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Act on Direct Taxes (Steuergesetz, StG) (StG)

281 Articles / Provisions · Switzerland · Canton of Basel-Stadt
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Table of Provisions (281)

§ 1 Tax Law, TL § 2 Tax Law, TL § 2a Tax Law, TL § 3 Tax Law, TL § 4 Tax Law, TL § 5 Tax Law, TL § 6 Tax Law, TL § 7 Tax Law, TL § 8 Tax Law, TL § 9 Tax Law, TL § 10 Tax Law, TL § 11 Tax Law, TL § 12 Tax Law, TL § 13 Tax Law, TL § 15 Tax Law, TL § 16 Tax Law, TL § 17 Tax Act, TA § 18 Tax Law, TL § 18a Tax Law, TL § 18b Tax Law, TL - c) Income from Genuine Employee Participation § 18c Tax Act, TA § 18d Tax Law, TL § 19 Tax Law, TL § 19a Tax Law, TL § 19b Tax Law, TL § 20 Tax Law, TL § 20a Tax Law, TL § 21 Tax Law, TL - a) General Provisions § 21a Tax Law, TL § 22 Tax Law, TL § 23 Tax Law, StG § 24 Tax Law, TL § 25 Tax Law, TL § 26 Tax Law, TL § 27 Tax Law, TL § 28 Tax Law, TL § 29 Tax Law, TL § 30 Tax Law, TL § 31 Tax Law, TL § 32 Tax Act, TA § 33 Tax Law, TL § 34 Tax Law, TL § 35 Tax Law, TL § 36 Tax Law, TL § 36a Tax Law, StG § 37 Tax Law, TL § 38 Tax Law, TL § 38a Tax Law, StG § 38b Tax Act, TA § 39 Tax Act, TA § 40 Tax Law, TL § 41 Tax Law, TL § 42 Tax Law, StG - a) Attainment of Majority § 43 Tax Law, StL § 44 Tax Law, TL § 45 Tax Law, TL § 46 Tax Law, TL § 47 Tax Law, TL § 48 Tax Law, TL § 49 Tax Law, StG § 50 Tax Law, TL § 51 Tax Law, TL § 52 Tax Law, TL § 53 Tax Law, TL § 54 Tax Law, TL § 55 Tax Law, TL § 56 Tax Act, TA § 57 Tax Law, TLA § 58 Tax Law, TL § 59 Tax Law, TL § 60 Tax Law, TL § 61 Tax Law, TL § 62 Tax Law, TL § 63 Tax Law, TL § 64 Tax Law, TL § 65 Tax Law, TL § 66 Tax Law, TL § 67 Tax Law, TL § 68 Tax Law, TL § 69 Tax Law, TL § 69a Tax Law, TL § 69b Tax Law, TL § 70 Tax Law, TLA § 70a Tax Law, StG § 71 Tax Law, TL § 72 Tax Law, StG § 73 Tax Law, TL § 73a Tax Law, TL - Disclosure of Hidden Reserves upon Commencement of Tax Liability § 73b Tax Act, TA § 74 Tax Law, TL § 74a Tax Law, TL **§ 75 Tax Law, TL - Losses** § 76 Tax Law, TL § 77 Tax Law, TL § 82 Tax Law, TL § 83 Tax Law, TL § 84 Tax Act, TA § 85 Tax Law, TL § 86 Tax Law, TL § 87 Tax Law, TL § 88 Tax Law, Tax Act § 89 Tax Law, TL § 90 Tax Law, TL § 91 Tax Law, TL § 92 Tax Law, TL § 93 Tax Law, StG § 94 Tax Law, TL § 94a Tax Law, TL § 95 Tax Law, StG § 96 Tax Law, TL § 97 Taxation Act, TA § 98 Tax Law, TL § 99 Tax Law, Tax Act § 100 Tax Law, TL § 100a Tax Law, StG § 101 Tax Law, TL § 101a Tax Law, TL § 101b Tax Law, TL § 102 Tax Code, TC **§ 103 Tax Law, TL** § 104 Tax Law, StG § 105 Tax Law, TL § 106 Tax Law, StG § 107 Tax Law, TL § 108 Tax Law, TL § 109 Tax Law, TL § 110 Tax Law, TLA § 111 Tax Law, TL § 112 Tax Law, StG § 113 Tax Law, StG § 114 Tax Law, StG § 115 Tax Law, TL § 116 Tax Law, TL § 117 Tax Law, TL § 118 Tax Law, StG § 119 Tax Law, StG § 120 Tax Law, TL § 121 Tax Law, TL - a) Inheritance-Related Asset Transfers § 122 Tax Law, TL § 123 Tax Law, TL § 124 Tax Law, TL § 125 Tax Law, TL § 126 Tax Law, TL § 127 Tax Law, TL § 128 Tax Law, TL § 129 Tax Law, StG § 130 Tax Law, TL § 131 Tax Law, TL § 132 Tax Law, TL § 133 Tax Law, TL § 134 Tax Law, TL § 134a Tax Law, TL § 135 Tax Law, TL § 136 Tax Law, TLA § 137 Tax Law, StG § 138 Tax Law, TL - a) Principle § 139 Tax Law, TL - b) Assistance between Tax Authorities § 140 Tax Law, StG § 141 Tax Law, TL - d) Assistance to Other Authorities § 141a Tax Law, TL § 142 Tax Law, TL § 143 Tax Law, StG § 144 Tax Law, StG § 145 Tax Law, TL § 146 Tax Law, TL § 147 Tax Law, StG § 148 Tax Law, TL § 149 Tax Law, TL § 150 Tax Law, StG § 151 Tax Law, TL - a) Tax Declaration § 152 Tax Law, TL § 153 Tax Law, StG § 154 Tax Law, TL § 155 Tax Law, TL § 156 Tax Law, TL § 157 Tax Law, TL § 158 Tax Law, TL § 159 Tax Law, TL § 159a Tax Law, TgL § 160 Tax Law, TL § 161 Tax Law, TL § 162 Tax Law, StG § 163 Tax Law, StG § 164 Tax Law, TL § 165 Tax Law, StG § 165a Tax Law, StG § 166 Tax Act, StA - b) Consultation § 167 Tax Law, TL § 168 Tax Law, TL § 168a Tax Law, TL § 169 Tax Law, TL § 170 Tax Law, TL **§ 171 Tax Law, TL** § 172 Tax Law, TL § 173 Tax Law, Tax Act § 174 Tax Law, TL § 175 Tax Law, TL § 176 Tax Law, StG § 177 Tax Law, TL § 178 Tax Law, TL § 179 Tax Law, TL § 179a Tax Act, TA § 180 Tax Law, TL § 181 Tax Law, TL § 182 Tax Law, TL § 183 Tax Law, TL § 184 Tax Law, StG § 185 Tax Law, TL § 186 Tax Law, TL § 187 Tax Law, StG § 188 Tax Law, TL § 189 Tax Law, TL § 190 Tax Law, TL § 190a Tax Law, TL § 191 Tax Law, TL § 191a Tax Law, TL § 192 Tax Law, TL § 193 Tax Law, TL § 194 Tax Law, StG § 195 Tax Law, TL § 196 Tax Law, TL § 197 Tax Law, TL § 197a Tax Law, TL § 198 Tax Law, TL § 199 Tax Law, TL § 200 Tax Law, TL § 201 Tax Law, TL § 201a Tax Law, TL § 201b Tax Law, TL § 202 Tax Law, TL § 203 Tax Law, TL § 204 Tax Law, TL § 205 Tax Law, TL § 206 Tax Law, TL § 207 Tax Law, TL § 208 Tax Law, TL § 209 Tax Law, TL § 210 Tax Law, TL § 211 Tax Law, TLA § 212 Tax Law, TL § 214 Tax Law, TL § 215 Tax Law, TL - a) General Provisions § 215a Tax Law, TL § 216 Tax Law, TL § 217 Tax Law, TL § 218 Tax Law, TL § 219 Tax Law, TL § 220 Tax Law, TL § 221 Tax Law, TL § 222 Tax Law, TL § 223 Tax Law, TL § 224 Tax Law, TL § 225 Tax Law, TL § 226 Tax Law, TL § 227 Tax Law, TLA § 228 Tax Law, StG § 228a Tax Law, TL § 228b Tax Law, TL § 229a Tax Law, TL § 230 Tax Law, TL § 231 Taxation Law, TL § 232 Tax Law, TL § 233 Tax Law, StL **§ 233a Tax Law, TL** § 234 Tax Law, TL § 235 Tax Law, TL § 236 Tax Law, TL § 237 Tax Act, TA - a) Pensions § 238 Tax Law, TL - b) Capital Settlements § 239 Tax Law, TL § 239a Tax Law, TL § 239c Tax Law, TL § 240 Tax Law, TL § 241 Tax Law, TL - b) Recipients of Child Support § 241a Tax Law, TL § 241b Tax Law, TL § 242 Tax Law, TL § 242bis Tax Act, TA § 242c Tax Law, StG § 242ter Tax Law, TL § 243 Tax Law, StG

Statutory Text (281 Articles)

The Individual Taxes - General - Types of Taxes in the Law
§ 1 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The canton levies the following taxes under this law

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

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

c) a withholding tax;

d) a property gain tax;

e) a property tax on legal entities;

f) * an inheritance and gift tax;

g) * a capital charge on businesses in the Swiss sector of Basel-Mulhouse Airport.

The Individual Taxes - General Provisions - Municipal Taxes and Church Taxes
§ 2 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The municipal communities of Bettingen and Riehen impose the following municipal taxes on natural persons who are personally or economically subject to tax according to §§ 228 and 228b

a) an income tax;

b) a wealth tax;

c) a real estate capital gains tax.

2. The municipal taxes are determined as a percentage (tax rate) of the taxes calculated under this law.

3. In the city of Basel, no municipal taxes are levied.

The Individual Taxes - General Provisions - Municipal Taxes and Church Taxes
§ 2a Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Publicly recognized churches and religious communities are entitled, according to § 4 of the Act concerning the state's supervision over public law churches and the Israelite community as well as the use of state and municipal funds for church purposes (Church Act) dated November 8, 1973, to levy a church tax from their members.

**The Individual Taxes - Income and Wealth Tax of Natural Persons - Tax Liability[[1]](#titletitle_text_fn_904948_2_1_c) - Tax Affiliation - Personal Affiliation**
§ 3 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Natural persons are liable to taxes due to personal affiliation if they have their tax residence or habitual abode in the canton.

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

3. A person has a tax residence in the canton if, notwithstanding temporary interruptions, they stay here for at least 30 days while engaging in gainful employment, or for at least 90 days without engaging in gainful employment.

The Individual Taxes - The Income and Wealth Tax of Natural Persons - Tax Liability[[1]](#titletitle_text_fn_904948_2_1_c) - Tax Residency - Economic Residency
§ 4 Act on Direct Taxes (Steuergesetz, StG) - a) Commercial Enterprises, Permanent Establishments, and Real Property Open official source

1. Natural persons without a tax residence or domicile in the canton are liable to tax based on economic affiliation if they

a) Are owners, co-owners, beneficiaries, or enjoy similar interests in business enterprises within the canton;

b) Maintain permanent establishments in the canton;

c) Own real estate, possess property rights, or hold personal rights equivalent in economic terms to property rights within the canton;

d) Engage in transactions involving real estate located in the canton.

The Individual Taxes - The Income and Wealth Tax of Natural Persons - Tax Liability[[1]](#titletitle_text_fn_904948_2_1_c) - Tax Residency - Economic Residency
§ 5 Act on Direct Taxes (Steuergesetz, StG) - b) Other Taxable Values Open official source

1. Natural persons without a tax residence or habitual abode in Switzerland are subject to tax liability due to economic affiliation if they

a) conduct a gainful activity in the canton;

b) receive royalties, attendance fees, fixed compensations, employee participations, or similar remunerations as members of the board of directors or management of legal entities with their seat or permanent establishment in the canton;

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

d) broker real properties situated in the canton;

e) receive pensions, retirement benefits, or other payments due to a previous public-law employment relationship from an employer or pension institution with a seat in the canton;

f) receive benefits from Swiss private-law institutions of occupational pension plans or from recognized forms of tied self-provisionary schemes with a seat or permanent establishment in the canton;

g) receive wages or other remunerations for work in international traffic on board a ship, aircraft, or for road transport from an employer with a seat or permanent establishment in the canton; taxation of seafarers for work on board an ocean-going vessel remains exempt.

Individual Taxes - Income and Wealth Tax of Natural Persons - Tax Liability[^1] - Fiscal Affiliation - Scope of Tax Liability, Tax Apportionment
§ 6 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. In the case of personal affiliation, tax liability is unlimited; 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 the portions of income and assets for which there is a tax liability in the canton pursuant to §§ 4 and 5. At a minimum, the income earned in Switzerland must be taxed.

3. The delineation of tax liability for businesses, permanent establishments, and real estate in relation to other cantons and abroad is governed by the principles of federal law concerning the prohibition of inter-cantonal double taxation. If a Swiss company offsets losses from a foreign permanent establishment against domestic profits, but records profits from this establishment within the following seven years, a revision of the original assessment must be undertaken to the extent of the profits that can be offset in the state of the permanent establishment; in this case, losses from this establishment are subsequently considered in Switzerland only for the determination of the tax rate. In all other cases, foreign losses are considered exclusively for the determination of the tax rate. Deviating federal and international treaty regulations remain reserved.

Individual Taxes - Income and Wealth Tax for Natural Persons - Tax Liability[[1]](#titletitle_text_fn_904948_2_1_c) - Tax Affiliation - Calculation of the Tax Rate for Partial Tax Liability
§ 7 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Natural persons who are liable to pay taxes in the canton only for a portion of their income and assets shall pay the tax on the taxable values in the canton according to the tax rate applicable to their entire income and assets.

The Individual Taxes - The Income and Wealth Tax of Natural Persons - Tax Liability - Commencement and Termination of Tax Liability
§ 8 Act on Direct Taxes (Steuergesetz, StG) Open official source

**1. Commencement of Tax Liability**

The tax liability begins on the day when the taxable person establishes a legal residence or domicile in the canton, or acquires taxable assets within the canton.

**2. Termination of Tax Liability**

The tax liability ends upon the death or departure of the taxable person from the canton, or upon the cessation of taxable assets in the canton.

**3. Change of Residence between Cantons**

When relocating from another canton, the tax liability based on personal affiliation commences on the first day of the tax period during which the change of legal residence occurs. When relocating to another canton, the tax liability based on personal affiliation ends on the last day of the tax period preceding the relocation. Lump sum payments according to § 39 are taxable if the taxable person has their legal residence in the canton at the time of maturity.

**4. Economic Affiliation with the Canton**

In the case of economic affiliation with the canton and legal residence in another canton, the tax liability in the canton exists for the entire duration of the tax period, even if the economic affiliation is established, altered, or terminated during the year. For wealth tax, the value of assets is measured in proportion to the duration of their affiliation. The same applies mutatis mutandis in cases of economic affiliation in another canton and legal residence in the canton. Furthermore, income and assets are allocated between the involved cantons by applying the principles of federal law regarding the prohibition of inter-cantonal double taxation accordingly.

The Individual Taxes - Income and Wealth Tax of Natural Persons - Tax Liability - Special Circumstances, Liability - Spouses and Registered Partners
§ 9 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The income and assets of spouses living in a legally and factually undivided marriage are combined without regard to the marital property regime. If only one spouse is liable to pay taxes in the canton, they shall pay the tax rate corresponding to the entire marital income and assets.

2. Spouses living in a legally and factually undivided marriage are only liable for their share of the total tax.

3. These and all other provisions of this law regarding spouses apply mutatis mutandis to registered partners.

The Individual Taxes - Income and Wealth Tax of Natural Persons - Tax Liability - Special Circumstances, Liability - Children Under Parental Custody
§ 10 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The income and assets of children under parental custody are aggregated with the income and assets of the person holding parental custody until the end of the year preceding the age of majority.

2. If parents who are not jointly assessed exercise joint parental custody of the child, the child's income and assets are aggregated with the income and assets of the parent who primarily provides for the child's maintenance.

3. Income from employment is taxed independently for the child.

4. Minor children under parental custody are jointly liable with the taxable person holding parental custody up to the amount corresponding to their share of the total tax.

5. Spouses living in a legally and factually undivided marriage are jointly liable for the portion of the total tax that corresponds to the child's income or assets.

The Individual Taxes - Income and Wealth Tax of Natural Persons - Tax Liability[[1]](#titletitle_text_fn_904948_2_1_c) - Special Circumstances, Liability - Inheritances
§ 11 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Upon the death of a taxable person, their heirs shall assume their rights and obligations.

2. The income and assets of heir communities are allocated proportionately to the individual heirs; heir communities as such are not subject to taxation.

3. The heirs are required to submit any outstanding tax returns and to pay or secure the taxes owed, or yet to be determined, before the distribution of the estate.

4. The heirs are jointly liable for the taxes owed by the deceased up to the amount of their respective inheritance shares.

5. The surviving spouse is liable with their inheritance share and any amount they receive under marital property law from the surplus or joint property beyond the statutory share under Swiss law.

