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Switzerland, France To Implement Airport Tax Deal

Switzerland and France have announced that their agreement on the tax system applicable to EuroAirport Basel Mulhouse Freiburg (EAP) will enter into force from next month.

According to a news report by Tax-News.com, the agreement which was signed last March, and aims to establish a long-term legal regime that ensures that the airport and its businesses remain attractive and continue to develop.

The news report indicated that at a meeting yesterday, Swiss Federal Councillor, Ignazio Cassis, and French Foreign Minister, Jean-Yves Le Drian, agreed that the new regime will enter into force at the start of next year.

Cassis said: “The agreement is a success for both our countries and for the economic development of the entire tri-national Upper Rhine region. It creates legal certainty for the companies based at EuroAirport, i.e. on French soil, makes it possible to continue with the important infrastructure development supported by both states, and has the potential to create new jobs.”

Under the deal, Swiss VAT will be levied in the Swiss area of EAP. France and Switzerland will split the receipts from corporation tax paid by EAP, with all stakeholders taking a share.

According to the deal, companies in the Swiss area will pay French income tax and Swiss company tax. However, they will not be liable to the main local ancillary taxes levied in France, to which the Swiss tax is considered equivalent.

The agreement was approved by the French National Assembly on Monday, and Switzerland is now awaiting official notification from France that it has ratified the agreement.

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