Switzerland Adopts Ordinance On CbC AEOI
Ulrika Lomas, Tax-News.com, Brussels
02 October, 2017
The Swiss Federal Council has adopted an Ordinance on the automatic exchange (AEOI) of country-by-country (CbC) reports, which will enter into force on December 1.
The Ordinance contains the Federal Council's implementing provisions for the Federal Act on the International Automatic Exchange of Country-by-Country Reports of Multinationals. This Act, together with the Multilateral Competent Authority Agreement on the Exchange of Country-by-Country Reports, forms the legal basis for the AEOI of CbC reports.
Under the Ordinance, multinationals operating in Switzerland will be obliged to draw up annual CbC reports from the 2018 tax year. Switzerland will begin exchanging the reports with partner states from 2020. The Ordinance also specifies the required content of CbC reports.
The Swiss Federal Council said that Switzerland is "implementing one of the global minimum standards of the base erosion and profit shifting project," the object of which is "to improve transparency with regard to the taxation of multinationals and to establish a uniform framework for the exchange of the reports."
A referendum on the AEOI of CbC reports may still be called. However, if the deadline for doing so expires on October 5, the agreement and the Act can enter into force on December 1, 2017.
Multinationals are permitted to voluntarily submit a CbC report for tax years ending before 2018. These reports can then be transmitted to partner states by the Federal Tax Administration from 2018, on the basis of the Multilateral Competent Authority Agreement on the Exchange of Country-by-Country Reports.