Switzerland's Federal Department of Finance (FPF) has issued its inaugural report examining the proposed responses of individual cantons to the newly introduced 15-percent minimum tax for large multinational companies.
This comprehensive report is based on insights derived from cantons' responses to a government survey, up until May 31, 2023.
As indicated by the FPF, every canton is actively engaging with the implementation of the minimum tax. Many cantons have commenced discussions around potential strategies to enhance their international competitiveness. This involves contemplating adjustments within their tax legislation as well as the consideration of non-tax support initiatives.
Numerous cantons are deliberating the implementation of qualified refundable tax credits. These credits could be associated with various domains, such as investments in research and development, initiatives supporting work-life balance, or advancements in sustainable technologies. These contemplated measures aim to promote a holistic approach to fostering economic growth.
As outlined in the report, a subset of cantons, namely Appenzell Innerrhoden, Bern, Glarus, Jura, Unterwalden, Valais, and Zurich, currently do not have intentions to modify their corporate taxation framework or introduce additional tax or non-tax measures.
Conversely, certain cantons such as Basel Stadt, Schaffhausen, and Solothurn, expressed uncertainties regarding their specific adjustments or changes in response to the new tax regulations.
The remaining cantons have already undertaken contemplation and planning concerning modifications to corporate taxation and the utilization of funds generated from supplementary taxes. Among these cantons are Aargau, Appenzell Ausserrhoden, Basel Land, Geneva, Luzern, and Neuchatel.
The insights furnished by this report are intended to serve as a guide for the ongoing efforts related to the incorporation of global minimum tax measures within Switzerland's framework.
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