Switzerland Says Big Firms Will Pay More Tax After Global Reform

(Bloomberg) --

Switzerland will need to redouble its efforts to stay an attractive business hub because the global reform of corporate tax will mean some companies face higher levies in future, Finance Minister Ueli Maurer warned.

“It’s to be expected that firms, some firms in Switzerland will pay more tax,” he said at a briefing in Bern on Friday.

The seismic proposed change to the way companies are taxed under the auspices of the OECD are split into two so-called pillars. The first deals with questions of allocating profits for tax, while Pillar Two seeks to create a global minimum corporate tax rate.

Key details on the reform, including what will count toward the income liable for the 15% minimum tax remain to be decided on, according to the Swiss.

That makes it difficult to put a number on the financial impact of the reform for Switzerland, Maurer said. About 250 Swiss firms and several thousand subsidiaries of foreign companies could be affected. Further details are expected this year.

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