The EU-Switzerland Agreement on the Free Movement of Persons (AFMP) is a bilateral treaty that grants Swiss and EU citizens the right to live and work in each other`s countries. The agreement has been in effect since 2002 and has brought numerous benefits to both parties. One of the most significant benefits of this agreement is the ability to exchange dividends between companies based in Switzerland and the EU.
Dividends are payments made by a company to its shareholders out of its profits or reserves. They are a way for companies to reward their shareholders for their investment. The EU-Switzerland agreement has made it easier for companies based in Switzerland and the EU to exchange dividends. Before the agreement, companies had to pay taxes on dividends twice, once in the country where the company is located and again in the country where the shareholder resides. This double taxation made it difficult for companies to distribute dividends and for shareholders to receive them.
The EU-Switzerland agreement on dividends means that companies based in Switzerland and the EU only have to pay taxes on dividends once. This simplifies the process of distributing dividends and makes it more attractive for Swiss and EU companies to do business with each other. The agreement also allows for the free movement of capital between Switzerland and the EU. This means that companies can invest in each other`s countries without facing restrictions or barriers.
The agreement on dividends has had a positive impact on both Swiss and EU companies. Swiss companies benefit from increased access to the EU market, which is the largest trading partner of Switzerland. EU companies also benefit from access to the Swiss market, which is known for its stability and high standard of living. The agreement on dividends has also helped to promote investment and economic growth in both regions.
In conclusion, the EU-Switzerland Agreement on the Free Movement of Persons has brought numerous benefits to both parties, including the ability to exchange dividends between companies. The agreement has simplified the process of distributing dividends and made it more attractive for Swiss and EU companies to do business with each other. The free movement of capital between Switzerland and the EU has also promoted investment and economic growth. Overall, the agreement has been a success and continues to bring benefits to both regions.