ZURICH (Reuters), -The finance ministry announced on Thursday that Switzerland will apply the 2024 minimum tax rate to large multinational corporations, which was agreed by G20 and OECD member countries last year.

Temporary ordinance to ensure a 15% minimum tax rate for businesses with turnover greater than 750million euros (or $860 million), will be in force January 1, 2024. Finance Minister Ueli Mauer stated that the law, which would amend the constitution, would also be in effect.

According to him, the move will affect approximately 200 Swiss corporations and around 2000 Swiss subsidiaries of foreign group companies.

He stated that if 15% was going to be levied then we want it to levy in Switzerland.” He spoke at a Bern news conference, and added that final details are still being worked out by the Organization for Economic Cooperation and Development for global corporations.

Maurer claimed it was not possible to determine how much tax revenue the Swiss cantons could collect from the scheme. He also said that there may be sweeteners to help ensure that the historically low-tax country remains an important international economic hub.

Oct. saw 137 countries agree to a global minimum tax rate of 15%. This was to ensure that big businesses are not taxed in an historic deal.

Switzerland has been at the forefront of international conflict for many years, due to the fact that Swiss cantons offered a tax exemption for foreign corporations. It meant they paid no taxes over a federal effective tax rate of 7.8%.

Voters in 2019 approved a change to the corporate tax system. This is a step towards Maurer’s prediction of an imminent threat to the country’s status as a business center.

The referendum on a new constitution amendment will also be held, however the temporary ordinance will allow Switzerland to continue with the global system.

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