Switzerland’s Federal Council and the EU member states on October 14 signed a joint statement on business taxation whereby the Federal Council reaffirmed its intention to propose abolishing tax regimes within the framework of the third series of corporate tax reforms, including those that provide for different treatment of domestic and foreign revenue (“ring-fencing”). The Swiss also agreed that any new tax measures adopted would be based on OECD international standards.
In return, the EU member states confirmed that they will lift any countermeasures taken against the Swiss regimes as soon as the regimes in question have been abolished.
The Federal Counsel said the agreement ends “a controversy which has put a strain on relations between Switzerland and the EU for almost ten years.” Release.
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