Switzerland has acknowledged the fact that European Union will remove the country from its grey list for tax havens following a reform of the corporate tax system.
“Switzerland meets and implements international tax standards. The European Union has acknowledged this…” said a statement,External link released by the State Secretariat for International Finance (SIF), on Thursday.
The country, which is a major EU economic partner, had been placed on a grey list in December 2017. The list includes nations that have committed to change their tax rules to make them compliant with EU standards.
“It’s a success for me if Switzerland comes off this list. The best list is a short one,” said Pierre Moscovici, European Commissioner for Economic and Financial Affairs, at a press conference afterwards.
The EU acknowledged that a tax reform passed last May – and due to be in force from 2020 – was sufficient to meet its demands.
This was also highlighted in the Swiss statement. “With this law, Switzerland will abolish tax regimes no longer compatible with international standards as of 1 January 2020. The law introduces internationally accepted tax relief measures such as a patent box, thereby ensuring that Switzerland remains an attractive business location,” it said.
Tax reforms
The 28-nation EU set up a blacklist and a grey list of tax havens two years ago after revelations of widespread avoidance schemes used by corporations and wealthy individuals to lower their tax bills. The lists are regularly reviewed to take account of overhauls or to add new jurisdictions.
The EU placed Switzerland on the grey list in December 2017. There had been fears that Switzerland would be black-listed after voters rejected an initial proposal for a corporate tax reform. Voters believed the new regime would unfairly benefit big companies at the expense of smaller firms and individuals.
Criticism
Not everybody has welcomed the EU’s move. “The EU has whitewashed two of the world’s most harmful tax havens,” Chiara Putaturo of Oxfam, an anti-poverty group, said in reference to the decision of delisting Switzerland and Mauritius.
“Despite recent reforms, both countries will continue to offer sweet treats to tax-dodging companies,” she told Reuters.
The Organisation for Economic Co-operation and Development is also planning reforms of tax rules that target multinationals which could affect Switzerland.
More
More
Switzerland placed on EU tax ‘grey list’
This content was published on
The European Union has deemed Switzerland to be partially compliant on tax matters.
Swiss climate activists block vehicles near Gotthard tunnel
This content was published on
Around ten climate activists briefly blocked the A2 motorway near the northern entrance of the Gotthard tunnel on Thursday.
Watches belonging to Michael Schumacher up for auction
This content was published on
Schumacher's family is auctioning off eight rare watches from his collection in Geneva. The Christie's auction will take place on Monday.
Joya Marleen and Baschi named best solo acts at Swiss Music Awards
This content was published on
St. Gallen singer Joya Marleen and Baschi from Basel were named artists of the year at the Swiss Music Awards 2024 on Wednesday night.
Swiss authorities announce cost-cutting in asylum sector
This content was published on
The government notably wants to improve integration into the labour force, particularly for people with protection status S.
Various leaders confirm participation at Ukraine peace conference
This content was published on
The presidents of Poland, Finland, and Latvia and the prime ministers of Spain and Belgium will be at the Swiss-hosted talks in mid-June.
This content was published on
In the winter season up to April 2024, railway and cable car operators ferried 3% more visitors compared to the previous winter, and 5% more than the five-year average.
Rhine flooding: Swiss to invest CHF1 billion with Austria
This content was published on
As part of an international agreement with Austria, the Swiss government wants to pump CHF1 billion ($1.1 billion) into flood protection measures along the Rhine over the next three decades.
Swiss government proposes CHF10 million UNRWA donation
This content was published on
After months of debate, Switzerland plans to give CHF10 million ($11 million) to the UN agency this year, rather than the CHF20 million initially foreseen.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
EU to remove Switzerland from tax haven lists
This content was published on
European Union finance ministers are set to remove Switzerland from the bloc’s lists of countries deemed to act as tax havens.
This content was published on
“I rate the significance of the list as negligible,” Maurer said on Sunday in an interview with the Zentralschweiz am SonntagExternal link and the Ostschweiz am Sonntag, adding there was “absolutely no reason” for Switzerland to be on the list. The EU’s decision changed “absolutely nothing”, said Maurer, who expected no negative consequences for Switzerland…
This content was published on
“Today I met several bankers in Zurich. They were all shaking their heads saying, ‘In 40 years of operations we’ve never had a crisis like this one – a war like the one being waged against the Swiss banking system. We’re in the artillery sights of every country and every day there are new attacks’,” recounted Paolo…
This content was published on
The global economic crisis has triggered a public outcry against tax havens which is here to stay, journalist and author Nicholas Shaxson told swissinfo.ch. Shaxson believes that Switzerland – and other global tax havens – cannot resist the rising tide of sentiment against the illicit offshore financial system for much longer. The only question is…
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.