Incentives in Question as Switzerland Moves Toward Minimum Tax

Many companies are likely to face higher taxes if Switzerland adopts the 15% global minimum tax rules approved in a referendum yesterday—erasing some of the benefits they currently enjoy.

Depending on which canton they’re operating in, some companies are currently paying below a 15% effective tax rate. Under the domestic minimum tax rule, Switzerland would tax companies back up to the minimum rate, effectively negating some of the tax benefit from low cantonal rates and incentives.

The future of credits and incentives once the minimum tax takes effect is “probably the elephant in the room,” said Daniel Gentsch, leader of ...