Donation Tax: Definition
Donation tax, whether it's in Valais or in Switzerland in general, is a tax levied on donations (monetary donations, valuable objects, inheritance, etc.).
Every canton determines the factors that influence this tax. It is important to note however, that only the person receiving the donation is liable to pay this tax.
Who Is Concerned by this Tax?
As a general rule, every person that receives a donation is concerned by this tax. However, there are a few exceptions to this rule, especially regarding family ties.
Family Tax Exemptions
If the donation is made for a direct relative, the latter will generally be exempt from paying donation tax. If a parent makes a donation for a child (biological or adopted) then the child will generally be exempt as well.
Similarly, married couples in Valais can receive donations from each other without paying donation tax.
Other Exemptions
Other donations are not subject to this tax. For example, for donated sums under 2’000 CHF a year will be exempt from tax, just like shares of inheritance under 10’000 CHF.
Moreover, in Valais, if money is donated to help with education costs (for a child for example), will be exempt, even if the child is not a minor anymore.
Gifts given by an employer to an employee are also usually exempt, as they are already seen as income (which is already taxed). Donations for non-profits are also usually exempt.
Calcul de l’impôt sur les donations en Valais
Le calcul de l’impôt en Valais dépend de 2 facteurs : le degré de parenté et la valeur du don.
Value
The value of a donation is based on market valueMarket value is the price for which a good could be sold at a certain moment.
In the case of real estate, this represents the price a potential buyer would be prepared to pay. This amount depends on the current state of the market.
It's the same principle for objects: their market value represents the amount for which they would be sold.
Deductions
Several elements can be deducted when calculating donation tax. In Valais, the deceased's debts, for example, are subtracted from the donation, as are the donor's funeral expenses.
In the case of double taxation (if the good is subject to tax in both Switzerland and France for example), the tax paid abroad can generally be subtracted.
If an asset is donated but still used by person A, and this prevents the donee (the one receiving the donation) from using the asset in its entirety (in the case of a usufruct, for example), the value of person A's right will be calculated and then deducted.
Donation Tax Rates
The tax rate on donations in Valais depends on how strong family ties between the recipient and the donor are.
En Valais, moins le donataire et donateur sont liés au niveau familial, plus le taux sera élevé.
10%
Pour un don fait par des parents directs (pères, mères) pour des descendants directs (enfants, frères et sœurs).
15%
Si le donataire fait partie de la famille élargie des grands-parents (oncles, tantes, cousins).
20%
Pour les arrière-grands-parents.
25%
Pour toute autre relation.
Calculation Examples
Donation to a Direct Descendant
Donation value: 500 000 CHF
Tax rate: 10% (direct relation)
Calculation:
- Donation value: 500 000 CHF
- Tax allowance: 10 000 CHF (Art. 112 of Valais fiscal law)
- Amount subject to tax: 490 000 CHF
- Tax due: 49 000 CHF
Donation to Extended Family
Donation value: 500 000 CHF
Tax rate: 15% (famille élargie des grands-parents)
Calculation:
- Donation value: 500 000 CHF
- Tax allowance: 10 000 CHF
- Amount subject to tax: 490 000 CHF
- Tax due: 73 500 CHF
Donation to a Person without Family Ties
Donation value: 500 000 CHF
Tax rate: 25% (autre relation)
Calculation:
- Donation value: 500 000 CHF
- Tax allowance: 10 000 CHF
- Amount subject to tax: 490 000 CHF
- Impôt dû (25% de 490 000 CHF) : 122 500 CHF
Frequently Asked Questions
What is donation tax in Valais?
Donation tax in Valais is a tax levied on gifts such as money, valuables or real estate. It is generally paid by the person receiving the gift, known as the recipient.
Who must pay donation tax in Valais?
It is the person who receives the gift, who must pay the tax if the amount is taxable. There are certain exceptions, depending on the family relationship and the type of donation.
Which donations are exempt from donation tax in Valais?
In Valais, gifts between relatives in the direct line, donations of less than CHF 2,000 per year, inheritances of less than CHF 10,000 and gifts for education are all exempt.
Are spouses subject to donation tax in Valais?
The value of a donation is determined by its market value, i.e. the price at which the asset could be sold on the market at a given time.
