TAXATION – THE VALAIS: THE NEW ELDORADO FOR SMES IN FRENCH-SPEAKING SWITZERLAND

The canton could reduce the tax rate for SMEs from 12.6% to 11.9%. Roberto Schmidt, the Valais Finance Minister, wants to provide tax incentives for SMEs.

Reducing the tax burden on small and medium-sized enterprises is an excellent solution that could boost the economy without favouring large companies... It’s actually a very socially responsible solution!!

Well done!!

Many small SMEs could quickly relocate to Valais, and they would be absolutely right to do so, because apart from the favourable tax regime, the low costs of housing, insurance and vehicle tax, and the sunshine are all advantages compared to Geneva, for example...

Alain Farrugia

With 71.79% of votes in favour, the people of Valais have overwhelmingly backed the Tax Reform and AHV Financing (RFFA). Buoyed by this success, the Valais Minister of Finance, Roberto Schmidt, intends to capitalise on this popular support by submitting a proposal to the Grand Council before the summer to reduce the tax rate for SMEs from 12.6% to 11.9%.
“SMEs are the mainstay of the Valais economy. We want to treat them well,” he announced in Le Nouvelliste the day after the vote.

If the proposal clears parliament this autumn, the canton could benefit from the lowest rate in Switzerland for SMEs whose profits do not exceed 250,000 francs. This reduction will represent a shortfall of 97.3 million francs for the public, cantonal and municipal coffers, but these losses could be recouped within five to seven years. At the same time, the cantonal tax on production equipment could also be abolished. These reforms could well make Valais the new El Dorado for SMEs in French-speaking Switzerland.

Source: PME Magazine