Switzerland Faces Call to Scrap OECD Minimum Tax.

A new study from the University of St. Gallen (HSG) urges Switzerland to abolish the OECD minimum tax, arguing that the system is outdated, legally uncertain, and economically harmful for the country’s competitiveness.

Professor Peter Hongler from HSG’s Institute of Law and Economics stated that global conditions have changed significantly since Switzerland’s 2023 referendum approval. He emphasized that the tax no longer serves its original purpose and now creates more risks than benefits for Switzerland’s business environment.

The study highlights that Switzerland introduced the OECD minimum tax in 2024 expecting widespread global adoption. However, only around 33 countries have fully implemented the rules so far, far below the expected 140 nations.

Researchers also warn that the absence of major economies, including the United States, has weakened the global effectiveness of the policy. According to the report, the framework has shifted from a global agreement into what is effectively an EU-centered initiative.

The study concludes that Switzerland should reconsider its participation, as the current system may reduce investment attractiveness and create unnecessary fiscal and legal exposure.