Switzerland Details Income Breakdown for Global Corporate Tax Rate

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Switzerland, home to many large multinationals, has an average corporate tax rate of just under 15%, but some of its low-tax cantons, such as Zug (pictured), again have lower rates. Keystone / Alessandro Della Bella

Switzerland will apply from 2024 the minimum tax rate for large multinational companies as part of a global tax agreement. The federal government will receive a quarter and regional and local authorities three-quarters of the revenue, he said on Thursday, explaining how the deal would be implemented.

This content was published on June 23, 2022 – 17:13

Reuters/Keystone-SDA/sb

“Based on the results of the consultations, the Confederation should collect 25% of the revenue from the additional tax and use the funds for the benefit of Switzerland as a business location. The remaining 75% will go to the cantons and municipalities,” the finance ministry said. saidExternal link.

Switzerland saidExternal link in January, it would implement from 2024 the minimum tax rate of 15% for companies with a turnover of more than 750 million euros (786 million francs), agreed last year by the Organization for Economic Co-operation and Development (OECD)External link and G20 member states.

For the federal budget, revenue would be neutral, the government said. The cantons can decide themselves on the use of the tax money.

Finance Minister Ueli Maurer said around 200 Swiss companies and around 2,000 Swiss subsidiaries of foreign groups would be affected by the move, which he said offered legal certainty and ensured that tax revenues would stay in Switzerland. The 600,000 companies that operate solely in the Alpine country will not be affected by the agreement.

Last month, the OECD acknowledged that the tax deal could take until 2024 to be implemented, a year later than expected.

Switzerland estimated in March that it could raise up to 2.5 billion Swiss francs ($2.6 billion) in additional revenue by implementing the additional tax designed to ensure that large companies pay the tax rate. global standard minimum tax.

Switzerland had been in the international spotlight for years because the cantons had a special tax status for foreign companies, which meant that some paid virtually no tax on an effective federal tax of 7.8%. It ends now.

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