Tax Act (StG) - I. Types of Taxes (StG)

**1. The Canton levies the following taxes:**

a) an income tax and a wealth tax on natural persons;

b) a profit tax and a capital tax on legal entities;

c) a withholding tax on certain natural and legal persons;

d) a real estate capital gain tax;

e) * ...

f) an inheritance and gift tax.

**2. The municipalities levy the taxes mentioned in the seventh part of this law as well as their shares of the taxes on legal entities, the real estate capital gain tax, and the inheritance and gift tax.**

1. The simple (100%) cantonal tax comprises the income and wealth taxes stipulated in the first and second parts of this law, as well as the profit and capital taxes set forth in the third part.

2. The Grand Council annually sets the tax rate, expressed as a percentage of the simple cantonal tax, during the budget approval process. Any change in the tax rate compared to the previous year requires the approval of the absolute majority of all members. The tax rate must not exceed 115% of the simple cantonal tax.

3. Surcharges established in other laws, as well as those specified in Sections 57a and 90 of this law, and the municipal taxes mentioned in the seventh part of this law, remain reserved.

4. No surcharges are levied on inheritance and gift taxes, nor on real estate profit taxes. The shares mentioned in this law are allocated to the municipalities.

1. The Great Council may enact provisions that amend or supplement this law, insofar as it is necessary for the implementation of federal regulations in the field of tax harmonization and there is no significant discretion.

2. The Government Council may

a) conclude agreements with other cantons or foreign states regarding mutual tax exemptions or other reciprocal limitations of tax sovereignty;

b) conclude agreements with other cantons regarding source taxation of individuals who reside in one canton and are remunerated in another canton;

c) conclude agreements with other cantons regarding the mutual extension of tax deferral conditions in the area of replacement purchases of real estate and items of business-essential fixed assets;

d) order retaliatory measures in relation to foreign states.

1. If the taxes provided for in this law are significantly increased due to amendments to federal law or judicial decisions, the Government Council shall submit a report and proposal for corresponding relief measures to the Grand Council. To the extent permissible and possible, the original burden distribution intended by the legislature is to be restored.

1. Taxation of Entities: Legal persons subject to taxation include corporations (public limited companies, limited partnership with shares, limited liability companies), cooperatives, associations, foundations, public law entities and institutions, and entities governed by cantonal law. Collective investment schemes with direct real estate holdings, in accordance with Articles 58 and 118a of the Federal Act on Collective Investment Schemes (Collective Investment Schemes Act, CISA) dated June 23, 2006, are treated as legal persons. Investment companies with fixed capital under Article 110 CISA are taxed like corporations.

2. Foreign Entities: Foreign legal persons, as well as foreign commercial companies and other foreign entities without legal personality that are taxable based on economic affiliation, are equated to those domestic legal persons to which they are legally or factually most similar.

1. In the case of a legal entity that has been dissolved through merger, transformation, or acquisition, the legal successors are obliged to submit the tax return, fulfill all further procedural obligations, and pay the taxes already owed or yet to be assessed.

**1. Liquidators of a Legal Entity**

Liquidators of a legal entity are obliged, under their own responsibility and joint liability, to ensure the fulfillment of tax obligations from the liquidation proceeds before these are distributed.

**2. Duties and Liabilities of Non-Formal Liquidators**

The same duties and liabilities apply to persons who significantly influence the distribution of the liquidation proceeds or who de facto liquidate a company without being formally appointed as liquidators.

1. The rights and obligations of a deceased person are assumed by the heirs.

2. After the death of a taxable person, the heirs must submit the outstanding tax returns and pay or secure the taxes already owed or still to be assessed before the distribution of the estate.

3. They are jointly and severally liable for all tax claims against the estate up to the amount of their inheritance shares, including the pre-receipts received in the last 5 years before the inheritance. The inheritance shares or pre-receipts of the surviving spouse also include the contributions he or she receives under matrimonial property law exceeding his or her statutory share according to Swiss law. The surviving registered partners are liable with their inheritance share and the amount they have received under a financial arrangement in accordance with Art. 25 para. 1 of the Federal Act on the Registered Partnership of Same-Sex Couples (Partnership Act, PartG) of 18 June 2004.

4. In addition to the heirs, persons entrusted with the administration of the estate or the execution of the will are jointly and severally liable for the taxes of the deceased person and for the inheritance taxes up to the amount of the estate if they distribute inheritance shares and legacies before the inheritance taxes owed and the other outstanding taxes of the deceased person have been paid. The liability ceases if the liable person has verified with the Cantonal Tax Office, based on the inventory, that no more tax claims are outstanding. The liability does not extend to additional taxes not yet definitively assessed.

1. Taxable Services and Values (Income, Assets, Capital Gains, Asset Accrual) associated with simple partnerships, general partnerships, and limited partnerships are attributed to the partners proportionally.

2. General partnerships and limited partnerships are jointly liable for the taxes pertaining to the share of their partners in the partnership.

1. Income from shares in collective investment schemes according to the Collective Investment Schemes Act (CISA) is attributed to investors proportionally; income from shares in collective investment schemes with direct real estate ownership is only taxable to the extent that the total returns exceed the returns from direct real estate ownership.

1. The taxable benefits and values of heir communities are attributed to the heirs and beneficiaries according to their shares of the inheritance.

2. In cases of uncertainty regarding the heirs or their respective shares, the heir community as a whole is taxed at the last residence of the deceased person in accordance with the provisions applicable to natural persons. Church tax is determined based on the denomination of the deceased person.

1. In fiduciary relationships, the trustor is subject to taxation. If the fiduciary relationship is not substantiated or the trustor is not disclosed, the taxable services and values are attributed to the trustee.

1. A permanent establishment is defined as a fixed place of business through which the business activities of an enterprise are wholly or partly carried out.

2. The term permanent establishment particularly includes

a) a place of management;

b) a branch office;

c) an office;

d) a factory;

e) a workshop;

f) a mine or other site for the extraction of natural resources;

g) a construction or assembly project that lasts at least 12 months;

h) a permanent agency (even without a fixed place of business), provided a person is working for the enterprise at that location who has the authority to conclude contracts in the name of the enterprise and customarily exercises this authority in Switzerland, provided that the activity is not limited to the purchasing of goods and merchandise for the represented enterprise. The use of brokers, commission agents, and other independent representatives does not constitute a permanent establishment, provided they act within the scope of their ordinary business activities.

**1. Exemptions from Tax Liability:**

a) The Confederation and its institutions, according to federal legislation;

b) The Canton and its institutions, the latter subject to tax liability towards the municipalities;

c) The Aargau municipalities and local citizen municipalities and their institutions, the Aargau municipal associations, the Aargau church communities, and the Aargau national churches, subject to paragraphs 2 and 3;

d) Public-law entities from other cantons, provided the respective canton or state offers reciprocal treatment.

2. The municipalities and municipal associations pay the income tax on the net profit of their commercial and industrial enterprises to the Canton, and the local citizen municipalities additionally pay it to the municipalities, in accordance with the tax rates applicable to natural persons.

3. Net profit is considered to be the amounts allocated from business results for non-operational purposes.

1. The following are also exempt from tax liability

a) Occupational pension schemes of enterprises with domicile, headquarters, or permanent establishment in Switzerland and companies closely related to them, provided that the funds of the scheme are permanently and exclusively dedicated to employee benefits;

b) Domestic social security and compensation funds, in particular, unemployment, old-age, disability, and survivors' insurance funds, with the exception of licensed insurance companies;

c) Legal entities pursuing public or charitable purposes, for the profit and capital that are exclusively and irrevocably dedicated to these purposes. The activities of political parties operating in the canton or in the municipalities of Aargau and whose goals and internal organization comply with democratic principles are considered a public purpose. Entrepreneurial purposes are generally not charitable. The acquisition and administration of significant equity interests in companies are considered charitable if the interest in preserving the company is subordinate to the charitable purpose and no executive activities are performed;

d) ...

e) Legal entities pursuing religious purposes at the cantonal or nationwide level for the profit and capital that are exclusively and irrevocably dedicated to these purposes;

f) Foreign states for their domestic properties intended exclusively for the direct use of diplomatic and consular representations and institutional beneficiaries exempt from tax liability according to Art. 2 Para. 1 of the Host State Act of June 22, 2007[6], for properties owned by institutional beneficiaries and used by their offices;

g) Collective investment schemes with direct real estate ownership, provided their investors are exclusively tax-exempt occupational pension schemes according to letter a or tax-exempt domestic social security and compensation funds according to letter b;

h) Federally licensed transportation and infrastructure companies that receive compensation for their activities or must maintain year-round operations of national importance based on their license. The tax exemption also extends to profits from the licensed activity that are freely available. However, secondary operations and properties that have no necessary connection to the licensed activity are excluded from the tax exemption.

2. The legal entities mentioned in Paragraph 1, letters a-e and g, with special purposes must, however,

a) ...

b) Pay real estate capital gains tax according to §§ 95-111, with sales losses suffered in the past 7 years on other properties in Switzerland being deductible from the real estate capital gain. For investment properties necessary for pursuing special purposes, taxation is postponed if a replacement object is acquired within a reasonable period, usually within 1 year before or 3 years after the sale;

c) Pay a profit tax of 20% on distributions made for non-tax-exempt purposes and for which there is no or no equivalent performance by the favored person. The tax is levied for the year of distribution as an annual tax by the Cantonal Tax Office. Taxation of the favored person is reserved. This person is jointly liable for the legal entity's tax if they or closely related individuals have influenced the improper distribution.

3. The legal entity with special purposes taxes the net profit from regular commercial activities according to the provisions for associations and foundations in the third part of this law. This net profit cannot be offset against losses from the other activities of the legal entity.

1. The Grand Council may provide targeted tax reliefs or exemptions by decree for the year of the relevant event and for a maximum of 9 subsequent years

a) for significant expansions of the business operations of companies within the canton;

b) for companies newly established in the canton.

2. The requirement is a special public or overall economic interest in the business activity, or the creation of additional jobs or training positions.

1. Natural persons are liable to tax on the basis of personal affiliation if they have their tax domicile or habitual residence in the canton.

2. A person has a tax domicile in the canton if they reside here with the intention of permanent stay, or if federal law assigns them a special statutory domicile here.

3. A person has a tax residence in the canton if they stay here, notwithstanding temporary interruptions, for at least 30 days while engaged in gainful employment, or for at least 90 days without engaging in gainful employment. If there is a tax domicile in another canton, the residence does not establish tax liability on the basis of personal affiliation.

1. Natural persons without a tax residence or domicile in the canton are liable to tax due to economic connection if they

a) maintain business establishments or branches in the canton;

b) own real estate in the canton, have in rem rights to it, or personal rights of use economically equivalent to ownership.

c) * trade in real estate located in the canton.

2. Natural persons without a tax residence or domicile in Switzerland are liable to tax due to economic connection if they

a) engage in gainful activity in the canton;

b) * receive royalties, director's fees, fixed compensation, employee participation, or similar remunerations as members of the administration or management of legal entities with a seat or establishment in the canton;

c) are creditors or beneficiaries of claims secured by real estate mortgage or chattel mortgage on properties in the canton;

d) * ...

e) receive pensions, retirement salaries, or other benefits paid due to a previous public service relationship by an employer or pension fund with a seat in the canton;

f) receive benefits from Swiss private legal entities of occupational pension schemes or recognized forms of tied self-provision with a seat or establishment in the canton;

g) * receive wages or other remuneration for work in international transport on board a ship or an aircraft, or for transport on the road by an employer with a seat or establishment in the canton;

h) * mediate real estate located in the canton.

1. The privileged persons exempted from taxation pursuant to Article 2, paragraph 2 of the GSG are not taxed to the extent that federal law provides for a tax exemption.

2. In the case of partial tax liability, § 19 paragraph 1 applies.

1. Personal affiliation results in unlimited tax liability; however, it does not extend to businesses, permanent establishments, and real estate located outside the canton.

2. In the case of economic affiliation, tax liability is limited to those parts of income and assets for which a tax obligation exists in the canton according to § 17.

3. The allocation of taxes for businesses, permanent establishments, and real estate occurs in relation to other cantons and abroad according to the principles of federal law prohibiting inter-cantonal double taxation. The provisions contained in double taxation agreements, as well as paragraph 4 and § 18a paragraph 2, remain reserved. If economic affiliation is established, changed, or terminated during the tax period, the value of the assets is reduced in proportion to the duration of affiliation in the respective calendar year.

4. Taxpayers without a tax residence or domicile in Switzerland must declare the income generated in the canton and the assets located in the canton for businesses, permanent establishments, and real estate.

1. Income with which losses from out-of-canton businesses or properties have been offset according to the principles of federal law on the prohibition of inter-cantonal double taxation shall be subject to subsequent taxation according to §§ 206 ff., to the extent that taxable income arises in the business canton or the location canton in the 7 subsequent tax periods.

2. A Swiss company can offset losses from a foreign branch against domestic profits, provided that these losses have not already been accounted for in the state of the branch. If this branch records profits within the following 7 business years, a taxation under §§ 206 ff. must be carried out to the extent of the profits offset in the branch state; in this case, the losses from this branch are only subsequently considered for rate determination in Switzerland. In all other cases, foreign losses are to be considered exclusively for rate determination.

1. Taxpayers who are liable to tax in the canton only for part of their income and assets shall pay taxes on the values taxable in the canton at the tax rate corresponding to their entire income and assets; tax-free amounts shall be granted to them proportionately.

2. Taxpayers without a tax residence or place of stay in Switzerland shall pay taxes for business enterprises, permanent establishments, and properties located in the canton at a minimum tax rate that corresponds to the income earned and assets located in Switzerland.

1. The tax liability commences on the day when the taxable person establishes a tax residence or domicile in the canton or acquires taxable property in the canton. It ceases upon death, departure from the canton, or the loss of taxable assets in the canton.

2. In the case of immigration from another canton, the commencement of tax liability based on personal affiliation is retroactively set to the beginning of the current tax period, provided that the taxable person still has their tax residence or domicile in the canton at the end of the tax period.

3. In the case of emigration to another canton, the end of the tax liability based on personal affiliation is retroactively set to the beginning of the current tax period. However, capital payments according to § 45 paragraph 1 letters a, b, and d are taxable in the canton if the taxable person has their tax residence or domicile here at the time of maturity.

4. When establishing, changing, or terminating economic affiliation with the canton during the tax period, limited tax liability exists for the entire tax period, provided the taxable person has their tax residence or domicile in another canton at the end of the tax period.

1. Income and assets of married individuals living in a legally and factually undivided marriage are aggregated regardless of the marital property regime. The same applies to individuals living in a legally and factually undivided registered partnership.

1bis. In this statute, the status of registered partners is equivalent to that of married individuals. This also applies to maintenance contributions during the existence of the registered partnership, as well as to maintenance contributions and asset settlement upon separation and dissolution of a registered partnership.

2. Income from professional activity and gains from property are independently taxed for children. Other income and assets of children under parental custody are attributed to the persons exercising parental care until the beginning of the year in which they reach the age of majority. The government council may establish principles regarding attribution in cases of separate tax liability of the persons exercising parental custody.

1. Married individuals living in a legally and factually undivided marriage are jointly liable for the total tax. However, each spouse is only liable for their share of the total tax if the other is insolvent. Furthermore, they are jointly liable for the portion of the total tax attributable to the child's income and assets.

2. In the case of a legally or factually separated marriage, joint liability for all still outstanding tax debts no longer applies.

3. Minor children under parental custody are jointly liable for the parents' tax debt up to the amount of the tax share that is attributable to their own income and assets.

**1. If a self-employed person ceases to continue their business and declares in writing that it remains part of their business assets and property, then:**

a) the valuation-based taxation of agriculturally used land according to § 51 para. 2 is extended until their death;

b) the taxation of profits upon the final transfer to private assets according to § 27 para. 2 is deferred until their death.

**2. Upon death, these measures can be extended by 5 years, but in any case, until the end of the calendar year in which the person intended and suitable for succeeding in business management reaches the age of 30.**

**3. These measures are to be lifted if:**

a) the prerequisites are no longer met or

b) the taxable person wishes a transfer to private assets or

c) the tax liability in the canton ends.**

1. Natural persons have the right to pay a tax based on expenditure instead of income and wealth tax if they

a) * do not have Swiss citizenship;

b) * are subject to unlimited tax liability for the first time or after an interruption of at least ten years (§ 16); and

c) * do not engage in any gainful activity in Switzerland.

2. ...

2bis Spouses living in a legally and factually undivided marriage must both meet the requirements according to paragraph 1.

3. The tax to be paid instead of the income tax is assessed based on the annual living expenses incurred during the assessment period both domestically and abroad by the taxable person and the persons they support, but at least according to the highest of the following amounts

a) * CHF 400,000.-;

b) * for taxpayers with their own household: seven times the annual rent or the rental value according to § 30 para. 1 lit. b;

c) * for other taxpayers: three times the annual boarding rate for accommodation and meals at the place of stay according to § 16.

d) * ...

e) * ...

f) * ...

4. The tax to be paid instead of the wealth tax is assessed based on a taxable wealth that corresponds to at least twenty times the assessment basis according to paragraph 3.

5. The tax based on expenditure is calculated according to ordinary tax rates but must be at least as high as the sum of the income and wealth tax calculated according to these rates from the total gross amount of

a) the immovable property located in Switzerland and its income;

b) the movable property located in Switzerland and its income;

c) the movable capital assets invested in Switzerland, including claims secured by mortgages, and their income;

d) the copyrights, patents, and similar rights utilized in Switzerland and their income;

e) the pensions, annuities, and pensions flowing from Swiss sources;

f) the income, for which the taxable person claims full or partial relief from foreign taxes based on an agreement concluded by Switzerland to avoid double taxation.

6. If income from a state is only relieved from its taxes when Switzerland taxes this income alone or with other income at the overall income rate, the tax is assessed not only according to the income specified in paragraph 5 but also according to all income components allocated to Switzerland based on the relevant double taxation agreement with the source state.

1. All recurring and one-time incomes are subject to income tax.

2. Income also includes benefits in kind of any type, particularly free meals and accommodation, as well as the value of self-consumed services and goods from one’s own business.

1. Taxable are all incomes from private or public employment relationships, including additional incomes such as compensation for special services, commissions, allowances, service awards and anniversary gifts, bonuses, tips, royalties, benefits in kind from employee participation, and other benefits in kind.

1bis. The costs of vocational training and further education borne by the employer, including retraining costs, do not constitute any other benefits in kind as stipulated in paragraph 1, regardless of their amount.

2. Lump-sum compensation from a pension scheme associated with the employment relationship or similar lump-sum compensation from the employer is taxed according to § 45.

1. Genuine Employee Participations are Considered

a) Shares, preference shares, profit participation certificates, cooperative shares, or other types of participations that the employer, their parent company, or another group company grants to the employees,

b) Options to acquire participations according to letter a.

2. Non-genuine employee participation is considered claims to mere cash compensation.

1. Monetary Benefits from Genuine Employee Participation, except from Restricted or Non-Listed Options, are Taxable as Income from Dependent Employment at the Time of Acquisition. The Taxable Benefit Corresponds to its Fair Market Value Reduced by any Purchase Price.

2. For Employee Shares, Lock-in Periods must be Accounted for in the Calculation of the Taxable Benefit, with a Discount of 6% per Lock-in Year on their Fair Market Value. This Discount Applies for a Maximum of Ten Years.

3. Monetary Benefits from Restricted or Non-Listed Employee Options are Taxed at the Time of Exercise. The Taxable Benefit Corresponds to the Fair Market Value of the Share at the Time of Exercise Reduced by the Exercise Price.

1. Monetary benefits from non-genuine employee participations are taxable at the time they are received.

1. If the taxable person did not have a tax residence or domicile in Switzerland for the entire period between the acquisition and the vesting of the exercise right of the restricted employee options (§ 26b para. 3), the monetary benefits derived therefrom are taxed proportionally in relation to the total period to the time spent in Switzerland.

1. Taxable are all incomes from a commercial, industrial, trade, agricultural, and forestry operation, from a liberal profession, as well as from any other self-employed occupation.

2. Incomes from self-employed activity also include all capital gains from the sale, utilization, or accounting revaluation of business assets. The transfer of business assets to private assets or to foreign operations or permanent establishments is deemed equivalent to a sale. All assets that serve primarily or wholly for self-employed activity are considered business assets. The same applies to participations of at least 20% in the share or equity capital of a corporation or cooperative, provided the owner declares them as business assets at the time of acquisition.

3. For taxpayers who maintain proper accounting, § 68 applies accordingly.

4. Profits on agricultural and forestry properties are attributed to incomes from self-employed activity only up to the amount of investment costs. For the distinction in relation to property gains tax, § 106 applies.

