Global minimum tax to bring USD 600 million to Switzerland

The global minimum tax is expected to bring over USD 600 million to Swiss cantons, according to a report by the Swiss Federal Department of Finance.

Based on a survey of the cantons as of May 31, 2023, the report underlines the expected effects of the implementation of the OECD minimum tax on the individual cantons and on the measures planned by the cantons.

The report shows that all cantons are addressing the implementation of the OECD’s proposed global minimum tax and considering potential new measures to strengthen their locational standing. The global minimum tax will be implemented by the cantons. 

As per the report, half of the cantons, including some that will presumably generate significant receipts from the supplementary tax, have not produced any estimates of their own. If the estimates of the remaining 13 cantons are combined, the receipts from the supplementary tax (including the federal share) are estimated at just over CHF 500 million (USD 600 million).

Some cantons currently have no plans for adjustments to corporate taxation, nor other tax or non-tax measures. In other cantons, it was not clear, as on May 31, 2023, what adjustments would be made.

The remaining cantons have already considered adjustments to corporate taxation and/or the use of funds from the supplementary tax. However, many cantons are only at the beginning and the discussions remain vague.