With the operational launch of the web-based application OMTax on 1 January 2025, companies in Switzerland will be able to fulfil their legal obligation to register for Pillar Two purpose. Registration will be exclusively electronic and must be completed at the latest before filing the tax return (typically by 30 June 2026). If a multinational group has several entities in Switzerland, a responsible entity must be designated for registration. However, this cannot be freely chosen but must be determined based on legal requirements.

Pillar Two in Switzerland

Switzerland is gradually introducing the global minimum tax in Switzerland. Constituent entities of in-scope multinational groups in Switzerland will be subject to the Swiss top-up tax (QDMTT, see our blog) for financial years beginning on or after 1 January 2024. In addition, the Federal Council decided in August 2024 that, depending on the group structure, constituent entities will also be subject to a Swiss top-up tax under the Income Inclusion Rule (IIR) for financial years beginning on or after 1 January 2025. In view of the legal and economic uncertainties, the Federal Council has decided not to introduce a Swiss top-up tax under the Undertaxed Profit Rule (UTPR) for the time being (see our blog).

OMTax Application

The declaration of the Swiss top-up tax and, one year later, of any international top-up tax under the IIR must be made electronically using the new web-based OMTax application. OMTax is a joint IT solution of the SFTA and the cantons, which is integrated into the ePortal of the Swiss government. Deloitte has been actively involved in the testing of this new platform together with large companies and other tax advisors. To access OMTax, an account must first be created in the ePortal. The platform will be available to taxpayers from 1 January 2025 in German, French, Italian, and English.

Registration Process

As a first step, the taxable constituent entity of a large multinational group within the scope of the top-up tax must be identified and included in a Pillar Two register. To do this, the taxable constituent must be registered in the OMTax application. The registration can be done by the entity itself or by a tax representative. After successful registration, an activation letter will be sent with a code that completes the registration and unlocks the tax return. Registration is possible from 1 January 2025, but must be completed before the tax return is filed (18 months after the end of the first tax year, usually 30 June 2026). It may take several working days to process the registration and issue the activation code. Importantly, the registration is also required for multinational groups which will benefit from the transitional CbCR safe harbour.

Determining Taxable Constituent Entity

The registration must be carried out by the taxable constituent entity in accordance with art. 5 of the Swiss Minimum Tax Ordinance ("SMTO", German/French). A multinational group with several constituent entities in Switzerland is not free to choose this constituent entity but must comply with the provisions of art. 5 SMTO. This is usually the top domestic entity in the group structure or the most economically significant entity if there is no intermediate company in Switzerland or several intermediate companies subject to Pillar Two. It is the responsibility of the multinational group to determine this entity. The canton in which this taxable constituent entity is domiciled is responsible for registration and future assessment.

Deloitte’s View

With the operational launch of the new platform and the possibility of complying with the legal requirement to register from 1 January 2025, Pillar Two in Switzerland is entering the next phase. Deloitte was actively involved in testing this platform and the new processes, and welcomes the fact that Switzerland has opted for a simple, purely electronic solution. However, the platform should not obscure the fact that the regulations and the tax return itself are very demanding. The tax return is closely based on the OECD template and can only be completed with extensive Pillar 2 knowledge. Affected groups should consider how they want to organize their compliance processes in Switzerland and worldwide. It is conceivable that compliance work could be fully outsourced to Deloitte, or just reviewed. Along with their tax returns, groups will also be confronted with the question of whether they can make use of the numerous election rights. Deloitte's Pillar Two Agent is a highly regarded software solution that can be used, among others, to quickly and easily simulate the effects of exercising these election rights.

If you would like to discuss more on this topic, please reach out to our key contacts below.

Key contacts

Thomas Hug - Partner, National Tax Office

Thomas is the leader of Deloitte Switzerland's National Tax Office. He has a proven track record of being at the forefront of international tax developments and analysing their impact from a Swiss tax technical perspective. Thomas has published thought-leading articles and books, and is frequently asked by industry groups, universities and tax and accounting associations to make presentations or lead seminars. He serves as a substitute judge at the Zurich Tax Court of Appeal.

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Daniel Stutzmann - Partner, Global Minimum Taxation

Daniel is a Tax Partner with 18 years of experience as an international corporate tax specialist. This includes a one-year assignment in the US to lead the Swiss ICE Desk of Deloitte. He is a specialist in the proposed OECD Pillar 2 legislation and its impact and leads the Deloitte Switzerland Pillar 2 team. In addition, he is co-leading the Deloitte Global Pillar 2 technical advisory group.

Daniel has extensive experience in the area of cross-border structuring (like establishing tax efficient IP- and financing structures) as well as business reorganizations including large supply chain transformation projects. This also includes advising several multinationals in moving their worldwide/regional headquarters or central functions to Switzerland.

As a Swiss tax expert he has managed the Swiss tax compliance of hundreds of companies in Switzerland from various industries. He is well acquainted with the Swiss tax authorities and has successfully led various tax audit and tax ruling negotiations with the Swiss tax authorities. He also has broad knowledge in tax accounting and tax reporting both from an advisory and audit side. Daniel leads the business tax practice in Switzerland.

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Manuel Angehrn- Director, Global Minimum Taxation

Manuel is a Director with over 10 years of experience in International Tax. He is a Deloitte Switzerland’s Global Minimum Tax subject matter expert. He follows domestic and global tax developments and assesses the impact to Swiss multinationals.

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