1. For income from patents and similar rights, Sections 68a and 68b shall apply mutatis mutandis.

1. Dividends, profit shares, liquidation proceeds, and pecuniary advantages from shares, interests in limited liability companies, cooperative shares, and participation certificates, as well as profits from the sale of such participation rights, are taxable at a rate of 50% after deducting attributable expenses, provided that these participation rights constitute at least 10% of the equity or share capital of a corporation or cooperative.

2. The partial taxation of capital gains from the sale of participation rights is granted only if the disposed participation rights were held in the ownership of the taxable person or partnership for at least one year.

1. Hidden Reserves of a Sole Proprietorship or Partnership (Sole Proprietorship, Partnership) are not taxed during Restructuring, particularly in the case of Merger, Division, or Conversion, provided that the tax liability continues in Switzerland and the values previously relevant for income tax are adopted. This applies

a) to the transfer of assets to another sole proprietorship or partnership;

b) to the transfer of a business or part of a business to a legal entity;

c) to the exchange of ownership or membership rights during restructuring as defined in § 71 Para. 1 or in merger-like consolidations.

2. In the case of a restructuring pursuant to Paragraph 1 point b, the transferred hidden reserves are retroactively taxed in the procedure according to §§ 206 ff., to the extent that within 5 years following the restructuring, ownership or membership rights are sold at a price exceeding the transferred taxable equity. The legal entity may in this case assert corresponding hidden reserves taxed as profit.

3. ...

4. The acquiring company is jointly liable for fulfilling the previous tax obligations of the sole proprietorship or partnership.

1. Taxable income includes returns from movable assets, in particular

a) Interest from deposits, including capital payments

1. from insurance policies related to employment, or

2. * from redeemable life insurance policies with a single premium upon maturity or redemption, except when these life insurance policies serve as retirement provision. Retirement provision is deemed to be the payout of insurance benefits from the age of 60 of the insured person based on a contractual relationship of at least five years that was established before the completion of the 66th year of age. In this case, the benefit is tax-exempt;

b) Income from the sale or redemption of bonds with predominantly single interest payment (globally interest-bearing bonds, discount bonds) accruing to the holder;

c) Dividends, profit shares, liquidation proceeds, and pecuniary benefits from participations of all kinds (including bonus shares, free nominal value increases, and similar items). An income from assets realized upon the return of participation rights pursuant to Art. 4a of the Federal Withholding Tax Act of October 13, 1965, to the corporation or cooperative is considered as realized in the year in which the withholding tax claim arises;

d) Income from renting, leasing, usufruct, or other use of movable property or utilizable rights;

e) * Income from shares in collective investment schemes with direct real estate holdings, insofar as the total returns exceed the returns from direct real estate holdings;

f) Income from intangible goods.

1bis. Dividends, profit shares, liquidation proceeds, and pecuniary benefits from shares, interests in limited liability companies, cooperative shares, and participation certificates (including bonus shares, free nominal value increases, and similar items) are taxable at 50% if these participation rights represent at least 10% of the capital stock or share capital of a corporation or cooperative.

2. Proceeds from subscription rights are not considered as income from assets, provided they belong to the private assets of the taxpayer.

3. The return of contributions, premiums, and grants (reserves from capital contributions) made by holders of participation rights after December 31, 1996, is treated the same as the return of capital stock or share capital. Paragraph 4 remains reserved.

4. If a corporation or cooperative listed on a Swiss stock exchange does not distribute other reserves to at least the same extent when returning reserves from capital contributions according to paragraph 3, then the return is taxable to the extent of half the difference between the return and the distribution of the other reserves, but at most to the extent of the other reserves available in the company that are distributable under commercial law.

5. Paragraph 4 does not apply to reserves from capital contributions

a) that originated from merger-like consolidations by contributing participation and membership rights in a foreign corporation or cooperative according to § 71 para. 1 lit. c or through a cross-border transfer to a domestic subsidiary according to § 71 para. 1 lit. d after February 24, 2008;

b) that were already present in a foreign corporation or cooperative at the time of a cross-border merger or restructuring according to § 71 para. 1 lit. b and para. 3 or the relocation of the seat or actual management after February 24, 2008;

c) in the case of the liquidation of the corporation or cooperative.

6. Paragraphs 4 and 5 apply mutatis mutandis to reserves from capital contributions used for the issuance of bonus shares or for free nominal value increases.

7. If, upon the return of participation rights in a corporation or cooperative listed on a Swiss stock exchange, the repayment of reserves from capital contributions does not at least correspond to half of the received liquidation surplus, the taxable portion of this liquidation surplus is reduced by half the difference between this portion and the repayment, but at most to the extent of the reserves from capital contributions available in the company that are allocable to these participation rights.

8. Paragraph 3 applies to contributions and premiums made during a capital band according to Articles 653s ff. of the Swiss Code of Obligations (CO) only insofar as they exceed the repayments of reserves within this capital band.

1. Income from Movable Assets in the sense of § 29 para. 1 letter c also includes

a) the proceeds from the sale of an interest of at least 20% in the share or capital stock of a corporation or cooperative from personal assets into the business assets of another natural person or legal entity, to the extent that non-essential assets, which were present at the time of the sale and legally distributable, are distributed within 5 years after the sale with the involvement of the seller; this applies correspondingly if within 5 years several parties jointly sell such an interest or interests totaling at least 20% are sold; distributed assets may be retrospectively taxed for the seller in the procedure according to §§ 206-209;

b) the proceeds from the transfer of an interest in the share or capital stock of a corporation or cooperative from personal assets into the business assets of a partnership or legal entity, in which the seller or contributor is at least 50% capital owner after the transfer, to the extent that the total compensation received exceeds the sum of the nominal value of the transferred interest and the capital contributions reserves in accordance with § 29 para. 3; this applies correspondingly if multiple parties undertake the transfer jointly.

2. Involvement in the sense of paragraph 1 letter a exists when the seller knows or ought to know that funds are being withdrawn from the company for the purpose of financing the purchase price and not returned.

1. Taxable income includes all earnings from immovable property, particularly

a) all income from leasing, renting, usufruct, or other forms of use;

b) the rental value of properties or parts of properties available for personal use to the taxable person due to ownership or a gratuitous right of use;

c) income from land lease agreements;

d) income from the extraction of gravel, sand, and other components of the soil.

2. The imputed rental value amounts to 62% of the market rental value.

3. For self-occupied agricultural properties, the imputed rental value is determined according to the prevailing guidelines for the assessment of the agricultural yield value.

1. All income from old-age, survivors' and disability insurance, from occupational pension schemes and from recognized forms of tied personal provision, including lump sum settlements and reimbursement of deposits, premiums and contributions, is taxable.

2. Income from occupational pension schemes particularly includes benefits from pension funds, from savings and group insurance policies, as well as from vested benefits policies and vested benefits accounts.

3. Annuity insurances, as well as annuity and pension contracts, are taxable to the extent of their yield portion. This is determined as follows

a) For guaranteed benefits from annuity insurances subject to the Federal Act on Insurance Contracts (Insurance Contract Act, ICA) of April 2, 1908, the maximum technical interest rate (m) determined at the time of contract conclusion according to Article 36 paragraph 1 of the Federal Act on the Supervision of Insurance Companies (Insurance Supervision Act, ISA) of December 17, 2004, is decisive for the entire duration of the contract

1. If this interest rate is greater than zero, the yield portion is calculated, rounded to the nearest whole percentage point, as follows: Yield portion = × 100%

2. If this interest rate is negative or zero, the yield portion is zero percent.

b) For surplus benefits from annuity insurances subject to the ICA, the yield portion corresponds to 70 percent of these benefits.

c) For benefits from foreign annuity insurances, annuity, and pension contracts, the level of the annualized yield of ten-year government bonds increased by 0.5 percentage points (r) during the relevant tax year and the nine preceding years is decisive

1. If this yield is greater than zero, the yield portion is calculated, rounded to the nearest whole percentage point, as follows: Yield portion = × 100%

2. If this yield is negative or zero, the yield portion is zero percent.

4. Section 33 letter b remains reserved.

1. The following are also subject to taxation

a) all other income that substitutes for income from employment;

b) one-time or recurring payments made upon death or for permanent physical or health impairments;

c) compensation for the cessation or non-exercise of an activity;

d) compensation for the non-exercise of a right;

e) * ...

f) maintenance payments that a taxable person receives upon divorce, legal, or actual separation, as well as maintenance payments that a parent receives for children under his or her parental care.

1. If a property that is part of business assets is transferred to private assets, the taxable person may request that, at the time of transfer, only the difference between the acquisition costs and the relevant income tax value is taxed. In this case, the acquisition costs are considered the new relevant income tax value, and the taxation of the remaining hidden reserves as income from self-employment is deferred until the property is sold.

2. The leasing of a business operation is considered a transfer to private assets only upon the request of the taxable person.

3. In the case of an inheritance division where not all heirs continue the business operation, the taxation of the hidden reserves is deferred upon application by the heirs taking over the operation until later realization, provided that these heirs assume the previous values relevant for income tax.

1. The following are not subject to income tax

a) Inheritance, bequest, gift, or asset transfer due to property settlement;

b) Asset proceeds from redeemable private capital insurance, except from vested benefits policies and vested benefits accounts; subject to § 29 letter a No. 2;

c) Capital payments made by employers or occupational pension funds in the event of a job change, if they are used within a year for purchasing into an occupational pension scheme or acquiring a vested benefits policy;

d) Support from public or private funds intended for living expenses;

e) Benefits fulfilling family law obligations, except maintenance payments under § 32 letter f;

f) * Compensation for military and civil defense service, as well as pocket money for civil service;

fbis) * Compensation for militia firefighters up to an amount of CHF 10,000 annually for services related to core firefighting tasks (exercises, standby duties, courses, inspections, and emergency operations for rescue, firefighting, general damage prevention, natural disaster management, and similar tasks); excluding flat-rate allowances for leadership, function allowances, and compensations for administrative work and for services voluntarily provided by the fire department;

g) Payments of compensation for pain and suffering;

h) Income pursuant to the Federal Act on Supplementary Benefits to the Old Age, Survivors, and Disability Insurance (ELG) dated March 19, 1965;

i) Capital gains from the sale of movable private assets; subject to § 96 paragraph 2;

k) * Gains achieved in casinos from casino games authorized under the Federal Act on Money Gaming (Money Gaming Act, MGA) dated September 29, 2017, provided these gains do not originate from self-employment;

kbis) * Individual gains up to an amount of 1 million Swiss Francs from participation in large-scale games and from online participation in casino games, as authorized under the MGA;

kter) * Gains from small-scale games authorized under the MGA;

l) * Individual gains up to an amount of CHF 1,000 from lotteries and skill games for sales promotion, which are not subject to the MGA under Art. 1 para. 2 let. d and e;

m) * Income due to the Federal Act on Bridging Benefits for Older Unemployed Persons (ÜLG) dated June 19, 2020.

1. For the determination of net income, the expenses and general deductions according to §§ 35-40a are subtracted from the total taxable income.

1. Deductible Professional Expenses

a) * Necessary costs for commuting between home and workplace, up to a maximum amount of CHF 7,000;

b) Necessary additional costs for meals outside the home and during shift work;

c) * Other costs required for the exercise of the profession, provided they are not costs for vocation-oriented education and training according to § 40 paragraph 1 letter p;

d) * ...

e) * ...

f) Statutory membership fees to organizations representing the professional interests of employees.

2. The Government Council shall establish flat-rate amounts for professional expenses according to paragraph 1 letters a-c; in the cases of paragraph 1 letter c, taxpayers have the option to prove higher costs. In the cases of paragraph 1 letter f, the Government Council shall set the maximum allowable deductions.

1. In the case of self-employment, the business-related or professional expenses are deducted.

2. These include, in particular

a) the documented depreciations on business assets;

b) the recorded provisions for

1. obligations whose amount is still uncertain;

2. imminent loss risks;

3. research and development contracts with third parties or for substantiated own research and development projects of up to 10% of the taxable net income exceeding CHF 100,000, but in total no more than CHF 1 million. The equivalent of the research and development provisions must be part of the liquid current assets. Such provisions must be resolved within 3 years. The government council establishes the criteria for substantiating the research and development projects;

c) the incurred and recorded losses on business assets;

d) contributions to pension schemes for the benefit of one's own personnel, provided any misuse is excluded;

e) * ...

f) * interest on business debts and interest attributable to participations pursuant to § 27 para. 2;

g) * costs of job-oriented education and training, including retraining costs of one's own personnel;

h) * profit-stripping sanctions, provided they do not serve a punitive purpose.

3. Non-deductible are, in particular

a) * payments of bribes within the meaning of Swiss criminal law;

b) * expenses for facilitating criminal acts or in return for committing criminal acts;

c) * fines and penalties;

d) * financial administrative sanctions, insofar as they serve a punitive purpose.

4. If sanctions pursuant to paragraph 3 lit. c and d have been imposed by a foreign criminal or administrative authority, they are deductible if

a) the sanction violates the Swiss public policy (ordre public); or

b) the taxpayer credibly demonstrates that they have taken all reasonable measures to comply with the law.

1. For the additional deduction of research and development expenditures, § 69a is applicable mutatis mutandis.

1. The total tax relief pursuant to Sections 27a and 36a must not exceed 70% of the taxable income from self-employment before loss offset and before deduction of the aforementioned reliefs. Moreover, the reliefs must not result in any loss carryforwards.

2. For jointly taxed spouses, the total relief is limited for each spouse individually according to paragraph 1. If one spouse incurs a loss and the other generates a gain, the limitation of the total relief is to be determined based on the reconciled net result of the spouses.

1. If items of the necessary operating fixed assets are replaced, the hidden reserves may be transferred to the replacement assets acquired, provided these are also necessary for operations and are located in Switzerland. The taxation remains reserved in cases where real estate is replaced by items of movable assets.

1bis. The replacement object according to paragraph 1 must be acquired for the same enterprise within a reasonable period, typically 1 year before or 3 years after the sale.

2. If the acquisition does not occur in the same fiscal year, a provision may be established to the extent of the hidden reserves. This provision should typically be used to write down the newly acquired necessary operating assets within 3 years or be released in favor of the profit and loss account.

3. Only fixed assets that serve the business directly are considered necessary for operations; excluded are, in particular, asset parts that serve the enterprise solely as an investment or only through their yield.

1. Losses from the 7 fiscal years preceding the tax period may be deducted to the extent that they could not be taken into account when calculating the taxable income of those years.

2. Paragraph 1 also applies in the event of a relocation of the tax domicile or residence, or the place of business within Switzerland.

1. In the case of movable private property, the costs of management by third parties and foreign withholding taxes that are neither refundable nor creditable can be deducted.

2. For real estate in private ownership, maintenance costs, costs for the rehabilitation of newly acquired properties, insurance premiums, and costs of management by third parties can be deducted. Maintenance costs are considered equivalent to investments that serve energy savings and environmental protection, provided they are deductible for federal direct tax purposes, as well as the demolition costs in preparation for a replacement building.

2bis. Investments and demolition costs in preparation for a replacement building according to paragraph 2 are deductible in the two following tax periods, insofar as they cannot be fully accounted for in the current tax period in which the expenses were incurred.

3. ...

4. Also deductible are the costs of preservation work that the taxpayer has undertaken based on legal requirements, in agreement with the authorities, or on their order, provided such work is not subsidized.

5. For private property, the following lump-sum deductions can be claimed instead of actual costs and premiums

a) for buildings that are up to and including 10 years old at the beginning of the tax period or upon becoming subject to Aargau tax liability: 10% of the total gross rental income;

b) for buildings older than 10 years at the beginning of the tax period or upon becoming subject to Aargau tax liability: 20% of the total gross rental income.

6. Taxpayers can choose between deducting actual costs and the lump-sum deduction for each tax period and for each property.

1. Deductions from Income

a) * Private debt interest to the extent of taxable income from assets according to §§ 29, 29a, and 30, plus an additional CHF 50,000;

b) * Permanent burdens and the income portion pursuant to § 31 para. 3 lit. c of benefits from annuities and life-care contracts;

c) Maintenance payments to a divorced, legally or actually separated spouse, and maintenance payments to a parent for children under their parental care, but not payments fulfilling other family law maintenance or support obligations;

d) Contributions, premiums, and deposits made by law, statute, or regulation for acquiring claims from old-age, survivors', disability insurance, and occupational pension schemes;

e) Contributions, premiums, and deposits for acquiring contractual claims from recognized forms of tied personal pension according to and within the limits of the Federal Act on Occupational Old-age, Survivors' and Disability Pension Plans (BVG) of June 25, 1982;

f) Premiums and contributions for income replacement, unemployment insurance, and compulsory accident insurance;

g) A lump sum for contributions, premiums, and payments for life, health, and non-lit. f accident insurance, as well as interest on savings capital of the taxable person and persons supported by them

1. * CHF 6,000 for married persons living in a legally and actually undivided marriage;

2. * CHF 3,000 for other taxpayers;

h) CHF 600 from earnings that one spouse earns independently of the other's profession, business, or trade. The same deduction of CHF 600 can be made for significant collaboration of one spouse in the other's profession, business, or trade;

i) * Medical and accident costs of the taxable person and persons supported by them, insofar as the taxable person bears these costs themselves and they exceed 5% of the taxable income reduced by expenses according to §§ 35-40;

ibis) * Disability-related expenses of the taxable person or persons they support, with disabilities within the meaning of the Federal Act on the Elimination of Disadvantages for People with Disabilities (Disability Equality Act, BehiG) of December 13, 2002, insofar as the taxable person bears these costs themselves;

k) * Membership subscriptions and donations to tax-exempt political parties up to a total amount of CHF 10,000 per tax return;

l) * ...

m) * Wage and ancillary costs for apprentices in federally recognized professions trained in private households if no deduction according to Lit. n is claimed. The government council regulates the amount of deductions by ordinance;

n) * Verified costs, but not exceeding CHF 25,000, for third-party care of each child under 14 years of age living in the same household as the taxable person responsible for their upkeep, as long as these costs are directly and causally related to the taxable person's employment, training, or inability to work;

o) * 5% as operational costs from individual gains from participation in gambling that are not tax-exempt according to § 33 para. 1 lit. kbis-l, but a maximum of CHF 5,000. From individual gains from online participation in casino games according to § 33 lit. kbis, game stakes deducted from the online player account during the tax year, but not exceeding CHF 25,000, are deducted;

p) * Costs of vocational education and training, including retraining costs, up to a total of CHF 18,000, if

1. a first diploma at secondary level II is present; or

2. the age of 20 is completed, and it is not education costs up to the first diploma at secondary level II.

2. The lump sums pursuant to paragraph 1 lit. g are adjusted annually to the development of the cantonal median premium of the basic health insurance. The adjustment is based on the percentage change of the cantonal monthly median premium of compulsory health insurance for adults, including optional deductibles and models, published by the Federal Office of Public Health.

3. The adjustment according to paragraph 2 is calculated on the deduction for other taxpayers, with the result rounded up or down to the nearest CHF 100. The deduction for married persons is always double.

4. The lump sums decided as part of the tax law amendment of December 7, 2021, reflect the premium development for the 2022 tax period. The lump sums will be adjusted for the first time for the 2023 tax period.

1. Voluntary contributions of money and other assets to the federal government, cantons, municipalities and their institutions, to the cantonal churches of Aargau, and to other legal entities based in Switzerland that are exempt from taxation due to their public or charitable purposes pursuant to § 14, paragraph 1(c) are also deductible from income, provided these contributions reach CHF 100 during the tax year. The deduction must not exceed a total of 20% of the income reduced by the expenditures according to §§ 35-40.

1. Non-deductible are the remaining costs and expenses, in particular

a) expenses for the maintenance of the taxable person and their family, as well as personal expenses related to the professional position of the taxable person;

b) * education costs up to the initial completion of secondary level II;

c) expenses for debt repayment;

d) expenses for the acquisition, production, or enhancement of assets;

e) income, capital gains, wealth, inheritance, and gift taxes from the federal government, cantons, and municipalities, as well as similar foreign taxes.

