Digitalisation is changing the economy and business models. Consequently, the Organisation for Economic Co-operation and Development (OECD) is preparing proposals as to how corporate taxation can be adapted to the new developments in the longer term. Switzerland actively participates in this work.
On 31 May 2019, the OECD published a work plan on the tax challenges of the digital economy. The programme presents proposals for solutions based on two pillars. The market states are to be allocated a higher share of the consolidated profits of internationally active companies for taxation purposes. This will be withdrawn from the countries in which the companies have their headquarters.
Pillar 1: Modification of the profit allocation mechanism and the local connecting factors for establishing a tax liability; Pillar 2: Minimum taxation rule.
The architecture of the proposals is to be defined by early 2020.
The work is to be completed by 2020.
Last modification 12.09.2019