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Switzerland - Germany tax treaty

A practical treaty page built around the official treaty text, key withholding categories, permanent-establishment rules, and article-level summaries.

Signed

1971-08-11

Effective

1972-12-29

Articles seeded

6

Withholding snapshot

Dividends

Individual rate: 15% · Corporate rate: 0%

The treaty as amended provides zero treatment for qualifying corporate shareholders with substantial direct ownership. The 15 percent rate applies to portfolio dividends.

Interest

Rate: 0%

The treaty generally results in zero source-country withholding on qualifying interest.

Royalties

Rate: 0%

The treaty generally eliminates source-country royalty withholding.

Permanent establishment

Construction threshold: more than 12 months

Dependent-agent analysis follows the treaty wording as amended by protocol.

Other treaty flags

Pensions: split
Protocols: 1989-03-21, 2002-03-12, 2010-10-27, 2011-04-05
Exchange of information: Yes
Student article: Yes
Teacher article: No

Pension treatment is article-specific. The treaty includes detailed frontier-worker, pension, and government-service provisions.

Seeded article summaries

Article 4

Residence

Defines treaty residence under the 1971 wording as amended by protocols.

Article 4 has been refined by multiple protocols. Cross-border worker rules are particularly important given the German-Swiss border.

Article 5

Permanent Establishment

Sets the business-presence threshold with construction and frontier-worker provisions.

The treaty uses a 12-month construction-site threshold and includes specific provisions on cross-border workers and frontier-employment fact patterns.

Article 7

Business Profits

Generally reserves business profits to the residence state in the absence of a PE.

Article 7 has been refined by protocol.

Article 10

Dividends

Caps source-country dividend withholding with a zero rate for qualifying substantial shareholders.

Article 10 produces a zero rate for qualifying corporate shareholders with substantial direct ownership. Portfolio dividends face the 15 percent ceiling.

Article 11

Interest

Generally removes source-country withholding on qualifying interest.

Article 11 typically eliminates source-country withholding on qualifying interest.

Article 12

Royalties

Generally removes source-country withholding on qualifying royalties.

Article 12 eliminates source-country royalty withholding under the article as amended.

Official text

Other treaties involving these jurisdictions

Computed from the cross-reference graph. Links open the related entity on this site.

Primary sources

Important disclaimer

This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.