Switzerland To Introduce Minimum Tax For Corporations
The Swiss government has announced its intention to introduce a minimum tax rate of 15% for large companies from 1 January 2024.
« At its meeting on 12 January 2022, the Federal Council decided to introduce a minimum tax rate for certain companies as agreed by OECD and G20 member states through a constitutional amendment, » the Swiss government said in a statement.
It is specified that the amendment will be put to a referendum, before which the government will issue a temporary regulation setting the minimum tax rate from January 1, 2024.
As the Swiss authorities have recalled, a minimum tax rate of 15% for corporations with a turnover of more than €750 million has been agreed by 137 countries.
« The inclusion of a minimum tax rate in Swiss law ensures that large companies are not involved in litigation abroad. In addition, Switzerland should not give up any tax revenues to which it is entitled, » the document said.
The country’s finance minister, Ueli Maurer, estimates that the changes will affect at least 200 Swiss companies and at least 2,000 subsidiaries of foreign corporations.
Last October, OECD countries agreed to impose a minimum 15% tax on international companies from 2023. One part of the agreement involves redistributing tax revenues from major international companies. This includes shifting some tax payments from the countries where they are headquartered to those states where they operate and earn profits, regardless of whether these firms are physically present in those countries. The new rules will apply to multinationals with global sales above €20 billion and profitability above 10%.
Another part of the agreement would impose a global minimum corporate tax of 15% on firms with revenues of €750 million or more.