The Individual Taxes - Income and Wealth Tax of Natural Persons - Tax Liability[[1]](#titletitle_text_fn_904948_2_1_c) - Special Circumstances, Liability - Companies and Collective Investment Schemes
§ 12 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The income and assets of simple partnerships, general partnerships, and limited partnerships are attributed proportionally to the individual partners.

2. The partners residing in Switzerland of a simple partnership, general partnership, or limited partnership are jointly liable with the taxable person up to the amount of their shares in the partnership for the taxes owed by partners residing abroad due to their participation.

3. Foreign commercial partnerships and other foreign collective entities without legal personality that are taxable due to economic affiliation pay their taxes according to the provisions for legal entities.

4. The income and assets of collective investment schemes, as per the Federal Act on Collective Investment Schemes dated June 23, 2006, are attributed proportionally to the investors; exempted from this are collective investment schemes with direct real estate ownership.

**The Individual Taxes - The Income and Wealth Tax of Natural Persons - Tax Liability[[1]](#titletitle_text_fn_904948_2_1_c) - Special Circumstances, Liability - Joint Liability for the Tax**
§ 13 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Persons who dissolve businesses or permanent establishments in the canton or sell or liquidate properties located in the canton, or claims secured by such properties, are jointly liable with the taxable person for up to the amount of the net proceeds if the taxable person does not have a tax domicile in Switzerland.

2. The buyer or seller of a property located in the canton is jointly liable for up to 3 percent of the purchase sum for the tax arising from the brokerage activities of the taxable person they have engaged, if this person does not have a tax domicile in Switzerland.

**The Individual Taxes - The Income and Wealth Tax of Natural Persons - Tax Liability - Tax Exemption**
§ 15 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Persons exempted from tax under Article 2 paragraph 2 of the Host State Act of June 22, 2007, are not taxed to the extent that federal law provides for a tax exemption.

2. In the case of partial tax liability, § 7 applies.

Individual Taxes - Income and Wealth Taxes for Natural Persons - Tax Obligation[[1]](#titletitle_text_fn_904948_2_1_c) - Tax Relief for Businesses
§ 16 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The government council may grant tax relief for the founding year and the nine subsequent years to sole proprietorships or partnerships that are newly established or undergo significant changes in their business activities and serve the economic interest of the canton.

2. In its decision, the government council shall determine the conditions of the tax relief. It may revoke the tax relief as of the date it is granted if these conditions are not met.

3. The decision of the government council is final.

### Individual Taxes - Income and Wealth Tax of Natural Persons - Income Tax - Taxable Income - Principle If you have any specific sections or further legal documents you would like translated, feel free to provide them!
§ 17 Act on Direct Taxes (Steuergesetz, StG) Open official source

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

2. Income also includes benefits in kind of any kind, in particular free meals and accommodation, as well as the value of self-consumed products and goods from one's own business; these are generally measured at their market value.

The Individual Taxes - Income and Wealth Tax of Natural Persons - Income Tax - Taxable Income - Dependent Employment
§ 18 Act on Direct Taxes (Steuergesetz, StG) - a) Principle Open official source

1. Taxable are all incomes from private or public employment relationships, including ancillary incomes such as compensation for special services, commissions, allowances, service anniversaries and jubilee gifts, bonuses, tips, royalties, monetary benefits from employee participations, and other monetary benefits.

1bis. The costs of vocational training and continuing education borne by the employer, including retraining costs, do not constitute any other monetary benefit within the meaning of paragraph 1, regardless of their amount.

2. Lump-sum payments from a pension scheme associated with the employment relationship or similar employer-provided capital benefits intended for pension purposes are taxed according to § 39.

The Individual Taxes - Income and Wealth Tax of Natural Persons - Income Tax - Taxable Income - Dependent Employment
§ 18a Act on Direct Taxes (Steuergesetz, StG) - b) Employee Participations Open official source

1. Genuine Employee Participation Includes

a) Shares, profit participation certificates, participation certificates, cooperative shares, or other types of participations that the employer, its parent company, or another group company issues to employees;

b) Options to acquire participations as mentioned in subsection a.

2. Non-Genuine Employee Participation Includes Entitlements to Pure Cash Settlements.

The Individual Taxes - Income and Wealth Tax of Natural Persons - Income Tax - Taxable Income - Dependent Employment
§ 18b Act on Direct Taxes (Steuergesetz, StG) - c) Income from Genuine Employee Participation Open official source

1. Cash-equivalent benefits from genuine employee stock ownership, except from blocked or non-listed options, are taxable as income from dependent employment at the time of acquisition. The taxable benefit corresponds to its market value reduced by any acquisition price.

2. In the case of employee shares, blocked periods must be taken into account for the calculation of the taxable benefit with a discount of 6 percent per year of the blocked period on their market value. This discount applies for a maximum of ten years.

3. Cash-equivalent benefits from blocked or non-listed employee options are taxed at the time of exercise. The taxable benefit corresponds to the market value of the share upon exercise reduced by the exercise price.

The Individual Taxes - Income and Wealth Tax of Natural Persons - Income Tax - Taxable Income - Dependent Employment
§ 18c Act on Direct Taxes (Steuergesetz, StG) - d) Income from Phantom Employee Participations Open official source

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

The Individual Taxes - Income and Wealth Tax of Natural Persons - Income Tax - Taxable Income - Dependent Employment
§ 18d Act on Direct Taxes (Steuergesetz, StG) - e) Proportional Taxation Open official source

1. If the taxable person did not have a tax residence or domicile in Switzerland throughout the entire period between acquisition and the vesting of the right to exercise the restricted employee options (§ 18b para. 3), the monetary benefits derived therefrom shall be taxed proportionally in relation to the total period compared to the period spent in Switzerland.

The Individual Taxes - Income and Wealth Tax of Natural Persons - Income Tax - Taxable Income - Self-Employed Activity
§ 19 Act on Direct Taxes (Steuergesetz, StG) - a) Principle Open official source

1. Taxable are all incomes from a commercial, industrial, business, agricultural, and forestry enterprise, from a liberal profession, as well as from any other independent earned activity.

2. Included in the income from independent earned activities are also all capital gains from the sale, exploitation, or accounting revaluation of business assets. Equated with disposition is the transfer of business assets into private assets or into foreign businesses or permanent establishments. Business assets are considered to be all assets that serve wholly or predominantly the independent earned activity. The same applies for participations of at least 20 percent in the equity or share capital of a corporation or cooperative, provided that the owner declares them as business assets at the time of acquisition. § 19b remains reserved.

3. The taxable income from independent earned activity is determined analogously according to § 69.

4. Profits from the sale, exploitation, or accounting revaluation of immovable business assets are taxable as income to the extent that the acquisition cost according to § 106 paragraph 3 exceeds the tax-relevant book value (income tax value).

The Individual Taxes - Income and Wealth Tax of Natural Persons - Income Tax - Taxable Income - Self-Employed Activity
§ 19a Act on Direct Taxes (Steuergesetz, StG) - b) Deferral Provisions Open official source

1. The leasing of a business operation is considered a transfer to private assets only upon application by the taxable person.

2. If the business operation is not continued by all heirs during an inheritance distribution, the taxation of the hidden reserves is deferred, upon request of the heirs taking over the business, until later realization, provided that these heirs assume the values previously relevant for income tax purposes.

The Individual Taxes - Income and Wealth Tax of Natural Persons - Income Tax - Taxable Income - Self-Employed Activity
§ 19b Act on Direct Taxes (Steuergesetz, StG) - c) Partial Taxation of Income from Business Asset Investments Open official source

1. Dividends, profit shares, liquidation proceeds, and pecuniary benefits 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 80 percent after deducting attributable expenses, provided that these participation rights represent at least 10 percent of the share or nominal capital of a corporation or cooperative.

2. Partial taxation on capital gains from sales is only granted if the sold participation rights were owned by the taxable person or the business entity for at least one year.

The Individual Taxes - Income and Wealth Tax of Natural Persons - Income Tax - Taxable Income - Self-Employed Activity
§ 20 Act on Direct Taxes (Steuergesetz, StG) - d) Corporate Restructuring Open official source

1. Hidden Reserves of a Sole Proprietorship (Individual Enterprise, Partnership) are not taxed during reorganizations, particularly in cases of mergers, demergers, or conversions, provided that the tax liability continues to exist in Switzerland and the values previously relevant for income tax purposes are adopted

a) during the transfer of assets to another sole proprietorship;

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

c) during the exchange of participation or membership rights in the context of reorganizations as defined by § 72 para. 1 or merger-like consolidations.

2. In the case of a reorganization according to para. 1 lit. b, the transferred hidden reserves are subsequently taxed under the procedure according to §§ 177-179, to the extent that participation or membership rights are sold within the five years following the reorganization at a price exceeding the transferred tax equity. In this case, the legal entity may claim the corresponding hidden reserves taxed as profit.

The Individual Taxes - Income and Wealth Tax of Natural Persons - Income Tax - Taxable Income - Self-Employed Activity
§ 20a Act on Direct Taxes (Steuergesetz, StG) - Income from Patents and Similar Rights (Patent Box) Open official source

1. For income from patents and comparable rights in self-employment, Sections 69a, 69b, and 70a apply mutatis mutandis.

**Individual Taxes - The Income and Wealth Tax of Natural Persons - The Income Tax - Taxable Income - Movable Assets**
§ 21 Act on Direct Taxes (Steuergesetz, StG) - a) General Provisions Open official source

1. The taxable items include income from movable assets, in particular

a) Interest from deposits, including paid-out income from redeemable endowment insurances with a single premium at maturity or upon surrender, except where these endowment insurances serve retirement purposes; serving retirement purposes is defined as the payment of insurance benefits starting from the age of 60 of the insured person based on a contract lasting at least five years, established before the completion of the 66th year of age; in such cases, the benefit is tax-free;

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

c) * Dividends, profit shares, liquidation surpluses, and pecuniary advantages from participations of all kinds; asset income realized upon the return of participation rights according to Art. 4a of the Federal Law of 13 October 1965 on Withholding Tax to the capital company or cooperative is considered as realized in the year in which the withholding tax claim arises (Art. 12 Para. 1 and 1bis Withholding Tax Law); Para. 1bis remains reserved;

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

e) * Income from shares in collective investment schemes, insofar as the total income exceeds the income from direct real estate ownership;

f) Income from intangible assets.

1bis

Dividends, profit shares, liquidation surpluses, and pecuniary advantages from shares, interests in limited liability companies, cooperative shares, and participation certificates (including free shares, free nominal value increases, etc.) are taxable to the extent of 80 percent, if these participation rights represent at least 10 percent of the share or nominal capital of a capital company or cooperative.

2. The proceeds from subscription rights are not considered as asset income, provided they belong to the private assets of the taxable person.

3. The repayment of contributions, additional payments, and donations (reserves from capital contributions) made by the holders of participation rights after 31 December 1996 is treated the same as the repayment of share or nominal capital. Para. 4 remains reserved.

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

5. Para. 4 is not applicable to reserves from capital contributions

a) that emerged through mergers resembling consolidations by contributing participation and membership rights in a foreign capital company or cooperative according to § 72 Para. 1 lit. c, or through a cross-border transfer to a domestic subsidiary according to § 72 Para. 1 lit. d after 24 February 2008;

b) that were already present in a foreign capital company or cooperative at the time of a cross-border merger or restructuring according to § 72 Para. 1 lit. b and Para. 3, or the relocation of the seat or actual administration after 24 February 2008;

c) in the event of liquidation of the capital company or cooperative.

6. Para. 4 and 5 shall apply analogously to reserves from capital contributions used for the issue of free shares or for free nominal value increases.

7. If, upon the return of participation rights in a capital company or cooperative listed on a Swiss stock exchange, the repayment of reserves from capital contributions is not at least 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 by the amount of reserves from capital contributions in the company attributable to these participation rights.

8. Para. 3 applies to contributions and additional payments made during a capital band according to Arts. 653s ff. of the Swiss Code of Obligations (CO) of 11 March 1911, only insofar as they exceed the repayments of reserves within the framework of this capital band.

**Individual Taxes - The Income and Wealth Tax of Natural Persons - The Income Tax - Taxable Income - Movable Assets**
§ 21a Act on Direct Taxes (Steuergesetz, StG) - b) Indirect Partial Liquidation and Transposition Open official source

1. The following are also considered income from movable assets as per § 21 para. 1 letter c

a) The proceeds from the sale of a participation of at least 20 percent in the equity or capital stock of a corporation or cooperative from private assets to the business assets of another natural or legal person, insofar as, within five years after the sale, non-essential substances, which existed at the time of the sale and were distributable under commercial law, are distributed with the cooperation of the seller; this also applies analogously if several participants jointly sell such participation within five years or if participations totaling at least 20 percent are sold; distributed substances are retrospectively taxed on the seller as per the procedure outlined in §§ 177 to 179 where applicable;

b) * The proceeds from the transfer of a participation in the equity or capital stock of a corporation or cooperative from private assets to the business assets of a business entity or a legal person in which the seller or the transferor is at least 50 percent involved in the capital after the transfer, insofar as the total consideration received exceeds the sum of the nominal value of the transferred participation and the contributions, premiums, and grants according to § 19b para. 3; this also applies analogously if several participants jointly undertake the transfer.

2. Cooperation in the sense of para. 1 letter a exists when the seller knows or ought to know that funds are withdrawn from the company to finance the purchase price and not returned.

**The Individual Taxes - Income and Wealth Tax of Natural Persons - Income Tax - Taxable Income - Immovable Property**
§ 22 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Taxable are the returns from immovable property, particularly

a) all income from rental, lease, usufruct, or other usage;

b) the imputed rental value of real estate or parts thereof that are available to the taxable person for personal use due to ownership or a gratuitous right of use (imputed rental value);

c) income from building rights contracts;

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

2. The government council issues the detailed implementing provisions.

Specific Taxes - Income and Wealth Tax of Natural Persons - Income Tax - Taxable Income - Provision
§ 23 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Taxable are all incomes from old-age, survivors', and disability insurance, from occupational pension schemes, and from recognized forms of tied private savings, including lump-sum payments and reimbursements of deposits, premiums, and contributions.

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

3. Annuity insurances as well as annuity and pre-paid contracts are taxable to the extent of their income portion. This is determined as follows

a) * For guaranteed benefits from annuity insurances that are subject to the Federal Insurance Contract Act of April 2, 1908 (Insurance Contract Act, ICA), the maximum technical interest rate (m) determined at the time of the contract's conclusion based on Article 36 paragraph 1 of the Insurance Supervision Act of December 17, 2004, is decisive during the entire contract period

1. If this interest rate is greater than zero, the income portion, rounded up or down to the nearest whole percentage value, is calculated as follows

Income portion = [1 - ((1 + m)²² - 1) / (22 × m × (1 + m)²³)] × 100 %

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

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

c) * For benefits from foreign annuity insurances, from annuities, and from pre-paid contracts, the level of the annualized yield of ten-year federal 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 income portion, rounded up or down to the nearest whole percentage value, is calculated as follows

Income portion = [1 - ((1 + r)²² - 1) / (22 × r × (1 + r)²³)] × 100 %

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

4. Section 25 letter d is reserved.

The Individual Taxes - Income and Wealth Tax of Natural Persons - The Income Tax - Taxable Income - Other Taxable Income
§ 24 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The following are also taxable

a) all other income that takes the place of income from employment;

b) one-time or recurring payments upon death and for permanent physical or health disadvantages;

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

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

e) maintenance payments received by a taxable person upon divorce, judicial or actual separation for themselves, as well as maintenance payments received by a parent for their minor children;

f) * ...

The Individual Taxes - Income and Wealth Tax of Natural Persons - The Income Tax - Tax-Free Income
§ 25 Act on Direct Taxes (Steuergesetz, StG) Open official source

**1. Not subject to income tax are:**

a) * the capital gains on movable private assets;

b) the property gains subject to the regulations on property gains tax on private and business assets;

c) asset accrual as a result of inheritance, legacy, gift, or matrimonial property settlement;

d) asset accrual from redeemable private capital insurance, except from vested benefits policies; § 21 para. 1 lit. a remains reserved;

e) capital payments made upon a change of employment by the employer or by institutions of occupational benefits, if the recipient uses them within a year for purchasing benefits in an occupational benefits institution or acquiring a vested benefits policy;

f) support from public or private funds;

g) benefits in fulfillment of family law obligations, except for maintenance contributions under § 24 lit. e;

h) the pay for military and protective service and the pocket money for civil service;

hbis) * the pay of volunteer firefighters up to the amount of 10,000 Swiss francs annually for services related to fulfilling the core tasks of the fire brigade (exercises, on-call duties, courses, inspections, and emergency deployments for rescue, firefighting, general damage defense, natural disaster management, etc.); exceptions are lump sum allowances for leadership roles, function allowances, as well as compensation for administrative work and services voluntarily provided by the fire brigade;

i) the payment of satisfaction amounts;

j) income based on federal legislation concerning supplementary benefits to old-age, survivors' and disability insurance;

k) * the winnings obtained in casinos from casino games that are permitted under the Gambling Act of September 29, 2017 (BGS), provided these winnings do not originate from self-employment;

kbis) * individual winnings up to the amount of 1 million Swiss francs from participation in major games permitted under the BGS, and from online participation in casino games permitted under the BGS;

kter) * the winnings from small games permitted under the BGS;

l) * individual winnings from lotteries and skill-based games for sales promotions, which are not subject to the BGS according to Art. 1 para. 2 lit. d and e, provided the limit of 1,000 Swiss francs is not exceeded;

m) * income based on the Federal Act of June 19, 2020, on bridging benefits for older unemployed persons (ÜLG).

