– Switzerland for minimal tax reform even without the United States
The focus of the OECD/G20 tax reform is a minimum tax rate of 15% for all companies with annual sales of more than €750m.
If the people agree to minimal tax reform in June, Switzerland will implement it, even if the United States does not. This was announced by Karen Keller-Sutter on Wednesday at WEF in Davos. In any case, the federal council member said, the global implementation of the tax would be complex.
The head of the Federal Ministry of Finance (FDF) told the media in Davos on Wednesday that it is a bit complicated with the United States. He referred to discussions about the FATCA tax law (“Foreign Account Tax Compliance Act”). As the initiator of the imposition of a minimum tax of 15% on corporations, the state can apply the regulation in its own way.
The United States is strong enough to do this, Keeler Sutter said. But Switzerland would have to introduce minimum taxes if all OECD countries did.
At the heart of the OECD/G20 tax reform is a minimum tax rate of 15% for all companies with annual sales of more than €750m. According to the Federal Council, around 2,000 companies in Switzerland are affected by this reform.
Parliament has already approved the reform. Since the new tax requires a constitutional amendment, Swiss residents will vote on it in June.
Maintaining the tax base in Switzerland
According to the Federal Council member, the vote is about legal certainty for Swiss companies and about preserving the tax base in Switzerland. “If it’s not done with the people, we’re in for a minimum tax problem,” she said.
The entry into force is scheduled for January 2024. However, Switzerland can wait for the other players if they are not ready. Keller-Sutter said the details of this reform have been played down.
Tax reform was the focus of most of Keller-Sutter’s meetings at the World Economic Forum. In particular, she exchanged views with her counterparts from Germany, Luxembourg and Poland, as well as with the Secretary-General of the Organization for Economic Co-operation and Development.
Keeler-Sutter hopes that by maintaining relations with European countries at the World Economic Forum, he will be able to represent common positions in international bodies such as the Organization for Economic Co-operation and Development. This is only possible if you know each other.