Wealth Tax: Definition
L’impôt sur la fortune est un impôt direct qui est prélevé sur la fortune nette d’un contribuable. En Valais, ce qui est considéré comme fortune, ce sont les biens mobiliers (une maison, un appartement, terrains) ainsi que les biens immobiliers (des meubles, des bijoux, des collections, l’argent liquide, etc.).
Movable wealth
Immovable wealth
Shares
Houses
Bank accounts
Apartments
Works of art
Land
Cash
Investment properties
Precious metals
All commercial and/or industrial buildings
Incurred debts and loans are subtracted from the total wealth. This means that once the total wealth amount has been calculated, debts will be taken away from the total amount.
Once this is done, you will have obtained your net worth.
Who is Affected by this Tax?
In the canton of Valais, not everyone is subject to wealth tax. Indeed, a person is only subject to this tax once a certain amount of wealth has been reached:
- 30'000 CHF for a single person
- 60'000 CHF for a couple or a single person with dependants
Wealth tax is a direct tax levied on a taxpayer's net wealth. In Valais, wealth is defined as movable assets (a house, a flat, land) as well as immovable assets (furniture, jewellery, collections, cash, etc.).
Tax Rates for Wealth Tax in Valais
In Valais like in other cantons, the tax rate is gradual. The latter will get higher as the net worth grows. It also varies depending on the canton and municipality.
The minimum tax rate is 1‰ for people with assets between 0CHF and 11’000 CHF. However, a deduction of CHF 30,000 for a single person and CHF 60,000 for a married couple is allowed. The maximum rate is capped at 3‰.
Par exemple, si un contribuable seul a une fortune nette de 51’000 CHF, il dépasse le minimum de 30’000 CHF et sera imposé à la fortune. Si le taux d’imposition est de 1,70‰ pour ce montant, l’impôt sur la fortune sera donc de 86,70 CHF a year.
How to Calculate Wealth Tax?
To calculate wealth tax, you first need to determine your taxable assets, meaning your net worth. To do this, you first need to estimate the value of all your assets, both movable and immovable, and subtract any debts.
This will determine whether a person is liable to wealth tax. If wealth exceeds 30’000 CHF for a single person and 60’000 CHF for a couple, then a tax will be levied. The next step is to apply the tax rate, which is between 1‰ and 3‰.
For a person with other dependants (such as children or needy parents), the situation will be the same as for a couple.
Calculation Example
Let's go back to our previous example and look in more detail at how tax is calculated in Valais. For a taxpayer with assets estimated at 51'000 CHF. 51’000 CHF :
For this amount, the tax rate is 1.70‰.
To calculate the amount of tax, multiply the net assets by the tax rate: CHF 51,000 x 1.70‰ = CHF 86.70
Therefore, for net wealth of CHF 51,000, wealth tax in Valais will be 86.70‰ .
How Can you Reduce your Tax Burden?
The tax burden associated with wealth tax in the Valais region can be reduced by taking the following factors into account:
Declare your Debts
Make sure you declare any debts so that they are deducted from your total assets. Reducing your taxable wealth will reduce the amount of tax you will pay.
Real Estate Investments
Investing in property is a good way of reducing your tax burden. Property is not usually valued at its current marketvalue, which will reduce your total wealth.
A property of this type is generally valued at its acquisition value, i.e. the value it had when the person purchased it.
Revaluing Assets
Don't forget to regularly assess the value of your movable and immovable assets to avoid having an overestimate of an asset's value, which would lead to an increase in the amount of wealth tax.
Valais Compared to Other Cantons
Wealth tax is less advantageous in Valais than in other cantons. In the canton of Valais, for example, wealth of less than CHF 20,000 is not subject to wealth tax.
Frequently Asked Questions
What is wealth tax in the Valais?
In the canton of Valais, wealth tax is a direct tax levied on a taxpayer's net wealth. It concerns both movable assets (such as furniture, jewellery or collections) and immovable assets (house, land, flat). Any debts are deducted to get one's net worth.
Who has to pay wealth tax in Valais?
According to the tax scale, all Valais citizens are subject to wealth tax. However, there are deductions ranging from CHF 30,000 to CHF 60,000, depending on a taxpayer's personal situation.
How to calculate wealth tax in Valais?
To calculate this tax, follow these steps:
- Determine the total value of your movable and immovable assets.
- Subtract your debts to obtain your net wealth.
- Apply the gradual rate, between 1‰ and 3‰.
What is the wealth tax rate in Valais?
The tax rate in Valais is progressive: it varies between 1‰ and 3‰ depending on one's net wealth amount.