The Individual Taxes - Income and Wealth Tax of Natural Persons - Income Tax - Determination of Net Income - Principle
§ 26 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. To determine the net income, the expenses necessary for achieving it and general deductions pursuant to §§ 27-33 are subtracted from the total taxable income.

The Individual Taxes - The Income and Wealth Tax of Natural Persons - The Income Tax - Determination of Net Income - Dependent Employment
§ 27 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The following shall be deducted as professional expenses

a) * the necessary costs up to a maximum amount of 3,000 francs for commuting between the place of residence and the workplace;

b) the necessary additional costs for meals outside the residence and during shift work;

c) * any other costs required for the exercise of the profession; § 32 para. 1 lit. k remains reserved.

d) * ...

2. Instead of the proven actual professional expenses according to para. 1, a flat rate amount of 4,000 francs may be deducted. If the flat rate deduction is claimed, no further professional expenses are deductible. If the professional activity is carried out only during part of the year or as part-time work, the flat rate deduction shall be proportionately reduced.

Article 1: The Various Taxes - The Income and Wealth Tax of Natural Persons - The Income Tax - Determination of Net Income - Self-Employment
§ 28 Act on Direct Taxes (Steuergesetz, StG) - a) General Provisions Open official source

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

2. These include in particular

a) the business-related depreciations recorded in the accounts or shown in special depreciation tables;

b) the business-related and accounted provisions and value adjustments for obligations existing in the financial year, whose amounts are still undetermined, for loss risks associated with current assets, particularly with goods and accounts receivable, and for other immediate loss risks existing in the financial year;

c) reserves for future research and development commissions to third parties up to 10 percent of the taxable business income, but in total not exceeding five million Swiss francs;

d) realized and accounted losses on business assets;

e) contributions to pension institutions for the benefit of one’s own staff, provided that any use contrary to the purpose is excluded;

f) * interest on business debts as well as interest that is attributable to participations according to § 19 para. 2;

g) * the costs of career-oriented education and training, including retraining costs, of one's own staff;

h) * profit-skimming sanctions, insofar as they do not have a penal purpose.

3. Not deductible are in particular

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

b) * expenses for facilitating criminal acts or as compensation for the commission of criminal acts;

c) * fines and monetary penalties;

d) * financial administrative sanctions, insofar as they have a penal purpose.

4. If sanctions according to para. 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 order, or

b) the taxable person credibly demonstrates that they have taken all reasonable steps to comply with the law.

Article 1: The Various Taxes - The Income and Wealth Tax of Natural Persons - The Income Tax - Determination of Net Income - Self-Employment
§ 29 Act on Direct Taxes (Steuergesetz, StG) - b) Replacement Acquisitions Open official source

1. If assets of the necessary operating fixed assets are replaced, the hidden reserves can be transferred to the replacement assets acquired, provided that these assets are also necessary for operation and are located in Switzerland. The taxation of replacements of real estate by movable property remains reserved.

2. If the replacement procurement does not occur in the same fiscal year, a provision can be made to the extent of the hidden reserves. This provision must be utilized within a reasonable period for depreciation on the replacement asset or dissolved in favor of the income statement.

3. Only fixed assets that serve the operation directly are considered necessary for operation; excluded are, in particular, parts of the assets that serve the company only as an investment or solely by their yield.

The Individual Taxes - The Income and Wealth Taxes of Natural Persons - The Income Tax - Determination of Net Income - Self-Employment
§ 30 Act on Direct Taxes (Steuergesetz, StG) - c) Losses Open official source

1. Losses from the seven fiscal years preceding the tax period can be deducted, insofar as they could not be taken into account in the calculation of taxable income for those years.

2. Contributions from third parties made to offset a capital shortfall in the context of a restructuring can also be used to offset losses incurred in previous fiscal years that have not yet been offset against income.

The Individual Taxes - Income and Wealth Tax of Natural Persons - Income Tax - Determination of Net Income - Private Assets
§ 31 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. In the case of movable private assets, the following can be deducted

a) the costs of management by third parties;

b) foreign withholding taxes that are neither refundable nor creditable.

2. In the case of real estate in private assets, the following can be deducted

a) the maintenance costs and the costs of restoration of newly acquired properties;

b) insurance premiums;

c) the costs of management by third parties;

d) expenses for measures that serve energy conservation, environmental protection or the fulfillment of legal or official monument protection regulations. Maintenance costs also include deconstruction costs in consideration of replacement construction. Investment costs for energy conservation and environmental protection, as well as deconstruction costs in consideration of a replacement construction, are deductible in the two subsequent tax periods, insofar as they could not be fully considered for tax purposes in the current tax period during which the expenses were incurred.

3. The government council issues the detailed implementing provisions. It may establish flat rates.

Title: Individual Taxes - Income and Wealth Tax of Natural Persons - Income Tax - Determination of Net Income - General Deductions
§ 32 Act on Direct Taxes (Steuergesetz, StG) - a) Deductions Independent of Income Level Open official source

1. The following deductions are made from income

a) * Private interest on debts within the scope of taxable income under §§ 21, 21a, and 22, and an additional CHF 50,000. Debt interest on loans granted by a capital company to a natural person significantly involved in its capital or otherwise closely related under conditions that substantially deviate from those customary in business transactions between independent parties are not deductible;

b) * Annuities as well as the income portion according to § 23 paragraph 3 letter c of annuity and pension fund agreements;

c) Maintenance payments to a divorced, judicially or factually separated spouse as well as maintenance payments to a parent for minor children, but not benefits fulfilling other family law maintenance or support obligations;

d) * Contributions, premiums, and deposits made in accordance with law, statute, or regulation to old-age, survivors', and disability insurance and occupational pension plans;

e) Deposits, premiums, and contributions for acquiring contractual claims from recognized forms of tied private pension schemes according to the Federal Act on Occupational Old-Age, Survivors', and Disability Benefit Plans;

f) Premiums and contributions for loss of earnings insurance, unemployment insurance, and mandatory accident insurance;

g) * Contributions, premiums, and deposits for life, health, and accident insurance not covered under letter f, as well as interest on savings capital for the taxable person and their dependents, at a flat rate of CHF 8,000 for married couples living in a legally and factually undivided marriage, or CHF 4,000 for all other taxpayers;

h) * Disability-related costs incurred by the taxable person or their dependents with disabilities as defined by the Federal Act on Equal Opportunities for Persons with Disabilities of December 13, 2002, to the extent that the taxable person bears these costs;

i) * Verified costs, up to CHF 25,000, for external child care for each child under the age of 14 living in the same household as the taxpayer responsible for their upkeep, to the extent that these costs are directly causally linked to the gainful activity, education, or incapacity of the taxable person;

j) * Membership fees and donations up to a total amount of CHF 10,000 to political parties that

1. are registered according to Art. 76a of the Federal Act of December 17, 1976, on Political Rights,

2. are represented in a cantonal parliament, or

3. * have attained at least 3 percent of the votes in the last cantonal parliamentary elections;

k) * Costs of job-related education and training, including retraining, up to a total amount of CHF 18,000, provided

1. a first-degree on secondary level II has been completed, or

2. the individual is at least 20 years old and it is not the training costs leading to a first-degree on secondary level II.

2. If spouses live in a legally and factually undivided marriage and both engage in gainful activity independent of each other's profession, business, or trade, CHF 1,000 is deducted from the lower employment income; a similar deduction is permissible for significant collaboration of one spouse in the profession, business, or trade of the other spouse; no deduction is allowed for substitute income.

3. From individual winnings from participation in gambling, not tax-free under § 25 letters kbis - l, 5 percent, but no more than CHF 5,000, is deducted as wager costs. For individual winnings from online participation in casino games under § 25 letter kbis, game stakes debited from the online player account within the tax year, but no more than CHF 25,000, are deducted.

4. The Executive Council reviews the amount of the flat rates according to paragraph 1 letter g every four years and reports to the Grand Council on whether these need adjustment.

Title: Individual Taxes - Income and Wealth Tax of Natural Persons - Income Tax - Determination of Net Income - General Deductions
§ 33 Act on Direct Taxes (Steuergesetz, StG) - b) Income-Dependent Deductions Open official source

1. The following shall also be deducted from the income

a) * The medical and accident costs of the taxpayer and the persons they support, insofar as they bear these costs themselves and exceed 5 percent of the income reduced by the expenditures according to §§ 27-32;

b) * The voluntary contributions of money and other assets to legal entities based in Switzerland, which are exempt from tax due to their public or charitable purposes (§ 66 lit. f), provided these contributions reach CHF 100 in the tax year and do not exceed 20 percent of the taxable income reduced by the expenditures according to §§ 27-32; similar voluntary contributions to the Confederation, cantons, municipalities, and their institutions (§ 66 lit. a and b) are deductible to the same extent; the government council may, in individual cases, declare contributions exceeding the 20 percent limit as deductible.

**The Individual Taxes - The Income and Wealth Tax of Natural Persons - The Income Tax - Determination of Net Income - Non-Deductible Costs and Expenses**
§ 34 Act on Direct Taxes (Steuergesetz, StG) Open official source

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

a) the expenses for the maintenance of the taxable person and their family as well as the private expenses required by their professional position;

b) * ...

c) the expenses for debt repayment;

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

e) the income, capital gains, property transfer, wealth, inheritance, and gift taxes from the Confederation, cantons, and municipalities, as well as similar foreign taxes;

f) support and donations to relatives and third parties, insofar as the law does not provide for a particular deduction.

The Individual Taxes - Income and Wealth Tax of Natural Persons - Income Tax - Social Deductions
§ 35 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The following amounts shall be deducted from income

a) * 8,600 Swiss Francs for each minor, incapable of earning, or child in vocational or school training, for whose maintenance the taxpayer is primarily responsible; if the parents are taxed separately, the child deduction is divided equally when the child is under joint parental custody and no maintenance contributions are claimed for the child pursuant to § 32 para. 1 lit. c;

b) * 500 - 5,500 Swiss Francs for each dependent person whom the taxpayer supports due to a legal support obligation at least to the extent of the deduction; spouses, even after separation or divorce, and children for whom a child deduction under lit. a or a maintenance deduction under § 32 para. 1 lit. c applies are excluded;

c) * 18,500 Swiss Francs for all taxable persons who are not entitled to a deduction under lit. d or e;

d) * 36,100 Swiss Francs for spouses living in a legally and factually undivided marriage;

e) * 30,900 Swiss Francs for single individuals with their own household, provided they live alone with minor, incapable of earning, or children in vocational training and are primarily responsible for their maintenance;

f) 3,300 Swiss Francs for single pensioners in addition to the deduction under lit. c;

g) *

h) * A maximum of 18,500 Swiss Francs for supporting the partner of a domestic partnership with common or non-common children, insofar as his or her income does not cover the necessary living expenses of CHF 18,000.

2. The deductions under para. 1 lit. c, d, and e and the deductions under lit. d, e, and f cannot be cumulated.

3. The social deductions are determined based on the circumstances at the end of the tax period or the tax liability.

4. In cases of partial tax liability, the social deductions are applied proportionally; they are fully taken into account for determining the tax rate applicable to the income.

The Individual Taxes - The Income and Wealth Tax of Natural Persons - The Income Tax - Tax Calculation - Tax Rates
§ 36 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The basic tax on taxable income is calculated according to the following rate (Rate A)

From 100 francs to 201,500 francs: 21 francs per 100 francs.

Over 201,500 francs up to 300,000 francs: 27.25 francs per 100 francs.

Over 300,000 francs: 28.25 francs per 100 francs.

2. The basic tax on taxable income for spouses living in a legally and factually undivided marriage, as well as for single individuals living with children or persons in need of support and mainly financing their upkeep, is calculated according to the following rate (Rate B)

From 100 francs to 403,100 francs: 21 francs per 100 francs.

Over 403,100 francs up to 600,000 francs: 27.25 francs per 100 francs.

Over 600,000 francs: 28.25 francs per 100 francs.

3. For the calculation of the tax according to these rates, the franc amounts of the taxable income are rounded down to the nearest 100 francs.

The Individual Taxes - The Income and Wealth Tax of Natural Persons - The Income Tax - Tax Calculation - Tax Rate
§ 36a Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The annual income tax amounts to 100 percent of the basic tax according to § 36.

The Individual Taxes - The Income and Wealth Tax of Natural Persons - The Income Tax - Tax Calculation - Adjustment of Cold Progression
§ 37 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The effects of fiscal drag (cold progression) are annually offset by adjusting the deductions in accordance with §§ 27 para. 1 lit. a and para. 2, 32 para. 1 lit. g, i, j, k and para. 2, as well as 35 para. 1 lit. a to f and lit. h, and the tax bracket levels in accordance with § 36, to account for inflation.

2. The calculation of inflation is based on the Basel Consumer Price Index as of June 30th of the calendar year preceding the tax period. The indexed deductions and tax bracket levels are rounded up and down to the nearest 100 Swiss Francs. The adjustment of deductions and tax bracket levels in the case of an offset is based not on the rounded figures, but according to the indexed actual amounts. In the event of negative inflation, no adjustment is made; the subsequent adjustment following a negative inflation is to be based on the last adjustment.

3. The adjustments are made by the Executive Council.

Special Cases - Income and Wealth Tax of Natural Persons - Income Tax - Tax Calculation - Specific Instances
§ 38 Act on Direct Taxes (Steuergesetz, StG) - a) Capital Compensation for Recurrent Payments Open official source

1. If capital settlements for recurring benefits are included in the income, the income tax is calculated, taking into account the other income and allowable deductions, at the tax rate that would result if, instead of the one-time payment, a corresponding annual payment were made.

Special Cases - Income and Wealth Tax of Natural Persons - Income Tax - Tax Calculation - Specific Instances
§ 38a Act on Direct Taxes (Steuergesetz, StG) - b) Simplified Payment Procedure for Small Wages Open official source

1. For small employment income from dependent employment, the tax shall be levied at a rate of 4.5 percent without considering other income, any professional expenses, and social deductions; the prerequisite is that the employer pays the tax under the simplified accounting procedure according to Articles 2 and 3 of the Federal Law Against Unreported Employment of 17 June 2005. This shall settle the income tax.

2. § 189 paragraph 1 letter a shall apply mutatis mutandis.

3. The debtor of the taxable service is obliged to periodically remit the taxes to the competent AHV compensation fund.

4. The AHV compensation fund shall issue to the taxable person a statement or confirmation of the tax deduction. It shall transfer the collected tax payments to the competent tax authority.

5. The collection commission pursuant to § 189 paragraph 4 is due to the competent AHV compensation fund.

Special Cases - Income and Wealth Tax of Natural Persons - Income Tax - Tax Calculation - Specific Instances
§ 38b Act on Direct Taxes (Steuergesetz, StG) - c) Liquidation Gains Open official source

1. If self-employment is definitively ceased after reaching the age of 55 or due to an inability to continue because of disability, the sum of the hidden reserves realized in the last two business years shall be taxed separately from other income. Contributions towards purchases according to § 32 para. 1 lit. d are deductible. If no such purchases are made, the tax on the amount of the realized hidden reserves, for which the taxable person proves the admissibility of a purchase according to § 32 para. 1 lit. d, shall be levied in the same manner as capital benefits from pension schemes as per § 39. For determining the applicable rate on the remaining amount of the realized hidden reserves, one-fifth of this remaining amount is decisive.

2. Paragraph 1 also applies to the surviving spouse, other heirs, and legatees, provided they do not continue the inherited business; the tax return must be completed no later than five calendar years after the end of the year of the decedent's death.

Special Cases - Income and Wealth Tax of Natural Persons - Income Tax - Tax Calculation - Specific Instances
§ 39 Act on Direct Taxes (Steuergesetz, StG) - d) Capital Benefits from Pension Plans Open official source

1. Lump-sum benefits under Section 23 paragraphs 1 and 2, as long as they are not used for the purchase in an occupational pension scheme, employer's lump-sum benefits under Section 18 paragraph 2, as well as lump-sum payments under Section 24 letter b, are taxed separately from the remainder of the income and without aggregation between spouses as follows

the first CHF 25,000 at 3%,

the next CHF 25,000 at 4%,

the next CHF 50,000 at 6%,

all further amounts at 8%.

2. Multiple lump-sum benefits granted in the same tax period are aggregated. General deductions and social deductions are not granted.

3. ...

The Individual Taxes - Income and Wealth Tax of Natural Persons - Income Tax - Temporal Foundations - Tax Period
§ 40 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Income tax is assessed and levied for each tax period.

