A new international tax agreement planned to come into force next year has been delayed.
A deal to tie multinational corporations to a global minimum tax rate is unlikely to come into force before 2024, the Organization for Economic Co-operation and Development (OECD) secretary-general Mathias Cormann, said at the World Economic Forum (WEF) as reported by the British newspaper «The Guardian.»
Resistance from the U.S. and Poland are cited as reasons for the delay in the deal’s progress.
The treaty consists of two pillars. The first foresees that multinationals with a global annual turnover above €20 billion ($21 billion) and profitability above 10 percent, pay taxes in the countries where sales are made. The second pillar sets to tax companies with an annual turnover of more than 750 million euros with a minimum rate of 15 percent.
Corporate Tax
Switzerland, traditionally considered a low tax jurisdiction, is in the process of overhauling its corporate taxes. Last year the Federal Council decided to implement the minimum tax rate agreed by the OECD and G20 member states by means of a constitutional amendment.
Under the new rules, cantons can continue to offer incentives to companies as they have done in the past, however, should the tax breaks cause a company's tax burden to fall below the minimum level, taxes can be raised to meet it.
