Switzerland: Announced plan to implement the OECD minimum tax rate in Switzerland

On 13 January 2021, the Swiss Federal Council has decided to implement the minimum tax rate agreed as part of the OECD Inclusive Framework for the Taxation of the Digital Economy by means of a constitutional amendment. The parliament, the cantons and the people of Switzerland, through the possibility of a referendum, will all be involved in the amendment. In the meantime, a temporary ordinance will ensure that the minimum tax rate comes into force on 1 January 2024. Particularly, multinational companies with an annual turnover of EUR 750 million and more will be taxed according to the OCED Framework, while domestic companies and SMEs will not be affected. Additional taxes will according to the principle of federalism be collected by the cantons and additional tax receipts will also be collected by the cantons.