What Swiss Vote on Taxes Means for Multinationals
The multi-party government and businesses say the proposed reform is necessary, given that Switzerland has committed to scrapping its current practice and that it risks losing out to other countries as a domicile for multinationals if it doesn’t go ahead with the reform. Swissmem, the association of mechanical and engineering companies, backs the measure and says that encouraging research through tax breaks is good for the country. Even so, the government expects that in the short term, there will be a drop in tax income of about 2 billion francs a year. It says that a failure to pass the reform will be even more costly, and that in the medium to long term those losses can be recouped.