(Bloomberg) -- Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.
Switzerland said the country was committed to remaining an attractive business hub in light of a landmark deal by the Group of Seven rich nations that could help countries collect more taxes from big companies.
“Switzerland has taken note of this expected declaration of intent by the G7,” the State Secretariat for International Finance said in an email. “For Switzerland, the focus is on the overall package of competitive framework conditions for its own location. Either way, Switzerland will take the necessary measures to continue to be a highly attractive business location.”
As a low-tax country home to multinational companies like Nestle SA, Glencore Plc and Novartis AG, the G-7 proposal could prove a game-changer for its economy.
The G-7 pact marks a step to re-write a global system that critics said allowed big companies to save billions of dollars in tax bills by shifting jurisdictions. It’s also designed to help address complaints that major digital companies can make money in multiple countries and pay taxes only at home.
©2021 Bloomberg L.P.