The agreement also provides for improved access for Swiss banks to EU markets, which is currently under discussion. The relief of the withholding tax on Swiss dividends is granted by the Federal Tax On Demand Administration and lasts three years. The Swiss company must submit Form 823C. If the two-year maintenance commitment is not yet met, the discharge is granted on an interim basis. In this case, the Swiss company concerned is obliged to pay the amount of the swiss withholding tax that would normally have been levied in the absence of the agreement. At the end of the two-year detention period, this amount is refunded by the new Form 70. On 1 July 2005, the swiss-EU austerity agreement came into force, which provides for measures equivalent to those provided for by the European Directive on the Taxation of Interest (2003/48/EC). Essentially, the agreement introduces rules on withholding interest paid by Swiss payers to people residing in an EU Member State.  This agreement was renamed on 1 January 2017 “Agreement between the Swiss Confederation and the European Union on the automatic exchange of financial account information to improve international tax compliance.” Article 15 has been reissued (Article 9), but it remains unchanged. 3. Notwithstanding paragraphs 1 and 2, Article 15 applies to Spain which, with effect in the entry into force of the bilateral agreement between Spain and Switzerland on the exchange of information on administrative applications, tax evasion within the meaning of the state law required or, similarly, in relation to income not covered by this convention, are part of an agreement or agreement between Spain and Switzerland on the elimination of double taxation of income and capital. Switzerland has signed an automatic exchange of bank account information with the European Union within three years.
If there is a disagreement between the competent Swiss authority and one or more other competent authorities covered by Article 11 on the interpretation or application of this agreement, they will endeavour to resolve it by mutual agreement. They immediately communicate the results of their consultations to the Commission of the European Communities and the relevant authorities of the other Member States. With regard to interpretation issues, the Commission may participate in consultations at the request of one of the relevant authorities. At Switzerland`s request, the agreement also introduced provisions equivalent to those of the EU-Mother-Subsidiary Directive (2003/123/EC) and the European Directive on Interest rights and royalties (2003/49/EC). Cross-border dividends, interest and licence fees between EU and Swiss ENTREPRISES are no longer subject, under certain conditions, to withholding tax. A (Ireland) wanted to invoke Article 15, paragraph 1, of the agreement between Switzerland and the EU to demand full repayment of the Swiss withholding tax on the distribution of the 2007 dividends. This provision is intended to grant a waiver comparable to that of Article 5 of the Parent-Subsidiary Directive (PSD). Article 15, paragraph 1, of the agreement between Switzerland and the EU reserved “the application of national provisions or based on agreements aimed at preventing fraud or abuse in Switzerland and the Member States”, as in Article 1, paragraph 4, of the PSD Directive.