A majority of 81 to 61 lawmakers in Switzerland's lower house have voted in favor of the government-backed deal. Fifty-three lawmakers abstained on the issue that has been portrayed as a nail in the coffin for Swiss banking secrecy.
Tuesday's vote passed after the powerful Swiss People's Party dropped its opposition. A first attempt last week to have parliament approve the treaty was blocked when the nationalist party and the left-wing Social Democrats voted 'no'.
Technical details remain to be ironed out and the proposal may still be put to the Swiss public in a referendum before it finally becomes law.