2. The calendar year is considered the tax period.

3. If tax liability exists only for part of the tax period, the tax is levied on the income earned during that period. The tax rate for regularly flowing income is determined based on the income calculated over twelve months; irregularly flowing income is subject to the full annual tax, but it is not converted into an annual income for the purpose of rate determination.

4. Paragraph 3 applies mutatis mutandis to deductions.

Individual Taxes - Income Tax and Wealth Tax of Natural Persons - Income Tax - Temporal Foundations - Assessment of Income
§ 41 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The taxable income is determined by the income during the tax period.

2. For the determination of income from self-employment, the result of the financial statements falling within the tax period is decisive.

3. Taxpayers with self-employment must generally prepare financial statements for each tax period.

The Individual Taxes - Income and Wealth Tax on Individuals - Income Tax - Temporal Foundations - Special Circumstances
§ 42 Act on Direct Taxes (Steuergesetz, StG) - a) Attainment of Majority Open official source

1. Upon reaching the age of majority, the person who has come of age shall be taxed separately from the income of the holder of parental authority for the entire tax period.

The Individual Taxes - The Income and Wealth Tax of Natural Persons - The Income Tax - Temporal Principles - Special Circumstances
§ 43 Act on Direct Taxes (Steuergesetz, StG) - b) Establishment and Dissolution of Marriage Open official source

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

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

3. Upon the death of a spouse, the spouses are taxed jointly until the date of death. The death is considered the termination of the tax liability for both spouses and the commencement of the tax liability for the surviving spouse.

The Individual Taxes - Income and Wealth Tax on Individuals - Income Tax - Temporal Foundations - Special Circumstances
§ 44 Act on Direct Taxes (Steuergesetz, StG) - c) Bankruptcy Open official source

1. In the event of bankruptcy, the tax becomes due at the time of the initiation of bankruptcy proceedings. The bankruptcy is considered the termination of the tax obligation for the bankrupt person and marks the commencement of the tax obligation for the period following the initiation of bankruptcy proceedings.

The Individual Taxes - Income and Wealth Tax of Natural Persons - Wealth Tax - Tax Object - Subject Matter
§ 45 Act on Direct Taxes (Steuergesetz, StG) Open official source

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

2. Usufruct property is attributed to the usufructuary.

3. For shares in collective investment schemes with direct real estate ownership (§ 58 para. 2), the value difference between the total assets of the collective investment scheme and its direct real estate is taxable.

The Specific Taxes - The Income and Wealth Tax of Natural Persons - The Wealth Tax - Tax Object - Valuation
§ 46 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Assets are generally valued at fair market value.

2. Securities and receivables are valued at their market price or, in the absence thereof, at fair market value or intrinsic value. If their total income value (sum of income, capitalized at a rate determined by the governing council) is lower than their total fair market value (sum of securities and receivables valued at market price, fair market value, or intrinsic value), the average of the two values is taxed. Any vesting periods for employee shares according to § 18b Paragraph 1 must be duly considered; employee shares according to § 18b Paragraph 3 and § 18c are to be declared without tax value upon allocation.

3. Interest-free receivables are valued at fair market value.

4. Real estate is valued at fair market value; the income value can be appropriately considered. Owner-occupied single-family homes and condominiums are to be appraised based on the real value.

5. Life insurance policies (including redeemable annuities) are subject to wealth tax at their surrender value.

6. Intangible assets and movable property that belong to the business assets of the taxable person are valued at the value relevant for income tax.

7. The governing council issues the valuation regulations necessary for uniform taxation.

Individual Taxes - Income and Wealth Taxes of Natural Persons - Wealth Tax - Tax Object - Debt Deduction
§ 47 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Debts (including due tax debts) are fully deducted.

2. Other debts, such as joint and surety debts, for which the taxable person is not solely liable, are only deducted to the extent that they must be borne by the taxable person.

**The Individual Taxes - Income and Wealth Tax of Natural Persons - Wealth Tax - Tax Object - Tax-Exempt Assets**
§ 48 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Household goods and personal belongings are tax-free.

1. The Individual Taxes - The Income and Wealth Tax of Natural Persons - The Wealth Tax - Tax Calculation - Tax Allowances
§ 49 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The following amounts are deducted from the net assets

a) 150,000 Swiss francs for spouses living in a legally and factually undivided marriage, as well as for single individuals as defined in § 35 paragraph 1 letter e;

b) 75,000 Swiss francs for all other taxpayers;

c) 15,000 Swiss francs for each minor child, provided the taxpayer is primarily responsible for its maintenance.

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

**The Individual Taxes - Income and Wealth Tax of Natural Persons - Wealth Tax - Tax Calculation - Tax Rates**
§ 50 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The annual tax on taxable assets is calculated according to the following tariff (Tariff A)

From CHF 0 to CHF 250,000: CHF 4.50 per CHF 1,000

From CHF 250,000 to CHF 750,000: CHF 6.50 per CHF 1,000

Beyond CHF 750,000: CHF 7.90 per CHF 1,000

2. For spouses living in a legally and effectively undivided marriage, the annual tax on taxable assets is calculated according to the following tariff (Tariff B)

From CHF 0 to CHF 400,000: CHF 4.50 per CHF 1,000

From CHF 400,000 to CHF 1,200,000: CHF 6.50 per CHF 1,000

Beyond CHF 1,200,000: CHF 7.90 per CHF 1,000

3. For the calculation of the tax according to these tariffs, the taxable assets are rounded down to the nearest 1,000 Swiss Francs.

"The Individual Taxes - The Income and Wealth Tax of Natural Persons - The Wealth Tax - Tax Calculation - Tax Reductions in Special Circumstances"
§ 51 Act on Direct Taxes (Steuergesetz, StG) - a) Taxable Individuals with Low Income Open official source

1. For taxable individuals with a taxable income of no more than 14,000 Swiss Francs, or, if they live in a legally and factually undivided marriage or are entitled to a deduction for children and dependents according to § 35 para. 1 letter a or b, of no more than 20,000 Swiss Francs, the wealth tax is reduced by

75% for assets up to CHF 100,000,

50% for assets up to CHF 200,000,

25% for assets up to CHF 400,000.

"The Individual Taxes - The Income and Wealth Tax of Natural Persons - The Wealth Tax - Tax Calculation - Tax Reductions in Special Circumstances"
§ 52 Act on Direct Taxes (Steuergesetz, StG) - b) Low-yielding Assets Open official source

1. For taxable persons whose combined wealth tax and income tax on income from assets exceed 50 percent of the asset income, the wealth tax is reduced to this amount, but not exceeding 5 per mille of the taxable assets.

The Individual Taxes - Income and Wealth Tax of Natural Persons - Wealth Tax - Temporal Basis - Tax Period
§ 53 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The wealth tax is determined and levied for each tax period.

2. The calendar year is considered as the tax period.

3. If the tax obligation exists only for part of the tax period, then the tax corresponding to that timeframe is levied.

The Individual Taxes - Income and Wealth Tax of Natural Persons - Wealth Tax - Temporal Foundations - Assessment of Wealth
§ 54 Act on Direct Taxes (Steuergesetz, StG) Open official source

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

2. For taxable individuals with self-employment activities and fiscal years not coinciding with the calendar year, the taxable business assets are determined based on the status at the end of the fiscal year concluded within the tax period.

Individual Taxes - Income and Wealth Tax of Natural Persons - Wealth Tax - Temporal Principles - Special Circumstances
§ 55 Act on Direct Taxes (Steuergesetz, StG) - a) Onset of Majority Open official source

1. Upon reaching majority, the adult person shall be taxed separately for the entire tax period from the assets of the holder of parental authority.

The Individual Taxes - Income and Wealth Tax of Natural Persons - Wealth Tax - Temporal Basis - Special Circumstances
§ 56 Act on Direct Taxes (Steuergesetz, StG) - b) Establishment and Dissolution of Marriage Open official source

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

2. Upon divorce and in the case of legal or factual separation, each spouse is taxed separately for the entire tax period.

3. Upon the death of a spouse, the spouses are jointly taxed up to the day of death. The death is considered as the termination of the tax liability of both spouses and as the commencement of the tax liability of the surviving spouse.

The Individual Taxes - Income and Wealth Tax of Natural Persons - Wealth Tax - Temporal Basis - Special Circumstances
§ 57 Act on Direct Taxes (Steuergesetz, StG) - c) Inheritance, Bankruptcy Open official source

1. If the taxable person inherits assets during the tax period, § 53 paragraph 3 shall apply mutatis mutandis.

2. In the event of bankruptcy, the tax becomes due at the time of the commencement of bankruptcy proceedings. The bankruptcy is considered as the termination of the tax liability of the bankrupt person and as the beginning of the tax liability for the period following the commencement of bankruptcy proceedings.

The Individual Taxes - The Profit and Capital Tax of Legal Entities - Tax Liability - Definition of a Legal Entity
§ 58 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The following entities are taxed as legal persons

a) Corporations (public limited companies, limited partnerships with share capital, limited liability companies) and cooperatives;

b) Associations, foundations, and other legal persons.

2. Collective investment schemes with direct real estate ownership pursuant to Art. 58 or 118a of the Federal Act on Collective Investment Schemes of June 23, 2006 (Collective Investment Schemes Act, CISA) are equivalent to other legal persons. Investment companies with fixed capital in accordance with Art. 110 CISA shall be taxed as corporations.

3. Foreign legal persons, as well as partnerships and other entities without legal personality that are taxable under § 12 para. 3, are equated with the domestic legal persons to which they are legally or factually most similar.

**The Specific Taxes - The Profit Tax and the Capital Tax of Legal Persons - Tax Obligation - Tax Affiliation - Personal Affiliation**
§ 59 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Legal entities are subject to taxation based on personal affiliation if their registered office or their actual administration is located within the canton.

The Individual Taxes - The Profit and Capital Tax of Legal Entities - Tax Liability - Tax Residency - Economic Affiliation
§ 60 Act on Direct Taxes (Steuergesetz, StG) Open official source

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

a) are partners in businesses located within the canton;

b) maintain permanent establishments in the canton;

c) * own real estate, hold real rights, or similar personal use rights to properties within the canton;

d) * engage in transactions involving properties located in the canton.

2. Legal entities with their registered office or actual management abroad are additionally subject to taxation if they

a) are creditors or beneficiaries of claims secured by mortgages or pledges on properties located in the canton;

b) broker properties situated within the canton.

1. The Individual Taxes - The Profit and Capital Tax of Legal Persons - Tax Liability - Tax Affiliation - Scope of Tax Liability, Tax Allocation
§ 61 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. In the case of personal affiliation, tax liability is unlimited; however, it does not extend to business enterprises, permanent establishments, and real estate located outside the canton.

2. In the case of economic affiliation, tax liability is limited to the portions of profit and capital for which tax liability exists in the canton according to § 60.

3. The allocation of tax liability for business enterprises, permanent establishments, and real estate is determined in relation to other cantons and foreign countries according to the principles of federal law regarding the prohibition of inter-cantonal double taxation. A Swiss company may offset losses from a foreign permanent establishment with domestic profits, provided these losses have not already been considered in the permanent establishment's state. If this permanent establishment registers profits within the following seven business years, taxation will occur in those years to the extent of the loss carryforwards offset in the permanent establishment's state. Losses from foreign real estate can only be considered if a permanent establishment is also maintained in the respective country. Deviating federal legal provisions and international treaties remain reserved.

4. Taxpayers with headquarters and actual management abroad must pay taxes on the profit generated in the canton and the capital located within the canton.

The Individual Taxes - The Profit and Capital Tax of Legal Entities - Tax Liability - Tax Residency - Calculation of the Tax Rate for Partial Tax Liability
§ 62 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. ...

The Individual Taxes - The Profit and Capital Tax of Legal Entities - Tax Liability - Commencement and Termination of Tax Liability
§ 63 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The tax obligation commences with the establishment of the legal entity, the relocation of its registered office or actual management from abroad into the canton, or the acquisition of assets taxable within the canton.

2. The tax obligation terminates upon the completion of liquidation, the relocation of the registered office or actual management from the canton to abroad, or the cessation of assets taxable within the canton.

3. In the event of the relocation of the registered office or actual management from the canton to another canton, or from another canton to the canton, the tax obligation in the canton exists for the entire duration of the tax period. If there is an economic affiliation in the canton and personal affiliation in another canton, the tax obligation in the canton remains for the entire duration of the tax period, even if the economic affiliation is established, altered, or terminated during the tax period. Profit and capital are allocated among the involved cantons by analogous application of the principles of federal law concerning the prohibition of inter-cantonal double taxation.

4. In the case of economic affiliation in the canton and tax domicile in another canton, the tax obligation in the canton exists for the entire duration of the tax period, even if the economic affiliation is established, altered, or terminated during the year. Otherwise, profit and capital are allocated among the involved cantons by analogous application of the principles of federal law concerning the prohibition of inter-cantonal double taxation.

**Specific Taxes - The Profit and Capital Tax of Legal Entities - Tax Liability - Special Circumstances, Liability - Tax Succession**
§ 64 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. If a legal entity transfers assets and liabilities to another legal entity, the taxes owed by it shall be paid by the acquiring legal entity.

The Individual Taxes - The Profit and Capital Tax of Legal Entities - Tax Liability - Special Circumstances, Liability - Joint Liability
§ 65 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. If the tax liability of a legal entity ends, the persons entrusted with its administration and liquidation are jointly and severally liable for the taxes owed by the entity up to the amount of the liquidation proceeds, or if the legal entity relocates its registered office or effective management abroad, up to the amount of its net assets. The liability does not apply if the liable person can prove that they have exercised all due diligence required under the circumstances.

2. Together with the taxable legal entity, persons who dissolve business operations or branches in the canton or sell or exploit properties located in the canton or claims secured by such properties are jointly and severally liable up to the amount of the net proceeds, if the taxable person does not have its registered office or effective management in Switzerland.

3. For taxes of foreign trading companies and other foreign associations without legal personality, the partners are jointly and severally liable.

4. The buyer or seller of a property located in the canton is jointly and severally liable up to 3 percent of the purchase price for the tax from the brokerage activity assigned to a taxable person by them, if this person has neither its registered office nor its effective management in Switzerland.

Individual Taxes - Profit and Capital Tax of Legal Persons - Tax Liability - Tax Exemption
§ 66 Act on Direct Taxes (Steuergesetz, StG) Open official source

**1. Entities Exempt from Profit and Capital Taxation:**

a) The federal government and its institutions, as per federal law;

b) The canton and its municipalities, as well as their corporations and institutions;

c) Occupational pension schemes of companies with domicile, headquarters, or permanent establishment in Switzerland and affiliated enterprises, provided that the institution's funds are permanently and exclusively dedicated to employee benefits;

d) Domestic social insurance and compensation funds, specifically including unemployment, old age, disability, and survivors' insurance funds, except for licensed insurance companies;

e) Health insurers and health insurance funds, to the extent that their income and assets are exclusively used for providing social health insurance and delivering or ensuring their services, as per federal law;

f) Legal entities pursuing public or charitable purposes, concerning the profit and capital exclusively and irrevocably dedicated to these purposes; entrepreneurial purposes are generally not considered charitable; the acquisition and management of significant capital participations are deemed charitable if maintaining the enterprise is subordinate to the charitable purpose and no executive activities are conducted;

g) Legal entities pursuing religious purposes at the cantonal or national level, concerning the profit and capital exclusively and irrevocably dedicated to these purposes;

h) Foreign states for their domestic properties exclusively intended for the direct use of diplomatic and consular representations, as well as institutional beneficiaries exempt from tax under Article 2, Paragraph 1 of the Host State Act of June 22, 2007, for properties owned by the institutional beneficiaries and used by their offices;

i) * Collective investment schemes with direct property ownership, provided that their investors are exclusively tax-exempt occupational pension schemes as per item c or tax-exempt domestic social insurance and compensation funds as per item d;

j) * Traffic and infrastructure companies licensed by the federal government, which receive compensation for this activity or are required by their concession to maintain year-round operations of national significance; the tax exemption also extends to profits from licensed activities that are freely available; however, auxiliary operations and properties unrelated to the licensed activity are excluded from the tax exemption.

The Individual Taxes - Corporate Income Tax and Capital Tax for Legal Entities - Tax Liability - Tax Relief for Enterprises
§ 67 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. For corporate entities that are newly established or whose business activities are significantly altered and serve the economic interest of the canton, the government council may grant tax relief for the year of establishment and the subsequent nine years.

2. In its decision, the government council shall set the conditions for the tax relief. It may revoke the tax relief at the time of granting if these conditions are not met.

3. The government council shall consult with the municipalities if they are affected by the decision.

4. The decision of the government council is final.

The Individual Taxes - The Profit and Capital Tax of Legal Entities - The Profit Tax - Tax Object - Principle
§ 68 Act on Direct Taxes (Steuergesetz, StG) Open official source

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

1. Individual Taxes - Profit and Capital Tax of Legal Entities - Profit Tax - Tax Object - Calculation of Net Profit
§ 69 Act on Direct Taxes (Steuergesetz, StG) - General Provisions Open official source

1. The taxable net profit consists of

a) the balance of the profit and loss account, taking into account the balance carried forward from the previous year;

b) all parts of the business result that are excluded before calculating the balance of the profit and loss account and are not used to cover business-related expenses, such as in particular

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

2. business-unrelated depreciations, value adjustments, and provisions,

3. allocations to reserves,

4. contributions to equity capital from the legal entity's own resources, insofar as they do not originate from reserves taxed as profit,

5. open and hidden profit distributions and business-unrelated contributions to third parties;

c) * revenues not credited to the profit and loss account, including capital gains, revaluation gains, and liquidation gains, subject to § 73;

d) interest on hidden equity (§ 85 para. 4).