1. The following deductions are made from the net income for tax calculation

a) * as a child deduction

1. * for each child under parental care up to the age of 14 years: CHF 9,300.-

2. * for each child under parental care up to the age of 18 years: CHF 10,300.-

3. * as well as for each adult child in education, whose maintenance is primarily the responsibility of the taxpayers: CHF 12,400.-

4. Anyone who can already make a deduction according to § 40 letter c for the same child is not entitled to the child deduction;

b) as a support deduction for each person who is unable or partially unable to work and is in need of support, to whose maintenance the taxpayers contribute at least the amount of the deduction. The deduction cannot be claimed for the spouse and for children for whom a deduction is granted according to letter a or according to § 40 letter c: CHF 2,400.-

c) * as an invalidity deduction for each person receiving at least half an disability pension (IV) or a helplessness allowance from AHV or IV. If disability-related costs are considered according to § 40 letter ibis, the deduction is not applicable: maximum CHF 3,000.-

d) as a care deduction for taxpayers who care for dependent persons in the same household who receive a helplessness allowance from AHV or IV, provided the taxpayers are not compensated according to the usual local rates for home care personnel. The deduction cannot be claimed for children for whom a deduction is granted according to letter a or according to § 40 letter c. The government council shall regulate the details: CHF 3,000.-

1bis. Additionally, from the net income reduced by the social deductions according to paragraph 1, the following amounts are deducted

a) up to the calculated income of CHF 14,999.-: CHF 12,000.-

b) between CHF 15,000.- and CHF 19,999.-: CHF 7,500.-

c) between CHF 20,000.- and CHF 24,999.-: CHF 3,000.-

d) between CHF 25,000.- and CHF 29,999.-: CHF 2,000.-

e) between CHF 30,000.- and CHF 34,999.-: CHF 1,000.-

2. The social deductions are determined according to the conditions at the end of the tax period or the tax liability.

3. If the tax liability exists only for part of the tax period, the social deductions are granted proportionately; they are fully credited for the determination of the tax rate.

1. The Income Tax Rates Are

a) 0% for the first CHF 4,000

b) * 1% for the next CHF 3,600

c) * 2% for the next CHF 3,600

d) 3% for the next CHF 4,000

e) 4% for the next CHF 4,000

f) * 5% for the next CHF 4,800

g) * 6% for the next CHF 7,000

h) * 7% for the next CHF 8,000

i) 8% for the next CHF 9,000

k) * 8.5% for the next CHF 11,000

l) * 9% for the next CHF 11,000

m) * 9.5% for the next CHF 33,000

n) * 10% for the next CHF 62,000

o) * 10.5% for the next CHF 165,000

p) * 11% for income portions above CHF 330,000

2. For married persons living in a legally and factually undivided marriage, as well as for widowed, separated, divorced, and single taxpayers living with children in the same household who bear the primary responsibility for their maintenance, the tax rate for half of the taxable income shall be applied.

3. According to these tax rates, the tax amounts listed in the appendix (Tariffs A and B) are calculated; income amounts under CHF 100 shall be disregarded. The marginal tax burden at the transition stages pursuant to § 42 paragraph 1bis shall never exceed 100%.

4. The tariff is determined according to the circumstances at the end of the tax period or the tax liability.

1. If capital compensations for recurring services are part of the income, the income tax shall be calculated, taking into account the other income, at the tax rate that would apply if an equivalent annual service were rendered in place of the one-time compensation.

1. The annual tax calculated separately from the rest of the income at a rate of 30% of the tariff, but at least at a rate of 1%, is applicable to

a) Lump-sum payments from occupational pension schemes, Pillar 2;

b) Lump-sum payments from tied pension schemes, Pillar 3a;

c) * ...

d) Other lump-sum payments with a pension character, particularly in the event of death and for permanent physical or health disabilities;

e) Compensation with a pension character upon termination of employment, particularly severance payments for early retirement;

f) * the sum of latent reserves realized in the last two business years if self-employment is definitively abandoned after reaching the age of 55 or due to inability to continue as a result of disability. Purchase contributions according to § 40 lit. d are deductible to the extent that they cannot already be deducted from regular income. If no such purchases are made, the tax is levied on the amount of the realized hidden reserves for which the taxpayer proves the admissibility of a purchase according to § 40 lit. d. The remaining amount of the realized hidden reserves is taxed with an annual tax of 40% of the tariff, separately from the rest of the income. The aggregation according to paragraph 2 does not apply. The same tax relief also applies to the surviving spouse, other heirs, and legatees, provided they do not continue the inherited business; the tax settlement must occur no later than five calendar years after the end of the deceased's year of death.

2. General deductions and social deductions are not taken into account. All lump-sum payments made in the same year to single or jointly taxable persons pursuant to paragraph 1 lit. a, b, and d as well as according to paragraph 4 are to be taxed together.

3. ...

4. For lump-sum payments in the event of death and for permanent physical or health disabilities, a tax exemption of CHF 200,000 per event is granted, provided that the benefits on which the claim is based have been exclusively provided by the taxable person. Benefits provided by relatives are considered equivalent to those by the taxable person. The same applies to benefits from third parties when the taxable person has received the claim through inheritance, legacy, or gift. Exemptions do not include lump-sum payments from Pillars 2 and 3a.

5. For compensation under paragraph 1 lit. e due to business closures and restructurings, a tax exemption of CHF 30,000 is granted.

1. The entire net wealth is subject to the wealth tax.

2. Usufruct assets are attributed to the usufructuary.

3. For shares in collective investment schemes with direct real estate ownership, the difference in value between the total assets of the collective investment scheme and its direct real estate holdings is taxable.

1. Assets shall be valued at their fair market value, unless otherwise provided by the following provisions.

1. Intangible Assets and Movable Property

Intangible assets and movable property that belong to the business assets of the taxable person shall be assessed at the value relevant for income tax purposes.

2. Reduction of Tax on Business Assets

The tax on business assets is reduced in proportion to the income tax values of patents and comparable rights pursuant to § 68a relative to the income tax value of the total business assets.

1. Life insurance policies are subject to wealth tax based on their surrender value. Equivalent to them are surrenderable annuity policies.

1. Securities shall be valued at market value. This corresponds to the quoted price or, in the absence of such, generally to the intrinsic value.

2. When valuing disputed or demonstrably uncertain claims, the degree of loss probability must be taken into account.

1. Employee participations in accordance with § 26b, paragraph 1 shall be valued at their fair market value. Vesting periods are to be accounted for with a discount of 20%.

2. Employee participations in accordance with §§ 26b, paragraph 3 and 26c are to be declared at the time of allocation without a tax value.

1. Properties are defined as real estate, independent and permanent rights entered in the land register, mines, co-ownership shares in real estate, and items and rights permanently attached to real estate.

2. Valued based on income are the forest and agriculturally used properties,

a) that are located outside the building zone, or

b) that belong to the agricultural business assets of the owner or the other spouse.

3. All other properties are valued at market value.

3bis The market value of a property corresponds to the purchase price obtainable in transactions with third parties, without regard to unusual or personal circumstances.

3ter If a purchase price according to paragraph 3bis is missing, the market value is determined by a price comparison according to paragraph 6.

4. ...

5. ...

6. The government council regulates the procedure necessary for a uniform valuation of the properties through an ordinance. It observes the following principles

a) * The market value of a property according to paragraph 3ter is derived from the asset value or rental price. Empirically derived market adjustment factors and interest rates are used as comparison factors. The market value results from the multiplication of the asset value and market adjustment factor or from the division of rental price by interest rate.

b) * The market rental value according to § 30 paragraph 2 is determined based on comparable market rental prices. If such prices are lacking, the market rental value results from the multiplication of market value and an empirically derived interest rate.

c) * In the assessment of the wealth tax value, the imprecision of the comparative data is deducted.

1. Proven debts for which the taxable person is solely liable shall be fully deducted; other debts, such as joint and guarantee debts, only to the extent that they must be borne by the taxable person.

1. The following are not subject to wealth tax

a) * Household goods and personal items for everyday use.

b) * ...

1. From the net assets, the following deductions are made for the calculation of the taxable assets

a) * for jointly taxable married individuals: CHF 260,000

b) * for all other taxable persons: CHF 130,000

c) * additionally for each child, for whom a tax-exempt amount according to § 42 paragraph 1 letter a has been granted: CHF 16,000

2. The tax-exempt amounts are determined based on the circumstances at the end of the tax period or tax liability.

3. To mitigate economic double taxation, the taxable value of shares and units in domestic corporations and cooperatives, which are neither listed on the stock exchange nor subject to organized over-the-counter trading, is reduced by 50%.

1. The Wealth Tax is as follows

a) * 0.7 ‰ for the first CHF 107,000

b) * 1.0 ‰ for the next CHF 107,000

c) * 1.2 ‰ for the next CHF 107,000

d) * 1.4 ‰ for the next CHF 107,000

e) * 1.6 ‰ for portions of wealth exceeding CHF 428,000

f) * ...

g) * ...

h) * ...

i) * ...

k) * ...

2. Remainders of wealth under CHF 1,000 are disregarded.

1. Periodically owed income and wealth taxes from the canton, municipality, and church are reduced to 70% of the net income, but not more than half of the owed wealth taxes. To the extent that extraordinary expenses, such as contributions to occupational pensions or maintenance costs for properties that exceed the lump-sum deduction, are claimed, the net income is increased by the amount of these deductions. Additionally, incomes subject to taxation according to §§ 27a, 27b, and 29 para. 1bis are fully considered. An additional deduction according to § 36a is not taken into account.

2. Default interest, compensatory interest, and fines are not considered in the calculation of the reduction.

3. ...

1. The Government Council shall adjust the tax rates in accordance with §§ 43 and 55, as well as the deductions in accordance with § 42 paragraph 1 letters a-d annually, to the national consumer price index. The relevant index level is the one on June 30 prior to the start of the tax period. In the event of negative inflation, an adjustment is excluded. The adjustment following negative inflation shall be based on the last adjustment. The amounts should be rounded up or down to the nearest CHF 100 in income tax and CHF 1,000 in wealth tax.

2. ...

3. ...

4. ...

5. With the wealth tax rates agreed upon pursuant to § 55 paragraph 1 and the deduction according to § 42 paragraph 1 letter a, as part of the amendment to the Tax Law dated December 3, 2024, the effects of fiscal drag are offset until December 31, 2025. The first adjustment in this regard shall take place for the tax period 2026.

1. Natural persons shall pay a surcharge of 3% on the basic cantonal tax on taxable income and assets.

1. Income and wealth taxes are assessed and collected for each tax period.

2. The calendar year is considered the tax period.

3. If the tax obligation exists for only part of the tax period, the tax is levied on the income earned during that period. For regularly recurring income, the tax rate is determined based on income calculated over 12 months; non-regularly recurring income is not converted for rate determination purposes. Sections 18 paragraph 3 and 45 are reserved.

4. For deductions, paragraph 3 applies mutatis mutandis.

1. The taxable income is determined based on the earnings in the tax period.

2. For the determination of income from self-employment, the result of the fiscal year concluded within the tax period is decisive.

3. Taxpayers with self-employment must prepare a financial statement in each tax period. Exceptions are regulated by the government council.

1. The taxable assets are determined based on the status at the end of the tax period or the tax obligation.

2. For taxpayers with independent business activities whose fiscal year does not coincide with the calendar year, the taxable business assets are determined based on the equity at the end of the fiscal year concluded within the tax period.

3. If the tax obligation exists only during part of the tax period, a tax corresponding to this period is levied.

4. If the taxable person inherits assets during the tax period or if the economic affiliation to another canton ceases during the tax period, paragraph 3 applies correspondingly. § 18 para. 3 remains reserved.

1. Upon marriage, both spouses are jointly taxed for the entire tax period.

2. In the event of divorce and in cases of legal or actual separation, each spouse is taxed separately for the entire tax period.

3. Upon the death of a spouse, both are jointly taxed until the day of death. The death is considered the termination of the joint tax obligation and the commencement of the tax obligation of the surviving spouse.

1. Legal entities are subject to taxation based on personal affiliation if their registered office or their actual place of management is located in the canton.

**1. Legal entities with a registered office or actual management outside the canton are subject to taxation if they**

a) are partners in businesses located within the canton;

b) operate branches within the canton;

c) * own property, possess real rights, or have personal usage rights economically equivalent to real rights on real estate in the canton;

d) * trade in real estate located within the canton.

**2. Legal entities with both registered office and actual management abroad are also subject to taxation if they**

a) are creditors or beneficiaries of claims secured by a mortgage or pledge on real estate in the canton;

b) * act as intermediaries for real estate located within the canton.

1. Personal Affiliation: The tax liability is unlimited. However, this does not extend to business enterprises, permanent establishments, and real estate outside the canton.

2. Economic Affiliation: The tax liability is limited to the portions of the profit and capital for which a tax liability exists in the canton pursuant to § 63.

3. The delimitation of tax liability for business enterprises, permanent establishments, and real estate is conducted in relation to other cantons and abroad according to the principles of federal law on the prohibition of intercantonal double taxation. Reservations are made for the regulations contained in double taxation agreements, as well as paragraph 4 and § 64a para. 2.

4. Taxpayers without a registered office or actual management in Switzerland must tax the profit earned and the capital located within the canton for business enterprises, permanent establishments, and real estate situated in the canton.

1. Profits that have been offset with losses from out-of-canton business operations or real property according to the principles of federal law concerning the prohibition of inter-cantonal double taxation shall be subject to retroactive taxation, to the extent that taxable profits arise in the canton of business location or the location canton during the 7 subsequent tax periods.

2. A Swiss enterprise can offset losses from a foreign permanent establishment against domestic profits, provided these losses have not already been accounted for in the state of the permanent establishment. If this permanent establishment registers profits within the following 7 fiscal years, a taxation will occur in these fiscal years to the extent of the loss carryforwards offset in the state of the permanent establishment. In all other cases, foreign losses are to be considered exclusively for determining the rate only.

1. Legal entities that are liable to tax in the canton only for a part of their profits and capital shall pay taxes on the values taxable in the canton at the tax rate applicable to their entire profits and capital.

2. Taxpayers without a domicile or actual management in Switzerland shall pay taxes for business enterprises, permanent establishments, and real estate located in the canton at the tax rate corresponding to the profit earned in the canton and the capital located in the canton.

1. The tax liability based on personal affiliation commences with the establishment of the legal entity, with the relocation of its domicile or its actual management to the canton. It ends with the completion of liquidation, with the relocation of its domicile or its actual management out of the canton.

2. If a legal entity relocates its domicile or actual management from another canton to the Canton of Aargau, or from the Canton of Aargau to another canton during the tax period, it shall be liable for taxes in the Canton of Aargau for the entire tax period in accordance with the Tax Harmonization Act.

3. The tax liability based on economic affiliation exists in the canton for the entire tax period, even if the economic affiliation is established, altered, or terminated during the course of the year.

4. In cases of restructuring, the tax liability begins on the agreed takeover date.

1. Subject of the Profit Tax is the Net Profit.

1. The taxable net profit comprises

a) the balance of the income statement, taking into account the carried-forward balance from the previous year;

b) all parts of the business result excluded before calculating the income statement balance, which are not used to cover business-related expenses, particularly

1. Costs for the acquisition, production, or enhancement of fixed assets;

2. Depreciation and provisions not justified by business reasons;

3. Contributions to reserves;

4. Payments towards equity from the legal entity's funds, provided they are not made from reserves that have been taxed as profit;

5. Open and hidden profit distributions and contributions to third parties not justified by business reasons;

c) the income not credited to the income statement, including capital, revaluation, and liquidation gains, subject to § 72. The relocation of the seat, management of a business operation, or a permanent establishment abroad is equated with liquidation;

d) the interest on hidden equity capital (§ 83 Para. 3).

2. The taxable net profit of legal entities that do not prepare an income statement is determined analogously to paragraph 1.

3. ...

4. Services provided predominantly to related persons by mixed-economy enterprises operating in the public interest must be valued at the respective market price, at the respective production costs plus a reasonable surcharge, or at the respective final sale price minus a reasonable profit margin; the result of each enterprise must be adjusted accordingly.

1. The net profit from patents and similar rights, upon the request of the taxpayer, is included in the calculation of taxable net profit at a reduction of 90% based on the ratio of qualifying research and development expenses to the total research and development expenses per patent or comparable right (Nexus ratio).

2. The net profit from patents and comparable rights contained in products is determined by reducing the net profit from these products by 6% of the costs allocated to these products and by the brand royalty.

3. In the year of the introduction of patents and similar rights into taxation according to paragraph 1 and in the four subsequent years, the net profits determined according to paragraph 1 are initially offset against the research and development expenses incurred and deducted for tax purposes until their introduction, as well as with deductions made pursuant to § 69a. The reduced taxation of net profits from patents and similar rights pursuant to paragraph 1 occurs insofar as these net profits exceed the total research and development expenses incurred and deducted for tax purposes until their introduction, as well as the deductions made pursuant to § 69a. At the end of the fifth year after introduction, the research and development expenses not yet offset and the deductions not yet offset according to § 69a must be added back to the taxable net profit. The taxpayer has the right at any time to add back the research and development expenses not yet offset and the deductions made pursuant to § 69a to the taxable net profit. To the extent of the amount added back, a taxed hidden reserve is to be formed.

4. The taxpayer must retain and, upon request, present to the tax authority the documents necessary for verifying the application of paragraph 1 and the research and development expenses incurred and deducted for tax purposes until the introduction for the patents and similar rights, as well as for the deductions made pursuant to § 69a.

1. The following shall be regarded as patents

a) Patents in accordance with the European Patent Convention, revised in Munich on November 29, 2000 (EPC 2000) of October 5, 1973;

b) Patents in accordance with the Federal Act on Patent Inventions (Patent Act, PatG) of June 25, 1954;

c) Foreign patents equivalent to the patents pursuant to letter a and b.

2. The following shall be regarded as comparable rights

a) Supplementary protection certificates in accordance with the Patent Act and their extensions;

b) Topographies protected under the Federal Act on the Protection of Topographies of Semiconductor Products (Topography Act, ToG) of October 9, 1992;

c) Plant varieties protected under the Federal Act on the Protection of New Plant Varieties (Plant Protection Act) of March 20, 1975;

d) Documents protected under the Federal Act on Medicinal Products and Medical Devices (Therapeutic Products Act, TPA) of December 15, 2000;

e) Reports for which protection is granted based on implementing provisions of the Federal Act on Agriculture (Agriculture Act, LWG) of April 29, 1998;

f) Foreign rights equivalent to the rights pursuant to letter a-e.

**1. Business-related expenses include**

a) * federal, cantonal, and municipal taxes;

b) contributions to pension funds for the benefit of their own staff, provided any inappropriate use is excluded;

c) * voluntary contributions of money and other assets up to 20% of the taxable net profit to the Federation, cantons, municipalities, and their institutions, to the Aargau state churches, and to other legal entities based in Switzerland, which are exempt from tax for public or charitable purposes according to § 14 para. 1 lit. c. For contributions to tax-exempt political parties, the deduction is limited to CHF 10,000;

d) * ...

e) discounts, rebates, sales bonuses, and refunds on compensation for supplies and services, as well as surpluses intended for distribution to the insured by insurance companies;

f) provisions. Provisions for research and development contracts with third parties or for proven own research and development projects are recognized up to 10% of the taxable net profit, not exceeding a total of 1 million francs. The equivalent value of research and development provisions must represent part of the liquid current assets. Such provisions must be dissolved within 3 years. The government council sets the criteria for the proof of research and development projects;

g) * depreciations. Depreciations on assets revalued to cover losses can only be made if the revaluations were permissible under commercial law and the losses could have been offset at the time of depreciation according to § 74 para. 1. Value adjustments and depreciations on participations according to § 77 para. 2, which are no longer business-related, are added back to the taxable net profit;

h) * costs of vocational training and further education of their own staff, including retraining costs;

i) * profit-extracting sanctions, as far as they do not serve a punitive purpose.

**2. Business-related expenses do not include, in particular**

a) * payments of bribes as defined under Swiss criminal law;

b) * expenditures for enabling criminal offenses or as consideration for the commission of criminal offenses;

c) * fines;

d) * financial administrative sanctions, as far as they serve a punitive purpose.

**3. If sanctions according to paragraph 2 lit. c and d have been imposed by a foreign criminal or administrative authority, they are deductible if**

a) the sanction violates the Swiss public order; or

b) the taxable person credibly demonstrates that they have done everything reasonable to behave in compliance with the law.

1. Expenses for Research and Development, which are incurred by the taxable person either directly or indirectly within the country through third parties, are, upon request, permitted for deduction by 50% beyond the commercially justified research and development expenses.

2. Research and development are considered as scientific research and science-based innovation pursuant to Art. 2 of the Federal Act on the Promotion of Research and Innovation (RIPA) dated December 14, 2012.

3. An increased deduction is permissible for

a) directly attributable personnel expenses for research and development, plus a surcharge of 35% of these personnel expenses for other research and development costs, but not exceeding the total expenses of the legal entity;

b) 80% of the expenses for research and development billed by third parties.

4. If the principal of the research and development is entitled to a deduction, the contractor is not entitled to a deduction for this.

