Switzerland To Implement OECD Minimum Tax (Pillar 2) On 1 January 2024

In its today's session, the Swiss Federal Council has decided to implement certain aspects of the OECD Minimum Tax as of 1 January 2024. The tax aims at creating a level playing field on a global level by creating a minimum corporate tax rate of 15% for international groups with a turnover of more than EUR 750 million. The Federal Council's decision puts an end to the uncertainty as to whether Switzerland would adhere to its initial plan to implement the rules in 2024.

In June 2023, the Swiss people voted with overwhelming majority (78.5% of votes) in favour of implementing the OECD Minimum Tax in Switzerland, with a view to introducing the main aspects of the package in 2024. Over the last months, however, it became known that many large economies would either postpone the implementation (e.g. China, Mexico, Brazil, Singapore) or not adopt the rules at all (United States), while only the EU member states and a handful other mature economies maintained their