USA vs. Switzerland: Who will win the tax war over the minimum tax?

USA vs. Switzerland: Who will win the tax war over the minimum tax?

The current tax policy developments in the USA and Europe are causing uncertainty at the international level. The Trump administration is currently focusing more on tariffs and less on tax policy. President Trump announced on the day he took office that he would withdraw all previous commitments to the OECD minimum tax. This raises questions about future corporate taxation, particularly with regard to US companies, which could potentially be unfairly taxed.

The USA is calling for penalties against states that, in their opinion, tax US companies unfairly. Taxes considered unfair include the secondary international supplementary tax (UTPR) and digital services taxes (DSTs). Interestingly, Switzerland has already implemented the minimum tax since 2024, but did not apply the UTPR and has not implemented DST. This could put Switzerland in a difficult position, as it relies on both the recognition of its tax system as equivalent to the OECD minimum tax and the concerns about fair taxation.

US demands and international reactions

The US argues that it believes its minimum taxes are as effective as those of the OECD. The country is demanding a clear regulation for the coexistence of tax systems, which should be anchored in the minimum tax by the end of the year. A “US safe harbor” could help reduce pressure on other countries to adjust their tax regulations.

These demands are a challenge for the 55 countries that are currently implementing the OECD minimum tax. Legal uncertainties and questions arise regarding the international taxation of US companies. These could also be subject to international tax obligations under certain conditions. While the domestic supplementary tax is not a priority for the US, a US minimum tax is applied to US companies, further complicating the international tax landscape.

The situation in Europe

In Europe, EU member states are taking a wait-and-see approach, while discussions are taking place behind the scenes. EU states are under pressure as many of them have already enshrined the UTPR in their national laws. For example, several countries, including France with a 3% DST and Italy with 3% on digital products, have already implemented measures, while others such as Belgium and the Czech Republic are also working on introducing DSTs.

• Österreich: DST von 5%, implementiert am 1. Januar 2020.
• Frankreich: DST von 3% und 1,20%, retroaktiv seit dem 1. Januar 2019.
• Italien: DST von 3%, implementiert am 1. Januar 2020.
• Schweiz: DST von 4% auf Bruttoeinnahmen, seit dem 1. Januar 2024.

Concerns that EU companies could be particularly hard hit by the new US punitive measures are omnipresent. The US Congress is also working on a new tax reform, which could also include punitive tax measures. Switzerland is faced with the task of ensuring legally secure solutions in the ongoing OECD discussions in order to minimize uncertainties.

Overall, the current situation suggests that tax policy measures will remain controversial internationally. The question of the coexistence of different tax systems could have far-reaching consequences for companies and states.