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A study by the University of St Gallen (HSG) is calling for the abolition of the OECD minimum tax. It says the rules are outdated, legally risky and detrimental to Switzerland as a business location.
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This is the conclusion of the study published on Monday by the HSG’s Institute of Law and Economics. “The geopolitical and economic framework conditions have changed fundamentally since the referendum in 2023,” said Peter Hongler, HSG Professor of Tax Law, at a media conference in Zurich. The minimum tax, which was voluntarily introduced by Switzerland in 2024, now fails to fulfil its original purpose, he said.
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In addition, the tax harbours “considerable legal risks” and could “cost more than it benefits in economic and fiscal terms” for Switzerland as a business location, said Hongler.
The study commissioned by the Swiss-American Chamber of Commerce states that the tax model adopted in 2023 with almost 80% approval does not fulfil its purpose. For example, the federal government had expected that around 140 states would also implement the rules. So far, however, the tax rules have been fully implemented by only 33 countries.
“A global solution has effectively become an EU project,” said Hongler. The non-implementation by the US is also particularly significant, he said.
Adapted from German by AI/ts
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