On Sunday, the 19th of May 2019, voters in Switzerland had approved a landslide reform of it corporate tax system, removing threats of considering the nation’s financial system as low-tax pariah meanwhile boosting contribution to pension system to avert fears that corporate would benefit at the expense of the citizens.
Provisional results with all votes had displayed that the referendum was passed by a margin of 66 to 34 percent. Latest tax reform and pension finance would defuse a long-running debate over favorable Swiss tax rates for multinational companies, which the European Union had been contemplating as an unfair advantage.
Never the less, under pressure from the bloc and the Organization for Economic Cooperation and Development, Switzerland had pledged to follow international standards of lending and to eliminate special low tax rates, which had long been benefiting more than 24,000 multinational foreign companies based on Switzerland.
Followed by Sunday’s (May 19th) vote, the Swiss government had been planning to ditch special tax status to a large sum of corporates paying a tax of as low as 7.8 to 12 percent, while normal Swiss companies had been paying a tax between 12 to 24 percent.
In order to cover a revenue lack of around 2 billion Swiss francs, the federal government would likely to increase its share of federal taxation. Besides, in order to evaporate fears that the corporates might have benefitted in expense of the citizens, the reform package had also added additional funds to the state pension system.