Germany has agreed that Swiss banks will only have to pay 2 billion Swiss francs ($2.6 billion) as an upfront payment to seal a deal on Wednesday to regularise untaxed money stashed in secret accounts, a Swiss paper reported.
Germany had originally sought a payment of 10 billion francs but this was seen as too much for big banks UBS , Credit Suisse to manage, the SonntagsZeitung reported, citing unnamed sources involved in the talks.
Switzerland''s two biggest banks UBS and Credit Suisse are expected to pay the majority of the advance payment but other smaller banks will also have to cough up. The upfront payment should ultimately be recouped from the bank''s clients.
The advance payment is part of a deal aimed at settling a dispute over an estimated 200 billion francs held by German citizens in untaxed Swiss accounts.
The newspaper said in return for limiting the advance payment, the two sides had agreed on a withholding tax on future interest income of 26 percent, above the 25 percent Germany levies on capital gains and profits from share sales.
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