The new DTA replaces the agreement applicable since 1991. With the reduction on WHT from 10% to 5%, Switzerland will become one of the most favourable countries in Europe, both for investments into China as well as for investments from China to Europe.
As of 1 January 2013, the new Double Tax Treaty between Switzerland and Hong Kong entered into force. It puts Switzerland in the limelight for outbound investments from China via Hong Kong to Europe. Reversely, it helps companies doing business in Switzerland and other Europeans countries to structure their investments into Hong Kong.