Research & Thoughts

RUBIK Tax Agreements Require Banks to Take Immediate Action

Swiss RUBIK bilateral tax agreements are a reality. While final ratification is required, agreements have been signed by Germany, the United Kingdom (UK) and now Austria. With January 1 2013 the deadline, it leaves banks with only a short time to prepare for compliance. Is your bank ready for the challenge?

After the UK and Germany, Austria has now joined the rank of countries that signed the «RUBIK» bilateral tax agreement with Switzerland. These agreements are largely similar and will come into force on January 1, 2013.

The 2015 strategy of the Swiss Bankers Association (SBA) comprises four elements:

  • Retain and strengthen trust through regularization
  • Focus on taxed assets
  • Protect privacy
  • Grow and access market

The new agreements are fully in line with this strategy. They address the increasing pressure on Swiss banking secrecy and client protection, and the need to protect banks and their employees from further legal action.

This paper outlines key elements of the agreements and highlights the actions financial institutions need to take.