18 August 2022
Author : Nicolas Veron
Federal Council decision to implement the 15% minimum tax rate
During its meeting on 12 January 2022, the Federal Council decided to implement the 15% minimum tax rate agreed by the OECD and the G20 states (agreement of 137 states) for international companies with an annual turnover of at least 750 million euros by means of a constitutional amendment.
Decision of the Federal Council
If a country maintains lower tax rates, other countries can impose an additional tax on those undertaxed companies. The incorporation of a minimum tax rate into Swiss law ensures that large companies do not get involved in foreign proceedings. Furthermore, Switzerland should not forgo any tax receipts to which it is entitled to.
In order to ensure that the minimum tax rate will come into effect on January 1, 2024, the Federal Council opened the consultation procedure on the Ordinance on the Minimum Taxation of Large Corporate Groups (Minimum Taxation Ordinance, MTO) at its meeting of August 17, 2022, which will last until November 17, 2022. The corresponding law will then be adopted by ordinary procedure and the constitutional amendment will be put to a vote on 18 June 2023.