In order to implement the OECD/G20 project on taxing the digital economy, the Federal Council is proposing a supplementary tax. Based on the results of the consultation, the Confederation should receive 25% of the receipts from the supplementary tax and use the funds for the benefit of Switzerland as a business location. The remaining 75% will go to the cantons and communes.
The supplementary tax is limited to large corporate groups with worldwide turnover of at least EUR 750 million that are below the minimum taxation of 15%. As a federal tax, it achieves the necessary international acceptance. Implementation by the cantons takes account of tax federalism.
The Confederation is to receive 25% of the receipts from the supplementary tax. These additional funds will be earmarked to cover the additional national fiscal equalization (NFE) expenditure and to promote the attractiveness of Switzerland as a business location. The proposal is thus budget-neutral for the Confederation.
The cantons will receive 75% of the receipts. The cantons actually affected by the minimum tax rate will thus receive the funds to safeguard their appeal as a business location. They can decide for themselves how the funds are to be used, but the communes must be appropriately taken into account.
The Federal Council has decided to proceed in stages in view of the time pressure. A new constitutional standard will empower the Confederation to implement the OECD/G20 project. In a second step, the Federal Council will regulate minimum taxation by means of a temporary ordinance. Afterwards, a federal law will replace the ordinance.
Source: Confédération Suisse
Disclaimer
While FF International Limited (hereinafter referred to as “FFI”) endeavours to ensure that any information published in articles / publications / memos / updates (including any information published on our website) is accurate as at the time of publication, FFI nor any of their respective directors, partners, officers, employees, or agents make any representation or warranty (express or implied) or accept or will accept any responsibility or liability in relation to the accuracy or completeness of the information contained published in our articles / publications / memos / updates (including any information published on our website) or any other written or oral information made available or published on our articles / publications / memos and updates. Any responsibility or liability in respect of any such information or any inaccuracy or omission arising from any article / publication / memo is expressly disclaimed. In particular, but without prejudice to the generality of the foregoing, no representation or warranty is given as to the achievement or reasonableness of any future projections, estimates, prospects or returns published on our articles / publications / memos / updates (including any information published on our website) . The content of the above article / publication / memo / update and any information published on our website is intended to serve solely as general information only and its purpose is not to provide any specific professional advice whether of a financial, legal, tax or other nature. Since it is recommended that business decisions be based only on qualified professional advice, neither FFI nor any related company belonging to FFI nor any of the respective directors, partners, officers, employees, or agents of FFI will be held liable for any damages which might result as a consequence of relying on the information contained within. FFI including any directors, partners, officers, employees, or agents of FFI and / or any entity related to FFI accept no liability whatsoever for the content of this article / publication / memo / update for the consequences of any actions taken on the basis of the information provided. If you have any questions relating to the accuracy and correctness of the above article / publication / memo / updates or any information published on our website you are kindly requested inform us by sending us an email on info@ffinternational.com.mt
