Switzerland will need at least a year to gain domestic approval for new tax measures to conform with a 15% global minimum corporate tax rate, according to Guy Parmelin, who holds the rotating Swiss presidency this year.
The Swiss finance ministry called for more time and legal certainty last week after the Organisation for Economic Co-operation and Development (OECD) said 136 countries had approved the deal, due to be implemented by 2023.
Parmelin said on Thursday that the deal, which has at its core a 15% minimum business tax rate, would take some time to be accepted in Switzerland, whose low business tax regime has attracted scores of multinational companies.
“You have to change the [Swiss] constitution, which means an obligatory referendum and you have to have a double majority in favour of it, both the cantons and the population,” he told Reuters.
“We need time for our internal response…. It could easily take more than a year,” he added on the sidelines of a Foreign Press Association in Switzerland press conference in Bern.
More
More
Swiss cautious about new OECD tax deal
This content was published on
The OECD said on Friday it had finalised the details of a historic global tax deal.
Finance leaders from the G20 major economies on Wednesday endorsed the global deal on corporate taxation.
Swiss Finance Minister Ueli Maurer, who took part in the talks, told Swiss public broadcaster, SRF, on Thursday that introducing a minimum corporate tax rate in Switzerland “should be feasible”.
“We estimate that about 200 companies headquartered in Switzerland would be affected,” he said, adding that several thousand companies also had foreign subsidiaries whose legal basis would need to be amended.
But the question of how the deal is implemented is “fundamentally still open”, Maurer said, adding that ideas were being discussed with tax authorities in the 26 Swiss cantons and with companies, while voicing hope that there would be some “leeway” in how the tax base is assessed.
‘Pretty fast’
Maurer also said that an exemption for small and medium-sized enterprises posed some issues, although these were not insurmountable.
“I think it can be solved without a referendum because ultimately the adjustments will not be as big as we had feared,” he said.
“We will probably need three years with the consultation, the legislation in parliament and the adjustment in the cantons. That’s pretty fast by our standards,” he added.
Related Stories
Popular Stories
More
International Geneva
A Geneva-based global health foundation came close to ‘collapse’. Where were regulators?
Swiss-EU treaties: signatures handed in for Kompass initiative
This content was published on
The committee behind the Compass Initiative submitted the signatures it had collected to the Federal Chancellery on Friday.
This content was published on
Esther Grether has died aged 89. Considered one of Switzerland’s leading entrepreneurs, the owner of the Basel-based Doetsch Grether Group was also a major shareholder in the Swatch Group and an art collector.
This content was published on
The flag of the Swiss Wrestling Federation has been received at the start of the Swiss Wrestling and Alpine Festival in Mollis, canton Glarus.
Figurine heads in Zurich school not considered discriminatory
This content was published on
The 16 carved figurine heads in the auditorium of the Hirschengraben school building in Zurich are not discriminatory, according to an independent expert report.
Swiss political parties report income of CHF22.4 million for 2024
This content was published on
Ten parties reported income totalling CHF22.4 million for 2024, less than in the 2023 election year. The reports are based on the regulations for transparency in political financing.
FIFA loses multi-million lawsuit against Blatter and Kattner
This content was published on
Former FIFA officials Joseph Blatter and Markus Kattner do not have to pay back their own bonuses or the bonus totalling CHF 23 million paid to another FIFA official to FIFA. This was decided by the Zurich Labour Court.
How cancer cells makes healthy cells work for them
This content was published on
Cancer cells manipulate neighbouring cells for their own purposes: a research team at ETH Zurich has discovered that they can reprogram neighbouring cells in such a way that they help the tumour to grow.
This content was published on
The ban on non-residents entering the swimming pool in Porrentruy, canton Jura, expires on Sunday and would be extended until the end of the season, the mayor said.
Natural disasters: most Swiss back forced resettlement
This content was published on
The authorities should be allowed to order forced relocations if there is a medium-term risk of a natural event, according to 58% of participants in a survey.
This content was published on
Switzerland said Thursday it is on board with a global corporate minimum tax after breakthrough negotiations yielded consensus at the OECD.
Tax deal: small countries ‘should not be forgotten’ says Swiss minister
This content was published on
Small innovative countries' interests must be considered in global corporate tax measures, Swiss Finance Minister says after G20 meeting.
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.