Switzerland advocates for legal clarity in the application of major international corporation tax principles — On October 8, 2021, The OECD's Inclusive Framework set the necessary conditions
On October 8, 2021, The OECD's Inclusive Framework, which includes 140 member countries, including Switzerland, set the necessary conditions for future taxation of major, internationally engaged corporations. Previously, the framework considered only substantial and worldwide corporations.
The Organisation for Economic Co-operation and Development (OECD) comprises 37 member countries that discuss and develop economic and social policy. After the OECD announced on Friday that the specifics of a landmark global corporation tax agreement had been finalized, Switzerland said it needed more time and clarifications before proceeding with full implementation.
Switzerland insists that the interests of small, stable economies be considered in the implementation and legal clarity for the businesses involved.
Some essential marks of the plan are:
- The new taxing rights for market jurisdiction are cautious
- The digital taxes will be removed unilaterally with a binding effect
- The world's minimum tax rate will be set at 15%
- The minimal taxes laws will be implemented gradually
Other important issues for Switzerland are still being worked out and will be discussed in the coming months. The country is dedicated to laws that encourage innovation and development, are enforced consistently worldwide, and are subject to a dispute resolution process.