1. The total tax relief pursuant to §§ 68a paragraphs 1 and 2 as well as 69a must not exceed 70% of the taxable profit before loss offset, excluding net participation income in accordance with §§ 76 and 77, and before the deduction of the granted reliefs.

2. Neither from the individual reliefs nor from the total tax relief may loss carryforwards result.

1. No taxable profit arises from

a) Capital contributions from members of corporations and cooperatives, including premiums and contributions in the nature of funds provided without obligation to repay (à fonds perdu);

b) Relocation of the headquarters, management, business operations, or a permanent establishment within Switzerland, provided no sales or accounting revaluations are carried out;

c) Capital gains from inheritance, legacy, or gift.

1. Hidden reserves of a legal entity are not taxed during restructuring, particularly in cases of merger, demerger, or conversion, provided that the tax obligation continues in Switzerland and the previously relevant values for profit tax are maintained. This applies

a) in the conversion into a partnership or another legal entity;

b) in the splitting up or splitting off of a legal entity, provided that one or more businesses or parts of businesses are transferred and that the legal entities existing after the demerger continue to operate a business or part of a business;

c) during the exchange of participation or membership rights in the course of restructuring or mergers similar to consolidations;

d) during the transfer of businesses or parts of businesses as well as items of business fixed assets to a domestic subsidiary. A subsidiary is considered a corporation or cooperative in which the transferring corporation or cooperative holds at least 20% of the share or capital stock.

2. In the case of a transfer to a subsidiary according to Paragraph 1 letter d, the transferred hidden reserves will be subject to retroactive taxation in accordance with §§ 206 ff. if, within the 5 years following the restructuring, the transferred assets or participation or membership rights in the subsidiary are sold; the subsidiary can claim the corresponding hidden reserves taxed as profit in this case.

3. Between domestic corporations and cooperatives that, based on the overall picture of actual circumstances, are unified under the management of a corporation or cooperative by majority vote or otherwise, directly or indirectly held shareholdings of at least 20% in the share or capital stock of another corporation or cooperative, businesses or parts of businesses, as well as items of business fixed assets, can be transferred at the values previously relevant for profit tax. The transfer to a subsidiary according to Paragraph 1 letter d remains reserved.

a) * ...

b) * ...

4. If, in the event of a transfer according to Paragraph 3, the transferred assets are sold within the following 5 years or the unified management is abandoned during this period, the transferred hidden reserves will be subject to retroactive taxation in accordance with §§ 206 ff. The privileged legal entity may claim the corresponding hidden reserves taxed as profit in this case. The domestic corporations and cooperatives unified under management at the time of the breach of the holding period are jointly and severally liable for the retroactive tax.

5. ...

1. If items of the essential business fixed assets are replaced, the hidden reserves can be transferred to the assets acquired as replacements, provided that these are also essential for the business and are located in Switzerland. This is subject to taxation in the case of the replacement of real estate with movable assets.

1a. In the case of replacement of participations, the hidden reserves can be transferred to a new participation, provided that the disposed participation constitutes at least 10% of the share or equity capital or at least 10% of the profits and reserves of the other company, and that this participation was held by the corporation or cooperative for at least one year.

1b. The replacement object according to paragraph 1 must be acquired for the same enterprise within a reasonable period, generally 1 year before or 3 years after the disposal.

2. If the acquisition does not occur in the same business year, a provision can be made to the extent of the hidden reserves. This provision is generally to be used to depreciate the newly acquired essential business assets within 3 years or to be dissolved in favor of the income statement.

3. Only fixed assets that directly serve the operation in the provision of performance are considered essential for the business; excluded are, in particular, assets that only serve the company as an investment or only through their yield.

1. If the taxable legal entity discloses hidden reserves, including self-created added value, at the commencement of tax liability, these are not subject to profit tax. Hidden reserves of a corporation or cooperative resulting from holdings of at least 10% of the equity capital or participation in the profits and reserves of another company may not be disclosed.

2. The commencement of tax liability is deemed to be

a) the transfer of assets, businesses, parts of businesses, or functions from abroad to a domestic business operation or a domestic permanent establishment;

b) the cessation of a tax exemption according to §§ 13 or 14;

c) the transfer of the registered office or the effective management to Switzerland.

3. The disclosed hidden reserves must be written off annually at the rate applied for tax purposes to depreciations on the respective assets.

4. The disclosed self-created added value must be written off within 10 years.

1. Upon termination of tax liability, any existing, untaxed hidden reserves, including self-created surplus value, are subject to taxation.

2. The termination of tax liability is considered to occur in the following cases

a) the transfer of assets, business operations, parts of business operations, or functions from the domestic territory to a foreign business operation or permanent establishment;

b) the transition to a tax exemption pursuant to §§ 13 or 14;

c) the relocation of the domicile or the place of effective management abroad.

1. Membership contributions to associations and deposits into the assets of foundations are not included in the taxable net profit.

2. From the taxable revenues of associations, the expenses necessary to generate these revenues can be fully deducted, with other expenses deductible only to the extent they exceed the membership contributions.

3. Associations may create reserves for impending donations to tax-exempt legal entities and for impending expenses for non-economic purposes, provided that the funds originate from extraordinary income.

4. Collective investment schemes with direct real estate ownership are subject to profit tax on the income generated from direct real estate ownership.

1. Profits of Legal Entities with Ideal Purposes are Not Taxed, Provided They Do Not Exceed CHF 20,000.- and Are Exclusively and Irrevocably Dedicated to These Purposes.

1. From the net profit of the tax period, losses from the past seven fiscal years preceding the tax period can be deducted, to the extent they could not be taken into account in the calculation of the taxable net profit of those years.

2. With contributions to offset an underbalance in the context of a restructuring, which are not capital deposits according to § 70 lit. a, losses can also be offset that arose in previous fiscal years and could not yet be offset with profits.

3. Paragraphs 1 and 2 also apply when relocating the domicile or the actual management within Switzerland.

1. Corporations and cooperatives pay a basic tax of 5.5% on taxable net profit.

a) * ...

b) * ...

2. ...

3. In cross-border situations, particularly for corporations or cooperatives that are part of an international group, the tax rate is increased, considering the direct federal tax, to the minimum tax rate accepted by the foreign state.

1. If a corporation or cooperative holds at least 10% of the share capital or equity or at least 10% of the profits and reserves of another company, or if its participation rights have a market value of at least 1 million Swiss francs, the income tax is reduced in proportion to the ratio of the net income from the participation rights to the total net profit.

2. The net income from participations corresponds to the income from participations minus the financing costs attributable to them and a contribution of 5% to cover administrative expenses; evidence of the actual administrative expenses is reserved. Financing costs are deemed to include interest on debts and other costs that are economically equivalent to interest on debts.

3. The income from a participation is only taken into account in the calculation of the reduction insofar as no depreciation is carried out on the same participation at the expense of the taxable net profit, which is related to the profit distribution.

4. Participation income does not include

a) Income that constitutes justified business expenses for the distributing corporation or cooperative;

b) Revaluation profits on participations.

5. For holding companies of system-relevant banks pursuant to Art. 7 para. 1 of the Federal Act on Banks and Savings Banks (Banking Act, BankG) of November 8, 1934, the financing expenditure and receivables in the balance sheet from internally passed-on funds of the following loans are not taken into account for the calculation of the net income according to paragraph 1

a) Mandatory convertible bonds and loans with a waiver of claims according to Art. 11 para. 4 BankG; and

b) Debt instruments for loss absorption in insolvency measures pursuant to Articles 28-32 BankG.

1. Income from participations also includes capital gains on these participations as well as proceeds from related subscription rights.

2. Capital gains are only considered in the calculation of the reduction according to § 76 if

a) the proceeds exceed the acquisition costs;

b) the sold participation constituted at least 10% of the share capital or equity capital of another company or entitled to at least 10% of the profits and reserves of another company and was held by the selling corporation or cooperative for at least one year; if the participation rate falls below 10% due to partial disposal, the reduction can only be claimed for any subsequent disposal gains if the participation rights had a market value of at least 1 million francs at the end of the tax year prior to sale.

3. The acquisition costs are reduced by the depreciation made, insofar as these resulted in a reduction of the allowance under § 76 para. 3. For participations transferred at book value in a tax-neutral restructuring, the original acquisition costs apply.

1. The profit tax for associations, foundations, and other legal entities amounts to 5.5% of the taxable net profit.

2. The profit of associations and foundations is taxed insofar as it exceeds CHF 20,000.

1. Subject of the Capital Tax is the Equity.

1. The taxable equity of corporations and cooperatives consists of the paid-in basic or share capital, the contributions, premium, and subsidies indicated in the commercial balance sheet according to § 29 paragraph 3, the participation capital, the disclosed reserves, and the hidden reserves formed from taxed profits.

2. At a minimum, the paid-in share, participation, basic, or share capital is taxable.

3. The taxable equity is increased by the portion of the debt capital that economically holds the significance of equity.

**1. The tax on equity is reduced in proportion to the taxable value of shareholdings under § 76, rights under § 68a, as well as loans to group companies, relative to the taxable value of the total assets.**

1. Taxable Equity is deemed to be

a) the net assets of associations, foundations, and other legal entities;

b) * for collective investment schemes, the share of the net assets attributable to direct real estate holdings.

2. The assets are valued according to the principles applicable to the wealth tax for natural persons.

1. The capital tax amounts to 0.75 ‰ of the taxable equity capital.

2. ...

3. The equity capital of associations and foundations is taxed to the extent that it exceeds CHF 50,000.

4. The corporate income tax is credited against the capital tax.

1. Corporations and cooperatives are subject to a minimum tax. This amounts to a simple (100%) cantonal tax of CHF 500 for corporations and CHF 100 for cooperatives.

2. Newly established corporations and cooperatives are exempt from the minimum tax for the first five years following their establishment. In the case of conversions according to § 28 paragraph 1 letter b, the duration of the existence of the sole proprietorship is taken into account for calculating the five-year period.

1. Legal Entities Shall Pay, in Addition to the Surcharges Established in Other Laws, the Following Surcharges on the Basic Cantonal Tax from the Taxable Net Profit and Equity

a) * a Cantonal Tax Surcharge of 2%;

b) * a Surcharge of 53% to the Municipalities Where the Legal Entity is Taxable.

1. Taxes on net profit and equity are determined and levied for each tax period.

2. The tax period is considered to be the fiscal year, which generally comprises 12 months.

3. In every calendar year, except in the year of incorporation, financial statements with a balance sheet and income statement must be prepared. Additionally, a financial statement is required when the company relocates its headquarters, administration, business operations, or a branch to a foreign country, as well as upon the completion of liquidation.

1. The taxable net profit is determined based on the results of the tax period.

2. ...

3. If a legal entity is dissolved or relocates its registered office, management, business operations, or a permanent establishment abroad, the hidden reserves formed from untaxed profits are taxed together with the net profit of the last fiscal year.

4. If the financial statements are in a foreign currency, the taxable net profit must be converted into Swiss francs. The applicable rate is the average exchange rate (selling) of the tax period.

1. The taxable equity is determined based on its status at the end of the tax period.

2. The relevant factor is the equity as of the balance sheet date of the respective financial statement after profit allocation.

3. The capital tax is assessed on the basis of a regular fiscal year of 12 months. For financial statements covering less or more than a full year, a proportional capital tax corresponding to the duration of the fiscal year is levied.

4. If the financial statement is denominated in a foreign currency, the taxable equity must be converted into Swiss Francs. The applicable rate is the foreign exchange rate (selling price) at the end of the tax period.

1. The tax rates applicable are those in effect at the end of the tax period.

1. Gains from the sale of real estate located in the canton or shares in such real estate are subject to the real estate capital gains tax.

2. Gains are not subject to the real estate capital gains tax to the extent that they are covered by the profit tax or the income tax.

1. The tax liability is established by any transaction that transfers ownership of real property or shares in such property.

2. Equivalent to transactions are

a) legal transactions that economically function like a sale in terms of control over real property;

b) the transfer of real property or shares in such property from a taxable person's private assets to their business assets;

c) the encumbrance of real property with private law easements or public law property restrictions if they permanently and significantly impair the unrestricted use or sale value of the property and compensation is paid;

d) the transfer of equity rights from the taxable person's private assets in real estate companies when such equity rights embody a special usage right (e.g., a right of residence) to a residential unit;

e) exchange.

3. ...

1. Tax Deferral Occurs in the Case of

a) Inheritance (succession, division of estate, legacy) and transfer of ownership with anticipated inheritance, gift, or mixed gift;

b) * ...

c) Legal transactions between married persons, even if they serve the purpose of mutual settlement in divorce or separation proceedings;

d) Land reallotments for the purpose of land consolidation, neighborhood planning, boundary adjustments, rounding off of agricultural homesteads, as well as land reallotments in expropriation procedures or imminent expropriation;

e) * ...

f) * Restructurings in accordance with § 28 para. 1 and § 71 para. 1 and 3.

2. The taxable person may request within 1 year after the sale that the property gains tax be levied.

1. The capital gains tax on real estate is deferred at the request of the taxable person upon the sale of a permanently and exclusively self-occupied residential property (single-family house, condominium, or participation with special usage rights), provided that the proceeds obtained are used within 2 years before or 3 years after the sale to acquire or construct a replacement property used in the same manner in Switzerland.

2. For multi-family houses, the replacement acquisition privilege applies only proportionally to the part of the house that is occupied year-round by the taxable person.

1. The capital gains tax on property may be deferred upon the request of the taxable person in the case of a complete or partial disposal of an agricultural or forestry property, provided that the proceeds from the disposal are used within 1 year before or 3 years after the disposal for the acquisition of a substitute property that is self-managed in Switzerland, or for the improvement of their own, self-managed agricultural or forestry properties.

1. The person disposing of the asset is liable for taxation.

2. When there are multiple taxpayers, they must pay the tax according to their respective shares. In the case of joint ownership, they are jointly and severally liable.

1. Capital Gain on Property is the amount by which the proceeds exceed the acquisition costs.

1. The proceeds are deemed to be the sale price along with all additional benefits provided by the acquiring party. If no purchase price is specified or if there is an exchange, the fair market value at the time of the disposal shall be considered as the proceeds.

2. For real estate transferred from private assets to one's own business assets, the proceeds are deemed to be the value at which they are recorded in the company's accounts.

1. The purchase price corresponds to the notarized purchase price and all other considerations, or the actually paid lower price. A higher price can only be considered if a previous owner or the taxable person was assessed for property gain, profit, or income taxes due under the law at that time based on this price.

2. However, the purchase price is not decisive if the property was acquired through a tax-deferring sale or replacement acquisition. In such cases, the purchase price that was the basis of the last tax-triggering sale (property gain, profit, or income tax) is decisive.

3. In addition, acquisition costs include losses that the seller incurred while acquiring the property in enforcement or insolvency proceedings from a collateral or guarantee agreement.

4. If a property was acquired by transferring it from one's own business assets to private assets, the value that underlay the income tax is regarded as the purchase price.

1. The following expenditures are eligible for credit

a) Costs for planning, construction, reconstruction, and other investments;

b) Landowner contributions towards the construction and improvement of roads, sewers, land enhancements, waterworks, and similar projects;

c) * Costs associated with the acquisition and sale of the property;

d) * Incremental value charges.

2. Not eligible for credit are

a) Expenditures that have been, or could have been, deducted or accounted for as expenses in income or profit tax;

b) The value of personal labor, which has not been taxed as income or profit throughout an entire tax period in Switzerland.

3. Contributions from third parties, particularly insurance payments, as well as contributions from the federal government, canton, and municipalities, for which the selling party is neither liable for compensation nor reimbursement, are to be added to the sales profit.

1. If the property is developed at the time of sale and the taxable person has owned it for more than 10 full years, the investment costs are standardized. The lump sum is calculated as a percentage of the sale proceeds

Period of Ownership (years commenced) | Percentage Lump Sum of Sale Proceeds

11 | 80

12 | 79

13 | 78

14 | 77

15 | 76

16 | 75

17 | 74

18 | 73

19 | 72

20 | 71

21 | 70

22 | 69

23 | 68

24 | 67

25 | 66

From 25 completed years | 65

2. The period of ownership is calculated in accordance with § 110. If a property that has been transferred from business assets to private assets is sold within 10 years after the transfer, the investment costs cannot be standardized.

3. Higher investment costs will be credited if the taxable person provides complete proof of them.

1. The acquisition costs relevant for the property gains tax of agricultural and forestry properties within the business assets correspond to the book value plus the depreciation previously performed in accordance with § 27 para. 4.

2. However, the purchase price included in these acquisition costs is not decisive if the property was acquired through a tax-deferred sale. In such cases, the purchase price applicable is the one that was the basis of the last tax-triggering sale.

3. If a replacement acquisition occurred according to property gains tax law, the acquisition costs will be reduced by the profit whose taxation was deferred.

1. If properties or shares in such properties acquired at different times are sold together, the profit and holding period for each plot must be determined separately. In doing so, the proceeds are to be allocated according to the value ratios at the time of the sale. The acquisition costs are allocated based on the objects. Indivisible expenses are evenly distributed over the area of the sold properties.

2. However, if the properties form an economic unit at the time of sale, the profit is evenly distributed over the area of the sold properties, taking into account the value ratios at the time of the sale. The holding period is determined separately for each plot.

1. If a property is sold in different parts (parcels, co-ownership shares, etc.), the purchase price must be allocated to the individual parts based on the value proportion at the time of the relevant acquisition.

2. Expenses are allowable to the extent that they pertain to the part sold. Indivisible expenses must be allocated proportionately.

3. Losses from partial sales can be offset against profits from the next partial sale. In the event of a complete sale, losses that have not yet been offset must be proportionately offset against the preceding profits. Finalized assessments must be revised for this purpose.

1. The tax is calculated as a percentage of the taxable real estate profit and amounts to

a) 40% up to the completion of the 1st year of ownership

b) 38% up to the completion of the 2nd year of ownership

c) 36% up to the completion of the 3rd year of ownership

d) 34% up to the completion of the 4th year of ownership

e) 32% up to the completion of the 5th year of ownership

f) 30% up to the completion of the 6th year of ownership

g) 28% up to the completion of the 7th year of ownership

h) 26% up to the completion of the 8th year of ownership

i) 24% up to the completion of the 9th year of ownership

k) 22% up to the completion of the 10th year of ownership

l) 20% up to the completion of the 11th year of ownership

m) 19% up to the completion of the 12th year of ownership

n) 18% up to the completion of the 13th year of ownership

o) 17% up to the completion of the 14th year of ownership

p) 16% up to the completion of the 15th year of ownership

q) 15% up to the completion of the 16th year of ownership

r) 14% up to the completion of the 17th year of ownership

s) 13% up to the completion of the 18th year of ownership

t) 12% up to the completion of the 19th year of ownership

u) 11% up to the completion of the 20th year of ownership

v) 10% up to the completion of the 21st year of ownership

w) 9% up to the completion of the 22nd year of ownership

x) 8% up to the completion of the 23rd year of ownership

y) 7% up to the completion of the 24th year of ownership

z) 6% up to the completion of the 25th year of ownership

aa) 5% from the completion of the 25th year of ownership onward

1. The start and end of the possession period shall be deemed to be

a) the date of the notarization of the sale;

b) where notarization is absent, the time of transfer of control.

2. If the property was acquired through a sale deferring taxation, the possession period is calculated from the last sale subject to tax (capital gains tax, profit tax, or income tax, or a similar tax from another canton). If the acquisition through replacement procurement was only partially financed with reinvested funds, the longer possession period will be proportionally credited to the extent of these reinvested funds.

1. Capital gains taxes levied on the economic sale of properties pursuant to § 96 para. 2 lit. a shall be credited against the income taxes incurred within the following 10 years upon the civil law sale of these properties.

1. The property gains tax shall be allocated half to the canton and half to the municipality in whose territory the property is located.

1. Foreign employees without an immigration police residence permit, but with tax residency or domicile in the canton, are taxed at the source on income pursuant to § 113. Income that is subject to taxation under § 119a is exempted from this.

2. Foreign employees without an immigration police residence permit, but with tax residency or domicile in another canton, are taxed at the source on income pursuant to § 113 if the taxable compensation is provided by a debtor with a registered office or place of business in the canton.

3. Married individuals living in a legally and factually undivided marriage are assessed through the ordinary procedure if one spouse possesses Swiss citizenship or a residence permit.

1. Withholding tax is calculated from the gross income.

2. Taxable are

a) * all income from employment, including ancillary income such as compensation for special services, commissions, child and other allowances, service anniversary and jubilee gifts, bonuses, tips, royalties, benefits in kind from employee participation, and other monetary benefits;

b) all substitute income that replaces earnings from employment and from sickness, accident, liability, disability, and unemployment insurance. In particular, these include daily allowances, compensation, partial pensions, and capital payments that replace them.

