2024-01-01 20:30:07
– Start of a new era for the taxation of large groups
From January 1, the profits of large companies are taxed at a minimum of 15%. Between 1 and 2.5 billion francs of contribution assessed in Switzerland.
Published: 01.01.2024, 9:30 p.m.
The aim of the reform on an international scale is to prevent “harmful tax competition” between States by no longer allowing large groups to benefit from “tax havens” to have their profits taxed (illustrative image).
KEYSTONE/GAETAN BALLY
The introduction on January 1 of the minimum tax of 15% of the profits of large companies in more than 140 OECD countries might generate total additional revenues of some 220 billion dollars per year. In Switzerland, the contribution is estimated between 1 billion and 2.5 billion francs.
The figure of 220 billion dollars (nearly 190 million francs) of “potential new tax revenue” per year induced by the reform was provided on Monday by the European Commissioner for Economic Affairs Paolo Gentiloni. The money might be used by countries around the world to make investments that have become necessary and to develop quality public services, he argued.
The new model taxes at least 15% the profits of large internationally active business groups with a turnover of at least 750 million euros. In Switzerland, the people accepted by 78.5% of the votes last June a modification of the Constitution allowing the creation of the legal basis for this purpose.
A few hundred Swiss groups are affected in Switzerland. This means that around 99% of companies headquartered in the country will not be directly affected by the reform and will remain taxed in the same way as before.
Primary cantons concerned
The Federal Council has issued an ordinance which will remain in force until it is repealed by federal law. He has six years at most to present this law to Parliament.
Of the new tax revenues estimated between 1 billion and 2.5 billion francs, the Federal Council has specified that three quarters (75%) will go to the cantons, the rest to the Confederation.
The aim of the reform on an international scale is to prevent “harmful tax competition” between States by no longer allowing large groups to benefit from “tax havens” to have their profits taxed. The origin of the project results from an agreement between Europe and the United States in 2021.
In Switzerland, a tax rate of less than 15% remains possible in all cantons, under certain conditions. The introduction of minimum taxation will, however, particularly affect cantons in which the tax burden is low and where many large profitable companies are established.
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