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The agreement regulating the new tax regime at Basel-Mulhouse Airport will come into force at the start of next year. The Swiss and French foreign ministers agreed on its conclusion. The National Assembly formerly ratified the agreement.
The tax dispute at Basel-Mulhouse Airport has finally reached a conclusion. At their first meeting, Federal Councillor Ignazio Cassis and French Foreign Minister Jean-Yves Le Drian stated that the agreement would be applicable from the start of 2018, explained the Federal Department of Foreign Affairs in a statement.
"The agreement is a success for both our countries and for the economic development of the entire tri-national Upper Rhine region,” commented Cassis in the statement. The French National Assembly ratified the agreement on Monday.
The Basel Chamber of Commerce welcomed France’s approval of the agreement. “Companies in the Swiss sector have legal security at last,” said the chamber’s deputy director, Martin Dätwyler, in a statement.
Explaining that the whole Basel economic region would benefit from the agreement, he added: “Our joint efforts with the governments of both Basel cantons and the Federal Department of Foreign Affairs have paid off.”
The agreement had become necessary, because the existing treaty from 1949 contained gaps with regards to labour and tax laws. It affirms that Swiss VAT must continue to apply in the airport’s Swiss sector.
Both countries share the revenue from corporate taxes generated at the airport. Companies in the Swiss sector pay French income tax and Swiss capital tax. The most important French ancillary and local taxes do not apply. The expenses incurred by the French air regulatory authorities are compensated in the Swiss sector.