Bern is said to be courting US tech giants with tax breaks
Keystone
Switzerland is ready to waive profit taxes for United States digital giants, such as Google and Meta, if they base operations in the Alpine state, according to media reports.
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The rumoured tax gift comes against the backdrop of the US slapping 39% tariffs on Switzerland.
A US court decision declaring part of the new tariff illegal is good news for Switzerland, even if it will be up to the Supreme Court to decide. In the meantime, Bern is continuing its diplomatic efforts and is considering coddling the digital giants to appease US President Donald Trump.
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According to the NZZ am Sonntag, the Federal Council is ready to promise that the profits of large US tech companies will not be taxed in Switzerland. This commitment is reportedly included in the new draft agreement between Bern and Washington.
The idea is to capitalise on an issue that irks Trump the most: Europe’s desire to make large technology companies pay up. These companies have an international structure that allows them to limit their tax burden, to the detriment of many states. Deeming the situation unfair, France, Italy, and Austria have introduced taxes on digital services in recent years.
According to the NZZ am Sonntag, Switzerland is promising Washington not to follow in the footsteps of the Europeans, in exchange for a better customs agreement. When contacted, the State Secretariat for Economic Affairs declined to comment on the ongoing negotiations.
Recurring theme
Taxing digital giants is a recurring topic in Bern. The left has been interested in it for years. But the Federal Council and the bourgeois majority have always opposed it. For them, there is no question of Switzerland acting alone. To make such a decision, it would require agreement with as many countries as possible.
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There were even discussions about introducing a digital tax within the Organization for Economic Cooperation and Development (OECD). But the project was abandoned under pressure from Washington, even before Trump came to power.
However, left-leaning political parties in Switzerland have not abandoned the idea. A Green Party representative recently made a new attempt within a parliamentary committee. The text of the proposal has not yet been examined.
Sceptical parliament
In Bern, however, some are surprised that the Federal Council is bypassing the parliamentary process. Several Green and Social Democrat representatives also regret that the government is depriving itself of a potential lever to exert pressure on the US.
On the right, the Federal Council’s strategy is more successful. Elected officials contacted by Swiss public broadcaster RTS believe the government is right to try.
What is certain is that Switzerland will have to live with the new 39% US customs duties for several more weeks before diplomacy or the law courts have a chance to ease the pain.
Translated from French by DeepL/mga
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