Finance minister says global corporate tax will come into force in 2024

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Maurer says it is in Switzerland’s interest to implement comprehensive tax reform for large multinationals. © Keystone/Anthony Anex

The Swiss government has committed to implement from 2024 the minimum tax rate for large multinational companies as part of a global tax agreement.

This content was published on January 13, 2022 – 18:09

swissino.ch/urs

According to a timetable presented by Finance Minister Ueli Maurer on Thursday, a temporary regulation will guarantee the entry into force of the minimum rate of 15% for companies with a turnover of more than 750 million euros (786 million CHF). following the vote of a constitutional amendment in June 2023.

Subsequent legal reforms, affecting around 2,000 Swiss subsidiaries of foreign companies and around 200 Swiss companies, would be decided by Parliament at a later stage.

Maurer said the proposed procedure allows Switzerland to keep pace with other countries trying to attract multinationals. It has also provided the necessary legal certainty for the business community.

“If 15% has to be levied, we want to collect it in Switzerland,” he told a press conference. “This will ensure that Switzerland remains competitive as an international business center.”

Maurer said the procedure had been agreed with the 26 cantons and municipalities, which have extensive financial autonomy, as well as with the business community.

Income

He added that it was too early to estimate how much additional tax revenue the cantons would receive or what kinds of benefits might be offered to businesses.

The details of the Swiss regulations were still being worked out with the Organization for Economic Co-operation and Development (OECD)External link, which agreed the global tax with the world’s top 20 economies last year.

The deal aims to make it harder for big companies to evade tax and put Switzerland under renewed pressure over its traditionally low corporate tax policy.

Some companies will have to pay higher taxes, but the proposed legal procedure has given Switzerland “fiscal policy leeway to counter a possible loss of attractiveness as a business location”, according to Ministry of FinanceExternal link.

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