Measures to strengthen Switzerland’s competitiveness in context of international tax policy

During its meeting on June 11, 2021, the Federal Council took note of the planned procedure for further strengthening Switzerland as a business location in the context of the OECD/G20 work on global corporate taxation. Depending on the progress made at international level, the Federal Council is set to decide on a coordinated reform plan 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.

The OECD/G20 work on global corporate taxation is progressing. 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.

For over a year now, in discussions with the cantons, academia and the business community, the Federal Department of Finance (FDF) has been examining the possible transposition of an international standard into Swiss law, as well as internationally accepted measures that will safeguard Switzerland’s appeal as a business location. This work by the FDF will 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 is to be submitted to the Federal Council in the first quarter of 2022.