In October 2021, the Organisation for Economic Co-operation and Development (OECD) published key parameters for the future taxation of large, multinational companies. A minimum tax rate of 15% for multinational companies with turnover of more than EUR 750 million has been agreed by 137 countries.

In order to implement the OECD minimum tax rate, the Swiss Federal Council proposed on 23 June 2022 a supplementary tax. This supplementary tax shall be limited to large corporate groups with worldwide turnover of at least EUR 750 million that are below the minimum taxation of 15%. As a federal tax, it would achieve the necessary international acceptance according to the Federal Council. However, the cantons shall implement the minimum tax by taking the tax federalism into account.

Based on the results of the consultation, the Confederation is to receive 25% of the receipts from the supplementary tax. These additional funds shalll be earmarked to cover the additional national fiscal equalization (NFE/NFA) expenditure and to promote the attractiveness of Switzerland as a business location. The cantons shall receive the other 75% of the receipts. The cantons actually affected by the minimum tax rate shall thus receive the funds to safeguard their appeal as a business location. They shall be able to decide for themselves how the funds are to be used, but the communes must be appropriately taken into account.

In view of the time pressure, the Federal Council declared it has decided to proceed in stages. In a first step, a constitutional amendment shall create a legal basis to empower the Confederation with the implementation of the OECD minimum tax rate. This shall occur with a federal temporary ordinance directly based on the Constitution. Currently, the Federal Council is planning to enter this ordinance into force on 1 January 2024. Afterwards, a federal law enacted subsequently in the conventional manner shall replace the ordinance.