Switzerland Shouldn’t Follow Europe’s Lead on Tax, Roche CEO Says

(Bloomberg) — Roche Holding AG Chief Executive Officer Thomas Schinecker said Switzerland shouldn’t follow Europe’s example on tax matters as the region is falling behind China and the US in competitiveness. 

“Switzerland did not do itself a favor by adopting the OECD minimum tax,” he said in Basel on Monday, when asked about the country as a place to do business. Describing Germany and France as high-tax countries, he said Switzerland must compete with Dubai, China and India. 

Read more: Global Firms Face Radical Tax Changes If Minimum Levy Bites

The Paris-based Organization for Economic Cooperation and Development oversaw talks on the 2021 minimum tax agreement between around 140 countries. Implementation of the accord, aimed at thwarting multinationals from shifting profits around the world to cut their tax bills, has run into hurdles in many countries.

The strength of the Swiss franc, as well as data protection laws, add to the challenges companies face in Switzerland, Schinecker said. The Basel-based drugmaker’s sales fell 6% last quarter, held down by the franc and lower revenue from Covid-19 tests and treatments, it reported in April. 

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