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[Jerome]

Hello everyone and welcome to the forum

This place aims to be a platform for discussion on dividends of course, but also on any subject relating to the stock market, finance and the life of an investor or rentier.

For my presentation I let you take note of the following link:

Looking forward to hearing from you,
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[swx]

Hello Chroom,
I thought this document might be of particular interest to you, if you were not aware of it.
If you find this copy-paste to be of no interest to your forum, please delete it – Swx

FRANCO SWISS TAX CONVENTION.

Federal Department of Finance (FDF)
The State Secretariat for International Financial Affairs SFI
August 2012
Questions and answers regarding the revision of the succession convention with France
Why is revision preferable to no agreement at all?
The convention guarantees legal certainty. Without a convention:
– risk of double taxation;
– France could apply its domestic law without restriction and there would therefore be no legal protection for taxpayers in the face of changes in French domestic law;
– no amicable procedure in case of doubt or in case of double taxation.
The revision obtained made it possible to extend the current agreement until the end of 2013.
Why is the review focusing on real estate companies?
– The revision closes a tax loophole. It will no longer be possible to avoid inheritance tax on real estate through a real estate company.
– Today, residents of Switzerland who own a property in their own name in France are at a disadvantage compared to owners domiciled in Switzerland who own a property in France indirectly via a real estate company.
– The revision is based on this point in principle on the CDI on income and wealth between France and Switzerland.
Is the nationality of the deceased and his heirs taken into account?
No. Only the domicile of the deceased and the place of residence of the heir are determining criteria. For example, a German domiciled in Switzerland and whose heirs reside in France is potentially affected by the revision.
Can we estimate the number of people affected on both sides of the border by this revision?
There are no statistics on this point. It should be noted that not all people who have ties in both countries are necessarily affected by the revision: everything depends on the structure of their assets (in particular real estate held directly or indirectly) and the place of residence of the heirs.
Is taxation at the heir's domicile contrary to international tax law?
This is not a legal anomaly:
– the comments to the 1982 OECD model succession convention provide for the possibility of inserting in this type of convention a subsidiary right of taxation (i.e. in the 2nd country, not that of the deceased) based on the nationality or domicile of the heir;
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– heirs domiciled in France of a deceased resident in Germany are subject to treatment comparable to that provided for in the 2009 Franco-German convention on successions. The latter is even less favourable since it does not provide for a limitation on the duration of residence for heirs in France, unlike the Franco-Swiss project.
Is Switzerland's fiscal sovereignty being violated?
No. If a person dies in Switzerland and has heirs in France, Swiss cantonal law applies first (so-called primary tax law). Only then can the country of the heir, in this case France, exercise its right to tax the heirs (subsidiary tax law). In addition, France must credit any taxes that the heirs may have already paid in Switzerland.
If a deceased person domiciled in Switzerland owns shares in French companies (excluding shares in real estate companies), will his heirs have to pay taxes in France on these shares?
Yes, if his heirs are domiciled in France at the time of death and have been so for more than six years out of a ten-year period preceding receipt of the assets. No, if his heirs reside in Switzerland.
When can France and Switzerland denounce the current convention?
Both parties may terminate the agreement at the end of each year with six months' notice. The next deadline is therefore June 30, 2013 for December 31, 2013.
How many double taxation agreements on inheritances has Switzerland concluded?
Switzerland has concluded a total of ten conventions on successions (Germany, Austria, Denmark, United States, Finland, France, Great Britain, Norway, Netherlands and Sweden).
Are these conventions comparable?
A comparison of the various conventions concluded by Switzerland is not relevant. On the one hand, the inheritance tax law of the partner states differs, on the other hand these conventions were concluded

[Jerome]

Hello SWX
You are apparently referring to the convention currently being negotiated between Switzerland and France for the succession of French residents in Switzerland. For me, all this is yet another gas factory that emanates from governments. Incredible the money that can be thrown out the window to pay senior civil servants.
Not only are they numerous and expensive, but they also manage to make the system more and more complex to justify their existence. In Switzerland we are still lucky in this respect fortunately, but for how long with all the pressures coming from the USA and Europe? In short, let's hope it lasts...

[Author]

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