Switzerland Published Updated Minimum Taxation Ordinance

Although the Federal Council already decided on 4 September 2024 (media release: German/French/English; see also blog) that Switzerland will introduce the international top-up tax under the Income Inclusion Rule (“IIR”) from 1 January 2025, the legal basis in the Swiss Minimum Taxation Ordinance (German/French) has not yet been amended. In today's meeting, the Federal Council has now taken this step and amended the Ordinance (media release: German/French). The following should be noted:

• Switzerland will levy the IIR from financial years beginning on or after 1 January 2025. The financial year is regulated in art. 10.1.1 OECD Model Rules and corresponds to the group's financial year. This may be relevant if a group has a financial year that does not correspond to the calendar year.
• Furthermore, various linguistic adjustments have been made to the Italian and French versions.
• The amended Ordinance will come into force on 1 January 2025. As a result of the Federal Council's decision, the ordinance is considered "enacted" for US GAAP purposes.
• In the accompanying report, the Federal Council reiterated that Switzerland will refrain from introducing the international top-up tax under the Undertaxed Profit Rule (UTPR) until further notice.

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Authors

• Thomas Hug - Partner, National Tax Office
• Daniel Stutzmann - Partner, Global Minimum Taxation
• Manuel Angehrn- Director, Global Minimum Taxation