Switzerland’s new tax reform will increase taxes for multinationals, though some sectors—such as the technology, biotechnology, and pharmaceutical industries—will see some relief from the higher rates through a patent incentive.

As of Jan. 1, 2020, most multinationals will pay more tax because the tax breaks they previously relied on will be replaced by specific benefits only available only to companies that develop patents in Switzerland.

Companies cheered the May 19 popular vote in favor of tax reform because the new rules bring the country in line with international standards on corporate taxation while keeping it competitive with its peers in...