The Council of States has approved the motion on “Legal certainty in the implementation of the OECD minimum tax,” after the National Council had already endorsed an identical motion at the beginning of the week. The motions pose serious risks for Switzerland as a business location and for Swiss companies. SwissHoldings is therefore calling for forward-looking, internationally compatible implementation and targeted measures to strengthen Switzerland’s attractiveness as a business location in the long term.
Today, the Council of States approved the motion “Ensuring legal certainty in the implementation of OECD minimum taxation” submitted by the EATC-S. During the current winter session, the National Council has already adopted an identical motion. Both motions are therefore considered to have been passed. SwissHoldings continues to view the motions as very risky.
Motions create new uncertainties
The motions refer to the OECD’s Administrative Guidance on Article 9.1 of the GloBE Model Rules, published at the beginning of 2025. This specifies that certain tax advantages must be neutralized by a supplementary tax from 2026 onwards if they were granted after November 30, 2021. The motions now call for an amendment to the Minimum Tax Ordinance so that the Administrative Guidance will not be applied in Switzerland until a later date. According to current assessments, the implementation of the motions would mean that Switzerland would no longer meet the requirements for retaining its “qualified” status from 2026 onwards at the latest. As a result, affected Swiss companies would be exposed to foreign tax claims, double taxation, and additional administrative burdens.
Business-friendly implementation is key
SwissHoldings is committed to ensuring that the implementation is carried out with a sense of proportion. As a first step, the risks and consequences of amending the Minimum Taxation Ordinance must be analyzed in detail in a consultation process and the companies affected must be consulted. In addition, the association clearly advocates the so-called narrow interpretation as the lesser evil. This provides for only the 2024 tax year to be protected. During the parliamentary debate, it was expressly emphasized that this solution would be compatible with the motions. At the same time, the option of a write-off should also be examined in view of the timing.
Switzerland needs forward-looking solutions
With the minimum tax, the OECD has created a new international standard. The motions ignore this new international reality and are backward-looking. It is important that Switzerland does not focus on the past, but on how it wants to shape its future successfully. In the winter session, the Federal Assembly adopted and referred the motions “Strategic increase in Switzerland’s attractiveness as a business location amid minimum taxation,” “Improving investment conditions for companies,” and “Strengthening Switzerland as a production and research location.” All three motions call for effective measures to strengthen Switzerland’s attractiveness as a business location. To implement these measures, a broad strategic discussion between the federal government, the cantons, and the business community is recommended.
Contact
Martin Hess | Head Tax Policy | +41 (0)78 805 04 95
