ZURICH (Reuters) – Switzerland’s federal government will receive a quarter and regional and local authorities three-quarters of the revenue from an additional tax the country is introducing to implement a minimum tax rate of 15% on large multinational companies, he announced on Thursday.
Switzerland said in January that it would apply from 2024 the minimum tax rate for large multinational companies agreed last year by the OECD and G20 member states.
“Based on the results of the consultations, the Confederation should collect 25% of the revenue from the additional tax and use the funds for the benefit of Switzerland as a business location. The remaining 75% will go to the cantons and municipalities”, specifies the Ministry of Foreign Affairs. Finance. said the ministry.
The revenue would have a neutral impact on the federal budget. The cantons can decide themselves on the use of the funds.
Finance Minister Ueli Maurer said around 200 Swiss companies and around 2,000 Swiss subsidiaries of foreign groups would be affected by the move, which he said offered legal certainty and ensured that tax revenues would stay in Switzerland.
The Organization for Economic Co-operation and Development (OECD) acknowledged last month that implementation of the global digital tax deal could take until 2024, a year later than expected.
The deal gives other countries a bigger share of the tax on the revenues of major U.S. digital groups such as Apple Inc and Alphabet Inc’s Google.
Switzerland estimated in March that it could raise up to 2.5 billion Swiss francs ($2.60 billion) in additional revenue by implementing the additional tax designed to ensure that large companies pay the tax rate. global standard minimum tax.
Switzerland had been in the international crosshairs for years because the cantons had a special tax status for foreign companies, which meant some paid virtually no tax on an effective federal tax of 7.8%. It ends now.
($1 = 0.9611 Swiss francs)
(Reporting by Michael Shields, editing by Silke Koltrowitz)