The amending protocol of income and capital tax treaty between Switzerland and Slovenia entered into force on 16 October 2024. Signed on 30 May 2023, this protocol marks the second amendment to the treaty.
The protocol will apply from 1 January 2025.
Second to amend the treaty and includes the following changes:
Article II
The following letter (d) is added to paragraph 2 of Article 23 (Elimination of Double Taxation) of the Convention:
“(d)
The provisions of letter (a) of paragraph 2 shall not apply to income received or wealth held by a resident of Switzerland when Slovenia applies the provisions of the Convention to exempt that income or wealth from tax or applies the provisions of Article 10, paragraph 2, of Article 11, paragraph 2, or of Article 12, paragraph 2, to that income.”
Article III
- The following Article 27A (Entitlement to Benefits) is added to the Convention:
“Article 27A Entitlement to Benefits
Notwithstanding other provisions of this Convention, a benefit under this Convention shall not be granted in respect of an item of income or wealth if it can reasonably be concluded, considering all relevant facts and circumstances, that obtaining that benefit was one of the principal purposes of an arrangement or transaction that resulted directly or indirectly in that benefit, unless it is established that granting that benefit in such circumstances would be in accordance with the purpose and intent of the relevant provisions of this Convention.”
- Paragraph 4 of the additional protocol to the Convention is deleted.
- Paragraphs 5, 6, and 7 of the additional protocol to the Convention become paragraphs 4, 5, and 6.
Earlier, Switzerland announced its decision to ratify the pending protocol to the 1996 income and capital tax treaty with Slovenia, published in the Official Gazette on 25 June, 2024.
The treaty will become effective once the ratification instruments are exchanged and will be applicable from 1 January of the year following its enactment.
The Swiss Council of States, the upper house of parliament, approved the ratification of the 1996 income and capital tax treaty with Slovenia on 30 May, 2024.
