Switzerland: Announced federal supplementary tax to implement OECD minimum tax

On 23 June 2022, the Swiss Federal Council proposed a supplementary tax to implement the OECD/G20 deal on the taxation of the digital economy. The supplementary tax would apply to large companies with a global turnover of over EUR 750 million that are currently have a tax rate lower than 15%. The additional tax revenue would be split between the Confederation, receiving 25%, and the cantons and communes, receiving 75%. The additional revenue would be used to maintain the attractiveness of Switzerland and its regions as business locations. Due to the urgency of the implementation of the OECD/G20 tax deal, the government proposed a new constitutional norm to implement the tax measures, subject to approval by popular vote.