The bill to implement the OECD minimum taxation will be put to the vote on 18 June 2023. In many cantons, it will lead to an increase in tax rates for affected companies. SwissHoldings and its member companies are campaigning for a YES. But why do they want the implementation of the OECD minimum tax in Switzerland if it will increase the taxes for them? One thing is clear: affected companies will pay at least 15 percent tax worldwide from 2024. An implementation in Switzerland will however bring various advantages.
The OECD minimum taxation stipulates that internationally active companies with an annual revenue of more than 750 million euros will henceforth be taxed at a profit tax rate of 15 per cent or higher. In many Swiss cantons, the tax rate is slightly lower. Therefore, the minimum tax in Switzerland is to be implemented via a supplementary tax up to the 15 per cent mark. International companies based here would like to pay this supplementary tax in Switzerland – more precisely in their cantons, where they benefit from an attractive business environment.
Timely implementation for an attractive location
Low taxes have traditionally been an important reason for companies to do business in Switzerland and for them to pay tax on their profits here. However, with international harmonisation, taxes will become less important in the location competition between different countries. As a consequence, competition between locations will change. Other location factors will become more important. With a Yes, the cantons will have the resources to position themselves successfully in this new environment. In addition, a Yes will create legal certainty for companies in Switzerland in a timely manner and thus meet another important location factor. This creates the conditions for companies to make long-term investments here without being confronted with a high degree of uncertainty.
Minimising administrative costs and risks
The implementation of minimum taxation in Switzerland brings further advantages for the companies concerned. For example, additional administrative efforts can be avoided if the very complex introduction of new processes and payment of taxes only need to be done in Switzerland. Alternatively, each company would have to go through tax procedures in several states, prepare the necessary data individually and make it available. That is time-consuming and costs a lot – it is feasible, but unnecessary. There would also be the risk of double taxation. After all, it cannot be assumed that different states agree on all details. There is a risk that companies will be confronted with double claims. This must be prevented.
A YES is a win-win situation
The compromise supported by the Federal Council, the Swiss Parliament as well as the cantons is a good solution for introducing minimum taxation in Switzerland. For companies, it offers an administratively reasonable implementation and legal certainty. For Switzerland, it primarily means additional tax revenue. These can then be invested in our country in a next step, which ultimately benefits everyone.
