Swiss Federal Council pledges coordinated reform plan in first quarter of 2022
The Swiss Federal Council announced on 11 June that it would decide on a coordinated reform plan in the context of the OECD/G20 work on global corporate taxation during the first quarter of 2022. Its response would depend on the progress made at international level.
“Recently, the G7 finance ministers came out in favour of a minimum international tax rate of at least 15% for large multinationals. In addition, market jurisdictions’ taxing rights on the profits of certain highly profitable multinationals are to be increased. It is expected that the Organisation for Economic Co-operation and Development (OECD) will reach a political agreement on certain benchmarks by mid-2021 and that the detailed provisions will be established by the end of 2021,” said the Council in a statement.
It noted that the Federal Department of Finance (FDF) had, in discussions with the cantons, academia and the business community, been examining the possible transposition of an international standard into Swiss law, as well as internationally accepted measures that would safeguard Switzerland’s appeal as a business location.
This work would be intensified in the coming months in close cooperation with the Federal Department of Economic Affairs, Education and Research (EAER) and other departments concerned. Depending on the progress made by the OECD/G20, a coordinated reform plan would be submitted to the Federal Council in the first quarter of 2022.
“It is important for Switzerland to set the course now in order to be a competitive location with sustainable growth, innovation, attractive jobs and a high level of prosperity also in the light of the OECD/G20 work on international corporate taxation,” said the Council.