1. The government council establishes the withholding tax rates in accordance with the tax rates applicable to the income tax of natural persons.

2. The tax deduction includes cantonal, municipal, church, and fire service taxes as well as the direct federal tax.

3. The municipal and church taxes are calculated based on the average of the tax coefficients of the municipalities and church communities in the canton.

1. In determining tax rates, allowances for professional expenses (§ 35) and insurance premiums (§ 40 subparagraphs d, f, and g) as well as deductions for married couples and children (§ 40 subparagraph h and § 42 paragraph 1) are taken into account.

2. The tax deduction for married individuals living in a legally and factually undivided marriage who are both gainfully employed is based on rates that reflect their total income as well as the allowances and deductions mentioned in paragraph 1.

3. ...

1. Persons subject to withholding tax according to § 112 paragraph 1 shall be assessed retroactively in the ordinary procedure if

a) * their gross income in a tax year reaches or exceeds the amount set by the Federal Department of Finance; or

b) * they have assets and income for which they are not subject to withholding tax.

2. Also subject to retroactive ordinary assessment is anyone who is in a legally and factually undivided marriage with a person as per paragraph 1.

3. Persons with assets and income according to paragraph 1 lit. b must request the tax return form from the competent authority by March 31 of the year following the tax year.

1. Persons subject to withholding tax pursuant to § 112 paragraph 1, who do not meet any of the conditions set forth in § 118 paragraph 1, shall, upon request, be assessed subsequently under the ordinary procedure.

2. The request also extends to the spouse who lives in a legally and factually undivided marriage with the applicant.

3. The request must be submitted by March 31 of the year following the tax year. In the event of departure from Switzerland, the request must be submitted no later than at the time of deregistration.

1. The subsequent ordinary assessment applies until the end of the withholding tax obligation.

2. The tax deducted at source is credited without interest.

3. If no subsequent ordinary assessment is made upon request, the withholding tax replaces the taxes to be assessed in the ordinary procedure for the federal, cantonal, and municipal taxes on earned income. No additional deductions will be granted retroactively.

1. For small work-related earnings from dependent employment, the tax is to be levied at the source at a rate of 4.5%, without taking into account other income, possible professional expenses, and social deductions, if the employer pays the tax as part of the simplified accounting procedure according to Articles 2 and 3 of the Federal Act on Measures to Combat Illegal Employment (Federal Act against Illegal Employment, BGSA) of June 17, 2005.

2. The tax deduction replaces the cantonal and municipal taxes assessed in the ordinary procedure; it is increased by the corresponding rate for direct federal tax. The income taxed in the simplified accounting procedure is not taken into account for rate determination in the ordinary assessment procedure.

3. The government council shall issue the necessary implementing provisions. It shall specifically determine the accounting procedure, the minimum amounts for withholding tax deduction, the distribution of collected taxes between the canton, municipalities, and church municipalities, as well as the procedure for intercantonal circumstances.

1. Employees residing abroad are subject to withholding tax on income from employment and substitute income as defined in §§ 112 ff. at the source if they

a) are employed for less than 30 days or as cross-border commuters, weekly residents, or as executive employees for an employer with residence, headquarters or a permanent establishment in the canton;

b) receive wages or other compensation from an employer with residence, headquarters, or a permanent establishment in the canton for work in international transportation on board a ship or aircraft, or during road transportation.

1bis Exempt from this are

a) The taxation of seafarers on board an oceangoing ship;

b) Income subject to simplified billing procedure taxation according to § 119a.

2. If the provisions of a double taxation agreement allocate tax authority on income from employment and substitute income of cross-border commuters to the state of residence, allowing for a withholding tax at a maximum rate credited by the canton, then the withholding tax in the canton is to be levied at this maximum rate.

**1. Artists, athletes, and speakers residing abroad are taxed at source on income derived from their personal activities conducted in the Canton.**

2. If they are contracted for an activity in the Canton for at least 30 days, the tax deduction at source on their income shall be made according to the provisions on withholding tax for foreign employees as per §§ 112 et seq.

3. Taxable income is considered to be the gross income, including all allowances and fringe benefits, after deducting production costs. This also includes income and compensation that do not accrue to the performers themselves but to third parties who have organized their activity.

4. Production costs are considered on a flat-rate basis and amount to

a) * 50 percent of the gross income for artists;

b) * 20 percent of the gross income for athletes and speakers.

5. The tax amounts to 10% of the taxable income.

1. Members of the administration or management residing abroad of

a) legal entities with a registered office or actual administration in the canton,

b) foreign companies that maintain permanent establishments in the canton,

2. Taxable income includes gross income, including all allowances and fringe benefits. This also includes compensations that are not attributed to the taxable person themselves but are received by a third party.

3. The tax amounts to 18% of the taxable income.

1. Creditors and beneficiaries residing abroad who have claims secured by real estate or chattel mortgage on properties within the canton are subject to withholding tax on interest paid to them.

2. Taxable income includes the gross income. This also encompasses interest that flows to a third party rather than to the taxable person themselves.

3. The tax amounts to 13% of the taxable income.

1. Persons residing abroad who

a) receive pensions, retirement salaries, capital benefits, or other compensations from a public employer or pension fund based in or with a place of business in the canton due to a previous public employment relationship,

b) receive pensions, capital benefits, or other compensations from private institutions of occupational pension schemes or from recognized forms of tied self-provision based in or with a place of business in the canton,

2. The taxable income is considered to be the gross income.

3. The tax amounts to 7% of the taxable income for pensions; for capital benefits, the government council establishes a withholding tax rate in accordance with § 45.

1. Persons who are residing abroad at the time of the receipt of monetary benefits from restricted employee options (§ 26b para. 3) are subject to tax on the monetary benefit proportionately according to § 26d.

2. The tax amounts to 18% of the monetary benefit.

1. In cases of glaring discrepancies, particularly concerning the flat-rate deductions included in the withholding tax rate, a subsequent ordinary assessment may be conducted ex officio in favor of or against the taxable person, under the conditions established by the Federal Department of Finance.

1. Persons who are subject to withholding tax pursuant to § 121 may apply for a subsequent ordinary assessment for each tax period by March 31 of the year following the tax year under the conditions established by the Federal Department of Finance, if

a) the predominant part of their worldwide income, including the income of the spouse, is taxable in Switzerland;

b) their situation is comparable to that of a tax-liable person residing in Switzerland; or

c) such an assessment is necessary to claim deductions provided for in a double taxation agreement.

1. In the absence of a subsequent ordinary assessment, the withholding tax replaces the taxes of the Confederation, the canton, and the municipality on earned income, which are to be assessed in the ordinary procedure. No additional deductions are granted subsequently.

2. The tax withheld at the source is credited interest-free.

3. For dual-income married couples, a correction of the rate-determining earned income for the spouse may be provided.

**1. Withholding Taxes are Levied by the Debtors of the Taxable Benefits.**

2. They are obligated to undertake all necessary measures for the correct levy of taxes, in particular

a) to determine the withholding tax obligation and the applicable rate before the payment of the taxable benefit;

b) to withhold the owed tax upon the due date of cash payments, regardless of any objections, and to demand the owed tax from the taxable person for other benefits (notably in-kind benefits and gratuities);

c) to make the withholding tax deduction even if the taxable person is subject to taxation in another canton;

d) to periodically settle accounts with the Cantonal Tax Office regarding the persons subject to withholding taxation and to deliver the withholding taxes in a timely manner;

e) to issue to the taxable person a statement or confirmation of the amount of tax deducted;

f) * ...

g) to pay the proportional taxes on employee options exercised abroad. The employer owes the proportional tax even if the tangible benefit is provided by a foreign group company.

3. For the purpose of controlling tax collection, the debtors of the taxable benefit are required to grant the Cantonal Tax Office access to all necessary documents and to provide information orally or in writing upon request.

1. Debtors of the taxable service are liable for tax losses and for breaches of the obligation to remit.

2. Similarly, anyone who organizes performances by artists, athletes, or speakers in Switzerland is also liable.

1. The AHV Compensation Fund issues the taxable person with a statement or confirmation of the withholding tax deduction made by the employer. It settles the remitted withholding taxes annually with the Cantonal Tax Office and transfers the withholding tax amount to the Cantonal Tax Office during the following year.

2. The AHV Compensation Fund receives a collection commission in accordance with § 137.

1. The taxable person is required to provide the Cantonal Tax Office as well as the debtor or creditor of the taxable benefit with information, either verbally or in writing, regarding the circumstances that are relevant for the collection of withholding taxes.

1. The tax authorities may require a taxable person with residence or registered office abroad to appoint a representative in Switzerland.

2. Persons who apply for a subsequent ordinary assessment in accordance with § 125c must submit the required documents and designate a service address in Switzerland. If no service address is designated or if the service address becomes invalid during the assessment procedure, the competent authority shall grant the taxable person a reasonable period to designate a valid service address. If this period expires without result, the withholding tax shall take the place of the tax on earned income to be assessed under the ordinary procedure. § 187 para. 2 shall apply mutatis mutandis.

1. The taxable person may be required by the Cantonal Tax Office to pay the arrears of withholding tax owed by them if the taxable income has not been paid out or has not been fully reduced by the withholding tax and a subsequent collection from the debtor of the taxable income is not possible.

1. The debtor of the taxable service calculates and levies the withholding tax according to this law in the following cases

a) * for employees pursuant to § 112, who have their tax residence or domicile in the canton at the time the taxable service is due;

b) * for employees pursuant to § 121 paragraph 1 letter a, who have their weekly residence in the canton at the time the taxable service is due;

c) * for persons pursuant to §§ 121 and 123-125a, if they have their tax residence, domicile, registered office, or management in the canton at the time the taxable service is due. If the taxable service is provided from a permanent establishment in another canton or from the permanent establishment of an enterprise without a registered office or actual management in Switzerland, the law of the canton where the permanent establishment is located applies to the calculation and collection of the withholding tax;

d) * for persons pursuant to § 122, who perform their activity in the canton.

2. The debtor of the taxable service remits the withholding tax to the competent collection authority of the Canton of Aargau.

1. The tax authority pursuant to this law is responsible for subsequent ordinary assessments in the following cases

a) for employees according to § 131 para. 1 lit. a, who had their legal domicile or residence in the canton at the end of the tax liability or the tax period;

b) for employees according to § 131 para. 1 lit. b, who had a weekly residence in the canton at the end of the tax liability or the tax period;

c) for persons according to § 131 para. 1 lit. c, who were gainfully employed in the canton at the end of the tax period or the tax liability.

2. The Canton of Aargau is entitled to any withholding tax amounts transferred to other cantons during the calendar year. Excess taxes collected will be refunded to the employee or the gainfully employed person without interest, and insufficient taxes collected will be claimed without interest.

3. The Cantonal Tax Office provides free administrative and legal assistance to other Swiss tax authorities concerning the collection of withholding tax.

1. The implementation of the withholding tax is the responsibility of the Cantonal Tax Office in collaboration with the debtors of the taxable service.

2. The authority responsible for the subsequent ordinary assessment according to §§ 118, 118a, 125b, and 125c is the assessment authority of the municipality.

1. The taxable person may request a decision from the assessment authority on the existence and extent of the tax liability by March 31 of the tax year following the due date of the performance, if they

a) * do not agree with the withholding tax deduction according to the certificate pursuant to § 127; or

b) * have not received the certificate pursuant to § 127 from the employer.

1bis. The debtor of the taxable benefit may request a decision from the assessment authority on the existence and extent of the tax liability by March 31 of the tax year following the due date of the performance.

2. The taxable person, the debtor of the taxable benefit may file an objection against such a decision.

3. The taxable person, the debtor of the taxable benefit may appeal against an objection decision.

4. The debtor of the taxable benefit remains obliged to levy the withholding tax until a legally binding decision is rendered.

5. Furthermore, the appeal process is governed by the provisions of the eighth part.

1. If the debtor of the taxable service has not made the tax deduction or has made it insufficiently, the Cantonal Tax Office obliges them to make an additional payment. The recourse of the debtor to the taxable person remains reserved.

2. The additional claim is possible within 5 years after the end of the calendar year in which the tax deduction should have been made.

1. Taxpayers can directly reclaim over-withheld and settled withholding taxes from the Cantonal Tax Office. The specific grounds for reimbursement are listed in the ordinance.

1bis. If the debtor of the taxable benefit has made an excessive tax deduction, they must repay the difference to the taxpayer.

2. Claims for reimbursement must be asserted within 5 years after the end of the calendar year in which the tax deduction was made.

1. The debtor of the taxable service receives a collection fee of 1 to 2% of the total withholding tax amount for their cooperation, the rate of which is established by the government council through regulation. For capital services, the collection fee is 1% of the total withholding tax amount, but not more than CHF 50 per capital service for withholding tax from the federal government, canton, and municipality.

2. If the debtor of the taxable service breaches procedural obligations, the Cantonal Tax Office may reduce the collection fee. In the case of subsequent claims pursuant to § 135, the collection fee is forfeited.

1. Withholding taxes are collected by the Cantonal Tax Office.

2. The Executive Council may establish collection minimums.

1. The withholding tax is due at the time of payment, transfer, credit, or offsetting of the taxable service.

1. The debtor of the taxable service shall account for the withholding tax at the end of each month and submit the statement to the Cantonal Tax Office within a period to be regulated by the government council by ordinance.

2. The Cantonal Tax Office may permit alternative accounting dates.

3. The withholding taxes shall be paid within 30 days after the receipt of the invoice.

1. Interest on Delayed Source Tax Settlements Without Reminder: Delinquent interest shall be calculated on source taxes not settled within the prescribed period after the expiration of the settlement deadline, without the necessity of a reminder.

2. Interest on Late Payment of Source Taxes Without Reminder: Delinquent interest shall be calculated on source taxes paid late after the expiration of the payment deadline, without the necessity of a reminder.

1. The taxation applies to the assets acquired through statutory succession, testamentary disposition, donation, or any other transfer that does not involve any or an equivalent consideration by the receiving person.

2. Not subject to taxation are asset acquisitions that are taxed as income or profit by the receiving person at the time of the transfer, or that are tax-exempt under § 33 lit. c-i or § 70 lit. a and b.

3. Exempt from taxation are asset acquisitions

a) * between married persons and registered partners,

b) * to descendants, stepchildren, and foster children, provided the foster relationship has lasted for at least two years,

c) * to parents, stepparents, and foster parents, provided the foster relationship has lasted for at least two years.

4. Minor occasional gifts are not taxed.

1. The taxpayer is the one who actually receives the acquisition of assets.

2. If the heirs entitled to inherit are unable to agree on their inheritance claims within a one-year period, the taxable portions shall be determined according to the testamentary disposition or the statutory order of succession. If the assessments prove to be incorrect due to the actual division, they must be revised if a person entitled to inherit requests this within 10 years after the acquisition of assets.

1. Assets are subject to taxation if they originate from a person who is domiciled or residing in the Canton, or was at the time of their death, or is declared missing in the Canton.

2. Taxation also applies to assets from ownership and other real rights to properties located within the Canton, or from rights that economically function as rights to properties, as well as the acquisition of assets from business establishments located in the Canton.

3. If the entire acquisition of assets is not subject to the tax sovereignty of Aargau, the tax rate is determined based on the total acquisition of assets.

1. The assets shall be assessed according to the provisions concerning property tax.

2. The accrual of assets may be entirely or partially reassessed if the valuations underlying the property tax become significantly outdated due to special circumstances.

1. The following are deducted from the taxable inheritance

a) debts as defined in § 52;

b) costs related to the funeral, grave maintenance, succession, and division of the estate, but not inheritance or gift taxes;

c) compensations to children and grandchildren as defined in Article 334 of the Swiss Civil Code (ZGB) of December 10, 1907;

d) the advance inheritance as defined in Article 631 paragraph 2 ZGB for children who are disabled or whose education and upbringing are not yet completed;

e) the maintenance claim of household members according to Article 606 ZGB.

1. The tax is calculated based on the taxable amount of the estate's transfer and the degree of kinship of the liable person to the deceased, donor, or benefactor.

2. The following classes apply to degrees of kinship

a) Class 1: Persons who have lived in a household (same residence) with the benefactor for at least 5 years;

b) Class 2: Siblings and grandparents;

c) Class 3: All other taxable persons.

3. In the case of property transfers to foundations, the relationship of the benefactor to the beneficiaries is considered.

4. For the determination of the class, the giving and receiving person of the estate transfer are treated the same as the other spouse if this results in a more favorable class.

1. The capitalized value of a usufruct is attributed to the usufructuary. The taxable inheritance of the owner is reduced by this amount. This applies analogously to a right of residence.

2. In the case of a substitution of heirs pursuant to Article 488 of the Swiss Civil Code (ZGB), both the primary heir and the substitute heir pay the tax on the entire estate portion they receive. Restrictions on disposition are taken into account when assessing the inheritance of the primary heir. The tax for the substitute heir is calculated based on the degree of kinship to the deceased, up to the amount of the portion taxed by the primary heir, provided this is more favorable for the taxable person.

1. The Inheritance and Gift Tax amounts to

Amount | Class 1 | Class 2 | Class 3

--- | --- | --- | ---

for the first CHF 120,000 | 4% | 6% | 12%

for the next CHF 60,000 | 6% | 12% | 20%

for the next CHF 60,000 | 7% | 15% | 22%

for the next CHF 60,000 | 7.5% | 18% | 24%

for the next CHF 60,000 | 7.5% | 19% | 26%

for the next CHF 120,000 | 8% | 20% | 28%

for the next CHF 240,000 | 8.5% | 21% | 30%

for the next CHF 240,000 | 8.5% | 22% | 31%

for portions exceeding CHF 960,000: | 9% | 23% | 32%

2. Multiple transfers between the same persons within 5 years shall be aggregated. The five-year period commences with the calendar year of the first transfer.

1. The tax is assessed by the Cantonal Tax Office and collected by the Municipal Council. The assessment is prepared by the Municipal Council.

2. Taxpayers must report the acquisition of wealth at the latest with their next tax return for income and wealth taxes. Taxpayers who do not submit such a return in the canton must report the acquisition within 3 months. If an estate inventory is taken, these obligations do not apply.

1. Inheritance and Gift Tax

a) One third falls

1. to the municipality where the donor person has or had their residence or stay at the time of their death, or where they were declared missing, respectively,

2. to the municipalities where taxable values are located, in the case of an out-of-canton residence or stay, respectively,

3. to the municipality of the registered office for assets arising from business establishments located within the canton;

b) two thirds to the canton.

2. ...

1. The municipal communities levy, to cover expenses that cannot be met from other revenues, annual municipal taxes in the form of income and wealth taxes from natural persons, as well as profit taxes from legal entities with special purposes (§ 14 paragraphs 2 and 3).

1. The local municipal communities may annually levy income and wealth taxes for their specific purposes on local citizens residing or staying within the municipality.

1. The parishes of the cantonally recognized national churches annually levy income and property taxes on their members as church taxes to cover expenses that cannot be met from other revenues.

2. Natural persons who are tax-liable in the municipality based on economic affiliation shall pay the tax to the parish of their denomination.

3. If a family comprises members of several denominations, the church tax payable to each individual church will be determined based on the number of members of each denomination. The determining factors are the residence and family circumstances at the end of the tax period or the tax liability.

1. The municipalities annually determine the tax rate as a percentage of the basic cantonal tax when making decisions on the budget.

1. In the event of relocation of residence or registered office to another municipality in Aargau, §§ 18 para. 3, 20, and 66 shall apply mutatis mutandis.

1. Natural persons who are taxable in a municipality in the canton of Aargau based on personal affiliation and taxable in another Aargau municipality based on economic affiliation shall pay their income and wealth taxes exclusively in the municipality of residence.

2. For legal entities with real estate or business establishments outside the municipality of their registered office, a tax allocation is carried out. The tax allocation will be made in accordance with the principles of inter-cantonal double taxation law as applicable.

1. The taxation authority of the municipality decides on the existence and extent of the church tax obligation in the assessment procedure.

2. In case of doubt, it shall obtain a report from the church administration on church membership during the assessment or objection procedure and also communicate its decisions to the church administration.

1. The canton and its institutions pay the income tax on the net profit of their commercial and industrial enterprises to the resident municipalities according to the tax rates applicable to natural persons. The net profit is considered to be the amounts that are allocated from the business results for non-operational purposes.

2. Autonomous institutions of the canton pay the wealth tax on properties located within the municipality to the resident municipality according to the regulations applicable to natural persons.

3. No debt deduction is allowed. The taxable assets are not combined with the other assets of the autonomous institution.