2. Profits from the sale, utilization, or accounting revaluation of immovable property are taxable to the extent that the acquisition value pursuant to § 106 para. 3 exceeds the tax-relevant book value (profit tax value).

3. Depreciations on assets that were revalued to offset losses may 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 § 75 para. 1.

4. Value adjustments and depreciations on the acquisition costs of participations that meet the requirements under § 77 para. 5 lit. b are attributed to the taxable profit as far as they are no longer justified.

5. The taxable net profit of legal entities that do not prepare a profit and loss account is determined analogously according to para. 1.

The Individual Taxes - The Profit and Capital Tax of Legal Entities - The Profit Tax - Tax Object - Calculation of Net Profit
§ 69a Act on Direct Taxes (Steuergesetz, StG) - Patents and Similar Rights: Definitions Open official source

1. The following are considered patents

a) Patents under the European Patent Convention of October 5, 1973, in its revised version of November 29, 2000, designating Switzerland;

b) Patents under the Federal Act on the Invention Patents (Patent Act, PatG) of June 25, 1954;

c) Foreign patents equivalent to the patents under items a or b.

2. The following are considered comparable rights

a) Supplementary protection certificates under 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 Variety Protection Act) of March 20, 1975;

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

e) Reports for which there is report protection based on implementing provisions under the Federal Act on Agriculture (Agriculture Act, LwG) of April 29, 1998;

f) Foreign rights equivalent to the rights under items a - e.

The Individual Taxes - The Profit and Capital Tax of Legal Entities - The Profit Tax - Tax Object - Calculation of Net Profit
§ 69b Act on Direct Taxes (Steuergesetz, StG) - Patents and Comparable Rights: Taxation Open official source

1. The net profit from patents and comparable rights is included in the calculation of the taxable net profit with a reduction of 90 percent at the request of the taxable person, in proportion to the qualifying research and development expenditure compared to the total research and development expenditure per patent or comparable right (nexus ratio).

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

3. If the net profit from patents and comparable rights is subject to reduced taxation for the first time (box entry), the research and development expenditure already considered in past tax periods is subjected to a separate taxation rate of 0.5 percent to the extent of 5 percent.

4. If the net profit from patents and comparable rights is no longer subject to reduced taxation for the first time (box exit), the research and development expenditure incurred in past tax periods is credited at 0.5 percent to the extent of 5 percent against profit taxes upon request. The credit is limited to the amount levied at entry under paragraph 3. The request must be submitted at the latest by the finalization of the assessment of the tax period in which the net profit from patents and comparable rights is no longer subject to reduced taxation for the first time; otherwise, the claim under this paragraph expires.

4bis. If the extent of the relevant research and development expenditure at box entry is determined at a percentage other than that applicable for box exit under paragraph 4, the average applicable percentage during the duration of the patent box is applied for the box exit, but not exceeding the last 10 years before the box exit.

5. For maturity dates, § 194 paragraph 1 letter a and paragraph 2 shall apply mutatis mutandis.

6. The Government Council shall issue further provisions, in particular

a) for the calculation of the net profit from patents and comparable rights subject to reduced taxation, specifically regarding the nexus ratio;

b) for the application of the regulation to products that differ only slightly from each other and are based on the same patents and comparable rights;

c) regarding documentation obligations;

d) regarding the commencement and termination of reduced taxation; and

e) concerning the treatment of losses from patents and comparable rights.

The Individual Taxes - The Profit and Capital Tax for Legal Entities - The Profit Tax - Tax Object - Calculation of Net Profit
§ 70 Act on Direct Taxes (Steuergesetz, StG) - Business-related Deductible Expenses Open official source

1. Business-related expenses include

a) * Federal, cantonal, and municipal taxes;

b) Contributions to pension schemes for the benefit of one's own staff, provided that any misuse of funds is excluded;

c) * Voluntary contributions of money and other assets up to 20 percent of the net profit to legal entities based in Switzerland, which are exempt from tax obligation due to their public or charitable purposes (§ 66 lit. f), as well as to the Confederation, cantons, municipalities, and their institutions (§ 66 lit. a and b); the government council may, in individual cases, allow deductions for contributions that exceed 20 percent of the net profit;

d) Discounts, rebates, sales bonuses, and refunds on fees for deliveries and services, as well as surpluses intended for distribution to policyholders by insurance companies;

e) Economically justified depreciations recorded in financial statements or specific depreciation accounts;

f) Economically justified and recorded provisions and value adjustments for obligations existing during the fiscal year, the precise amount of which is still undefined, for loss risks associated with current assets, particularly with goods and receivables, and for other imminent loss risks existing in the fiscal year;

g) * Reserves for future research and development contracts with third parties up to 10 percent of the taxable business revenue, but not exceeding five million Swiss francs in total;

h) * Costs of vocational training and continuing education, including retraining costs, for one's own staff;

i) * Profit-incompatible sanctions, insofar as these do not serve a punitive purpose.

2. Expenses not considered business-related include, in particular

a) * Payments of bribes as defined by Swiss criminal law;

b) * Expenditures to facilitate or in return for the commission of crimes;

c) * Fines;

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

3. If sanctions as per para. 2 lit. c and d are imposed by a foreign criminal or administrative authority, they are deductible if

a) The sanction contravenes Swiss public policy (ordre public), or

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

The Individual Taxes - The Profit and Capital Tax of Legal Entities - The Profit Tax - Tax Object - Calculation of Net Profit
§ 70a Act on Direct Taxes (Steuergesetz, StG) - Limitation of Relief Open official source

1. The total tax relief under § 69b para. 1 (Patent Box) may not exceed 5 percent of the taxable profit before loss offset, excluding the net participation income under § 77, and before deduction of the aforementioned relief.

2. No loss carryforwards may result from the tax relief under § 69b para. 1 (Patent Box).

The Individual Taxes - The Profit and Capital Tax of Legal Entities - The Profit Tax - Tax Object - Calculation of Net Profit
§ 71 Act on Direct Taxes (Steuergesetz, StG) - Transactions Neutral to Profit Open official source

1. No taxable gain arises from

a) Capital contributions from members of corporations and cooperatives, including premiums and contributions à fonds perdu;

b) Relocation of the headquarters, management, a business operation, or a permanent establishment within Switzerland, provided no disposals or accounting revaluations are undertaken;

c) Gains from the disposal of immovable property, insofar as they are subject to real estate capital gains tax;

d) Capital increase from inheritance, legacy, or gift.

The Individual Taxes - The Profit and Capital Tax of Legal Entities - The Profit Tax - Tax Object - Calculation of Net Profit
§ 72 Act on Direct Taxes (Steuergesetz, StG) - Corporate Restructurings Open official source

1. Hidden reserves of a legal entity are not taxed during restructurings, particularly in the case of mergers, demergers, or transformations, as long as the tax obligation continues in Switzerland and the values previously relevant for profit tax are maintained

a) during the transformation into a partnership or another legal entity;

b) during the spin-off or split-off of a legal entity, provided that one or more businesses or parts of businesses are transferred, and the resulting entities after the demerger continue to operate a business or part thereof;

c) in the exchange of participation or membership rights during restructurings or mergers with characteristics similar to mergers;

d) in the transfer of businesses or parts of businesses, as well as assets of fixed operating assets, to a domestic subsidiary company. A subsidiary is defined as a corporation or cooperative in which the transferring corporation or cooperative holds at least 20 percent of the equity or share capital.

2. If a transfer is made to a subsidiary under paragraph 1, point d, the transferred hidden reserves are subsequently taxed under the procedure specified in §§ 177-179, to the extent that the transferred assets or participation/membership rights in the subsidiary are sold within five years following the restructuring; in this case, the subsidiary may claim the corresponding hidden reserves taxed as profit.

3. Among domestic corporations and cooperatives, which based on the overall situation of actual circumstances are consolidated under unified management of a corporation or cooperative, directly or indirectly held participations of at least 20 percent in the equity or share capital of another corporation or cooperative, businesses or parts of businesses, as well as assets of fixed operating assets, can be transferred at the values previously relevant for profit tax. The transfer to a subsidiary under paragraph 1, point d remains reserved.

a) …

b) …

4. If in the case of a transfer under paragraph 3, the transferred assets are sold within the subsequent five years, or if the unified management is given up during this period, the transferred hidden reserves are subsequently taxed under the procedure specified in §§ 177-179. The favored legal entity may in this case claim the corresponding hidden reserves taxed as profit. The domestic corporations and cooperatives that were consolidated under unified management at the time of the breach of the holding period are jointly liable for the back taxes.

5. If the acquisition of the assets and liabilities of a corporation or cooperative, whose participation rights belong to the acquiring legal entity, results in a book loss on the participation, this loss cannot be deducted for tax purposes; any book gain on the participation will be taxed.

The Individual Taxes - The Profit and Capital Tax for Legal Entities - The Profit Tax - Tax Object - Calculation of Net Profit
§ 73 Act on Direct Taxes (Steuergesetz, StG) - Replacement Acquisitions Open official source

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

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

2. If the replacement acquisition does not occur in the same fiscal year, a provision can be created to the extent of the hidden reserves. This provision must be used for depreciation on the replacement object within a reasonable period or dissolved in favor of the profit and loss account.

3. Only fixed assets that directly serve the operation are considered necessary for operations; excluded are, in particular, assets that serve the company solely as an investment or only by their yield.

The Individual Taxes - The Profit and Capital Tax of Legal Entities - The Profit Tax - Tax Object - Calculation of Net Profit
§ 73a Act on Direct Taxes (Steuergesetz, StG) - Disclosure of Hidden Reserves upon Commencement of Tax Liability Open official source

1. If the taxpayer reveals hidden reserves including self-created added value at the beginning of tax liability, these are not subject to income tax. Hidden reserves of a corporation or cooperative arising from participations of at least 10 percent in the nominal or share capital or in the profits and reserves of another company may not be disclosed.

2. The commencement of tax liability is deemed to occur when assets, businesses, parts of businesses, or functions are transferred from abroad to a domestic business operation or to a domestic permanent establishment, the end of a tax exemption under § 66, or the relocation of the registered office or effective management to Switzerland.

3. The disclosed hidden reserves must be amortized annually at the rate applied for tax purposes on the corresponding assets.

4. The disclosed self-created added value must be amortized within ten years.

The Individual Taxes - The Profit and Capital Tax of Legal Entities - The Profit Tax - Tax Object - Calculation of Net Profit
§ 73b Act on Direct Taxes (Steuergesetz, StG) - Taxation of Hidden Reserves at the End of Tax Liability Open official source

1. Upon termination of tax liability, any existing untaxed hidden reserves, including the self-generated appreciation in value, shall be taxed.

2. The end of tax liability shall include the transfer of assets, businesses, partial businesses, or functions from domestic territory to a foreign business establishment or a foreign permanent establishment, the transition to a tax exemption pursuant to § 66, and the relocation of the registered office or actual management to abroad.

The Individual Taxes - The Profit and Capital Tax of Legal Entities - The Profit Tax - Tax Object - Calculation of Net Profit
§ 74 Act on Direct Taxes (Steuergesetz, StG) - Profits of Associations, Foundations, and Collective Investment Schemes Open official source

1. Membership fees to associations and contributions to the assets of foundations are not considered taxable income.

2. From the taxable revenues of associations, the expenses necessary to generate these revenues can be fully deducted; other expenses only insofar as they exceed the membership fees.

3. ...

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

The Individual Taxes - The Profit and Capital Tax of Legal Entities - The Profit Tax - Tax Object - Calculation of Net Profit
§ 74a Act on Direct Taxes (Steuergesetz, StG) - Profits of Legal Entities with Non-Profit Purposes Open official source

1. Profits of legal entities with non-profit purposes are not taxed, provided they amount to no more than 20,000 Swiss Francs and are exclusively and irrevocably dedicated to these purposes.

The Individual Taxes - The Profit and Capital Tax of Legal Entities - The Profit Tax - Tax Object - Calculation of Net Profit
**§ 75 Tax Law, TL - Losses** Act on Direct Taxes (Steuergesetz, StG) - Losses** Open official source

1. Losses from the seven fiscal years preceding the tax period can be deducted from the net profit of the tax period, provided they could not be accounted for in the calculation of the taxable net profit in those years.

2. Contributions made to offset a capital deficiency as part of a restructuring, which are not capital contributions according to § 71 lit. a, may also be used to offset losses that were incurred in previous fiscal years and have not yet been offset against profits.

Individual Taxes - Corporate Income and Capital Tax for Legal Entities - Corporate Income Tax - Tax Calculation - Legal Entities
§ 76 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The profit tax for legal entities amounts to 6.5 percent of the taxable net profit.

1bis. From the effective date of § 242c, for this tax period and the 9 following tax periods, § 242c takes precedence over § 76 paragraph 1 concerning the profit tax.

2. ...

3. ...

4. For the calculation of the tax, the taxable net profit is rounded down to the next 100 francs.

Individual Taxes - Profit and Capital Tax of Legal Entities - Profit Tax - Tax Calculation - Companies with Participations
§ 77 Act on Direct Taxes (Steuergesetz, StG) - a) Participation Deduction Open official source

1. The corporate income tax of a corporation or cooperative is reduced in proportion to the net income from participation rights relative to the total net profit if the corporation or cooperative

a) holds at least 10 percent of the share or nominal capital of another company;

b) holds at least 10 percent of the profit and reserves of another company; or

c) holds participation rights with a market value of at least one million Swiss francs.

2. The net income from participations according to paragraph 1 corresponds to the income from these participations minus the associated financing costs and a contribution of 5 percent for covering administrative expenses; the proof of actual administrative expenses is reserved. Financing costs are considered to be interest on debt and other expenses that are economically equivalent to interest on debt. Capital gains on these participations as well as proceeds from associated subscription rights are also included in the income from participations.

3. The following do not constitute participation income

a) Income that represents business-related expenses for the paying corporation or cooperative;

b) Appreciation gains on participations.

4. The income from a participation is not considered in the calculation of the reduction, to the extent that a write-off is made on the same participation that is related to this income.

5. Capital gains are only considered in the calculation of the reduction

a) to the extent that the sale proceeds exceed the acquisition costs;

b) if the disposed participation amounted to at least 10 percent of the share or nominal capital of another company or conferred a claim to at least 10 percent of another company's profit and reserves and was held by the disposing corporation or cooperative for at least one year; if the participation percentage falls below 10 percent due to partial disposal, the reduction can be claimed for each subsequent capital gain only if the participation rights had a market value of at least one million Swiss francs at the end of the tax year before the sale.

6. Transactions that result in an unjustified tax saving within a group lead to an adjustment of the taxable net profit or a reduction of the relief. An unjustified tax saving occurs when capital gains and capital losses or write-offs on participations are causally related as per §§ 69 para. 4 and 77.

7. For parent companies of systemically important banks according to Article 7 paragraph 1 of the Banking Act of November 8, 1934 (BankG), the financing costs and claims in the balance sheet from intra-group transferred funds of the following bonds are not considered in the calculation of the net income as per paragraph 2

a) Mandatory convertible bonds and bonds with a waiver of claims according to Article 11 paragraph 4 BankG; and

b) Debt instruments for loss absorption during insolvency measures under Articles 28 - 32 BankG.

The Individual Taxes - The Income and Capital Tax of Legal Entities - The Income Tax - Temporal Principles - Tax Period
§ 82 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The profit tax shall be assessed and levied for each tax period.

2. The fiscal year shall be considered as the tax period.

3. In each calendar year, except in the year of establishment, a financial statement with a balance sheet and profit and loss account must be prepared.

4. A financial statement is also required when relocating the registered office, the administration, a business operation, or a place of business abroad, as well as upon completion of liquidation.

1. Individual Taxes - Profit and Capital Tax of Legal Entities - Profit Tax - Temporal Foundations - Assessment of Net Profit
§ 83 Act on Direct Taxes (Steuergesetz, StG) Open official source

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

1bis. If the financial statement is 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.

2. ...

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

The Individual Taxes - Profit and Capital Tax of Legal Entities - The Capital Tax - Tax Object - Principle
§ 84 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Subject of the Capital Tax is the Equity.

The Individual Taxes - The Income and Capital Tax of Legal Entities - The Capital Tax - Tax Object - Corporations and Cooperatives
§ 85 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The taxable equity capital of corporations and cooperatives consists of the paid-in share, basic, or common capital, the disclosed reserves, and the hidden reserves formed from taxed profits.

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

3. ...

4. The taxable equity capital of corporations and cooperatives is increased by the portion of foreign capital that economically equates to equity capital.

