Countries belonging to the G20 and OECDExternal link are pushing for changes in corporate taxation rules to capture a larger share of taxes of multinationals based in tax-friendly destinations like Switzerland. They want companies to pay taxes where they generate their sales and not just where they are located. They also want all firms to be subject to minimum taxation.
Finance Minister Ueli Maurer had hinted at shortfalls of between CHF1-5 billion in the Swiss treasury if these measures are implemented. However, the NZZ am Sonntag paper claims the country could lose up to CHF10 billion if the impact of tax revenues of cantons and municipalities are taken into account.
The pharmaceutical company Novartis was used as an example to illustrate the consequences. The company recently achieved global sales of just under CHF51 billion, of which only 2% was generated in Switzerland. Conversely, Novartis paid a total of CHF 1.8 billion in income taxes, 39% of which were in Switzerland. If Novartis were hypothetically taxed entirely according to where the sales were generated, Switzerland would only net CHF36 million instead of the CHF700 million it gains now.
It is unlikely the proposed tax regime would be as harsh, but Switzerland will have to pay a price. To avoid a worst-case scenario the Alpine nation is trying to align with other potential losers like Netherlands, Ireland, Luxembourg and the Scandinavian states, as well as Canada and Singapore. Switzerland invited these and other states in May to coordinate their efforts and seek alternative solutions.
More
More
Switzerland continues to lure foreign companies
This content was published on
Switzerland is in the throes of revamping its corporate tax system to keep it line with the competition rules of the European Union and Organisation for Economic Cooperation and Development (OECD). Many cantons are reducing their headline tax rates to make up for having to ditch special perks for multinational companies that locate offices and…
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.
Swiss study: insects mainly migrate at midday and dusk
This content was published on
A study led by the Swiss Ornithological Institute in canton Lucerne is helping to better understand the movement patterns of migratory insects.
Red Cross: 22 staff killed in Middle East since October
This content was published on
The Red Cross and Red Crescent network in Gaza and Israel has lost 22 staff members since last October, the Swiss Red Cross (SRC) said on Wednesday.
Dortmund’s Kobel is first Swiss goalie in Champions League final
This content was published on
Borussia Dortmund’s Gregor Kobel has achieved history by becoming the first Swiss goalkeeper to reach a Champion’s League final.
University students in Switzerland join Gaza protest wave
This content was published on
Pro-Palestinian activists occupied university buildings in Lausanne, Geneva and Zurich on Tuesday, widening the protest movement in the Alpine nation.
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
Switzerland votes ‘yes’ to overhaul corporate tax rules
This content was published on
Switzerland voted yes on Sunday to a reform of the corporate tax system that will scrap preferential treatment for multinational firms.
Switzerland losing attractiveness for multinationals
This content was published on
Once the ideal destination for multinationals to set up shop, Switzerland is being outpaced by other European hubs like the Netherlands.
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.