Corporate tax reform given the go-ahead
A reform of the corporate tax system in Switzerland, which will remove preferential treatment for multinational firms, has been backed by a majority of Swiss voters.
Sixty-four per cent of voters approved the government-backed plan, with all cantons in agreement. The canton of Vaud saw the biggest support, with 80% of voters backing the reform.
The legislation will now bring Switzerland in line with international tax rules by removing preferential rates offered to multinationals and lowering baseline rates to keep them in the country. The government has promised an additional CHF 2 billion will be put into the state pension scheme as compensation.
In Geneva, where there is a high concentration of multinational companies, voters accepted a plan to set the baseline corporate tax rate for all companies at 13.99%. Previously, it had been 11.6% for ‘special status’ firms and 24.2% for others.
The fall in tax revenue for the canton is estimated at CHF 186 million in 2020. Authorities say that job security and attractiveness as a business destination would compensate for the financial loss.