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Keen Learner & Explo...Ā ā¢Ā 9m
Rolex, we all have heard of this premium watch brand based in Geneva, Switzerland. But do you know that despite earning $11.4 billions in revenue and a profit of $1.1 billion it pays absolutely no taxes and is not actually a private company. Well Rolex was founded by Hans Wilsdorf and Alfred Davis in London, England in 1905 which later relocated to Geneva, Switzerland. But in 1945 the father of Rolex Hans Wilsdorf established a charitable organisation named "Hans Wilsdorf Foundation" and transferred 100% shares of Rolex to this trust in 1960 which continues to own it till date. And according to the article 56(g) of the Swiss Federal Act on Direct Federal Taxation (DBG/LIFD) provides that public utility organizations, including charitable foundations, can be exempt from taxes if they exclusively and irrevocably pursue public or charitable purposes. In a nutshell, Rolex is owned by a charitable trust and thus it enjoys tax exemptions (IKEA also uses similar strategy). Thank You.
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