1. Municipalities with spa operations may impose a spa tax.

2. The spa tax is payable by persons who are staying in the municipality's area for spa purposes or vacation.

3. The spa tax can be introduced in the municipal ordinance. The tax liability, amount, collection procedures, and use of the levy are to be stipulated in a municipal regulation. The spa tax is to be used exclusively for the promotion of tourism as well as for the creation and maintenance of facilities serving this purpose.

1. The tax authorities are subject to the supervision of the Department of Finance and Resources with regard to their official conduct.

2. The Cantonal Tax Office oversees the implementation of the law and ensures correct and uniform tax assessments as well as a consistent tax collection.

3. If the assessment in a municipality is conducted inadequately or arbitrarily, the Cantonal Tax Office may prohibit its issuance to the taxpayers. It can order a new assessment or conduct it through its own bodies.

1. The Cantonal Tax Office assesses and collects all taxes that are not assigned to another authority.

1. Each municipal community shall establish a municipal tax office. The municipal council shall appoint a director and a deputy director.

2. Multiple municipal communities may operate a joint tax office. The municipal councils of the participating communities shall appoint a director and a deputy director.

3. The municipal tax office shall prepare assessments, calculate tax amounts, and issue assessment notices and objection decisions. It shall maintain the minutes of the municipality's assessment authority, the tax register, and perform the necessary audits.

1. In each local municipality, a tax commission is appointed to assess tax liability and determine assessments for income, wealth, and property gain taxes.

2. The tax commission consists of a cantonal tax commissioner, the head of the municipal tax office, and three members elected by the local municipality. Additionally, each local municipality elects an alternate member.

2bis. Local municipalities that operate a joint tax office may appoint a joint tax commission. The joint tax commission comprises five individuals: a cantonal tax commissioner, the head of the joint tax office, and three elected members from the participating local municipalities. An alternate member is also elected for each joint tax commission. The participating municipalities form an electoral district for the election of the joint tax commission.

3. In general, the assessment is carried out in the name of the tax commission by a delegation consisting of the cantonal tax commissioner and the head of the municipal tax office. The delegation is responsible for determining tax liability.

4. The assessment is exceptionally conducted by the entire tax commission

a) in the cases prescribed by the regulation;

b) in cases predetermined by the tax commission; or

c) when the delegation submits the case to it.

1. For the collection of taxes, the canton and municipalities shall not compensate each other.

1bis. The fees collected by the municipalities shall be divided between the canton and the municipalities in a ratio of 40 to 60.

2. The canton and the municipalities bear the compensation for their members of the assessment authority.

1. The organization is established in accordance with the provisions of the Court Organization Act (GOG) of December 6, 2011, mutatis mutandis. An exception is made for § 42 section 2 of the Act.

2. Members of the Grand Council, the Tax Commissions, as well as civil servants or employees of the cantonal administration may not serve as either full-time or part-time judges on the Tax Division of the Special Administrative Court.

3. ...

4. ...

5. ...

1. The Administrative Court is the court of last resort for tax matters in the canton.

1. The recusal in the scope of application of this Act is governed by § 16 of the Act on Administrative Jurisdiction (Administrative Jurisdiction Act, VRPG) of December 4, 2007.

a) * ...

b) * ...

c) * ...

d) * ...

2. ...

1. Persons entrusted with or involved in the execution of this law must maintain confidentiality regarding facts that become known to them in the exercise of their office, as well as regarding proceedings within the authorities, and must refuse third parties access to official records.

2. Providing information, including granting access to records, is permissible when there is a legal basis for it in federal law or Aargau law. In the absence of such a basis, information may only be provided if there is an overriding public interest. Requests of this nature are decided by the Department of Finance and Resources.

3. Providing information, including granting access to the tax records of the deceased, is also permissible for estate administrators or executors of wills insofar as it is necessary for the fulfillment of their duties.

1. The tax authorities provide the necessary information to the federal tax authorities and those of other cantons free of charge and allow them to inspect official records upon request. If a person with residence or place of business in the canton is also liable to tax in another canton based on the tax return, the assessment authority shall inform the tax authority of the other canton about the tax return and the assessment.

1bis. Insofar as there is an overriding public interest, the government council may, by decree, generally authorize the tax authorities to provide certain authorities with specific information or to make it accessible through a retrieval procedure.

2. The Department of Finance and Resources is authorized to grant access to files to cantonal and inter-cantonal courts and administrative authorities, or to authorize the tax authorities to provide information to them, insofar as an overriding public interest exists. The data necessary for the information can be made accessible through an electronic retrieval procedure.

3. The assessment authorities can request administrative assistance from the federal authorities and those of other cantons, as well as from districts and municipalities. These authorities can, on their own initiative, alert the assessment authority to a suspected incomplete assessment.

4. The government council can oblige the courts and administrative authorities to report certain facts, designated by it, to the tax authorities without charge and on their own initiative.

5. The compensation statements are to be transmitted directly by the unemployment funds to the competent tax authorities. The disclosure of data may occur electronically.

1. Correspondence with authorities may be conducted in paper form or electronically, with the taxpayer's consent.

2. If the law requires submissions to be signed, an electronic confirmation of the information by the taxpayer replaces the signature in the case of electronic submission.

3. The government council shall regulate the details and conditions for electronic communication between the authorities and the taxpayer by ordinance.

1. Married individuals who live in a legally and factually undivided marriage exercise the procedural rights and obligations afforded to taxpayers under this law jointly.

2. They sign the tax return together. If the tax return is signed by only one spouse, a deadline is granted to the other. If this deadline passes without action, contractual representation between married individuals is assumed.

3. Appeals and other submissions are considered timely if one spouse acts within the specified deadline.

4. All communications from the tax authorities to married taxpayers living in a legally and factually undivided marriage are addressed to both parties jointly.

1. Taxpayers have the right to inspect the files they have submitted or signed. Other files are open for inspection by taxpayers as long as the determination of the facts is complete and as long as there are no conflicting public or private interests.

2. If a taxpayer is denied access to a file, it may not be used to their detriment unless the authority has orally or in writing informed them of the essential content of the file and has also provided them with the opportunity to respond and identify evidence to the contrary.

1. The evidence presented by the taxable person must be accepted insofar as it is suitable for establishing the facts relevant to the assessment.

1. Orders and decisions shall be communicated to the taxpayers in writing. Assessments and invoices do not require a signature.

2. If an objection, appeal, or complaint can be filed against the order or decision, the type of legal remedy, the parties entitled to appeal, the authority with which the legal remedy is to be filed, and the deadline for filing such a legal remedy must be specified.

3. Taxpayers with domicile or residence abroad must designate a service address or representation in Switzerland.

4. If the whereabouts of an unrepresented taxpayer are unknown, or if they are abroad without having a service address or representation in Switzerland, an order or decision can be legally served upon them by publication in the cantonal official gazette.

1. The taxpayer may be contractually represented before the authorities responsible for the enforcement of this law, provided their personal involvement is not necessary.

2. Anyone who is legally competent is permitted to act as a representative. The authority may require a written power of attorney.

1. The right to assess a tax expires 5 years after the end of the tax period. The raising of additional taxes is reserved.

2. The limitation period does not begin or is suspended

a) during an objection, appeal, complaint, or revision procedure;

b) as long as the tax claim is secured or deferred;

c) as long as neither the taxable persons nor the jointly liable persons have a tax residence or domicile in Switzerland.

3. The limitation period restarts with

a) any official action aimed at determining or asserting the tax claim, which is communicated to a taxable person or a jointly liable person;

b) any express acknowledgment of the tax claim by the taxable person or a jointly liable person;

c) the submission of a petition for remission;

d) the initiation of criminal proceedings for completed tax evasion or for tax offenses.

4. The right to assess a tax is in any case time-barred 15 years after the end of the tax period.

1. Tax claims become statute-barred 5 years after the assessment has become final.

2. Suspension and interruption of the limitation period follow § 177.

3. The statute of limitations occurs in any case 10 years after the end of the year in which the taxes were definitively assessed.

4. The effects of the certificate of loss are reserved.

1. The tax authorities, together with the taxable person, ascertain the factual and legal circumstances that are decisive for a complete and correct taxation and make the orders and decisions as quickly as possible. The government council sets guidelines on processing deadlines.

2. They may, in particular, consult experts, conduct site inspections, interview informants, and require the taxable person to present business books, receipts and documents, as well as lists and certificates which they are to procure.

1. Taxpayers are requested to submit a tax return through public notice and, insofar as the tax authorities are aware of the obligation to submit a tax return, by delivery of a form. Taxpayers who have not received a form must request one from the assessment authority.

2. Taxpayers must truthfully and completely fill out the tax return, personally sign it, and submit it to the competent authority within the prescribed period along with the required attachments. In the case of legal entities, the tax return must be signed by an authorized representative.

3. The taxable person who submits the tax return and the necessary attachments either incompletely or not at all will be requested to remedy the omission within a reasonable period.

4. In the case of late submission and late return of a tax return sent back to the taxpayer for completion, the delay must be excused if the taxpayer was prevented from timely submission or return by significant reasons and has remedied the omission within 30 days after the removal of the hindrance.

1. Natural persons must attach the following to the tax declaration

a) Wage statements for all income from dependent employment;

b) Statements of remuneration as a member of the management or any other body of a legal entity;

c) Lists of all securities, receivables, and debts;

d) Certificates of contributions made to occupational pension schemes and other forms of pension provision equivalent thereto, unless these are certified on the wage statement.

2. Natural persons with income from self-employment and legal entities must attach the following to the tax declaration

a) * The signed financial statements (balance sheets, income statements) for the tax period; or

b) * In the case of simplified bookkeeping according to Art. 957 para. 2 of the Swiss Code of Obligations (CO): Statements of income and expenses, the financial position, as well as private withdrawals and deposits for the tax period.

3. The manner of bookkeeping, accounting, and retention is governed by Arts. 957-958f CO.

1. The taxable person must do everything to enable a complete and accurate assessment.

2. Upon request by the assessment authority, they must provide information orally or in writing, present business books, receipts, and other certificates as well as documents concerning business transactions.

3. ...

**1. Third Parties, who are or were in a contractual relationship with the taxable person, must certify the joint contractual relationship and the mutual claims and services. In particular, the following are obliged to issue written certifications:**

a) Employers regarding their benefits to employees as well as the type and amount of contributions deducted from wages for occupational pension schemes;

b) Creditors and debtors regarding the existence, amount, interest, and securitization of claims;

c) * Insurers regarding the surrender value of insurance policies and the benefits paid out or owed under the insurance relationship; in the case of life annuity insurances subject to the Insurance Contracts Act (VVG), they must additionally disclose the year of conclusion, the amount of the guaranteed annuity, the total taxable yield according to § 31, paragraph 3, as well as surplus benefits and the yield portion from these benefits according to § 31, paragraph 3, letter b;

d) Occupational pension institutions, insurance institutions, and bank foundations regarding contributions and benefits based on pension relationships;

e) Trustees, asset managers, lien holders, agents, and other persons who have or had possession or management of the taxable person's assets, regarding these assets and their yields;

f) Persons who are or were engaged in business with the taxable person regarding mutual claims and services.

**2. If the taxable person fails to submit a necessary certification despite being reminded, the tax authority may demand it from the third person. A duplicate of the certification must be sent to the taxable person. The legally protected professional secrecy remains reserved.**

1. Partners and Co-owners, as well as Joint Owners, must, upon request, provide the tax authorities with information about their legal relationship to the taxable person, particularly regarding their shares, claims, and benefits.

1. The tax authorities must receive a certificate for each tax period

a) Legal entities regarding the compensation paid to members of the management and other bodies; foundations additionally submit a certificate regarding the benefits provided to their beneficiaries;

b) Occupational pension schemes and tied pension schemes regarding the benefits provided to the insured or beneficiaries; the report of capital payments must be made no later than 30 days before payment;

c) Simple partnerships and limited partnerships regarding all circumstances relevant for the assessment of their partners, particularly regarding their share in the income and assets of the partnership;

d) * Collective investment schemes regarding circumstances relevant for the taxation of the direct real estate and its income;

e) * Employers who grant employee participation schemes to their employees, regarding all necessary details for their tax assessment, particularly concerning the monetary benefits from employee participation schemes as well as the allocation and exercise of employee options.

2. A duplicate of the certificate must be delivered to the taxpayers.

3. The land registry offices notify the competent tax authorities ex officio of entries in the land register that may give rise to taxation under this law. This reporting obligation is associated with the right of the tax authorities to inspect the land register data necessary for fulfilling their legal duties, as well as the corresponding land register documents.

1. The time limits provided in this law begin to run on the day following the issuance of the ruling or decision and are considered met if the submission has been received by the last day of the time limit or has been handed over to the Swiss Post at the latest on that day.

2. If the last day falls on a Saturday, a Sunday, a public holiday, or on another weekday that is treated as a public holiday, the period expires on the next following business day.

3. Submissions mistakenly filed with the incorrect authority must be transferred ex officio to the competent authority and are deemed to have been received at the time they were delivered to the incorrect authority or handed over to the Swiss Post for its attention.

1. Objections, appeals, and complaints must be submitted within 30 days. This deadline cannot be extended.

2. Late-filed legal remedies will only be considered if the taxpayer was prevented from submitting on time due to significant reasons or due to absent or incorrect legal remedy instructions, and the legal remedy is submitted within 30 days after the hindrance has been removed.

1. Assessment and objection procedures are free of charge. Subject to exceptions are reminders that incur fees. No party compensation will be awarded.

2. The taxable person or any other person obliged to provide information may also be partially or fully charged with the costs of a book examination or other evidence collection if they have caused it through culpable behavior.

1. The official costs of the appeal and complaint proceedings shall be imposed on the losing party; in the event of partial approval of the appeal or complaint, the costs shall be allocated proportionally.

2. The prevailing taxable person shall be awarded reasonable compensation for representation by an attorney, notary, or tax advisor.

3. The party and court costs may be divided regardless of the outcome of the proceedings if the losing taxable person pursued the legal remedy in good faith, or if the prevailing taxable person caused the appeal or complaint proceedings by their conduct in the prior instance.

1. The tax authority reviews the tax return and conducts the necessary examinations.

2. The taxpayer has the right to request a summons before the assessment authority, to voluntarily present evidence, and to represent their tax return in the process.

3. Their statements are to be recorded and signed.

1. The assessment authority determines the tax factors (taxable income and wealth, taxable net profit and taxable capital), the tax rates, and the tax amounts in the assessment notice.

2. It communicates any deviations from the tax return to the taxable person no later than the issuance of the assessment notice.

3. If the taxable person fails to meet their procedural obligations despite a reminder, or if the tax factors cannot be clearly determined due to a lack of reliable documentation, the assessment will be made according to sound discretion. In doing so, experience figures, asset development, and living expenses of the taxable person may be considered.

1. Objections against decisions regarding tax liability and assessments can be filed in writing with the deciding tax authority by

a) In the case of decisions by the municipal assessment authority: the taxable person and the Cantonal Tax Office; against decisions regarding the obligation to pay church tax, also the church council;

b) In the case of decisions by the Cantonal Tax Office: the taxable person and the municipal council.

2. ...

3. A tax assessment made at discretion can only be contested by the taxpayer due to an obvious error. The objection must be substantiated and must mention any potential evidence.

1. The same principles apply to the objection procedure as to the assessment procedure.

2. Documents and evidence negligently or intentionally not submitted, despite a request and notice of the consequences of default, can no longer be considered in the appeal and complaint procedure.

3. The tax authority will not give effect to a withdrawal of the objection if there are indications that the assessment does not comply with the law.

1. The assessment authority decides on the objection based on the investigation.

2. In doing so, it may reassess all tax factors. If it alters the assessment to the detriment of the taxpayer, it must first provide them the opportunity to express themselves in writing or verbally.

3. The written decision, with reasons provided, must be communicated to the taxpayer against receipt confirmation, as well as to the other parties entitled to object.

1. Against the objection decision of the tax authority, the parties entitled to object may file an appeal with the special administrative court in writing.

2. The appeal must contain a request and a justification. Any evidence should be specified and submitted as far as possible.

3. An appeal that does not meet these requirements will not be considered. If the request and justification are unclear or contradictory, a reasonable deadline must be set for improvement under the threat of non-consideration in the event of failure to comply.

1. The Special Administrative Court shall ex officio order the necessary investigations and taking of evidence, for which it has the same powers as the tax authorities and the Administrative Court.

2. It is not bound by the parties' petitions in its decision.

3. It shall comply with a withdrawal of the appeal.

4. Otherwise, the procedural provisions applicable to the Administrative Court shall apply mutatis mutandis.

1. Against the decision of the Special Administrative Court, the taxpayer, the municipal council, the Cantonal Tax Office, and the church council may file an appeal with the Administrative Court.

2. The same requirements for form and content apply to the appeal as to the complaint.

1. The Administrative Court is bound by the requests of the parties in its decision.

2. It may not alter the contested decision to the detriment of the party filing the appeal.

1. A final order or decision can be revised in favor of the taxable person upon application or ex officio if

a) significant facts or decisive evidence are discovered;

b) the deciding authority has disregarded significant facts or decisive evidence known to it or ought to have been known, or if it has otherwise violated essential procedural principles;

c) a crime or misdemeanor has influenced the decision.

2. Revision is excluded if the applicant presents reasons that could have been asserted during the ordinary proceedings with reasonable diligence.

1. The request for revision must be submitted within 90 days after the discovery of the reason for revision, but no later than 10 years after the issuance of the order or decision.

1. The petition for revision must be submitted in writing to the authority that issued the previous decision or ruling.

2. The petition for revision must include

a) the precise specification of the individual grounds for revision;

b) a request indicating the extent to which the previous decision should be annulled and how it is to be newly decided.

3. The evidence supporting the grounds for revision should be attached to the petition for revision or, if this is not possible, precisely identified.

1. If the authority considers the request for revision to be justified, it shall annul the previous decision and issue a new decision.

2. The same legal remedies as those available against the previous decision may be pursued against the dismissal of a request for revision or against the new decision issued upon the acceptance of the revision.

3. Otherwise, the provisions regarding the procedure in which the previous decision was rendered shall apply.

1. Calculation errors and clerical errors in final and binding decrees and decisions can be corrected within 5 years of notification upon application by the taxable person or ex officio by the authority that made the error.

2. The same legal remedies as against the decree or decision may be pursued against the correction or its rejection.

1. If it is determined based on facts or evidence, which were not known to the competent tax authority, that a tax assessment has unjustly been omitted or a final tax assessment is incomplete, or if an omitted or incomplete assessment is due to a crime or offense against the tax authority, the uncollected tax along with interest will be claimed as additional tax.

2. ...

3. If the taxable person has fully and accurately declared the components of taxable services and values in their tax return, and if the valuation of the individual components has been recognized by the tax authorities, no additional tax may be levied due to insufficient valuation.

1. The right to initiate a supplementary tax procedure expires 10 years after the end of the tax period for which an assessment was unjustly omitted or a final assessment is incomplete.

2. The right to determine the supplementary tax expires 15 years after the end of the tax period to which it relates.

1. The initiation of the supplementary tax procedure is communicated to the taxpayer in writing, stating the reason.

1bis. If neither a criminal procedure for tax evasion is initiated nor pending at the commencement of a supplementary tax procedure, nor can it be excluded from the outset, the taxpayer is informed about the possibility of such a criminal procedure being initiated at a later stage.

2. The voluntary disclosure and the initiation of criminal prosecution for tax evasion or tax offenses simultaneously constitute the initiation of the supplementary tax procedure.

3. The procedure that has not been initiated or completed at the time of the taxpayer’s death is initiated or continued with respect to the heirs.

1. The Cantonal Tax Office determines the supplementary taxes. The provisions regarding implementation and procedure apply accordingly.

2. The Executive Council may delegate smaller supplementary tax procedures by ordinance to the assessment authorities of the municipalities.

1. All heirs independently have the right to simplified supplementary taxation of the assets and income components evaded by the deceased, if

a) the evasion is unknown to any tax authority;

b) they unconditionally assist the administration in identifying the evaded asset and income elements, and

c) they make a genuine effort to pay the supplementary tax owed.

2. The supplementary tax is calculated for the last three tax periods prior to the year of death according to the regulations on ordinary assessment and is claimed along with interest on arrears.

3. Simplified supplementary taxation is excluded if the estate is liquidated officially or by the official receiver in bankruptcy proceedings.

4. The executor of the will or the estate administrator may also request simplified supplementary taxation.

1. Upon the death of a taxable person, an official inventory shall be taken, except in cases of obvious insolvency.

1. The inventory shall include the assets existing on the day of death of the deceased person, the spouse living in an undivided marriage with the deceased, and the minor children under their parental custody.

