Vale’s tax practices
20 March 2013
Since 2006, the Brazilian mining giant Vale has moved numerous subsidiaries previously registered in offshore finance hubs to St. Prex in the Swiss canton of Vaud. The company enjoys full tax exemptions at the municipal and cantonal levels. And thanks to what is known as the ‘Bonny’ ruling, from 2006 to 2012, Vale International only paid tax on 20% of its profits at the federal level. This equated to some CHF15 billion or 40% of the firm’s total profits; the company has 80,000 employees globally of which at the of 2012, exactly 117 worked in St. Prex. Tax is paid in Switzerland for a far higher percentage of profits that could be generated in the country – to the detriment of the producer countries.