SWITZERLAND Trends and Developments Contributed by: René Matteotti, Manuel Ulrich, Gregor Steiner and Natalja Ezzaini, Tax Partner AG
resolve the double taxation. If the double taxation can - not be unilaterally resolved by Swiss authorities, an international MAP will be initiated. A binding mutual agreement will be communicated to the cantonal tax authority by the SIF. Based on this, the cantonal tax authority will issue an implementation order (“revi - sion”), replacing the original tax assessment. GloBE in Switzerland: Updates and Conflict Potential The implementation of OECD Pillar Two (the global minimum tax for MNE groups) gives rise to new chal - lenges for both taxpayers and tax authorities. Switzer - land has introduced a Qualified Domestic Minimum Top-up Tax (QDMTT) as from the 2024 tax year and an international top-up tax in the form of an Income Inclusion Rule (IIR) as from the 2025 tax year. There are currently no plans to introduce an Undertaxed Profits Rule (UTPR). In addition to filing a top-up tax return, in-scope MNE groups are required to submit a GloBE Information Return (GIR), with the correct identification of the liable entity playing a central role. Furthermore, the introduction of the minimum tax affects existing can - tonal incentive regimes and raises questions regarding potential conflicts with domestic law and applicable international accounting standards. Registration obligations In connection with the OECD’s Pillar Two, initial regis - trations have already had to be made by MNE groups or their local entities in several countries, and in some cases tax returns have already been filed. In Switzer - land, the minimum tax is governed by the Ordinance on Minimum Taxation (MindStV). This Ordinance was last amended on 1 January 2026, with additional provisions added regarding the GloBE Information Return. The MindStV provides for two separate reporting obli - gations: • the tax return for the international and national top- up tax; and • the GIR in accordance with the OECD’s Pillar Two model rules.
The top-up tax is generally determined separately for each tax jurisdiction, and an MNE group may have several business units in different cantons within Swit - zerland. The Federal Council has opted for the “one- stop shop system”. As a rule, only one business unit per group – namely the business unit liable for top- up tax – is to be liable for the declaration of top-up tax. For registration, the submission of the top-up tax return, communication with the tax authorities and the assessment, it is crucial that the business unit liable for top-up tax is correctly identified. The determination of which business unit is liable for top-up tax is made in accordance with Article 5 of the MindStV. The business entity liable for top-up tax is required to submit the top-up tax return under Pillar Two for the financial year beginning in 2024 within 18 months after the end of the financial year – ie, by 30 June 2026 at the latest if the financial year ended on 31 December 2024. The return must be submitted electronically and requires prior, unsolicited registration of the taxable business entity in the OMTax system (access via the Federal Government’s ePortal). Such registration and declaration are required regardless of whether there is a sufficient tax burden of at least 15% or whether top-up tax is due. In addition to the top-up tax return, a separate report - ing obligation – the GIR – is applicable for the same period as the top-up tax obligation (ie, 2024 as the first year). Basically, the same entity in Switzerland that is liable for top-up tax is required to register and submit the GIR. The same as for the top-up tax, for the financial year beginning in 2024 the liable entity has to register and file the GIR within 18 months after the end of the financial year – ie, by 30 June 2026 at the latest if the financial year ended on 31 December 2024. The GIR must be submitted electronically by the liable entity in the new GIR system (access via the Federal Government’s ePortal). Swiss incentive measures that are in line with Pillar Two To maintain their attractiveness as business loca - tions, some cantons have introduced new incentive instruments that are compatible with the OECD’s mini - mum tax requirements whilst complementing existing instruments. One focus is on refundable tax credits
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