2. The inventory authority shall also ascertain and record in the inventory any facts that may be relevant for the tax assessment of the deceased person or for the determination of inheritance and gift tax.

1. The heirs and the individuals who manage or hold the estate assets may not dispose of them before the inventory is taken, except with the consent of the inventory authority.

2. To secure the inventory, the inventory authority may conduct an immediate sealing.

1. The heirs, their legal representatives, the estate administrators, and the executors are obligated to

a) provide truthful information regarding all matters that may be significant for determining the tax factors of the decedent;

b) present all books, documents, records, and statements that can provide insight into the estate;

c) open all premises and containers that were at the disposal of the decedent.

2. Heirs and their legal representatives who lived with the deceased person in a household or who safeguarded or managed assets of the deceased person must also allow inspection of their premises and containers.

3. Should heirs, their legal representatives, estate administrators, or executors become aware of estate items not listed in the inventory after its compilation, these must be reported to the inventory authority within 10 days.

4. At least one capable heir and the legal representative of a minor heir or an heir under comprehensive guardianship must be present for the inventory taking.

1. Third parties who held or managed the assets of the deceased person, or against whom the deceased had pecuniary rights or claims, are obliged to provide the heirs, for the benefit of the inventory authority, upon request, with all related information in writing.

2. If there are significant reasons preventing the fulfillment of this obligation to provide information, the third party may provide the requested information directly to the inventory authority.

3. The provisions regarding the obligation of third parties to provide information and certification apply accordingly.

1. The inventory is compiled by the municipality where the deceased person had their last residence; if the residence was outside the canton, it is compiled by the municipality where the taxable assets or their main parts are located.

2. A delegation of the municipal council or an office designated by the municipal council compiles the inventory; the Cantonal Tax Office may be represented in the compilation of the inventory.

3. The inventory authority has the same powers for determining the estate assets as the tax authorities have in the assessment procedure.

4. The Grand Council establishes the fee framework for the inventory compilation.

1. A copy of the inventory shall be delivered to the heirs or their legal representatives and to the Cantonal Tax Office.

2. The Cantonal Tax Office is obliged to verify the accuracy of the inventory through its own investigations, to amend it if necessary, or to refer it back to the inventory authority for this purpose. In doing so, it has the same powers as the inventory authority.

1. Applications for tax exemptions must be submitted to the Cantonal Tax Office.

2. The Cantonal Tax Office decides on the tax exemption. It may review in each tax period whether the conditions for the tax exemption are still met. Any potential revocation takes effect from the beginning of the current tax period.

3. The provisions regarding procedural principles, assessment, objection, appeal, and complaint procedures apply correspondingly.

1. The imputed rental values and the asset tax values will be newly determined as of January 1, 2025. The basis for the values will be the circumstances as of June 30, 2024.

1bis. For properties according to § 51 para. 3, a revaluation will occur at intervals of five years.

1ter. For agricultural properties according to § 51 para. 2, the revaluation will occur on January 1, 2025, according to the federal guidelines in effect at that time for estimating the agricultural yield value. Further revaluations will take place in the tax period following the year a new estimation guideline comes into effect.

2. Outside of a revaluation according to paragraphs 1-1ter, the imputed rental values and asset tax values can only be changed if the condition, use, or value of the property undergoes a significant change, or if the values are based on an obviously incorrect valuation or an incorrect application of the law. The new valuation applies from the beginning of the tax period in which the condition, use, or value changed, or from the year of initiation of the revaluation in the case of incorrect values. Assessments already made must be revised.

3. ...

4. The government council regulates the valuation of properties by ordinance.

1. The assessment of real estate is the responsibility of the Cantonal Tax Office. It ensures consistent valuations and determines the imputed rental values and the property tax values.

2. The provisions regarding procedural principles as well as those concerning the assessment, objection, appeal, and complaint procedures apply mutatis mutandis. The right to a summons exists only to the extent necessary to safeguard the right to be heard.

1. The land registry offices shall report to the Cantonal Tax Office on their own initiative any entries in the land register that may give rise to a reassessment of a property pursuant to § 51 para. 1.

2. The municipal councils shall provide the Cantonal Tax Office with the documents necessary for property assessment, such as the revised property directory, cadastral and zoning plans, building and zoning regulations, as well as the documents related to building applications.

3. The Aargau Building Insurance AGV shall provide the Cantonal Tax Office with the following information and documents for property assessment

a) all object data and the names of the owners of properties estimated by the AGV, excluding fire police remarks,

b) a list of insured buildings.

4. The operational data of agricultural enterprises, as well as the lists with operators per parcel and the rating per parcel, shall be provided to the Cantonal Tax Office by the competent authority.

5. The information according to paragraphs 1-4 may be made accessible to the Cantonal Tax Office through an electronic retrieval procedure.

1. Tax claims of the canton, residents, local citizens, and church communities shall be treated equally. In particular, collected and waived taxes shall be apportioned proportionally to the respective creditors.

1. The municipal council is responsible for the collection of income and wealth taxes, property gains taxes, as well as inheritance and gift taxes. It designates the competent authority.

2. The collection of other taxes is carried out by the Cantonal Tax Office.

3. Additional taxes are collected or waived by the authority responsible for the collection and waiver of the corresponding tax in the ordinary procedure.

4. Fines are collected by the authority responsible for collecting the tax to which the tax offense relates. Fines for violations of procedural obligations are collected by the Cantonal Tax Office.

5. The collecting authorities are also responsible for payment facilitation, waiver, and securing of taxes. The municipal council is responsible for the waiver of taxes it collects.

6. The government council is authorized to

a) entrust another authority or office with the collection of taxes;

b) issue regulations on the ongoing delivery of cantonal taxes, collected by the municipal council, to the canton.

1. The periodically owed income and wealth taxes must be paid by October 31 of the tax year.

2. All other taxes are to be paid by the end of the second month following the delivery of the assessment or provisional invoice.

3. Taxes become immediately due and must be paid within 30 days after the delivery of the invoice or assessment in the case of

a) * Termination of limited or unlimited tax liability in the municipality,

b) * Bankruptcy proceedings or upon conclusion of a composition agreement.

4. Fines must be paid within 30 days following the delivery of the order.

a) * ...

b) * ...

c) * ...

5. ...

1. Interest on compensation is granted for payments made by October 31st of the tax year and on overpaid taxes. Obviously translated, unbilled payments can be refunded.

2. For all other taxes, interest on compensation is granted from the date of payment if the taxes were unjustly demanded and paid.

3. For taxes owed and demanded that are not paid by the due date, default interest is imposed without a reminder. In cases of back taxes, the commencement of the default interest obligation is determined by the original due date (§ 223 para. 1).

4. The government council sets a compensation interest and a default interest rate for each calendar year. The difference between the compensation and default interest rates may not exceed 5 percentage points.

**1. For periodically owed taxes, a provisional invoice will be issued for each tax period. For other taxes, a provisional invoice may be issued.**

**2. The provisional invoice is based on the estimated tax amount.**

**3. For taxpayers who have not paid the provisional invoice by the deadline for filing the tax return, the amount of the provisional invoice to be paid may be determined by an order. An appeal against this order may be made in writing within 30 days.**

**4. The decision on the appeal can be contested by filing a recourse. In doing so, only the payment obligation can be disputed, or it can be credibly demonstrated that the estimated tax amount is lower than the tax claim provisionally invoiced. The president of the specialized administrative court department decides as a single judge, and this decision is final.**

1. The final assessment is issued with the definitive tax bill.

2. Outstanding amounts will be collected.

3. Credit balances will be offset against other outstanding tax claims, interest, fines, and fees. Any unutilized credits will be refunded.

4. Interest will be accounted for either on the definitive tax bill or separately.

1. Owed profit and capital taxes must be paid two months before the end of the fiscal year. If the fiscal year ends in the first quarter of a calendar year, the taxes must be paid by the end of February of the respective calendar year.

2. The taxes become due immediately and must be paid within 30 days after the delivery of the invoice or assessment

a) * upon the termination of limited or unlimited tax liability in the canton,

b) * upon filing for the deletion of a taxable legal entity in the commercial register,

c) * upon bankruptcy filing and upon the conclusion of a composition agreement.

3. Fines must be paid within 30 days after the delivery of the decision.

4. ...

1. Interest in the form of a compensation interest is calculated in favor of the taxpayer on payments made by the general due date, as well as on overpaid taxes.

2. Without notice, the following interests are calculated

a) a compensation interest against the taxpayer from the general due date, but at most on the tax amount of the final invoice,

b) a default interest from the end of the second month following the delivery of the final invoice.

3. The details are established by regulation.

4. The government council determines the compensation interest and default interest for each calendar year. The compensation interest in favor of and against the taxpayer is the same. The compensation and default interest must not differ by more than 5 percentage points.

1. A provisional invoice shall be issued for each tax period for the taxes owed.

2. The provisional invoice is based on the estimated tax amount.

3. In the case of taxpayers who have not paid the provisional invoice by the deadline for submitting the tax return, the amount of the provisional invoice payable can be determined in a decision. An objection to this decision can be filed in writing within 30 days.

4. The objection decision can be appealed. In this process, only the payment obligation can be contested, or it can be credibly demonstrated that the estimated tax amount is lower than the tax claim provisionally invoiced. The president of the specialized administrative court division decides as a single judge with finality.

1. Interest is accounted for in the final statement or billed separately.

2. Outstanding amounts will be claimed.

3. Remaining credit balances will be offset against other outstanding tax claims, interest, fines, and fees. Unused credit balances will be refunded.

1. Final and binding orders and decisions of the tax authorities and tax judiciary authorities concerning tax assessments, provisional invoices, fines, and costs are equivalent to enforceable judicial judgments pursuant to Article 80 paragraph 2 of the Federal Act on Debt Enforcement and Bankruptcy (SchKG) of April 11, 1889.

2. In the collection procedure, the tax authorities impose a reminder fee and a fee for the activities related to enforcement. The amount of these fees is determined by the government council through an ordinance. The contestation of the fee order is governed by § 231 paragraphs 3 and 4.

1. If a provisional tax bill has been paid by jointly taxable married individuals prior to a divorce or separation, the paid amount shall be allocated to them equally, unless they mutually agree to a different distribution.

1. The collecting authorities may temporarily defer or authorize installment payments for due taxes, interest, fines, and costs under special circumstances.

2. Interest is also owed for the period of deferment or installment payment.

3. Payment relief may be conditioned upon the provision of appropriate security or partial payments.

4. Payment relief will be revoked if the conditions for granting such relief no longer exist or if the terms attached to it are not fulfilled.

1. If the payment of tax, interest, a fine, or costs constitutes a significant hardship for a taxable person due to an emergency, the amounts owed may be wholly or partially forgiven upon request.

2. The purpose of the tax relief is to contribute to the permanent improvement of the financial situation of the taxable person. It is intended to benefit the taxable person themselves and not their creditors.

3. Fines and additional taxes will only be forgiven in particularly justified exceptional cases.

4. The authority responsible for granting relief will only consider requests that are submitted before the delivery of the payment order (Art. 38 para. 2 of the Federal Act on Debt Collection and Bankruptcy [SchKG] of April 11, 1889).

5. In cases of withholding tax, only the taxable person themselves or a contractual representative appointed by them may submit a request for relief.

1. Tax relief may be wholly or partially refused, particularly if the taxpayer

a) has seriously or repeatedly violated their obligations during the assessment procedure, making it impossible to evaluate the financial situation for the relevant tax period;

b) has made no provisions starting from the tax period to which the relief request pertains, despite having available resources;

c) has made no payments at the time the tax claim became due, despite having available resources;

d) has recklessly or grossly negligently caused their inability to pay by voluntarily foregoing income or assets without good reason, by excessive living expenses, or similar means;

e) has favored other creditors during the assessment period.

1. The application for remission must be submitted in writing, justified, and contain the necessary evidence. The application must explain the hardship that would result from the payment of the tax, interest, or fine.

**1. The applicant is subject to the procedural rights and obligations under this law. They must provide the issuing authority with comprehensive information about their financial circumstances. Section 190 paragraph 2 is not applicable regarding the summons.**

**2. If the applicant refuses, despite being requested and reminded, to provide the necessary and reasonable cooperation, the issuing authority may decide not to consider the application.**

**3. The issuing authority has access to all means of investigation as stipulated by this law.**

1. Insofar as this Act and the ordinance pertaining to this Act do not contain any divergent provisions, the Ordinance of the FDF on the processing of applications for exemption from direct federal tax (Tax Exemption Ordinance) of June 12, 2015, shall apply mutatis mutandis.

1. ...

2. With applications for payment relief and disputes in the collection procedure, the competent collection authority must issue a decision at the written request of the taxable person.

3. The applicant, or in decisions made by the municipal council or the office designated by it, may the Cantonal Tax Office appeal against the decision of the collection authority, within 30 days of notification, to the Special Administrative Court. The objection of unreasonableness is excluded.

4. The president of the division of the Special Administrative Court decides finally as a single judge. However, an appeal on public-law matters according to the Federal Act on the Federal Tribunal (Federal Tribunal Act, BGG) dated June 17, 2005, is reserved. Otherwise, the provisions concerning the appeal procedure for tax assessments for cantonal tax apply mutatis mutandis.

5. ...

6. The procedure for applications for payment relief or waiver, and in disputes in the collection procedure is free of charge. However, the applicant may be charged with the costs completely or partially if an obviously unfounded application has been submitted. There is no entitlement to party compensation.

1. If the taxable person has no domicile in Switzerland or if the payment of the taxes, interest, fines, or costs owed by them appears to be at risk, the collection authority may at any time require security before the tax amount is finally determined. The security order indicates the amount to be secured and is immediately enforceable. It has the same effects in enforcement proceedings as an enforceable court judgment.

2. The taxable person may appeal against the security order within 30 days of notification to the Special Administrative Court. The provisions concerning the appeal procedure for cantonal tax assessments apply accordingly.

3. The appeal does not suspend the enforcement of the security order.

1. The order of attachment is deemed an attachment order pursuant to Article 274 of the Swiss Federal Debt Collection and Bankruptcy Act (SchKG). The attachment is executed by the competent debt enforcement office.

2. An objection against the attachment order under Article 278 of the Swiss Federal Debt Collection and Bankruptcy Act (SchKG) is not permissible.

1. A legal entity may only be removed from the Commercial Register with the consent of the Cantonal Tax Office.

1. For taxes on property gains and income and profit taxes levied on capital gains, the canton and municipality are entitled to a statutory lien on the property without an entry in the land register (Art. 836 Para. 2 of the Swiss Civil Code [SCC] of December 10, 1907).

2. If a deferred gain is taxed, the statutory lien exists on the property whose sale leads to the taxation of the deferred gain.

3. The amount of the statutory lien is estimated flatly at 3% of the purchase price or 3% of the market value in the case of an exchange.

4. The lien cannot be claimed if the selling or acquiring party provides security in another form.

5. For the registration of the lien, the taxing authority issues an appealable lien decision.

6. The taxing authority requests the provisional registration of the lien with the President of the Division of the Special Administrative Court (Art. 961 SCC) if there are reasons that the deadlines pursuant to Art. 836 Para. 2 SCC cannot be met.

7. The fees and charges of the land registry office are borne by the authority responsible for the collection.

1. Anyone who, despite a reminder, intentionally or negligently fails to fulfill a duty imposed on them under the provisions of this Act or pursuant to an order issued under this Act, particularly

a) fails to submit the tax return or the required enclosures,

b) does not fulfill a certification, information, or reporting obligation,

c) violates obligations imposed on them as an heir or third party in inventory proceedings,

shall be subject to a fine.

2. The imposition of a substitute custodial sentence is excluded.

1. A fine will be imposed on anyone who

a) as a taxable person, intentionally or negligently causes an assessment to be erroneously omitted or a legally valid assessment to be incomplete;

b) as a person obligated to withhold taxes at the source, intentionally or negligently fails to make a tax deduction or makes an incomplete one;

c) intentionally or negligently obtains an unlawful refund or an unjustified exemption.

2. The fine is determined according to the culpability and amounts to one-third to three times, usually the equivalent of the evaded tax.

3. If the taxable person voluntarily reports tax evasion for the first time, prosecution will be waived (voluntary disclosure without penalty) if

a) the evasion is not known to the tax authorities;

b) they unconditionally support the tax authorities in determining the evaded assets and income elements, and

c) they make a sincere effort to pay the owed supplementary tax.

4. For each subsequent voluntary disclosure, the fine is reduced to one-fifth of the evaded tax under the conditions of paragraph 3.

1. The attempt of tax evasion is punishable.

2. The fine shall amount to two-thirds of the fine that would be imposed for completed tax evasion.

1. Anyone who intentionally incites, assists in, or, as a representative of the taxable person, effects or participates in tax evasion shall be fined irrespective of the criminal liability of the taxable person and shall be jointly liable for the evaded tax.

2. The fine is up to CHF 10,000; in severe cases or in the event of a repeat offense, up to CHF 50,000.

3. If a person under paragraph 1 self-reports for the first time and the conditions pursuant to § 236 para. 3 lit. a and b are met, prosecution is waived, and joint liability is eliminated.

1. A fine shall be imposed on anyone who

a) conceals or removes estate assets that they are obliged to disclose in the inventory process with the intent to exclude them from the inventory;

b) incites, aids, or facilitates the commission of an act referred to in letter a.

2. The fine amounts to a maximum of CHF 10,000.-, and in serious cases or in the event of a repeat offense, up to CHF 50,000.-. It is imposed without regard to the tax liability of the taxpayer.

3. The attempt to conceal or remove estate assets is also punishable. The penalty may be lighter than for completed offenses.

4. If a person self-reports for the first time under paragraphs 1 and 3, prosecution for concealment or removal of estate assets in the inventory process and for any other offenses committed in this context will be waived (self-reporting without penalty), if

a) the violation is not known to any tax authority and

b) the person unconditionally assists the administration in rectifying the inventory.

**1. The taxpayer who is in a legally and factually undivided marriage is only penalized for the evasion of their own tax factors. Subject to § 238 paragraph 1. The co-signing of the tax return, by itself, does not constitute a violation under § 238 paragraph 1.**

1. If procedural obligations are violated, taxes are evaded, or an attempt to evade taxes is made on behalf of a legal entity, the legal entity shall be fined.

2. If acts of participation (instigation, aiding and abetting, involvement) in tax evasion by third parties are committed within the business domain of a legal entity, § 238 shall apply to the legal entity.

3. The punishment of the acting bodies or representatives according to § 238 remains reserved.

4. For corporations and institutions governed by foreign law and foreign associations without legal personality, paragraphs 1-3 shall apply mutatis mutandis.

**1. If a taxable legal entity discloses for the first time a tax evasion committed in its business operations, prosecution will be waived (voluntary disclosure), provided that:**

a) the evasion is unknown to any tax authority;

b) it unconditionally supports the administration in determining the additional tax; and

c) it makes serious efforts to pay the owed additional tax.

**2. Voluntary disclosure can also be submitted after:**

a) a change in the company name or relocation of the headquarters within Switzerland;

b) transformation according to Articles 53-68 of the Federal Act on Merger, Demerger, Transformation, and Asset Transfer (Merger Act) of October 3, 2003, by the new legal entity for tax evasions committed prior to the transformation;

c) absorption (Art. 3 para. 1 lit. a Merger Act) or demerger (Art. 29 lit. b Merger Act) by the continuing legal entity for tax evasions committed prior to the absorption or demerger.

**3. The voluntary disclosure must be submitted by the officers or representatives of the legal entity. Prosecution against these officers or representatives will be waived and their joint liability will cease.**

**4. If a resigned officer or representative of the legal entity reports it for tax evasion for the first time and the tax evasion is unknown to any tax authority, prosecution of the legal entity, all current and former members of the executive bodies, and all current and former representatives will be waived. Their joint liability will cease.**

**5. For any further voluntary disclosure, the fine will be reduced to one-fifth of the evaded tax under the conditions of paragraph 1.**

**6. After the termination of tax liability of a legal entity in Switzerland, no further voluntary disclosures can be submitted.**

1. Competent for Investigation, Examination, and Penalty Order is the Cantonal Tax Office.

1. The initiation of criminal proceedings for tax evasion is communicated to the affected person in writing. The person is given the opportunity to respond to the accusation made against them; they are informed of their right to refuse to testify and cooperate.

2. Upon the submission of a voluntary disclosure, the criminal proceedings for tax evasion are considered to be initiated.

3. The criminal proceedings for violations of procedural obligations can be initiated directly by issuing a penal order.

1. The Cantonal Tax Office investigates the facts of the case. It may question the accused person or informants and undertake other investigatory actions.

