There has been a lack of such an agreement between the countries since Argentina’s authorities “denounced” the 1997 accord in January 2012, a statement from the Swiss government said yesterday.

“The agreement aims to eliminate double taxation with respect to taxes on income and on capital, particularly those on dividends, interest payments and royalties,” the statement said.

The new agreement was initialed by the negotiators on November 5 last year and it was then submitted to the cantons and the business circles concerned within the scope of a hearing procedure. It still has to be approved by parliament in Switzerland and Argentina before it can enter into force.

In the meantime, the exchange of notes of 1950 concerning the taxation of shipping and air transport companies will continue to apply.

To date, Switzerland has signed 43 double taxation agreements in line with the current international exchange of information standard, and 36 of these are in force, the statement added.