5. The taxable equity capital attributable to participation rights according to § 77 as well as to patents and comparable rights according to § 69a is reduced by 80 percent in relation to these values compared to the total assets of the balance sheet. The decisive factor is the tax-relevant book values (taxable profit values).

6. If the financial statement is in a foreign currency, the taxable equity capital is to be converted into Swiss francs. The relevant exchange rate is the selling rate at the end of the tax period.

The Individual Taxes - The Profit and Capital Tax of Legal Entities - The Capital Tax - Tax Object - Associations, Foundations, Collective Investment Schemes, and Other Legal Entities
§ 86 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The following are considered taxable equity

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

b) * For collective investment schemes, the portion of net assets attributable to real estate.

2. The net assets are valued according to the provisions applicable to the wealth tax of natural persons.

3. § 85 paragraph 5 applies mutatis mutandis.

The Individual Taxes - The Profit and Capital Tax of Legal Entities - The Capital Tax - Tax Calculation
§ 87 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The capital tax for legal entities amounts to 1 per mille of the taxable equity capital.

2. ...

3. The taxable equity capital of associations, foundations, other legal entities, and collective investment schemes below 50,000 Swiss Francs is not taxed.

4. When calculating the tax, the taxable capital is rounded down to the nearest 1,000 Swiss Francs.

The Individual Taxes - The Profit and Capital Tax of Legal Entities - The Capital Tax - Temporal Principles - Tax Period
§ 88 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The capital tax is assessed and levied for each tax period.

2. The fiscal year is considered the tax period.

3. § 82 paragraphs 3 and 4 apply correspondingly.

**The Individual Taxes - The Profit and Capital Tax of Legal Entities - The Capital Tax - Temporal Foundations - Assessment of Equity Capital**
§ 89 Act on Direct Taxes (Steuergesetz, StG) Open official source

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

2. In the case of a fiscal year that is shorter or longer than a calendar year, the amount of the capital tax is determined proportionally to the duration of the fiscal year.

Individual Taxes - Profit and Capital Tax of Legal Entities - Withholding Tax - Natural Persons with Tax Residency or Domicile in the Canton - Employees Subject to Withholding Tax
§ 90 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Employees without a permanent residence permit, who nonetheless have a tax domicile or residence in the canton, are subject to a withholding tax on their income from dependent employment. Exempt from this are incomes that are subject to taxation under the simplified settlement procedure according to § 38a.

2. Spouses living in a legally and factually intact marriage are not subject to the withholding tax if one of the spouses possesses Swiss citizenship or a permanent residence permit.

Individual Taxes - Profit and Capital Tax for Legal Entities - Withholding Tax - Natural Persons with Tax Residence or Stay in the Canton - Taxable Benefits
§ 91 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Withholding tax is calculated from the gross income.

2. Taxable are

a) * income from dependent employment as per § 90 para. 1, additional income such as benefits in kind from employee participation as well as benefits in kind, but not the costs of vocational training borne by the employer as per § 18 para. 1bis;

b) * substitute income; and

c) * the benefits pursuant to Art. 18 para. 3 of the Federal Law of December 20, 1946, on Old Age and Survivors' Insurance (AHVG).

3. Benefits in kind and tips are generally valued according to the rates applicable to the Federal Old Age and Survivors' Insurance.

The Individual Taxes - The Profit and Capital Tax of Legal Entities - The Withholding Tax - Natural Persons with Tax Residence or Domicile in the Canton - Withholding Tax Deduction
§ 92 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The tax administration calculates the amount of withholding tax deduction based on the tax rates applicable to the income tax of natural persons.

2. In calculating the deduction, standard allowances for professional expenses (§ 27) and for insurance premiums (§ 32 para. 1 letters d, f, and g) as well as deductions for family burdens (§ 35) are considered. The tax administration publishes the individual allowances.

3. The deduction for spouses living in a legally and factually unseparated marriage, who are both gainfully employed, is based on rates that consider their total income (§ 9 para. 1), the allowances and deductions under paragraph 2, as well as the deduction for the employment of both spouses (§ 32 para. 2).

4. The calculation of the deduction, particularly with regard to the 13th month's salary, bonuses, irregular employment, hourly wage earners, part-time or secondary employment, and benefits according to Art. 18 para. 3 AHVG, as well as in cases of changes in rates, retroactive salary adjustments and corrections, and benefits before commencement and after termination of employment, is governed by rules established by the Federal Tax Administration in cooperation with the cantons.

5. ...

6. ...

The Individual Taxes - The Profit and Capital Tax of Legal Entities - Withholding Tax - Natural Persons with Tax Juridical Residence or Domicile in the Canton - Discharged Tax
§ 93 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. ...

The Individual Taxes - The Profit and Capital Tax for Legal Entities - The Withholding Tax - Natural Persons with Tax Residence or Domicile in the Canton - Mandatory Subsequent Ordinary Assessment
§ 94 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Individuals who are subject to withholding tax pursuant to § 90 paragraph 1 shall be assessed retroactively in the ordinary assessment procedure if

a) * their gross income in a tax year reaches or exceeds a specified amount; or

b) * they possess assets and income not subject to withholding tax.

2. The amount referred to in paragraph 1 subparagraph a is determined by the Federal Department of Finance (FDF) in collaboration with the cantons.

3. Also subject to retroactive ordinary assessment is anyone living in legally and factually undivided marriage with a person mentioned in paragraph 1.

4. Persons with assets and income as described in paragraph 1 subparagraph b must request the tax return form from the tax administration by March 31 of the year following the tax year.

5. The retroactive ordinary assessment applies until the end of the withholding tax obligation.

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

The Individual Taxes - The Profit and Capital Tax of Legal Entities - The Withholding Tax - Natural Persons with Tax Residence or Domicile in the Canton - Retroactive Ordinary Assessment upon Request
§ 94a Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Persons subject to withholding tax under Section 90, Paragraph 1, who do not meet the conditions of Section 94, Paragraph 1, shall be assessed subsequently in the ordinary procedure upon request.

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

3. It must be submitted by March 31 of the year following the tax year. For persons leaving Switzerland, the deadline for submitting the request ends at the time of deregistration.

4. If no subsequent ordinary assessment is made upon request, the withholding tax replaces the tax to be assessed in the ordinary procedure on earned income. No additional deductions are granted retroactively.

5. Section 94, Paragraphs 5 and 6 are applicable.

The Individual Taxes - The Profit and Capital Taxes of Legal Entities - Withholding Tax - Natural Persons Without Tax Residence or Domicile in Switzerland and Legal Entities Without Headquarters or Actual Management in Switzerland - Employees Subject to Withholding Tax
§ 95 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Non-resident cross-border commuters, short-term residents, and weekly residents are subject to withholding tax on income earned from employment in the canton as per §§ 91 and 92. Excluded from this are incomes subject to taxation under the simplified accounting procedure according to § 38a.

2. Also subject to the withholding tax according to §§ 91 and 92 are non-resident employees who receive wages or other compensation for work in international traffic aboard a ship or an aircraft, or for road transport from an employer with headquarters or a permanent establishment in the canton; excluded from this is the taxation of seafarers for work aboard an ocean-going vessel.

The Individual Taxes - Profit and Capital Tax of Legal Entities - Withholding Tax - Natural Persons Without Tax Residence or Domicile in Switzerland and Legal Entities Without Headquarters or Effective Management in Switzerland - ...
§ 96 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. ...

The Individual Taxes - The Profit and Capital Tax of Legal Entities - Withholding Tax - Natural Persons Without Tax Residence or Domicile in Switzerland and Legal Entities Without Headquarters or Effective Management in Switzerland - Artists, Athletes, Speakers
§ 97 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Artists, athletes, and speakers residing abroad are subject to withholding tax at source on income earned from personal activities conducted in the canton and on related compensations. This also applies to income and compensations paid to a third party that organizes such activities rather than the individuals themselves.

2. The tax amounts to

- 8.2% for daily income up to 200 Swiss francs;

- 12.6% for daily income from 201 to 1,000 Swiss francs;

- 16% for daily income from 1,001 to 3,000 Swiss francs;

- 20% for daily income over 3,000 Swiss francs.

3. Daily income is defined as gross income, including all allowances and fringe benefits, after deduction of earning-related costs. These are

a) 50 percent of gross income for artists;

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

4. Benefits in kind are generally assessed according to the rates applicable for the Swiss Federal Old Age and Survivors' Insurance.

5. The organizer tasked with arranging the performance of one of the individuals mentioned in paragraph 1 within the canton is jointly liable for the withholding tax.

The Individual Taxes - The Profit and Capital Tax of Legal Entities - The Withholding Tax - Natural Persons without Tax Residence or Presence in Switzerland and Legal Entities without Headquarters or Effective Management in Switzerland - Members of the Management or Administration of Legal Entities
§ 98 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Members of the board or management of legal entities domiciled or effectively managed in the canton, who reside abroad, are subject to a withholding tax on director's fees, attendance fees, fixed compensations, employee participations, and similar remunerations paid to them. This applies even if these remunerations are paid to a third party.

2. Members of the board or management of foreign enterprises, who reside abroad and maintain permanent establishments in the canton, are subject to a withholding tax on director's fees, attendance fees, fixed compensations, employee participations, and similar remunerations paid to them at the expense of such establishments.

3. The tax amounts to 20 percent of the taxable gross income.

4. ...

The Specific Taxes - The Profit and Capital Tax of Legal Entities - The Withholding Tax - Natural Persons without Tax Residence or Domicile in Switzerland and Legal Entities without Registered Office or Actual Administration in Switzerland - Mortgage Creditors
§ 99 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Natural or legal persons domiciled abroad, as creditors or beneficial owners of claims secured by real estate liens or chattel liens on properties in the canton, are subject to a withholding tax on the interest paid to them.

2. Taxable income is deemed to be the gross income. This includes interest that is paid to a third party rather than the taxable person themselves.

3. The tax amounts to 15 percent of the taxable income.

The Individual Taxes - The Profit Tax and the Capital Tax of Legal Entities - The Withholding Tax - Natural Persons Without Tax Residence or Stay in Switzerland and Legal Entities Without a Registered Office or Actual Management in Switzerland - Recipients of Pension Benefits
§ 100 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Persons Residing Abroad,

a) who receive pensions, retirement salaries, capital disbursements, or other compensations due to a previous public-law employment relationship from an employer, an employer’s representative, or a pension fund with its seat or place of business in the canton,

b) or who receive pensions, capital disbursements, or other compensations from occupational pension institutions governed by private law or from recognized forms of tied private pension schemes with their seat or place of business in the canton,

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

3. For pensions, the tax amounts to 8 percent of the taxable income.

4. For capital disbursements, the tax is calculated according to the tax rates in accordance with § 39.

Individual Taxes - Profit and Capital Tax for Legal Entities - Withholding Tax - Recipients of Employee Participation
§ 100a Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Persons who are residing abroad at the time of receipt of pecuniary benefits from restricted employee options (§ 18b para. 3) are subject to tax on a proportional basis according to § 18d for the pecuniary benefit.

2. The tax amounts to 26 percent of the pecuniary benefit.

Article 1: Individual Taxes - Profit Tax and Capital Tax for Legal Entities - Withholding Tax - Recipients of Employee Participation - Tax Withholding Please let me know if you need further assistance or additional sections translated.
§ 101 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Withholding tax replaces the tax of the Confederation, the canton, and the municipality on earned income that would be assessed in the ordinary procedure. No additional deductions are granted subsequently.

2. In the case of dual-earner couples, a correction to the tax rate-determining earned income for the spouse may be made upon request.

Individual Taxes - Profit and Capital Tax of Legal Entities - Withholding Tax - Recipients of Employee Participations - Subsequent Regular Assessment
§ 101a Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Individuals subject to withholding tax under § 95 may request a subsequent ordinary assessment for each tax period by March 31 of the year following the tax year, if

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

b) their situation is comparable to that of a taxpayer residing in Switzerland; or

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

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

Individual Taxes - Profit and Capital Tax of Legal Entities - Withholding Tax - Recipients of Employee Participations - Subsequent Regular Assessment
§ 101b Act on Direct Taxes (Steuergesetz, StG) Open official source

1. In cases of manifestly unfair conditions, particularly concerning the flat-rate deductions included in the withholding tax rate, the tax administration may, ex officio, request a subsequent ordinary assessment in favor of or against the taxable person.

Title: Specific Taxes - Profit and Capital Tax for Legal Entities - Real Estate Capital Gains Tax - Tax Liability - Tax Subject
§ 102 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The taxpayer is the seller.

2. Capital gains on usufruct assets are attributed to the owner.

Chapter 1: Individual Taxes - Profit and Capital Tax of Legal Entities - Real Estate Capital Gains Tax - Tax Liability - Tax Exemption
**§ 103 Tax Law, TL** Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Exempt from the liability to real estate capital gains tax are

a) the public entities, corporations, and institutions exempt from tax under § 66 letters a, b, and h;

b) the health insurance funds and health insurers pursuant to § 66 letter e.

## Individual Taxes - Profit and Capital Tax of Legal Entities - Real Estate Capital Gain Tax - Tax Object - Taxable Event
§ 104 Act on Direct Taxes (Steuergesetz, StG) Open official source

**1. Real Estate Capital Gains Tax is Levied on Profits Derived from the Sale of Properties Located in the Canton, Pertaining to Both Private and Business Assets of Natural and Legal Persons, as well as Shares in Such Properties.**

2. Equated with the Sale of Properties are

a) Legal transactions that economically act as a sale with respect to the control over a property;

b) The encumbrance of a property with private law easements or public law ownership restrictions, if these significantly and permanently impair the unrestricted management or the sale value of the property and a compensation is paid for this.

3. Properties are defined as the assets described in Article 655 of the Swiss Civil Code.

The Individual Taxes - The Profit and Capital Taxes of Legal Entities - The Real Estate Capital Gains Tax - Tax Object - Tax Deferral
§ 105 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Tax deferral is applicable in the case of

a) Land readjustments for the purpose of land consolidation, subdivision planning, boundary adjustment, consolidation of agricultural holdings, as well as in land readjustments involving expropriation proceedings or the threat of expropriation;

b) The sale of a permanently and exclusively self-used residential property (single-family house or condominium), provided that the proceeds are used within a reasonable period to acquire or construct a replacement property for the same use within Switzerland;

c) The sale of real estate that is part of the necessary operating assets, provided that the proceeds are used within a reasonable period to acquire a replacement property with the same function within Switzerland;

d) Transfer of ownership through inheritance (succession, partition of estate, legacy), advance inheritance, or donation;

e) Transfer of ownership between spouses in connection with matrimonial property laws, as well as to compensate extraordinary contributions by one spouse to the maintenance of the family (Article 165 of the Swiss Civil Code) and divorce-related claims, provided both spouses agree;

f) Business restructurings; §§ 20 and 72 apply mutatis mutandis.

2. For sales as per paragraph 1 (a) to (c), the tax deferral applies only to the extent that the sales proceeds reinvested in the replacement property exceed the original acquisition cost of the sold property. An acquisition as per paragraph 1 (d) to (f) is not considered a replacement acquisition. For sales as per paragraph 1 (d) to (f), the original acquisition cost or the acquisition cost of the legal predecessor must be adopted.

The Individual Taxes - Corporate Income and Capital Taxes - Real Estate Capital Gains Tax - Tax Object - Taxable Profit
§ 106 Act on Direct Taxes (Steuergesetz, StG) - a) Calculation Open official source

1. The capital gain from real property is the amount by which the proceeds from the sale exceed the acquisition value.

2. The proceeds from the sale are deemed to be the sales price including all ancillary benefits provided by the purchaser, minus the costs associated with the sale.

3. The acquisition value, subject to § 105 para. 2, is defined as the purchase price, taking into account the costs associated with the acquisition and the capital expenditures, insofar as these have not already been deducted in the income or corporate tax.

4. For properties acquired before January 1, 2002, the acquisition value is either the actual value (the insurance value of the building as of December 31, 1999, accounting for depreciation due to age at that time, construction incidental costs, and proportional land value according to the land value catalog as of December 31, 1999), increased by capital expenditures made since then, or the proven higher acquisition value according to para. 3.

The Individual Taxes - Corporate Income and Capital Taxes - Real Estate Capital Gains Tax - Tax Object - Taxable Profit
§ 107 Act on Direct Taxes (Steuergesetz, StG) - b) Duration of Ownership Deduction Open official source

1. ...

2. The duration of possession is considered to be the period during which the taxable person was the owner of the sold property or had the economic control over it. For its calculation, the provisions concerning the inception of the tax (§ 110 paragraph 1) apply accordingly.

3. To determine the duration of possession for a property acquired within the framework of § 105 paragraph 1 items a to c, the acquisition date of the replaced or exchanged property is decisive, provided that the taxation of the gain was deferred. To determine the duration of possession for a property acquired within the framework of § 105 paragraph 1 items d to f, the acquisition date of the predecessor in title is decisive.

The Individual Taxes - Corporate Income and Capital Taxes - Real Estate Capital Gains Tax - Tax Object - Taxable Profit
§ 108 Act on Direct Taxes (Steuergesetz, StG) - c) Loss Offset Open official source

1. Losses from real estate are offset against real estate gains in the same calendar year.

2. Surpluses of real estate losses from disposals are offsettable, provided they result from losses of the previous seven years.

