The Swiss Federal Council has opened a consultation on proposed amendments to the Ordinance on Minimum Taxation, implementing two parliamentary motions that call for a deviation from the internationally coordinated application of certain OECD administrative guidance under the global minimum tax framework.

Switzerland introduced the OECD’s global minimum tax regime with effect from 1 January 2024, requiring large multinational enterprise groups operating in Switzerland to be subject to an effective minimum tax rate of 15%. The regime was implemented through the Ordinance on Minimum Taxation, adopted based on the constitutional amendment approved by the Swiss population and the cantons in 2023.

The proposed amendment concerns an OECD administrative guideline relating to the treatment of deferred tax assets arising before the introduction of the global minimum tax regime. Although the guidance was formally adopted and published by OECD member states in January 2025, it is considered an interpretation of the OECD Model Rules and therefore applies retroactively to all fiscal years beginning with the introduction of the minimum tax regime in 2024.

Parliament, through Motions 25.4392 and 25.4399, has nevertheless requested that Switzerland apply the guidance only from the 2025 fiscal year onwards. The motions are based on the view that the 2024 financial year had already been completed when the OECD guidance was published. Owing to the resulting divergence from the internationally agreed OECD framework, the Federal Council had originally recommended rejecting the motions.

According to the Federal Council’s press release, the proposed amendment is unlikely to affect most companies subject to the minimum tax regime. For a limited number of businesses, however, the measure may reduce the Swiss Qualified Domestic Minimum Top-up Tax (QDMTT) payable for the 2024 fiscal year. In certain cases, this reduction may subsequently be offset by the application of a foreign Income Inclusion Rule (IIR), particularly for Swiss entities belonging to multinational groups headquartered in the EU.

As a result, the overall tax burden for affected groups may remain unchanged, while administrative obligations and foreign reporting requirements could increase according to the Federal Council. The consultation process will remain open until 14 July 2026. Subject to the outcome of the consultation, the Federal Council intends for the amendments to enter into force immediately following its final decision on the revised ordinance.