Switzerland, home to many big multinationals, has an average corporation tax rate of just under 15%, but some of its individual low-tax cantons, such as Zug, have lower rates again. Switzerland will implement from 2024 the minimum tax rate for large multinational firms under a global tax deal. The federal government will get a quarter and regional and local authorities three-quarters of revenue, it said on Thursday, outlining how the deal would be implemented.
“Based on the results of consultations, the Confederation should receive 25% of the receipts from the supplementary tax and use the funds for the benefit of Switzerland as a business location. The remaining 75% will go to the cantons and municipalities,” the finance ministry said.
Switzerland said in January it would implement from 2024 the minimum tax rate of 15% for companies with a turnover of more than €750 million (CHF786 million), agreed last year by the Organisation for Economic Co-operation and Development (OECD)External link and G20 member states.
For the federal budget, the revenue would have a neutral impact, the government said. Cantons can decide for themselves how to use the tax money.
By SWI swissinfo.ch the 23 June, 2022
