All material subject to strictly enforced copyright laws. © 2022 ITR is part of the Euromoney Institutional Investor PLC group.

Switzerland: Impact of EU transparency directive on country-by-country reporting for Swiss businesses



David McNeil

Sarah Drye

In April 2013, the Irish presidency of the EU secured agreement on a new accounting directive to increase the transparency of payments made to governments by European companies involved in extractive and forestry industries. The proposals will amend the Transparency Directive (2004/109/EC) to require country-by-country reporting on payments made to governments including, among others, taxes on profit, licence fees and royalties.

While EU directives are not directly applicable to Switzerland, they are often taken into account by Swiss lawmakers when considering changes to Swiss law. Existing transparency initiatives – including the Dodd-Frank Act and the voluntary Extractive Industries Transparency Initiative (EITI) – have attracted interest in the Swiss Federal Parliament and debate has already begun on the introduction of equivalent laws in Switzerland, most recently in the form of a parliamentary motion proposed on June 11.

Of particular interest for Swiss businesses is the scope of the Swiss initiative, which could impact companies trading extracted natural resources as well as those involved in the primary extraction itself.

Regardless of the final scope of any Swiss legal obligation in this area, it is likely that the pressure to improve transparency around tax will be felt by a much wider population of businesses as politicians, non-government organisations and increasingly the wider media, turn the spotlight on the contribution of multinationals to the economies of the countries in which they operate.

Compliance with transparency initiatives will have wide implications for processes and systems, particularly for those multinational groups who decentralise responsibility for tax, as is common for Swiss-based organisations.

For certain businesses, the requirement to report more information on taxes is likely to become an obligation. For others, additional voluntary disclosure could be a strategic choice in demonstrating commitment to conducting their tax affairs in a socially responsible manner.

David McNeil (

Tel: +41 (0)58 279 8193
Sarah Drye (

Tel: +41 (0) 58 279 8091


more across site & bottom lb ros

More from across our site

The Biden administration is about to give $80 billion to the Internal Revenue Service to enhance the tax authority’s enforcement processes and IT systems.
Audi, Porsche, and Kia say their US clients will face higher prices under the Inflation Reduction Act after the legislation axes an important tax credit for electric vehicle production.
This week Brazil’s former President Luiz Inacio Lula da Silva came out in support of uniting Brazil’s consumption taxes into one VAT regime, while the US Senate approved a corporate minimum tax rate.
The Dutch TP decree marks a turn in the Netherlands as the country aligns its tax policies with OECD standards over claims it is a tax haven.
Gorka Echevarria talks to reporter Siqalane Taho about how inflation, e-invoicing and technology are affecting the laser printing firm in a post-COVID world.
Tax directors have called on companies to better secure their data as they generate ever-increasing amounts of information due to greater government scrutiny.
Incoming amendments to the treaty could increase costs on non-resident Indian service providers.
Experts say the proposed minimum tax does not align with the OECD’s pillar two regime and risks other countries pulling out.
The Malawian government has targeted US gemstone miner Columbia Gem House, while Amgen has successfully consolidated two separate tax disputes with the Internal Revenue Service.
ITR's latest quarterly PDF is now live, leading on the rise of tax technology.
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree