Switzerland Set to Introduce Global Minimum Corporate Tax and Climate Law.
In a landmark decision, Swiss voters are set to approve proposals to introduce a global minimum tax on businesses and a climate law that aims to cut fossil fuel use and reach zero emissions by 2050, according to projections by public broadcaster SRF.
The proposals, which would raise the country's business tax to the 15% global minimum rate from the current average minimum of 11%, were backed by 88% of voters, while 55% supported the climate law.
Switzerland's decision to introduce a global minimum tax on businesses is part of a wider effort by the country to limit the practice of shifting profits to low tax countries.
In 2021, Switzerland joined almost 140 countries that signed up to an Organisation for Economic Cooperation and Development (OECD) deal to set a minimum tax rate for big companies.
Even with the increase, Switzerland will still have one of the lowest corporate tax levels in the world.
The proposal is estimated to bring 2.5 billion Swiss francs ($2.80 billion) per year in additional revenue.
The climate law, which aims to reduce greenhouse gas emissions and reach zero emissions by 2050, has stirred up more debate.
Those campaigning against it gained traction in recent weeks, with opponents from the right-wing People's Party arguing that it will jeopardise energy security.
Proponents of the law argue that it is the minimum that a wealthy country like Switzerland needs to do to prove its commitment to fighting climate change.
The referendum also suggested voter approval for an extension of some provisions of the country's emergency COVID
-19 law, required under Switzerland's system of direct democracy.
Switzerland is home to the offices and headquarters of around 2,000 foreign companies, including Google, as well as 200 Swiss multinationals, such as Nestle.
While all of these companies would be affected, business groups have welcomed the greater degree of certainty that the new tax would bring, even if Switzerland lost some of its low-tax allure.
"No other country is going to have lower taxes either.