This is an automatic translation, which is why errors may occur
A majority of the National Council’s Committee for Economic Affairs and Taxation wants the federal government and the cantons to each receive 50 percent of the gross income from the supplementary tax. SwissHoldings, which has supported the 75/25 compromise decision of the Council of States and the cantons (FDK) during the consultation process so far, regrets this decision.
The WAK-N decided earlier this week by 13 votes to 12 to propose to the National Council that the gross proceeds of the supplementary tax be distributed 50 percent each to the federal government and the cantons. Only a minority wanted to give preference to the 75/25 compromise solution adopted by the Council of States in the fall session. Also rejected were two more far-reaching motions that called for the additional revenue to be left entirely to the cantons and the federal government respectively. SwissHoldings regrets that the WAK-N favors the 50/50 model over the 75/25 model. Finally, calculations by the Federal Finance Administration (FFA) show that the 75/25 model (75 percent for the cantons, 25 percent for the Confederation) would be more financially lucrative for the NFA beneficiary cantons than the 50/50 model. In the case of the latter, there is even the risk that, due to cantonal adjustments, the Confederation could in fact not collect any supplementary taxes in the future and, in addition, its profit tax revenues could also decrease. Instead of the envisaged additional revenues, the 50/50 model could thus result in reduced revenues for the Confederation. Cf. our media release of Sept. 28, 2022.
National Council must decide
Due to time constraints, the WAK-N has not yet been able to fully discuss the bill. It will do so at its next meeting on November 14/15. The bill will then go to the National Council, which will deal with it during the coming winter session (Nov. 28-Dec. 16). The large chamber will be able to decide between the 75/25 model, the 50/50 model and the 100 percent model. From SwissHoldings’ point of view, a 100 percent allocation to the cantons would be factually correct. Technically, Swiss supplementary taxes are exclusively profit and capital taxes due to the respective cantons, which are currently not levied by them to secure their attractiveness as locations. As a compromise proposal, SwissHoldings could also support the 75/25 variant proposed by the Council of States and the FDK. We reject the 50/50 variant proposed by the WAK-N as not being expedient. It is already certain that any differences will be resolved at the end of the winter session and the bill will be discussed by both chambers of parliament. Only if the parliamentary deliberations are already completed this year can the mandatory referendum on the amendment of the Federal Constitution take place in June 2023 and the timely implementation of the OECD minimum taxation by Switzerland take place on January 1, 2024 (expected international entry into force). For more information on the OECD Digital Taxation Project, see the SwissHoldings dossier OECD Digital Taxation Project.
For information:
Dr. Gabriel Rumo │ Director │ 079 712 20 20
Martin Hess │ Head of Taxes, Member of the Executive Board │ 078 805 04 95
Pascal Nussbaum │ Head of Communications & Public Affairs │ 079 798 52 40
