Switzerland will implement the minimum tax reform if approved by the people, even if the United States does not, according to Karin Keller-Sutter. In any case, the global implementation will be complicated, admits the Federal Councilor.
‘The United States is a bit complicated’, the Minister of Finance told the press on Wednesday in Davos (GR), recalling the discussions on the Fatca tax law (‘Foreign Account Tax Compliance Act’). At the origin of the movement for a minimum tax of 15% on companies at the Organization for Economic Cooperation and Development (OECD), Washington might decide to apply this system in its own way.
The country is powerful enough to do so, suggests the Federal Councilor. But Switzerland would still be forced to implement the rate if the more than 130 other players did it on their side. The pressure would be too great, according to the Federal Councilor.
Parliament has already validated the reform which would concern companies whose turnover exceeds 750 million euros. A constitutional amendment is required for this differential taxation. The project will be submitted to the people in June.
Be careful not to give gifts
Entry into force is scheduled for next January. However, Switzerland might wait for the other players if they were not ready. “We underestimate” the details of this reform, believes the Federal Councilor. ‘Switzerland is ready’ if the citizens approve of it. Otherwise, differentiation would be a problem, says Keller-Sutter.
‘The tax revenues would then be abroad. It’s not a good idea to give it away,’ says the head of the Federal Department of Finance (FDF). This tax reform was at the center of most of Ms. Keller-Sutter’s meetings on the sidelines of the World Economic Forum (WEF), in particular with her German, Luxembourgish and even Polish counterparts. As well as with the Secretary General of the OECD.
Alone among the federal councilors to see a European commissioner, Paolo Gentiloni in charge of the economy, in Davos, she underlines having requested this meeting. But the difficulties between Switzerland and Brussels are now being addressed in the context of exploratory discussions.
Switzerland not targeted by Beijing
Ms Keller-Sutter also met a heavyweight of the new Brazilian government, her counterpart Fernando Haddad. It must be ensured that Brazil invites Switzerland to next year’s G20 meetings when it chairs the group.
On Tuesday, Chinese Vice Premier Liu He had targeted the effects of Western monetary policy before the WEF. ‘He did not criticize Switzerland’ during the meeting with the Federal Councilor, according to her. On the contrary, he showed interest in the Swiss rules that help establish stability for Western companies, she says.
In several discussions, the financing of reconstruction in Ukraine was discussed. ‘We must anticipate this question,’ says the Federal Councillor.
/ATS