2. The accused person may examine the files as soon as this is possible without endangering the purpose of the investigation. Furthermore, the provisions applicable in the regular assessment procedure regarding the procedural rights of the taxpayers and the cooperation obligations of third parties and authorities apply accordingly.

3. Protocols are maintained for the essential investigatory actions, which provide information on the content, location, and time of the actions and the names of the persons present. The protocols are to be signed by the persons present.

4. Evidence from a supplementary tax procedure may only be used in a criminal procedure for tax evasion if it was not obtained under the threat of an assessment at the discretion of the authorities (§ 191 para. 3) with the reversal of the burden of proof in accordance with §§ 192 para. 2 and 193 para. 3, nor under the threat of a fine for violation of procedural obligations.

1. Upon completion of the investigation, the penalty order is issued or the criminal proceedings are discontinued.

2. Costs and compensation are determined in accordance with the provisions of the Code of Criminal Procedure.

1. The Penal Order shall be issued in writing and determines

a) the accused person,

b) the offense,

c) the applicable legal provisions,

d) the culpability,

e) the fine,

f) the procedural costs, and

g) the notice of the right to objection.

2. For the sentencing, the general provisions of the Swiss Criminal Code of December 21, 1937, are applicable insofar as the Tax Law does not stipulate otherwise.

1. The accused person and the municipal council can file a written objection to the criminal order with the Cantonal Tax Office within 30 days of its delivery. The objection results in the annulment of the criminal order.

2. If an objection has been raised, the Cantonal Tax Office may conduct further investigations and issue a new criminal order if the facts or legal situation have changed.

3. If the Cantonal Tax Office does not consider the issuance of a new criminal order necessary, it will terminate the proceedings or file charges with the special administrative court.

4. The challenged criminal order serves as the indictment. The evidence must be attached.

5. The accused person and the municipal council may appeal the order of termination to the special administrative court.

1. If no objection is made or if it is withdrawn before the issuance of a new penalty order or before the judicial decision, the penalty order becomes legally binding and is considered a judgment.

2. Upon withdrawal of the objection before the judgment is rendered, the corresponding additional costs are to be imposed on the objecting party.

1. The trial is oral and public. To protect significant public or private interests, the court may, on its own initiative or at the request of a party, exclude the public from the proceedings entirely or partially.

2. The President of the Division or the President of the Special Administrative Court decides on fines for violations of procedural obligations as a single judge. The court evaluates the evidence freely.

3. The pronouncement of the judgment is public.

**1. The accused person must appear in person before the court. The president of the division may waive the requirement for personal appearance for important reasons.**

**2. The main hearing will be conducted in the absence of the accused person if:**

a) the accused person, who was fined for failing to appear at the first hearing, refuses to accept the second summons or again does not comply with the second summons, provided that the severity of the offense does not justify their production in court. The possibility of judgment in absence must be threatened in the second summons;

b) the case appears sufficiently clear based on the files, the accused person submits to the charges, and the court does not consider their presence at the hearing necessary;

c) the accused person, who is prevented from appearing in court, authorizes the court to issue the judgment in their absence based on the files, and the court does not deem their attendance necessary at the hearing.

**3. If the amount of the fine or the legal situation appears to justify it, an official defense may be appointed for the accused person upon their request, if they do not have the means to pay for their defense themselves.**

**4. The decision on the request for the appointment of an official defense is made by the president of the division of the special administrative court.**

**5. Only lawyers, notaries, as well as federally certified accountants, controllers, tax experts, accountants, and trustees may be used for the defense.**

**6. For criminal proceedings involving accused persons who are not proficient in the German language, an interpreter will be appointed as needed.**

1. Unless otherwise stipulated by the preceding provisions, the provisions regarding the appeal procedure for ordinary assessments shall apply mutatis mutandis.

1. Against the decision of the Specialized Administrative Court, the convicted person, the municipal council, and the cantonal tax office may file an appeal with the Administrative Court. This court makes a final decision, insofar as the procedure relates to inheritance and gift taxes as well as other levies not regulated in the Tax Harmonization Act.

2. Against the decision of the Administrative Court, an appeal in public law matters may be filed with the Federal Court in accordance with the Federal Act on the Federal Court (Federal Court Act, BGG) of June 17, 2005. Criminal jurisdiction is excluded.

1. Fines determined as multiples of the evaded taxes are distributed according to the tax rates applicable to the evaded taxes.

2. The remaining fines are allocated for natural persons, half to the canton and half to the residential municipality in Aargau, or to the relevant municipality in the case of economic affiliation only. For legal entities, they fall to the canton.

1. Prosecution is time-barred

a) in the case of violation of procedural duties, 3 years, and in the case of attempted tax evasion, 6 years after the legally binding conclusion of the proceedings in which the procedural duties were violated or the attempted tax evasion was committed;

b) in the case of completed tax evasion, 10 years after the end of the tax period for which the taxable person was either not assessed or assessed incompletely, or the tax deduction at source was not executed lawfully, or 10 years after the end of the calendar year in which an unlawful refund or an unjustified remission was obtained or assets were concealed or removed in the inventory procedure.

2. The statute of limitations shall no longer apply if a penalty order is issued before the expiration of the limitation period (§ 245 para. 1).

1. Anyone who, for the purpose of tax evasion, uses forged, falsified, or substantively untrue documents such as ledgers, balance sheets, income statements, wage statements, and other third-party certificates for deception shall be punished with imprisonment for up to 3 years or a fine. A conditional sentence may be combined with a fine of up to CHF 10,000.

2. Punishment for tax evasion remains reserved.

3. If there is a voluntary disclosure under §§ 236 paragraph 3 or 241a paragraph 1 due to tax evasion, prosecution for all other criminal offenses committed for the purpose of tax evasion shall be refrained from. This provision shall also apply in cases pursuant to §§ 238 paragraph 3 and 241a paragraphs 3 and 4.

1. Whoever is obligated to deduct taxes at the source and uses the deducted taxes for personal or third-party benefit shall be punished with imprisonment for up to 3 years or a monetary fine. A suspended sentence may be combined with a fine of up to CHF 10,000.

2. If withholding taxes are embezzled within the business operations of a legal entity, a sole proprietorship, a corporation, or a public law institution, paragraph 1 applies to the persons who acted or should have acted on their behalf.

3. Punishment for tax evasion remains reserved.

4. If there is a self-disclosure without penalty regarding the embezzlement of withholding tax, prosecution for all other offenses committed for the purpose of embezzling the withholding tax will also be refrained from. This provision is also applicable in cases under §§ 238 para. 3 and 241a paras. 3 and 4.

1. Jurisdiction for investigation, examination, and assessment lies with the prosecuting and judicial authorities according to the provisions of the Code of Criminal Procedure.

2. The general provisions of the Swiss Criminal Code of December 21, 1937, are applicable insofar as the Tax Law does not provide otherwise.

3. The procedure is governed by the provisions of the Code of Criminal Procedure.

4. Decisions of the last cantonal instance are subject to appeal in criminal matters to the Federal Supreme Court.

1. Prosecution of tax offenses is subject to a statute of limitations of 15 years from the time the perpetrator carried out the last criminal act.

2. The statute of limitations does not apply if a judgment at first instance has been rendered before the expiry of the limitation period.

1. Upon the entry into force of this Act, all provisions of existing laws and implementing decrees that conflict with it are repealed, particularly

a) the Tax Law (Law on Taxes on Income, Wealth, Property Gains, Inheritances, and Gifts) of December 13, 1983[48];

b) the Law on the Taxation of Corporations (Joint Stock Companies, Limited Partnership Companies, Limited Liability Companies) and Cooperatives of October 5, 1971[49].

2. Additionally, the Ordinance on the Collection of a Stamp Duty of October 28, 1907[50] and the Implementing Ordinance to the Ordinance on the Collection of a Stamp Duty of December 16, 1907[51] are repealed.

1. The Financial Equalization Act of June 29, 1983, is amended as follows

*Text inserted in the relevant decree.*

1. Taxes levied for fiscal years not covered by this law are to be assessed according to the provisions of the previous law.

1. The assessed values for immovable property and imputed rental values established according to the provisions of the Tax Act of December 13, 1983, shall remain in effect until the next general reassessment. Individual assessments pursuant to § 218 paragraph 2 and adjustments pursuant to § 218 paragraph 3 are reserved.

1. Income and wealth taxes for the tax period 2001 shall be levied according to new law.

2. Extraordinary income (particularly from non-periodic asset returns or non-periodic gratuities) as well as extraordinary income on business assets (in particular capital gains, accounting revaluation of assets, dissolution of provisions, omissions of commercially necessary depreciations and provisions) for the years 1999 and 2000 are subject to a separate annual tax for the tax year in which they accrued. Expenses directly related to the generation of extraordinary income may be deducted.

3. The annual tax is calculated using the rates of the Tax Act of December 13, 1983, at the tax rate applicable solely to these incomes, but at least at a tax rate of 4%.

4. Extraordinary expenses incurred during the 1999/2000 tax period can be deducted in this tax period if a tax liability based on personal affiliation exists in the canton on January 1, 2001. Assessments that have already become legally effective will be revised in favor of the taxable person.

5. Extraordinary expenses are considered to be

a) Maintenance costs for properties, insofar as they annually exceed the flat-rate deduction;

b) Contributions to professional pension schemes for the purchase of contribution years;

c) Costs for illness, accident, disability, further education, and retraining, as far as they exceed the expenses already considered.

6. The taxpayers must submit a tax return in 2001 for the income of the years 1999 and 2000 and the assets as of January 1, 2001.

1. The Income Tax for the taxation period 2001 is as follows

a) 0% for the first CHF 3,600

b) 1% for the next CHF 3,100

c) 2% for the next CHF 3,200

d) 3% for the next CHF 3,600

e) 4% for the next CHF 3,600

f) 5% for the next CHF 3,600

g) 6% for the next CHF 3,600

h) 7% for the next CHF 6,300

i) 8% for the next CHF 8,100

k) 9% for the next CHF 9,900

l) 10% for the next CHF 11,700

m) 11% for the next CHF 29,700

n) 11.5% for the next CHF 54,000

o) 11.8% for the next CHF 144,000

p) 12% for income exceeding CHF 288,000

2. § 43 paragraphs 2-4 apply analogously.

1. The income tax for the tax period 2014 is

a) 0% for the first CHF 4,000

b) 1% for the next CHF 3,500

c) 2% for the next CHF 3,600

d) 3% for the next CHF 4,000

e) 4% for the next CHF 4,000

f) 5% for the next CHF 4,400

g) 6% for the next CHF 5,000

h) 7% for the next CHF 8,500

i) 8% for the next CHF 9,000

j) 8.75% for the next CHF 9,000

k) 9% for the next CHF 10,000

l) 9.5% for the next CHF 26,000

m) 10% for the next CHF 53,000

n) 10.5% for the next CHF 156,000

o) 11.125% for income parts over CHF 300,000

1. For procedures, due dates, and collection of taxes for the year 2001, the new law applies.

1. For real estate properties, which according to previous law were partially allocated to business assets and partially to private assets due to value apportionment, the following regulation applies

a) For properties primarily serving independent professional activities, the part previously designated as private according to value apportionment is to be classified for tax purposes as business assets as of the effective date of January 1, 2001. Insofar as they are not yet included in the balance sheet, they must be recorded at cost.

b) For properties not primarily serving independent professional activities, the part designated as business assets according to value apportionment is to be transferred to private assets at cost value. If the book value is below the cost value, the difference must be recorded with income tax. The taxation of these reclaimed depreciations is deferred until the property is sold or until the cessation of independent professional activity. The deferral ends with whichever event occurs first. The taxable person may waive the tax deferral.

2. Owners of mixed-use properties must declare in the tax return for the 2001 tax period whether the property belongs to business or private assets. If allocated to private assets, the reclaimed depreciations on the business-used portion must be indicated. The determined amount of reclaimed depreciations will be binding with the assessment for the 2001 tax period unless the taxable person waives the tax deferral.

1. Pensions and lump-sum payments from occupational benefits that began or became due before January 1, 1987, or that begin or become due before January 1, 2002, and are based on a pension relationship that already existed on December 31, 1986, are taxable as follows

a) At three-fifths, if the benefits (such as deposits, contributions, premium payments), on which the claim of the taxable person is based, were made exclusively by the taxable person;

b) At four-fifths, if the benefits on which the claim of the taxable person is based, were made only in part, but at least 20%, by the taxable person;

c) At the full amount in all other cases.

2. The benefits of the taxable person as mentioned in Paragraph 1 lit. a and b are equivalent to the benefits from relatives; the same applies to benefits from third parties if the taxable person acquired the insurance claim through inheritance, legacy, or gift.

3. Pensions that were fully subject to income tax under § 23 lit. k of the Tax Law of December 13, 1983, before this law came into force, remain 100% taxable.

4. Capital payments from capital insurance with single premiums, concluded between January 1, 1988, and December 31, 1998, and not serving the purpose of pension schemes in the sense of § 29 Para. 1 lit. a Ziff. 2, are subject to an annual tax calculated separately from the other income at 40% of the rate. Several such capital payments are to be taxed together at the total rate if they are paid out within 5 years. Previously carried out assessments are to be revised. The five-year period begins with the calendar year of the first capital payment.

5. Capital payments from capital insurance with single premiums concluded before January 1, 1988, remain tax-free in any case.

1. For natural persons who were taxed based on expenditure at the time of the amendment's entry into force on August 25, 2015, § 24 of the previous law shall continue to apply for five years.

1. If, at the time of the enactment of the Act on Balancing the Task Shift Balance and Transitional Contributions (AVBiG) dated March 1, 2016, the liability shift according to § 1 paragraph 1 letter d AVBiG has not come into effect, the surcharge according to § 57a shall amount to four percentage points.

2. If the liability shift according to § 1 paragraph 1 letter d AVBiG comes into effect after the enactment of the AVBiG, the surcharge according to paragraph 1 shall be reduced to three percentage points at the next possible beginning of the year.

1. The first tax period under the new law is the fiscal year ending in the calendar year 2001.

2. The assessment basis for the first tax period is the average ordinary profit determined under the new law for the fiscal years ending in 1999, 2000, and 2001, increased by extraordinary revenues (capital gains, book revaluations of assets, dissolution of provisions, omissions of business-essential depreciations and provisions) and reduced by the extraordinary expenses of the years 1999, 2000, and 2001. The profit determining the rate is derived from the average profit of the fiscal years ending in 1999, 2000, and 2001.

3. Losses from the years 1993 to 1998 that have not yet been offset are to be applied first against the balance of extraordinary revenues and extraordinary expenses of the fiscal years ending in 1999, 2000, and 2001. If a loss still results from this, it is to be deducted from the total ordinary profits of the fiscal years ending in 1999, 2000, and 2001. One third of the resulting balance gives the assessment basis for the tax year 2001. Starting from the tax period 2002, § 74 applies.

4. If tax liability begins in the year 1999, the average profit is generally to be determined in accordance with the duration of the tax liability. If tax liability begins in the year 2000 or 2001, the fiscal year 2001 is generally decisive. Exceptions are regulated by the government council.

5. To the extent that the fiscal year ending in the calendar year 2001 extends back into the calendar year 2000, the profit tax owed for this period under previous law is credited. No surplus is reimbursed.

1. The Capital Tax 2001 is assessed according to the new law. To the extent that the fiscal year ending in calendar year 2001 extends back into calendar year 2000, the capital tax owed for this period under the previous law will be credited. Any excess will not be refunded.

1. The new law applies to procedures, due dates, and the collection of the tax for the year 2001. In the case of restructurings in the years 1999, 2000, and 2001, § 7 para. 3 of the Act on the Taxation of Corporations and Cooperatives of October 5, 1971, remains applicable.

1. Capital gains from holdings as well as the proceeds from the sale of related subscription rights are not taken into account when calculating the net profit according to § 76, if the respective holdings were owned by the corporation or cooperative before January 1, 1997, and the mentioned gains were realized before January 1, 2007.

2. If a corporation or cooperative transfers a holding of at least 20% of the share or nominal capital of other companies, which was in its possession before January 1, 1997, to a foreign group company, the difference between the tax book value and the market value of the holding is added to the taxable net profit. In this case, the respective holdings continue to be part of the holdings held before January 1, 1997. Simultaneously, the corporation or cooperative is entitled to establish a tax-free reserve in the amount of this difference. This reserve is dissolved with tax effect if the transferred holding is sold to a third party outside the group, if the company whose participation rights have been transferred sells its assets and liabilities to a significant extent, or if it is liquidated. The corporation or cooperative must attach a list of holdings for which a tax-free reserve exists under the provisions of this regulation to each tax return. On December 31, 2006, the tax-free reserve will be dissolved tax-neutrally.

1. If legal entities were taxed according to §§ 78 or 79 prior to the amendment taking effect on September 17, 2019, the latent reserves existing as of the amendment's effective date, including self-generated added value, which had not previously been taxable, shall be separately taxed at a rate of 2.5% upon their realization within the next five years.

2. The amount of the latent reserves, including self-generated added value, claimed by the legal entity upon this amendment taking effect, shall be determined by the Cantonal Tax Office through a ruling.

3. Legal entities that were taxed according to §§ 78 or 79 but had already lost or relinquished their privileged status before the amendment took effect on September 17, 2019, can disclose the latent reserves existing at the time the privilege was lost, including self-generated added value, tax-neutrally, insofar as they arose during the privileged period and had not previously been taxable.

4. Depreciations on the disclosed latent reserves, including self-generated added value, shall be included in the calculation of the relief limitation according to § 69b starting January 1, 2020. Latent reserves, including self-generated added value, still existing as of December 31, 2024, may be dissolved tax-free.

1. Corporations and Cooperatives shall pay a basic tax on net profit as follows

a) from January 1, 2022, to December 31, 2023, 5.5% on the first CHF 250,000 of the taxable net profit;

b) from January 1, 2022, to December 31, 2022, 7.5% on the remaining net profit;

c) from January 1, 2023, to December 31, 2023, 6.5% on the remaining net profit.

1. In place of the surcharges stipulated in § 90 para. 1 lit. a and b, the following additions or deductions on the basic cantonal tax on taxable net profit and equity capital shall apply until the end of the tax period 2025

a) from January 1, 2022, to December 31, 2022

1. a cantonal tax deduction of -1%;

2. a surcharge of 56% for the municipalities in which the legal entity is taxable.

b) from January 1, 2023, to December 31, 2023

1. a cantonal tax deduction of -4%;

2. a surcharge of 59% for the municipalities in which the legal entity is taxable.

c) from January 1, 2024, to December 31, 2024

1. a cantonal tax deduction of -7%;

2. a surcharge of 62% for the municipalities in which the legal entity is taxable.

d) from January 1, 2025, to December 31, 2025

1. a cantonal tax deduction of -3%;

2. a surcharge of 58% for the municipalities in which the legal entity is taxable.

2. From January 1, 2026, the surcharges according to § 90 para. 1 lit. a and b shall apply.

1. The canton provides the municipalities with a one-time compensation payment of CHF 10 million for the 2022 tax period. The payment shall be made no later than June 30, 2022.

2. For the years 2023 to 2025, the government council determines, after the end of each fiscal year, the difference between the total income, wealth, withholding, profit, and capital tax revenues of all municipalities collectively for the elapsed fiscal year and the corresponding revenues in the previous period, including the compensation payment for the year 2022 as per paragraph 1. The tax revenues of the municipalities for the years 2023 to 2025 shall be adjusted for this calculation for any changes in the municipal tax rates for individuals. If, in any year, the revenues from the aforementioned taxes for all municipalities collectively are lower than in the previous year, the canton shall provide the municipalities with a compensation payment by the end of the year equal to this difference, but for each year 2023 to 2025 at a maximum of CHF 10 million.

3. The distribution of compensation payments among the individual municipalities shall be made in proportion to their population. For the year 2022 as of December 31, 2021, and for the years 2023 to 2025 as of December 31 of the year for which the compensation payment is made.

1. Transfers are subject to the new law if they are publicly notarized after the entry into force of this Act.

2. Transfers that are not publicly notarized are subject to the new law if the authority of disposal has passed after the entry into force of the Act.

1. Assets that were received before this law came into effect are subject to the previous law.

2. For the calculation of the tax rate pursuant to § 149 paragraph 2, the assets received prior to January 1, 2001, are included.

1. The assessment of tax offenses committed prior to the enactment of this law shall be conducted according to the previous law, unless the new law results in a more lenient punishment for the offender.

1. Tourist tax regulations enacted under previous law remain in force.

1. This law shall be published in the legal gazette. It shall enter into force on January 1, 2001.

2. The executive council is entrusted with the enforcement.