3. Business losses of self-employed individuals and legal entities are deductible from taxable real estate gains on properties belonging to business assets, insofar as they cannot be offset against income or profit. If there are multiple real estate gains in the same calendar year, the business loss is to be proportionately offset. If a surplus loss remains after the offset, it is to be carried forward to the next tax periods in accordance with §§ 30 and 75.

The Individual Taxes - Profit and Capital Tax of Legal Entities - Real Estate Capital Gains Tax - Tax Calculation
§ 109 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The tax rate for a holding period of up to five completed years is 60 percent of the taxable gain. It is reduced from the 6th year of holding and for each subsequent commenced year of holding by 3.9 percentage points, and from the 16th year of holding and for each subsequent commenced year of holding by 0.9 percentage points. From the 25th year of holding, it uniformly amounts to 12 percent.

2. For the determination of the holding period, § 107 paragraphs 2 and 3 apply.

3. The tax rate for permanently and exclusively owner-occupied residential properties (single-family houses and condominiums) for a holding period of up to five completed years is 30 percent of the taxable gain. It is reduced from the 6th year of holding and for each subsequent commenced year of holding by 0.9 percentage points. From the 25th year of holding, it uniformly amounts to 12 percent.

4. The tax rate according to paragraph 1 is reduced in proportion to the value-enhancing expenditures incurred after acquisition, weighted with the factor 1.5, to the realized sales proceeds, but not to less than 30 percent.

5. Capital gains on real estate are tax-free if their amount does not reach 500 francs. Similarly, residual amounts below 100 francs are disregarded.

**The Individual Taxes - The Profit and Capital Tax of Legal Entities - The Property Gains Tax - Temporal Foundations**
§ 110 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The tax claim arises

a) upon transfers with the conveyance of ownership of the property;

b) for legal transactions that economically have the effect of a transfer, with the transfer of economic power of disposal;

c) for encumbrances of a property with private law servitudes with their entry in the land register;

d) for public law ownership restrictions through the legal act that definitively determines the compensation payment.

2. The property gain tax is assessed and levied following its inception.

The Individual Taxes - Income and Capital Tax of Legal Entities - Property Tax - Tax Subject
§ 111 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Legal entities shall pay a property tax on real estate located in the canton.

2. The provisions regarding tax liability, tax succession, and joint liability for income and capital taxes shall apply mutatis mutandis.

1. The Individual Taxes - The Profit and Capital Tax of Legal Entities - The Property Tax - Tax Object - Subject and Valuation
§ 112 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Property tax is levied on the value of the property at the end of the tax period.

2. The assessment is conducted according to the regulations for wealth tax on natural persons.

3. For housing cooperatives, the government council may provide for valuation deductions if they form reserves for building renovations.

The Individual Taxes - The Profit and Capital Tax of Legal Entities - The Property Tax - Tax Object - Tax Exemption
§ 113 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Exemptions from Property Tax

a) Properties of public entities, corporations, and institutions that are exempt from taxation under § 66 lit. a, b, and h;

b) Properties of health insurance funds and health insurers as defined in § 66 lit. e;

c) Properties of legal entities exempt from taxation under § 66 lit. f and g, provided they serve exclusively and directly public, charitable, or religious purposes;

d) Properties of enterprises where predominantly the business of the enterprise itself or of a related person is conducted; mere administration, utilization, or trading of properties does not qualify as business in this context.

1. Individual Taxes - Corporate Income and Capital Tax - Property Tax - Tax Calculation - Tax Rate
§ 114 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The property tax amounts to 2 per mille of the taxable property value.

The Individual Taxes - Profit and Capital Tax of Legal Entities - Property Tax - Tax Calculation - Credit Against Profit and Capital Tax
§ 115 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The property tax is credited against the profit and capital tax of the same tax period.

The Individual Taxes - The Profit and Capital Tax of Legal Entities - The Property Tax - Temporal Principles
§ 116 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The provisions regarding the temporal basis for profit tax and capital tax also apply to property tax.

The Individual Taxes - The Profit and Capital Tax of Legal Entities - The Inheritance and Gift Tax - Tax Liability - Taxpayer
§ 117 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The recipient of the transferred assets (heirs, legatees, donees, beneficiaries, entitled persons) is liable to tax.

2. In the case of the appointment of a subsequent heir, both the preliminary and the subsequent heirs are liable to tax.

3. In the transfer of usufructs and periodic payments, the usufructuary or the recipient of the payment is liable to tax.

The Individual Taxes - Income and Capital Tax of Legal Entities - Inheritance and Gift Tax - Tax Liability - Tax Affiliation
§ 118 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Liability to Taxation Exists if

a) the deceased had their last domicile in the canton, or the estate was opened in the canton;

b) the donor has their domicile in the canton at the time of the donation;

c) real estate or rights to such located in the canton are transferred.

2. In an international context, the tax obligation also exists if movable assets located in the canton are transferred, which, according to an international treaty, are allocated to the permanent establishment or the location country for taxation.

The Individual Taxes - The Profit and Capital Taxes of Legal Entities - The Inheritance and Gift Tax - Tax Liability - Tax Succession and Liability
§ 119 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The rights and obligations of a deceased taxpayer are assumed by their heirs.

2. Each heir is jointly liable for the inheritance tax up to the amount of their inheritance share.

3. For the gift tax, the donor is jointly liable with the taxable person.

Individual Taxes - Corporate Income and Capital Tax - Inheritance and Gift Tax - Tax Liability - Tax Exemption
§ 120 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Exempt from inheritance and gift tax obligations are

a) the spouse, descendants, adoptive descendants, and foster children of the deceased or the donor;

b) the public entities and legal persons exempt from tax pursuant to § 66; those seated outside the canton are exempt only to the extent that federal law provides for an exemption or there is a reciprocity agreement in place.

2. The Executive Council may enter into reciprocity agreements[6].

The Individual Taxes - Corporate Income and Capital Tax - Inheritance and Gift Tax - Taxable Object - Subject of Taxation
§ 121 Act on Direct Taxes (Steuergesetz, StG) - a) Inheritance-Related Asset Transfers Open official source

1. All transfers of assets (inheritances and endowments) are subject to inheritance tax by virtue of statutory inheritance rights or on the basis of a disposition upon death.

2. Taxable asset transfers particularly include those resulting from appointment as heir, legacy, inheritance contract, inheritance buyout, gift upon death, and the establishment of a foundation upon death.

The Individual Taxes - Corporate Income and Capital Tax - Inheritance and Gift Tax - Taxable Object - Subject of Taxation
§ 122 Act on Direct Taxes (Steuergesetz, StG) - b) Donations Inter Vivos Open official source

1. Gifts Tax shall apply to transfers among living persons, by which the beneficiary is enriched from the assets of another person without receiving corresponding consideration.

2. Taxable transfers include, in particular, advancements on account of future inheritance, gifts made among living persons to heirs or non-heirs, and the establishment of a foundation during one's lifetime.

The Individual Taxes - Corporate Income and Capital Tax - Inheritance and Gift Tax - Taxable Object - Subject of Taxation
§ 123 Act on Direct Taxes (Steuergesetz, StG) - c) Insurance Claims Open official source

1. The inheritance and gift tax shall be levied on the allocations of insurance amounts that become due upon or after the death of the deceased or during the lifetime of the donor, insofar as they are not subject to income tax.

The Individual Taxes - Corporate Income and Capital Tax - Inheritance and Gift Tax - Taxable Object - Subject of Taxation
§ 124 Act on Direct Taxes (Steuergesetz, StG) - d) Remuneration from an Employment Relationship Open official source

1. No inheritance or gift tax shall be levied on benefits provided by the employer to the employee or their heirs, such as pensions, annuities, lump-sum settlements, bonuses, and long-service awards, which are grounded in the employment relationship and are subject to income tax.

Title: Individual Taxes - Profit and Capital Tax of Legal Entities - Inheritance and Gift Tax - Tax Object - Content of Asset Transfer
§ 125 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Taxable are all transferable property rights, such as rights of ownership, limited real rights, claims, usufructs, rights to pensions, and other periodic benefits.

2. Taxable is also the forgiveness of liabilities in favor of solvent debtors.

3. Taxable is also the cessation of a usufruct or another limited real right, insofar as these rights have not already been taxed at the time of receipt.

### Individual Taxes - Profit and Capital Tax of Legal Entities - Inheritance and Gift Tax - Tax Object - Tax-Exempt Transfers of Assets
§ 126 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Exempt from taxation, subject to § 132 paragraph 1

a) Occasional gifts of a customary amount;

b) Contributions to necessary living expenses or for ongoing education;

c) Household goods;

d) Endowments as a marriage gift up to the amount of 40,000 francs;

e) Gifts made during the giver's lifetime up to the amount of 10,000 francs;

f) Gifts to prevent bankruptcy, seizure, or pledge realization.

The Individual Taxes - Income and Capital Tax for Legal Entities - Inheritance and Gift Tax - Basis of Assessment - Valuation
§ 127 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The transferred taxable assets are generally valued at the fair market value at the time the tax liability arises.

2. Securities and claims are valued at their market value and, in the absence of such, at the fair market value or intrinsic value. If their total yield value (the sum of yields, capitalized at a rate to be determined by the governing council) is lower than their total fair market value (the sum of securities and claims valued at market, fair market, or intrinsic values), the average of these two values is taxed.

3. Real estate properties are valued at fair market value; the yield value may be reasonably considered. The valuation regulations for wealth tax apply accordingly.

4. Usufructs, annuities, and other periodic payments are valued based on their capital value.

5. For asset transfers from an insurance contract, the valuation is based on the surrender value or the paid insurance sum.

Individual Taxes - Income and Capital Tax of Legal Entities - Inheritance and Gift Tax - Tax Base - Deductions
§ 128 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. For tax assessment, the following shall be deducted

a) the debts encumbering the inheritance or gift;

b) the succession debts and the costs of the execution of the will;

c) the claims of household members according to Art. 606 of the Swiss Civil Code;

d) the costs for burial and grave maintenance;

e) the court and attorney fees for invalidity, reduction, and inheritance claims from the share of the burdened entitled heir.

2. If the transfer of assets is encumbered with a usufruct or an obligation to make periodic payments, the capital value of the encumbrance shall be deducted.

Individual Taxes - Income and Capital Tax of Legal Entities - Inheritance and Gift Tax - Tax Calculation - Tax Allowances
§ 129 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. From the transfers of assets subject to inheritance tax, 2000 francs are deducted.

The Individual Taxes - The Profit and Capital Tax of Legal Entities - The Inheritance and Gift Tax - Tax Calculation - Tax Rate
§ 130 Act on Direct Taxes (Steuergesetz, StG) - a) Basic Rate Open official source

1. The basic tax rate is, subject to paragraph 3

a) *

b) 4% for parents and adoptive parents;

c) 6% for grandparents, siblings, half-siblings, children-in-law, stepchildren, in-laws, and stepparents;

d) 8% for nephews and nieces;

e) 10% for uncles and aunts, brothers-in-law, and sisters-in-law;

f) 14% for all other legally entitled heirs and non-blood-related nephews and nieces;

g) 18% for all other persons.

2. The basic tax rate is 5 percent for legal entities within the meaning of § 66, which are not exempt from inheritance and gift tax due to the absence of a reciprocity agreement.

3. The basic tax rate is 6 percent for individuals who, at the time the tax liability arises, have lived with the donor in a shared household with the same tax residence for at least five years. Paragraph 1, letter b remains reserved.

The Individual Taxes - The Profit and Capital Tax of Legal Entities - The Inheritance and Gift Tax - Tax Calculation - Tax Rate
§ 131 Act on Direct Taxes (Steuergesetz, StG) - b) Surcharges Open official source

1. A surcharge shall be levied on the basic tax. This surcharge amounts to

25% for a receipt up to CHF 100,000

50% for a receipt up to CHF 200,000

75% for a receipt up to CHF 500,000

100% for a receipt up to CHF 1,000,000

125% for a receipt up to CHF 2,000,000

150% for a receipt up to CHF 3,000,000

175% for a receipt exceeding CHF 3,000,000.

2. When transitioning from one surcharge level to the next, the additional amount of inheritance and gift tax may not exceed the additional amount of the wealth transfer.

1. Specific Taxes - Corporate Income and Capital Tax - Inheritance and Gift Tax - Tax Calculation - Calculation Rules
§ 132 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. In the calculation of the tax, previous donations from the deceased or the donor to the same recipient, including those under § 126 lit. d-f, must be included. Taxes paid on previous donations are to be credited.

2. If a recipient is only liable for tax in the canton for part of the asset transfer, the total donations are decisive for determining the tax-free amount.

3. For donations of real estate, the paid property transfer tax is credited against the owed gift tax up to its amount.

4. For the calculation of the simple tax according to § 130, the amount of the taxable asset received is rounded down to the nearest 100 francs.

The Individual Taxes - Profit and Capital Tax of Legal Entities - Inheritance and Gift Tax - Tax Calculation - Periodic Inheritance and Gift Tax
§ 133 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. In cases of transfers of assets that consist of a usufruct or other periodic benefits, the taxpayer is entitled, upon providing adequate security, to pay the inheritance and gift tax annually on the received periodic benefits.

2. The surcharge as per § 131 is determined based on the value of the total taxable asset receipt as defined in § 132.

Individual Taxes - The Profit Tax and Capital Tax for Legal Entities - The Inheritance and Gift Tax - Temporal Foundations
§ 134 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The tax claim arises in the case of asset transfers

a) upon death, at the time when the inheritance is opened;

b) from subsequent inheritance, at the time when the prior inheritance ends;

c) from a gift, at the time of execution of the gift;

d) with a suspensive condition, at the time of the occurrence of the condition.

2. § 133 remains unaffected.

3. The inheritance and gift tax is assessed and collected following its inception.

The Individual Taxes - The Profit and Capital Tax of Legal Entities - Section 8: The Capital Tax of Enterprises in the Swiss Sector of Basel-Mulhouse Airport
§ 134a Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Enterprises within the meaning of Art. 5, para. 1 of the Agreement between the Swiss Federal Council and the Government of the French Republic on the applicable tax laws at Basel-Mulhouse Airport dated March 23, 2017, shall pay a capital tax for their establishments located in the Swiss sector of the airport.

2. The object of the capital tax is the equity attributable to these establishments. This is allocated in analogous application of the principles of federal law regarding the prohibition of inter-cantonal double taxation.

3. Taxable equity refers to equity as defined in § 85 paras. 1, 2, and 4 for corporations and cooperatives, equity as defined in § 86 paras. 1 and 2 for other legal entities, and net assets per the annual accounts for sole proprietorships and partnerships.

4. The capital tax amounts to 1 percent of the taxable equity.

5. The capital tax is assessed and collected for each tax period. The provisions concerning the commencement and end of tax liability and the temporal bases for wealth or capital taxes (§§ 8, 53, 54 or §§ 63, 88, 89) apply accordingly.

Organization, Procedure, and Tax Reference - Tax Authorities - Tax Administration
§ 135 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The execution of this law is the responsibility of the tax administration, unless special authorities are designated.

2. The organization of the tax administration is governed by the provisions of the cantonal organizational law.

3. The tax administration is under the supervision of the Department of Finance.

Organization, Procedure, and Tax Reference - Tax Authorities - Tax Appeals Commission
§ 136 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Jurisdiction over appeals against decisions of the Tax Administration is vested in the Tax Appeal Commission. Likewise, the Tax Appeal Commission is responsible for ruling on appeals against objection decisions of rural municipalities concerning municipal income or property gain taxes, provided that the Tax Appeal Commission is designated as the appeal body in the municipal tax ordinances.

2. The Tax Appeal Commission is appointed by the Government Council. It consists of a president, a deputy, and ten other members. Its term of office is four years. It renders its decisions with a minimum of three members.

3. The Government Council issues the necessary regulations for the organization of the Tax Appeal Commission. The Tax Appeal Commission reports regularly to the Government Council on its activities.

4. In its adjudicative capacity, the Tax Appeal Commission is independent.

5. The secretariat staff is appointed by the Tax Appeal Commission.

Organization, Procedure, and Tax Reference - Tax Authorities - Assessment of Tax - General Procedural Principles - Recusal
§ 137 Act on Direct Taxes (Steuergesetz, StG) Open official source

**1. Persons required to make a decision or to participate decisively in the execution of this law must recuse themselves if they:**

a) have a personal interest in the matter;

b) are related or affianced in a direct line or collateral line up to the third degree with a party, or are connected through marriage, engagement, de facto partnership, or adoption;

c) are representatives of a party or have acted for a party in the same matter;

d) might be biased in the matter for other reasons.

**2. If the grounds for recusal are contested, the superior authority decides or, in the case of members of a collegial authority, the collegial authority itself decides.**

Organization, Procedure and Tax Reference - Tax Authorities - Assessment of the Tax - General Procedural Principles - Official Secrecy, Administrative Assistance, Data Protection
§ 138 Act on Direct Taxes (Steuergesetz, StG) - a) Principle Open official source

1. Persons entrusted with the execution of this law or involved in it are obliged to maintain confidentiality regarding facts and circumstances that become known to them in the exercise of their duties, as well as regarding negotiations within the authorities, and must deny third parties access to official files.

