In 2023, the renowned company Rolex was required to pay a fine exceeding 90€ million. This decision was made by French authorities, who accused the leader of the watchmaking industry of violating tax legislation and principles of fair competition. France’s Competition Authority and Consumer Protection Agency concluded that the watch manufacturer had been breaching the law for more than 10 years by prohibiting authorized distributors from selling Rolex products online.
In reality, for many decades the company has adhered to a unified sales policy: distribution exclusively through a network of authorized dealers.
One of the foundations of the brand’s global popularity has been its exceptional quality, which has enabled Rolex to secure a leading position in the luxury Swiss watch market with revenues of $12 billion in 2024 (a 5% increase compared to 2023). Below, we attempt to clarify the situation and explain why Rolex does not disclose its financial statements and considers the ban on online sales of its products to be part of the fight against counterfeiting.
The Business History of Rolex
Today, Rolex operates within a unique ownership structure that distinguishes it from standard corporations. Although it is a commercial entity, the company is owned by the Hans Wilsdorf Foundation, established under Swiss law. As a private charitable foundation, it effectively represents a hybrid model in which commercial success—that is, profit—is directed toward philanthropy and reinvestment. Such a governance model provides strategic advantages, whereby the manufacturing company Rolex SA functions as a conventional commercial enterprise, while the parent structure, the Hans Wilsdorf Foundation, is a non-profit entity that strictly complies with the legislation of its country of registration.
The creation of such a complex corporate identity was a personal decision by the brand’s founder, Hans Wilsdorf, who sought to ensure the company’s long-term stability and maintain its pursuit of excellence after his death. Thus, in 1944, the foundation was established, and in 1960, also by Wilsdorf’s decision, 100% of the shares were transferred to it, creating a perpetual trust structure. This demonstrated the founder’s remarkable foresight, as departing from a traditional ownership model protected the company from potential takeovers, short-term profit pressure, and market volatility.
How the Synergy Between Rolex and the Foundation Works
Overall, the operational relationship between Rolex SA and the Hans Wilsdorf Foundation forms a unique financial ecosystem: generated profits are transferred directly to the foundation, where the funds are allocated between reinvestment in the company’s development and charitable purposes. This structure offers several advantages:
Absence of public or private shareholders. This eliminates the need to focus on dividend payments in any given period and allows full concentration on brand development.
Strict confidentiality of financial information. Neither the company nor the foundation is required to publicly disclose financial figures, which helps safeguard competitive data and strategic planning vectors.
Tax benefits. These are stipulated by Swiss legislation, which is favorable to charitable foundations and allows them to optimize operations, increasing overall efficiency.
At the same time, the company never discloses the exact percentage of profit directed toward charitable activities, demonstrating how effectively such a corporate structure can serve both commercial and humanitarian objectives within the framework of Swiss law. In Switzerland, foundations that are genuinely engaged in charitable activities may be eligible for tax benefits.
At the same time, ownership structure under national legislation may be decisive in determining financial disclosure requirements. As a result, there is no publicly available data on whether Rolex pays taxes at various levels (federal, cantonal, municipal) or benefits from tax exemptions, or whether taxes on profit, value added, exports, and others apply to its market activities. Any figures circulating in online sources should not be considered official or verified.
Both Rolex SA and the Hans Wilsdorf Foundation maintain strict confidentiality regarding operational and financial indicators, as well as charitable donations. Although the company’s annual revenue is estimated on average at $10–12 billion, stringent protection of intellectual property and proprietary technologies, combined with high prices and controlled product distribution, is regarded by Swiss tax authorities as a mechanism through which the company supports the development of social, humanitarian, and cultural programs in the country. It is known that profits are allocated to charitable projects and reinvestment.
Charitable Projects of the Hans Wilsdorf Foundation
The foundation’s primary socially oriented initiatives include “Perpetual Planet,” which finances scientific research on climate and climate change, and “Perpetual Arts,” which supports the preservation and development of culture and the arts. However, there are other humanitarian programs as well:
The Rolex Awards for Enterprise, recognizing individuals for innovation and addressing global challenges of the modern world.
The Rolex Mentor and Protégé Arts Initiative, which connects emerging talents with established masters in the fields of culture, arts, and education.
Mission Blue Partnership, focused on the creation and protection of marine reserves worldwide.
Collaboration with National Geographic, supporting scientific expeditions, research, and educational initiatives that expand human knowledge—not only about nature.
The clear and unwavering commitment to its mission by the Hans Wilsdorf Foundation ensures that the company remains faithful to the goal proclaimed by its founder: an unconditional pursuit of excellence and mastery.
