Digitalisation is changing the economy and many 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 is actively involved in this work.
- Pillar 1 aims to adapt the current international provisions on the tax allocation of profits of large corporate groups (market state taxation). Companies with an annual turnover of more than 20 billion euros and a profit margin of more than 10 percent are affected by the scope.
- Pillar 2 aims to introduce a minimum taxation of 15% for internationally active groups of companies that reach the threshold of 750 million euros turnover. The model regulations and the associated commentary were published in December 2021 and March 2022 respectively.
And what about Switzerland?
Switzerland prefers long-term, consensus-based multilateral solutions rather than a multitude of uncoordinated national measures.
In this context, Switzerland is committed to rules that foster innovation and prosperity, that are applied uniformly worldwide and that are subject to a dispute settlement mechanism. The aim is to create legal certainty for affected businesses.
In January 2022, the Federal Council decided to implement the minimum tax rate agreed by the OECD and G20 member states by means of a constitutional amendment. Based on that decision, a temporary ordinance should ensure that the minimum tax rate can come into force on 1 January 2024. The law will be enacted subsequently in the conventional manner. Parliament agreed on the constitutional article on the OECD minimum tax in December 2022 and the Swiss electorate will vote on the bill in June 2023.
Implementation of the OECD minimum tax rate in Switzerland (link to the website of the FDF)
Reply letter from OECD Secretary General Mathias Cormann to BR Ueli Maurer dated August 30, 2021 (PDF, 153 kB, 23.09.2021)
Letter from BR Ueli Maurer to OECD Secretary General Mathias Cormann dated August 25, 2021 (PDF, 1 MB, 23.09.2021)
Position of the SIF on the OECD Inclusive Framework on BEPS meeting of 29-30 January 2020 regarding further steps in the project on taxing the digital economy (PDF, 249 kB, 31.01.2020)
Letter from the President of the Swiss Confederation, Ueli Maurer, to the OECD (PDF, 238 kB, 27.12.2019)On 13 December 2019, President of the Confederation Ueli Maurer sent a letter to OECD Secretary-General José Angel Gurria outlining Switzerland's position on the OECD project on the taxation of the digital economy and received a reply within a week
SIF's updated position on the taxation of the digitalised economy (12 September 2019) (PDF, 218 kB, 12.09.2019)
Last modification 27.01.2023
State Secretariat for International Finance SIF