MCH Group AG / Media Release | MCH Group | Partial tax exemption revoked . Processed and transmitted by Nasdaq Corporate Solutions. The issuer is solely responsible for the content of this announcement.
MCH Group: partial tax exemption for the exhibition business in Basel to be revoked
The tax administration of the Canton of Basel-Stadt has taken the decision to revoke the partial tax exemption for MCH Swiss Exhibition (Basel) Ltd. - a company belonging to MCH Group Ltd. - as of the end of 2020. From 2021 onwards, the exhibition business in Basel that has been partially exempted from taxation will be subject to tax. The time at which the tax regime is being changed has been coordinated with the repayment of the loans granted by the Canton of Basel-Stadt for the new Messe Basel hall complex, which the company has to repay by 2020.
It is not yet possible to say how much tax will be due in 2021 and subsequent years under the new tax regime, and what influence this will have on the consolidated group result of MCH Group. The further development of the company and potential changes in the context of the planned corporate tax reform III will not permit reliable forecasts for the period after 2021.
The current tax exemption for the exhibition business in Basel dates back to the Swiss Sample Fair Cooperative that was founded in Basel in 1920. It has remained in force for exhibition operations in Basel over the course of the Sample Fair's development into the present-day MCH Group. This is because the purpose of the company and the public interest in its activities have remained unchanged in respect of its location of Basel. In the meantime, however, the tax authorities have come to the conclusion that the exhibition business is fundamentally fully taxable, despite being of major importance for the economy.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: MCH Group AG via Globenewswire
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MCH Group AG
Messeplatz 10 Basel Switzerland