General provisions of the Switzerland - United States tax treaty regarding the taxation of individuals, companies, partnerships and other types of legal entities doing business in Switzerland.
Each state has the sovereign right to levy taxes, which means that it has to deal with certain tax issues that concern not only its own citizens, but also citizens that are non-residents who occasionally or temporarily earn income in the respective state.
The United States of America and the Swiss Confederation have signed a convention regarding the avoidance of double taxation concerning income taxes, which became effective on January 1 1998.
Double taxation refers to the fact that two countries collect simultaneously taxes on the same company. This situation often arises when companies have subsidiaries or branches in various countries.