Switzerland was promoted Friday to a 'white list' of countries that have signed up to international tax information exchange rules, taking a further step toward shedding its stigma as an uncooperative tax haven.
The Organization for Economic Cooperation and Development welcomed Switzerland's signing of a tax information sharing treaty with Qatar, the Alpine nation's 12th since agreeing earlier this year to soften its stance on banking secrecy for foreigners.
Switzerland will now be removed from the OECD's 'gray list,' the Paris-based watchdog group said.
Swiss President Hans-Rudolf Merz signed the deal with Qatar's Prime Minister Sheikh Hamad Bin Jassim Bin Jabr Al-Thani on the sidelines of the U.N. General Assembly in New York late Thursday.
Switzerland previously reached agreements with the United States, Denmark, Luxembourg, France, Norway, Austria, Britain, Mexico, Finland, Faeroe Islands and Spain.
The OECD said 11 other countries or economic areas have moved to the white list since being shamed in April. They are Aruba, Austria, Belgium, Bermuda, British Virgin Islands, Bahrain, Cayman Islands, Luxembourg, Monaco, Netherlands Antilles and San Marino.
All of these will have their record on tax information exchange reviewed in the coming years to ensure that they are serious about cracking down on tax evasion as demanded by the OECD.
One potential stumbling block in Switzerland's case is the possibility that voters will reject the tax treaties in a national referendum - forcing the government to restart negotiations from scratch.