2023-06-05 09:45:10
Switzerland has undertaken to levy a minimum tax of 15% on its multinational companies, responding to a request from the OECD and the G20. The reform will be submitted to the people on June 18 and the canton of Zug, which relies heavily on its taxation, weighs particularly heavily in the debates.
The idea of the reform desired by the OECD is to attenuate the competition between the countries with great reinforcement of tax advantages. And in Switzerland, for many years, the canton of Zug has taken full advantage of this competition to attract multinationals to its soil. With success: 400 companies there are affected by the upcoming reform.
The canton of central Switzerland is therefore particularly present in the debates surrounding this vote. No other canton has so many companies affected by this tax reform. This therefore means new revenues, estimated by the canton at around 300 million per year.
>> Read on the same topic: A thousand companies in French-speaking Switzerland affected by the new OECD tax
Taxation is not everything
On the other hand, there is also the fear of becoming less attractive. The canton of Zug therefore wants to continue to differentiate itself in order to “attract businesses” through its framework conditions. He is considering “competitiveness measures”, which would go through the creation of crèche places, but also through financial support for research and development or socio-environmental measures for companies.
For State Councilor Heinz Tännler (UDC), currently in charge of cantonal finances, Zug not only benefits from its attractive tax policy but also from its audacity in terms of framework conditions. “Our flexibility and our innovative thinking have allowed us to have many international companies”, he believes. And that, “all the cantons can do it”.
Moreover, he recalls that Zug will not be the only winner of the new tax entries. “The cantons which are not affected by the minimum tax will also benefit from the reform, thanks to the financial equalization”, he underlines.
Taxation for the wealthy
But in the canton, everyone does not draw the same speech. Child of the region and member of the leadership of the Cantonal Socialist Party, Andrei Markovic castigates a financial policy exclusively directed towards the ultra-rich. And its secondary effects on housing prices, for example.
“It is above all the Zug of companies and people with very high incomes who gain here. Zug will be even more attractive for high incomes, which will lead to this social dynamic: people with high incomes will move here and people with incomes lower will be ousted.”
“Today, it is above all a question of producing good conditions for capital”, adds the socialist. “But surveys show that Zug is one of the less attractive cantons financially for normal families.”
It is partly for this reason that the Socialist Party of Zug, like the delegates of the Swiss PS, are advocating a no on June 18. However, it is very unlikely that they will convince a majority of voters, given the latest polls.
>> Read about it: Towards a clear triple yes in the votes of June 18, according to a first SSR poll
But if the reform were to be rejected, the canton of Zug does not rule out quickly introducing a gradual increase in taxes itself, in order to clarify the situation for companies.
Julien Bangerter/Jop
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