The current rules on the taxation of companies operating internationally no longer correspond to the realities of the modern, increasingly digitalised economy. Nowadays, business activity in a jurisdiction no longer requires a physical presence in the form of a permanent establishment which justifies liability for tax. It is sufficient to have a digital presence, which is difficult or even impossible to assess and therefore may not sufficiently be taxed. Consequently, the Organisation for Economic Co-operation and Development (OECD) is currently preparing proposals as to how corporate taxation can be adapted to the new developments. Switzerland actively participates in this work.
At the EU summit in October 2017, the heads of state and government of the EU member states decided that the solution to the tax challenges of the digital economy should be in line with the OECD's current work. On the fringes of the 2018 Spring Meeting of the IMF and the World Bank, the finance ministers will discuss the OECD's Interim Report on the taxation of the digital economy. It will then be seen if and how taxation gaps in cross-border digital business activities can be closed.
Last modification 07.09.2018