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…
Most over-65s in Switzerland regularly use the internet
This content was published on
The digital divide is narrowing faster than expected in Switzerland. A study published on Wednesday reveals that nine out of ten over-65s use the internet.
Will Swiss president be forbidden from speaking English to counterparts?
This content was published on
Switzerland's president, Karin Keller-Sutter, should use one of the country's four national languages when communicating with international organisations, and not English, according to a motion that passed on Wednesday.
Canton Valais gives CHF10 million to Blatten after devastating landslide
This content was published on
Canton Valais is releasing CHF10 million ($12.1 million) in emergency funds for the mountain village of Blatten, which was wiped out by a devastating glacier collapse last week.
Elderly Swiss-Tunisian man held in prison in Tunisia
This content was published on
An 81-year-old Swiss-Tunisian dual national is being held in a Tunisian prison. The former manager of the UN refugee agency UNHCR was arrested a year ago, according to Amnesty International.
Major traffic jams expected in Switzerland for Whitsun weekend
This content was published on
Long traffic jams can be expected near the Gotthard Tunnel, the main north-south transalpine route in Switzerland, on Friday and Saturday afternoons due to the Whitsun holiday.
Swiss defence minister launches probe into alleged spy links with Russia
This content was published on
Swiss Defence Minister Martin Pfister has launched an investigation into the alleged disclosure of sensitive information by the cyber division of the Federal Intelligence Service to Russia.
PFAS-contaminated meat still sold in eastern Switzerland
This content was published on
Meat containing excessive levels of toxic PFAS "forever chemicals" produced by farms in canton St Gallen is still being sold.
Violations in Gaza by ‘both sides’ must be condemned, says Swiss minister
This content was published on
Swiss Foreign Minister Ignazio Cassis has admitted that Israel is failing in its obligations by hindering humanitarian aid to Gaza.
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.