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Debate rages about minimum corporate tax rate in Switzerland

Canton Zug
Swiss cantons, like Zug, have been successful at attracting multinationals with low tax rates. © Keystone / Gaetan Bally

The government has presented its arguments in favour of a 15% minimum rate of tax in Switzerland, against the wishes of some political parties and NGOs who argue the rules will disadvantage developing countries.

The proposed Organisation for Economic Cooperation and Development (OECD) company tax reform will go to a public vote on June 18.

+ Read about the pros and cons of a minimum corporate tax rate

On Monday, Finance Minister Karin Keller-Sutter said the reform will keep multinational companies in Switzerland and protect jobs.

The government also expects to generate between CHF1 billion and CHF1.25 billion with the new measures in the first year of implementation.

But the Swiss NGO Alliance Sud joined other pressure groups in voicing opposition to the plans. The group says the extra revenue raised will be poured into new measures to make Switzerland attractive for large corporations.

Alliance Sud condemned the minimum levy as a “tax dumping” plan that will ensure companies suck taxable profits from developing countries to rich tax havens.

It is estimated that around 2,000 large corporations that make an annual turnover of at least €750 million (CHF735 million or $824 million) will be affected in Switzerland.

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