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There are increasing voices calling for the introduction to be delayed. Because some countries are hesitant about reform.
Almost 80 percent of voters said yes to the OECD minimum tax in June. Before the vote, both the state government and the business associations said it was urgent. Now the economic umbrella organization “Economiesuisse” is calling on the Federal Council to step on the brakes.
Frank Marty, who heads the tax and finance department, says: “Over the summer it became clear that around three quarters of the states that said they would implement the minimum tax are not yet ready today. This creates a new prerequisite.”
Implementation is complicated
The fact that many states are not so far ahead is partly due to the fact that implementing this minimum tax is complicated. On the other hand, since the vote, the OECD has also decided on an exception rule that offers the USA a loophole. For example, it is now possible that the United States grants all sorts of benefits to its companies, so that the effective tax rate that these companies have to pay is lower than what is shown on paper. This puts companies from other countries at a disadvantage, for example from Switzerland.
Given this initial situation, the Federal Council would be well advised to examine the situation again and, if necessary, decide differently.
These developments are also causing skepticism in the Federal Palace. “The uncertainty is very great,” says SVP Councilor of States Alex Kuprecht. He is President of the Commission for Economic Affairs and Taxes. She also calls on the Federal Council to take a break from implementing the global minimum tax: “Given this initial situation, the Federal Council would be well advised to examine the situation again and, if necessary, decide differently.”
Legend: The people agreed and now everything seems different. Keystone/Anthony Anex/Archive
The commission decided on Thursday to write a corresponding letter to the Federal Council. According to Kuprecht, the National Council’s sister commission will also support this demand.
Large states would have to take part
The implementation of the OECD tax reform is facing headwinds. And rightly so, says Peter Hongler, professor of tax law at the University of St. Gallen. Because the global minimum tax will only be implemented if the large countries such as the USA, China and India also take part. And that is more than uncertain. “It may be that we will be at the same stage at the end of 2024 or the end of 2025, namely that the global minimum tax will actually only be introduced in the EU states. “Then the question arises as to whether the whole project could fail,” says Hongler.
Apparently the conclusion is that Swiss companies and the branches of foreign companies in Switzerland are less affected than was assumed
If the minimum tax is not introduced, it was said before the vote, large Swiss companies and subsidiaries of foreign corporations would be subject to additional taxes from abroad. This problem still exists, says René Matteotti, professor of tax law at the University of Zurich, but: “Apparently we have come to the conclusion that Swiss companies and the branches of foreign companies in Switzerland are less affected than one assumed. »
Canton of Basel-Stadt supports postponement
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One of the cantons that would probably benefit most from the minimum tax would be Basel-Stadt. Many large companies are based there. But there, too, people are in favor of a postponement.
Finance Director Tanja Soland writes in response to a request from SRF: The canton of Basel-Stadt can understand the arguments and would welcome a postponement of the introduction.
The global minimum tax could bring Switzerland an estimated 1 to 2.5 billion in additional tax revenue in the short term. 75 percent of this would go to the cantons and 25 percent to the federal government.
Finance Minister Karin Keller Sutter says of the demands from business and politics: “The Federal Council will analyze this. We have always said that we would take international developments into account when determining the launch date.”