Digital economy taxation

Brief summary

Digitalisation is changing the economy and many business models. Consequently, the Organisation for Economic Co-operation and Development (OECD) is preparing proposals as to how the taxation of the profits of internationally active companies can be adapted to the new developments in the longer term.

The OECD Inclusive Framework OECD's programme of work proposes solutions based on two pillars. The OECD is to work out the details by mid 2022:

Pillar 1 provides for a shift of taxing rights to market jurisdictions. Companies with more than EUR 20 billion in annual turnover and a profit margin of more than 10% will have to pay tax on some of their profits in the market area. In Switzerland, this is likely to concern a single-digit number of large companies.
Pillar 2 provides for a minimum tax rate of 15% for companies operating internationally with more than EUR 750 million in annual turnover. A low three-digit number of Swiss companies plus a low four-digit number of Swiss subsidiaries of foreign groups exceed this turnover threshold.

Switzerland prefers long-term, consensus-based multilateral solutions rather than a multitude of uncoordinated national measures.

Implementation of the OECD minimum tax rate in Switzerland

Q&A on the OECD Inclusive Framework's key parameters for global corporate taxation of 08.10.2021 (German only) (PDF, 340 kB, 08.10.2021)

Further information on the topic can be found on the website of the State Secretariat for International Finance SIF.