The revision concerns the timing of application of an OECD administrative instruction under the OECD minimum taxation framework.
The Swiss Federal Council has opened a consultation on 6 May 2026 on an amendment to the Ordinance on Minimum Taxation, implementing two parliamentary motions of identical content (motions 25.4392 and 25.4399). The proposed revision concerns the timing of application in Switzerland of an OECD administrative instruction related to the OECD minimum taxation framework.
Since 1 January 2024, large multinational corporate groups have been subject in Switzerland to the OECD minimum taxation of 15%. This regulation was implemented by the Federal Council through the Ordinance on Minimum Taxation, based on the constitutional provision approved by the people and the cantons in 2023. The ordinance ensures application in line with the OECD model rules and thereby prevents companies established in Switzerland from being subject to foreign minimum taxation or increased legal uncertainty.
By adopting motions 25.4392 and 25.4399, Parliament requested that Switzerland deviate from the OECD model rules on one point. Specifically, these motions concern an OECD administrative instruction that determines how deferred tax assets existing prior to the introduction of minimum taxation must be taken into account in calculating the effective tax rate. Although the instruction was adopted and published by OECD member states in January 2025, it is considered an essential document for interpreting the model rules and therefore applies to all fiscal years starting from 2024, the year minimum taxation entered into force.
According to the authors of the motions, the instruction should apply in Switzerland only from the 2025 fiscal year, since the previous fiscal year was already closed at the time of publication. As this measure would diverge from the OECD rules agreed internationally, the Federal Council had recommended rejecting the two motions.
For most companies subject to minimum taxation, the proposed amendment to the ordinance should have no consequences. For a few, however, it could result in a reduction of the national top-up tax (QDMTT) levied by Switzerland for 2024, which could nonetheless be offset by the application of a foreign international top-up tax (IIR). This would be the case, for example, for Swiss constituent entities of corporate groups whose main headquarters are fiscally linked to an EU member state. Ultimately, the overall tax burden of these groups would remain unchanged, but the amendment would impose additional administrative requirements on companies that must file declarations abroad.
The revision of the ordinance could lead to a slight decrease in Swiss top-up tax revenues, limited to the 2024 fiscal period, which cannot be quantified.
The consultation runs until 14 July 2026, with amendments set to enter into force immediately after the Federal Council’s decision on the ordinance amendment.
