carrying out the provisions of the Convention or the domestic tax laws 

of either country, including information that would otherwise be 

protected by the bank secrecy laws of either country. 

DISPUTE RESOLUTION THROUGH MANDATORY BINDING ARBITRATION

The proposed Protocol and related Agreement update the provisions of the existing Convention with respect to the mutual agreement procedure by incorporating mandatory arbitration of certain 

cases that the competent authorities of the United States and the 

Swiss Confederation have been unable to resolve after a reasonable 

period of time. The arbitration provisions in the proposed Protocol 

and related Agreement are similar to other mandatory arbitration 

provisions that have recently been included in other U.S. bilateral 

tax treaties and that are currently in force. 

INDIVIDUAL RETIREMENT ACCOUNTS

The proposed Protocol updates the provisions of the existing Convention to provide that individual retirement accounts are eligible 

for the benefits afforded a pension under the Convention. 


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ENTRY INTO FORCE

The proposed Protocol would enter into force when the United 

States and the Swiss Confederation exchange instruments of ratification. The proposed Protocol would have effect, with respect to 

taxes withheld at source, for amounts paid or credited on or after 

the first day of January of the year following entry into force of the 

Protocol. With respect to tax information exchange, the proposed 

Protocol would have effect with respect to requests for bank information to information that relates to any date beginning on or 

after the date of signature of the proposed Protocol and, with respect to all other cases, would have effect with respect to requests 

for information that relate to taxable periods beginning on or after 

the first day of January of the year following the date of signature. 

The mandatory arbitration provision would have effect with respect 

both to cases that are under consideration by the competent authorities as of the date on which the Protocol enters into force and 

to cases that come under consideration after that date. The related 

Agreement would enter into force on the date of entry into force of 

the proposed Protocol and would be annexed to the Convention as 

Annex A thereto and would be an integral part of the Convention. 


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