DossierPublished on 10 April 2024

Digital economy taxation

Taxation of the profits of international companies needs to be adapted to the digital economy. The Organisation for Economic Co-operation and Development (OECD) is working on proposals in this regard. Switzerland is also involved.

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.

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The project is divided into two pillars:

• Pillar 1 aims to adapt the current international provisions on the tax allocation of large corporate groups' profits (market jurisdiction taxation). In-scope companies are multinational enterprises with global annual turnover above EUR 20 billion and profitability above 10%.
  
  
• Pillar 2 should introduce a minimum tax rate of 15% for internationally active corporate groups that reach the threshold of EUR 750 million in turnover.
  

Switzerland favours long-term, broad-based multilateral solutions rather than a multitude of confusing national measures.

Implementation of the OECD minimum tax rate in Switzerland

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

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