Analysis by Tax Partner AG
The Canton of Graubünden in Switzerland is proposing a qualifying tax credit (QRTC) as a location promotion measure in response to the upcoming OECD minimum tax regulations.
Traditional measures such as tax relief become less effective for multinational corporations under these regulations, however QRTCs, unlike traditional measures, are subsidies paid directly via the tax system within 4 years, independent of a company’s profit status.
The proposed law aims to grant QRTCs to companies contributing significantly to value creation, research, development, innovation, or environmental sustainability in the canton, estimated at $8.5 million annually. The consultation period runs until 15 April, 2024, with the goal of implementing the new regulations in 2025.
René Matteotti and Patrick Bieri from Tax Partner AG provide a comprehensive overview and analysis of this new measure, which can be accessed here.
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