Where the applicable agreement provides for a tax finality payment, the Swiss paying agent shall deduct a tax finality payment on the basis of assessment used for the retention under the Agreement on the Taxation of Savings1. It shall correspond to the difference between the tax rate set out in the agreement and the rate of the retention.
The tax finality payment shall be calculated and deducted in Swiss francs. Where the interest payment is paid in another currency, it shall be converted using the rate applicable on the date of client settlement.
Swiss paying agents shall transfer the tax finality payments levied to the FTA annually no later than 31 March of the year following the interest payment.
The FTA shall transfer the tax finality payments received to the competent authorities of the partner states annually no later than six months after the end of the Swiss tax year.