Switzerland inches towards minimum company tax rate
Switzerland looks set to miss a deadline for implementing a minimum 15% rate of tax on large companies, but is planning stop-gap measures to meet agreed international standards.
This content was published on
2 minutes
swissinfo.ch/mga
Português
pt
Suíça se arrasta a adotar alíquota mínima para grandes empresas
According to the Organisation for Economic Co-operation and Development (OECD) and the G20, some 136 countries should have the new base rate of company tax in place for the start of next year.
But because Switzerland needs to amend its tax laws first, the minimum rate will likely be introduced a year later in the Alpine state. In January, Finance Minister Ueli Maurer had already stated that Switzerland’s system of direct democracy would likely delay changes until 2024.
Government plans
On Friday, the government outlined its timetable for imposing the 15% minimum levy on larger companies. Parliament intends to lay the legal foundations for the changes by the end of this year.
At present, there is no legal basis for charging variable sizes of company a different rate of tax. The minimum 15% tax rate would only apply to companies with at least €750 million (CHF768 million) in annual revenues.
The plan is to introduce a supplementary tax aimed specifically at large companies that pay below the 15% threshold. The government also wants the power to impose temporary tax measures on these firms until the minimum rate officially comes into force.
Once parliament has approved the deal, a further six months must then be set aside to allow for cantons and the public to have their say. A deadline of June 18, 2023, has been set for this process.
Any opponents would then have the option of launching a popular vote if they can gather enough support.
Around 2,500 companies in Switzerland are likely to be affected by the minimum rate – between 200 and 300 Swiss companies and some 2,000 to 3,000 foreign subsidiaries.
Popular Stories
More
Multinational companies
Azeri fossil-fuel cash cow brings controversy to Switzerland
Swiss price watchdog slams excessive prices for generic medicines
This content was published on
The cheapest generic medicines available in Switzerland are more than twice as expensive as in other countries, according to a study by the Swiss price watchdog.
Nature should not figure in net zero calculations: academic study
This content was published on
The natural removal of CO2 from the atmosphere by forests or oceans should not be included in the net-zero balance of climate protection measures, argue researchers.
This content was published on
None of the 15 major Swiss retail banks is meeting international climate and biodiversity targets, according to a ranking by WWF Switzerland.
This content was published on
Nestlé's new CEO Laurent Freixe, has presented plans for the future of the world's largest food company, after his first few weeks in office.
Swiss foreign minister calls on Moscow to end Ukraine war
This content was published on
It's high time Moscow ended its war against Ukraine, Swiss foreign minister Ignazio Cassis tells the UN Security Council.
This content was published on
The only alternative to the UN Palestinian agency’s work in Gaza is to allow Israel to run services there, Philippe Lazzarini, UNRWA Commissioner-General, told reporters in Geneva on Monday.
Study reveals food culture differences between Switzerland and neighbours
This content was published on
Three-quarters of Swiss people consider eating to be a pleasurable, social activity, a new survey reveals. Healthy eating, however, plays a much less important role, it found.
Global 15% tax rate is ‘major challenge’ for Swiss firms, says top business leader
This content was published on
An interview with Christoph Mäder, president of economiesuisse, who reviews the major challenges facing the Swiss economy.
Swiss cantons mull lower taxes for wealthy executives
This content was published on
Switzerland's Finance Minister says cantons may lower income taxes for executives as minimum corporate tax rates kick in.
Global corporate tax deal reshapes how Switzerland attracts multinationals
This content was published on
The global corporate tax deal endorsed by the G20 won’t end tax competition but it will look different. This plays to Switzerland’s advantages.
Global tax deal approval ‘to take at least a year’, says president
This content was published on
Switzerland will need at least a year to gain domestic approval for a 15% global minimum corporate tax rate, says Guy Parmelin.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.