Switzerland 'in favour of minimum corporate tax rate'
Speaking at the World Economic Forum currently underway in Davos, Swiss Finance Minister Karin Keller-Sutter said the country will implement the new tax rule — if the voters agree.
In December, the EU adopted the minimum 15-percent tax to be levied on profits made by multinationals within their borders, in line with the October 2021 agreement reached at the Organization for Economic Cooperation and Development (OECD) by 137 jurisdictions.
The Swiss Parliament has also validated the reform, which intends to impose this tax on all large companies, whose turnover exceeds 750 million euros.
However, Keller-Sutter said that, unlike other countries, where the new measure has to be accepted by MPs only, in Switzerland it must be put to a referendum before it can (or not) become law.
The national vote on this issue is scheduled for June 18th.
If approved at the polls, the new legislation will enter into force in 2024.
The additional revenue generated by the new measure, estimated at between 1 and 2.5 billion francs annually, will be distributed among the cantons (75 percent), with the remaining 25 percent going to the federal government.
Current corporate tax rates in Switzerland vary between 11.9 percent and 21 percent, depending on the canton.
The lowest rate is in Zug and the highest in Bern.
At the federal level, a statutory tax rate is 8.5 percent.
The new legislation, if approved by voters, will apply only to companies and not impact individual taxes.
READ MORE: Why does the canton of Zug have Switzerland's lowest taxes?
Comments
See Also
In December, the EU adopted the minimum 15-percent tax to be levied on profits made by multinationals within their borders, in line with the October 2021 agreement reached at the Organization for Economic Cooperation and Development (OECD) by 137 jurisdictions.
The Swiss Parliament has also validated the reform, which intends to impose this tax on all large companies, whose turnover exceeds 750 million euros.
However, Keller-Sutter said that, unlike other countries, where the new measure has to be accepted by MPs only, in Switzerland it must be put to a referendum before it can (or not) become law.
The national vote on this issue is scheduled for June 18th.
If approved at the polls, the new legislation will enter into force in 2024.
The additional revenue generated by the new measure, estimated at between 1 and 2.5 billion francs annually, will be distributed among the cantons (75 percent), with the remaining 25 percent going to the federal government.
Current corporate tax rates in Switzerland vary between 11.9 percent and 21 percent, depending on the canton.
The lowest rate is in Zug and the highest in Bern.
At the federal level, a statutory tax rate is 8.5 percent.
The new legislation, if approved by voters, will apply only to companies and not impact individual taxes.
READ MORE: Why does the canton of Zug have Switzerland's lowest taxes?
Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.
Please log in here to leave a comment.