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A = General | S = Stamp duty |
M = Value Added Tax | W = Military Service Exemption Tax |
D = Federal Direct Tax | I = International |
V = Anticipatory Tax |
1. Background
A multinational enterprise (MNE) group subject to minimum taxation consists of constituent entities (see in particular Art. 1.1.1 and Art. 1.3 of the Global Anti-Base Erosion Model Rules of the Inclusive Framework on BEPS of the OECD1 and the G20 countries [Global Anti-Base Erosion Model Rules, GloBE Rules]2). These constituent entities are subject to the GloBE Rules and the Ordinance of 22 December 2023 on the Minimum Taxation of Large Corporate Groups (Minimum Taxation Ordinance, OMinT; SR 642.161).
The term constituent entity is defined in the GloBE Rules (see Art. 2 para. 1 and Art. 3 para. 1 of the OMinT).
According to Article 1.3.1 of the GloBE Rules, a constituent entity is any entity that is included in a group (let. a) and any permanent establishment of a main entity that is itself an entity that is included in a group (let. b). According to Article 1.3.2 of the GloBE Rules, a permanent establishment that is a constituent entity under Article 1.3.1 letter b of the GloBE Rules shall be treated as separate from the main entity and any other permanent establishment of that main entity.
The term permanent establishment is defined in Article 10.1 of the GloBE Rules. It follows in particular from this definition that only permanent establishments of foreign entities are deemed to be constituent entities. Permanent establishments of domestic entities of the MNE group concerned, by contrast, are not deemed to be constituent entities, but belong to the domestic main entity for GloBE purposes.
Constituent entities of an MNE group may be liable for top-up tax and subject to various procedural obligations (see in particular Chapters 2 and 8 of the GloBE Rules and Art. 5 and Art. 19 et seq. of the OMinT). Furthermore, under Article 6 of the OMinT, all constituent entities of an enterprise group that belong to Switzerland for tax purposes are jointly and severally liable for the amount of the top-up tax attributed to them under Article 12 of the OMinT.
2. Legal classification of permanent establishments according to Swiss law
In the present context, a permanent establishment is a purely fiscal term. Permanent establishments – regardless of whether they are registered with the commercial register as a branch or not – have no legal personality. They have neither legal capacity nor the capacity to act. In addition, they lack the capacity to be a party to legal proceedings and to take legal action. Finally, permanent establishments cannot be subject to debt enforcement proceedings. For these aspects, permanent establishments are part of the main entity.
In the case of direct federal tax, it is not the permanent establishment itself that is subject to tax; rather, if a permanent establishment exists, there is an economic affiliation in Switzerland of the individual or legal entity that is not personally affiliated in Switzerland (see Art. 4 para. 1 let. b and Art. 51 para. 1 let. b of the Federal Act of 14 December 1990 on Direct Federal Taxation [DFTA]; SR 642.11).
3. Treatment of constituent entities that are permanent establishments for top-up tax purposes
As explained in section 1, international permanent establishments are deemed to be constituent entities under the GloBE Rules. Furthermore, the GloBE Rules and the OMinT regulate the tax liability and procedural obligations in the same way for all constituent entities – regardless of whether a constituent entity is a permanent establishment or not.
However, with regard to Swiss law, the explanations in section 2 above must be observed for permanent establishments. If a permanent establishment qualifies as a constituent entity under the provisions of the OMinT and the GloBE Rules, it therefore follows from the explanations in section 2 above that the tax liability and procedural obligations under the OMinT and the GloBE Rules do not apply to the permanent establishment itself, but rather to the foreign main entity.
In the same way, liability or joint liability under Article 6 of the OMinT applies to the foreign main entity, whereby under Article 50 paragraph 1 of the Federal Act of 11 April 1889 on Debt Enforcement and Bankruptcy (DEBA; SR 281.1), debtors resident abroad who have a permanent business establishment in Switzerland may be held liable for the liabilities incurred for the account of the latter, at the registered office of the latter.
The above information applies to tax liability, procedural obligations and liability. However, this does not change the basic concept of the GloBE Rules. In particular, the principle of jurisdictional blending, the allocation rules for income and tax, and the rules on the location of entities and permanent establishments continue to apply unchanged.
1 Organisation for Economic Co-operation and Development
2 The GloBE Model Rules can be viewed free of charge at: https://www.oecd.org/en/topics/sub-issues/global-minimum-tax/global-anti-base-erosion-model-rules-pillar-two.html
New QR-bill replaces current payment slips
As of October 1, 2022, only QR-bills invoices will be processed. From this date, the orange and red payment slips are no longer permitted as a payment method and will no longer be processed.

Standing orders E-banking
Standing orders based on orange or red payment slips will no longer be executed as of October 1, 2022.
IBAN (International Bank Account Number) payments
You can still make payments using IBAN. Please indicate for each payment the FTA-ID, VAT number or UID number and the payment reason.
The relevant IBAN can be found under the following links:
Federal practices for principal companies and Swiss finance branches from 1 January 2020
As part of the implementation of the Federal Act on Tax Reform and AHV Financing (TRAF), the Federal Tax Administration will no longer apply the federal practices for principal companies and Swiss Finance Branches to companies from 1 January 2020.
In the referendum of 19 May 2019, the TRAF was adopted. As a result, the legal regulations for cantonal status companies will be abolished, among other things. On 28 September 2018, the Federal Council announced that the TRAF would enter into force on 1 January 2020. It still has to take the formal decision.
As already communicated, the regulations for principal companies and Swiss Finance Branches (federal practices) will be completely abolished in this context at the practical level as well.
Unlike the abolition of the regulations for cantonal status companies, the abolition of these federal practices does not require any legal amendments.
The federal practices on international allocation of taxes for principal companies and the Swiss Finance Branches can therefore no longer be applied by taxpayers from 1 January 2020.
Contact
Swiss Federal Tax Administration FTA
Eigerstrasse 65
3003 Berne
Last modification 31.03.2025