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.
Last modification 08.03.2018