2. Tax authorities provide information or assistance to the extent that there is a legal basis for this in federal law or cantonal law.

Organization, Procedure and Tax Reference - Tax Authorities - Assessment of the Tax - General Procedural Principles - Official Secrecy, Administrative Assistance, Data Protection
§ 139 Act on Direct Taxes (Steuergesetz, StG) - b) Assistance between Tax Authorities Open official source

1. The tax authorities entrusted with the enforcement of this law shall provide the necessary information to the federal tax authorities, the tax authorities of other cantons, and the municipalities of the canton upon request or on their own initiative, free of charge, and grant them access to official records.

Organization, Procedure and Tax Reference - Tax Authorities - Assessment of the Tax - General Procedural Principles - Official Secrecy, Administrative Assistance, Data Protection
§ 140 Act on Direct Taxes (Steuergesetz, StG) - c) Assistance from Other Authorities Open official source

1. The administrative and judicial authorities of the canton and its municipalities are required, regardless of any confidentiality obligations, to provide the tax authorities of the canton with all necessary information upon request. They may, on their own initiative, provide information if their official duties indicate the likelihood of incomplete taxation.

2. The same duty of administrative assistance applies to the bodies of corporations and institutions, insofar as they perform public administration tasks.

3. Pursuant to Article 39 paragraph 3 of the Tax Harmonization Act, the tax authorities may request administrative assistance from the authorities of the federal government and other cantons.

Organization, Procedure and Tax Reference - Tax Authorities - Assessment of the Tax - General Procedural Principles - Official Secrecy, Administrative Assistance, Data Protection
§ 141 Act on Direct Taxes (Steuergesetz, StG) - d) Assistance to Other Authorities Open official source

1. The tax authorities shall provide the administrative and judicial authorities of the canton and the municipalities with all necessary information upon request or on their own initiative, insofar as there is an overriding public interest and insofar as these authorities require the information to fulfill their legal duties. The obligation to provide information also exists towards the administrative and judicial authorities of other cantons, provided the other canton offers reciprocity.

Organization, Procedure, and Tax Reference - Tax Authorities - Tax Assessment - Data Processing
§ 141a Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The tax administration operates an information system to fulfill its duties. This system may also contain special personal data on administrative and criminal sanctions that are significant for tax law purposes.

1bis. The tax administration is authorized to systematically use the insured person's number from the Old-Age and Survivors' Insurance in accordance with the provisions of the Federal Act of December 20, 1946, on Old-Age and Survivors' Insurance to fulfill its legal duties.

2. For the provision of administrative assistance as defined in §§ 139 to 141, data may be transmitted individually, on lists, or on electronic data carriers. They may also be made accessible through a retrieval process.

3. In the case of administrative assistance within or to tax authorities, all data from taxpayers that can be used for the assessment and collection of taxes are to be shared free of charge, in particular

a) personal details;

b) information on civil status, place of residence and stay, residence permit, and employment;

c) legal transactions;

d) benefits from the public community.

4. Otherwise, unless this Act contains differing provisions, the provisions of the cantonal Information and Data Protection Act apply mutatis mutandis.

Organisation, Procedure, and Tax Reference - Tax Authorities - Tax Assessment - Procedural Status of the Taxable Person - Spouses
§ 142 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Spouses who are living in a legally and factually undivided marriage shall jointly exercise the procedural rights and obligations assigned to the taxable person under this law.

2. They shall jointly sign the tax return. If the tax return is signed by only one of the spouses, a deadline shall be set for the non-signing spouse. If this deadline expires unused, it shall be presumed that there is a contractual representation between the spouses.

3. Appeals and other submissions are considered to be submitted on time if one spouse acts within the deadline.

Organization, Procedure and Tax Reference - Tax Authorities - Assessment of Tax - Procedural Position of the Taxable Person - Right to Access Files
§ 143 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Taxpayers are entitled to inspect the records submitted or signed by them. Spouses assessed jointly have a mutual right to inspect each other's records.

2. The remaining records are open to taxpayers for inspection, provided the determination of the facts is completed and there are no public or private interests opposed to it.

3. If a taxpayer is denied access to a record, it may only be used to their detriment if the authority has informed them verbally or in writing of the essential contents relevant to the matter and has also given them the opportunity to express their views and designate counter-evidence.

**Organisation, Procedure, and Tax Reference - Tax Authorities - Assessment of Tax - Procedural Status of the Taxable Person - Taking of Evidence**
§ 144 Act on Direct Taxes (Steuergesetz, StG) Open official source

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

2. Records on image or data carriers have the same probative value as records that are readable without aids. They must be presented to the tax authorities in such a way that they are readable without aids. The tax administration may provide for exceptions.

**Organization, Procedure, and Tax Reference - Tax Authorities - Assessment of Tax - Procedural Status of the Taxpayer - Notification of Decisions**
§ 145 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Orders and decisions shall be communicated to the taxpayers in writing. They must be designated as such and include information on legal remedies.

2. If the whereabouts of a taxable person are unknown or if they are abroad without having a representative in Switzerland, an order or decision may be validly communicated to them by publication in the Canton Gazette.

Organization, Procedure, and Tax Reference - Tax Authorities - Assessment of Tax - Procedural Status of the Taxable Person - Representation
§ 146 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The taxable person may be contractually represented before the tax authorities, as long as their personal involvement is not necessary.

2. Anyone who is legally competent and enjoys civil honor and rights may be recognized as a representative. The authority may require the representative to provide proof of representation through a written power of attorney.

3. The tax authorities may require a taxable person residing or situated abroad to designate a representative in Switzerland.

Organization, Procedure, and Tax Reference - Tax Authorities - Assessment of Tax - Deadlines
§ 147 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Statutory deadlines cannot be extended.

2. An administrative deadline can be extended if sufficient reasons are present and the request for extension is submitted within the original deadline.

3. The deadline starts on the day following notification. It is considered met if the submission arrives at the competent authority on the last day of the deadline, is handed over to Swiss Post, or to a Swiss diplomatic or consular representation abroad. If the last day falls on a Saturday, Sunday, or a public holiday, the deadline expires on the next working day.

4. An unauthorized office shall forward submissions received to the competent authority without delay. The deadline for filing an appeal is considered met if it arrives at the unauthorized office or is handed over to Swiss Post on the last day of the deadline.

5. In the event of a missed deadline, reinstatement of the deadline can be requested if the defaulting party was prevented from complying due to an obstacle beyond their control. The request must be submitted in writing within 30 days from the removal of the obstacle, accompanied by the necessary evidence.

Organization, Procedure and Tax Reference - Tax Authorities - Tax Assessment - Statute of Limitations for Assessment
§ 148 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The right to assess a tax expires

a) for income, wealth, profit, capital, and property tax five years after the end of the tax period;

b) for property gain, inheritance, and gift tax five years after the tax claim arises. Sections 178 and 221 remain reserved.

2. The limitation period does not begin or is suspended

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

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

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

3. The limitation period recommences with

a) any official act aimed at determining or enforcing the tax claim, which is notified to a taxable or jointly liable person;

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

c) the submission of a waiver application;

d) the initiation of criminal prosecution for completed tax evasion or a tax offense.

4. The right to assess a tax is extinguished

a) for income, wealth, profit, capital, property, and withholding tax 15 years after the end of the tax period;

b) for property gain, inheritance, and gift tax 15 years after the tax claim arises. Sections 178 and 221 remain reserved.

Organization, Procedure, and Tax Reference - Tax Authorities - Assessment of Tax - Assessment in the Ordinary Procedure - Preparation of the Assessment
§ 149 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The tax administration maintains a register of individuals presumed to be liable for taxes.

2. The competent authorities of the canton and the municipalities provide the tax administration with the necessary information.

Organization, Procedure and Tax Reference - Tax Authorities - Tax Assessment - Assessment in the Ordinary Procedure - Duties of the Tax Administration
§ 150 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The tax administration, together with the taxpayer, determines the factual and legal circumstances relevant for a complete and accurate taxation.

2. It may, in particular, consult experts, conduct on-site inspections, and examine business books and records on the premises. The costs arising therefrom may be imposed, in whole or in part, on the taxpayer or any other person obligated to provide information who has caused them through a culpable violation of procedural obligations.

**Organization, Procedure, and Tax Reference - Tax Authorities - Assessment of Tax - Assessment in the Ordinary Procedure - Obligations of the Taxpayer**
§ 151 Act on Direct Taxes (Steuergesetz, StG) - a) Tax Declaration Open official source

1. Taxpayers are requested to submit their tax returns through public announcement or delivery of the form. Taxpayers who do not receive a form are required to request one from the tax administration.

2. The taxpayer must complete the tax return form truthfully and completely, personally sign it, and submit it together with the required attachments to the tax administration within the stipulated deadline. The tax return and the accompanying documents must generally be submitted within 30 days of delivery. The deadline may be extended if justified.

3. A taxpayer who submits the tax return incompletely or not at all may be requested to remedy the omission within a reasonable period.

**Organization, Procedure, and Tax Reference - Tax Authorities - Assessment of Tax - Assessment in the Ordinary Procedure - Obligations of the Taxpayer**
§ 152 Act on Direct Taxes (Steuergesetz, StG) - b) Annexes to the Tax Declaration Open official source

**1. Natural Persons Must Attach the Following to the Tax Declaration:**

a) Wage statements for all income from dependent employment;

b) Statements of compensation as a member of the management or another body of a legal entity;

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

d) Certificates concerning contributions and benefits related to occupational pensions and tied private pensions.

**2. Natural persons with income from self-employment and legal entities must attach the signed annual financial statements (balance sheets, income statements) of the tax period to the tax declaration, or if there is no commercial accounting, listings of assets and liabilities, income and expenses, as well as private withdrawals and private deposits.**

**3. Additionally, corporations and cooperatives must disclose the equity capital serving their assessment for profit tax at the end of the tax period or the tax obligation. This consists of the paid basic or share capital, the reserves from capital contributions disclosed in the commercial balance sheet in accordance with § 21 paragraphs 3 to 7, the disclosed and hidden reserves formed from taxed profits, as well as that part of the foreign capital which economically has the significance of equity capital.**

**Organization, Procedure, and Tax Reference - Tax Authorities - Assessment of Tax - Assessment in the Ordinary Procedure - Obligations of the Taxpayer**
§ 153 Act on Direct Taxes (Steuergesetz, StG) - c) Additional Cooperation Obligations Open official source

1. The taxpayer must do everything necessary to enable a complete and accurate assessment.

2. Upon request from the tax administration, they must, in particular, provide oral or written information, present business books, documents, and other certificates as well as deeds concerning business transactions.

3. Natural persons with income from self-employed activities and legal entities must retain business books and records according to § 152 para. 2 and other documents related to their activities for ten years. The manner of maintenance, storage, and edition is governed by the provisions of the Swiss Code of Obligations (CO) of March 30, 1911 (Art. 957 - 958 f).

Organization, Procedure and Tax Reference - Tax Authorities - Tax Assessment - Regular Assessment Procedure - Declaration of Donations
§ 154 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Donations Subject to Gift Tax Must Be Declared by the Parties Within 30 Days, or at the Latest, With the Tax Return for Income and Wealth Tax of the Year in Which the Gift Was Made.

Organization, Procedure, and Tax Reference - Tax Authorities - Tax Assessment - Assessment in the Ordinary Procedure - Certification Obligation of Third Parties
§ 155 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The following are obligated to issue written certificates to the taxable person

a) Employers regarding their payments to employees;

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

c) * Insurers regarding the surrender value of insurance policies and the payments made or owed under the insurance relationship. For life annuity insurances subject to the VVG, they must additionally indicate the year of conclusion, the amount of the guaranteed annuity, the total taxable income portion according to § 23 paragraph 3, as well as any surplus payments and the income portion from these payments according to § 23 paragraph 3 letter b;

d) Trustees, asset managers, pledgees, agents, and other persons who own or have owned assets of the taxable person about these assets and their yields;

e) Persons who conduct or have conducted business with the taxable person about mutual claims and services.

2. If the taxable person fails to submit the necessary certificates despite a reminder, the tax administration may demand them directly from the third party. The legally protected professional confidentiality remains reserved.

Organization, Procedure and Tax Reference - Tax Authorities - Assessment of Tax - Assessment in Ordinary Proceedings - Third-party Duty to Provide Information
§ 156 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Shareholders, female shareholders, co-owners, female co-owners, as well as joint owners and female joint owners are obliged, upon request, to provide the tax authorities with information concerning their legal relationship with the taxable person, particularly regarding their shares, claims, and distributions.

**Organization, Procedure and Tax Reference - Tax Authorities - Assessment of Tax - Assessment in the Ordinary Procedure - Reporting Obligation of Third Parties**
§ 157 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The tax administration must be provided with a certificate for each tax period by

a) Legal entities regarding the benefits paid to the members of the management and other bodies; foundations must additionally submit a certificate of the benefits provided to their beneficiaries;

b) Occupational and tied pension provision institutions regarding the benefits provided to their policyholders or beneficiaries;

c) Simple partnerships and partnerships regarding all circumstances relevant for the assessment of the partners, particularly concerning their share of the income and assets of the partnership;

d) * Collective investment schemes with direct real estate ownership regarding the circumstances relevant for the taxation of direct real estate and its income;

e) * Employers regarding their benefits to employees in the form of a copy of the wage statement or in another form approved by the tax administration; financial benefits from genuine employee participations as well as the allocation and exercise of employee options must also be certified;

f) * Bodies providing benefits under the Federal Act on Compulsory Unemployment Insurance and Insolvency Compensation of June 25, 1982 (Unemployment Insurance Act, AVIG) regarding their benefits to insured persons.

2. A duplicate of the certificate must be sent to the taxable person.

Organization, Procedure, and Tax Reference - Tax Authorities - Assessment of Tax - Assessment in Ordinary Procedure - Implementation
§ 158 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The tax administration reviews the tax return and conducts the required investigations.

2. If the taxpayer has not fulfilled their procedural obligations despite a reminder, or if the tax factors cannot be determined accurately due to a lack of reliable documentation, the tax administration makes the assessment based on its duly exercised discretion. In doing so, it may take into account empirical data, asset development, and the taxpayer's living expenses.

Organization, Procedure, and Tax Reference - Tax Authorities - Tax Assessment - Assessment in the Ordinary Procedure - Initiation
§ 159 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The tax authority determines the tax factors, the tax rate, and the tax amounts in the assessment notice.

2. Deviations from the tax return are communicated to the taxpayer in writing no later than upon the issuance of the assessment notice.

**Organization, Procedure, and Tax Reference - Tax Authorities - Tax Assessment - Assessment in Ordinary Procedures - Electronic Data Exchange**
§ 159a Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The tax administration regulates the conditions for the electronic exchange of data with taxpayers.

2. In place of a personal signature, another form of signature may be allowed.

**Organization, Procedure, and Tax Relation - Tax Authorities - Tax Assessment - Objection Procedure - Requirements and Content of the Objection**
§ 160 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Against the assessment or any other order of the tax administration, the affected person may file an objection in writing with the tax administration within 30 days of delivery.

2. The objection must contain a petition and a statement of reasons, including the indication of evidence.

3. The deadline for the statement of reasons may be extended.

4. An assessment based on reasonable discretion (§ 158 para. 2) can be contested by the taxable person within 30 days of delivery only due to obvious inaccuracies; paragraph 3 does not apply.

Organization, Procedure, and Tax Reference - Tax Authorities - Tax Assessment - Objection Procedure - Procedure
§ 161 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The tax administration has the same powers in the objection procedure as in the assessment procedure.

2. A withdrawal of the objection will not be accepted if, based on the circumstances, it can be assumed that the assessment was incorrect.

Organization, Procedure, and Tax Reference - Tax Authorities - Tax Assessment - Objection Procedure - Decision and Notification
§ 162 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The tax administration decides on the objection based on the investigation. It may reassess all tax factors and, after hearing the taxpayer, amend the assessment to their detriment.

2. The decision is communicated to the taxpayer in writing, stating the reasons for the decision and including information on legal remedies.

**Organization, Procedure and Tax Reference - Tax Authorities - Assessment of Taxes - Objection Procedure - Costs**
§ 163 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The objection procedure is free of charge. Section 150 paragraph 2 remains applicable.

Organization, Procedure and Tax Reference - Tax Authorities - Assessment of the Tax - Appeal Procedure - Requirements and Content
§ 164 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. An appeal against the administrative objection decision may be lodged by the affected person with the Tax Appeal Commission in writing within 30 days of receiving the decision.

2. The appeal document must contain a motion and a justification. Evidence must be attached to the appeal document or, if this is not possible, precisely specified. If the appeal does not meet these requirements, an appropriate deadline for correction will be set for the affected person, with the threat of non-consideration.

3. All defects of the contested decision and the preceding procedure can be criticized with the appeal. The parties are also authorized to present new facts and evidence that support their claims.

4. The appeal generally has suspensive effect. However, this can be revoked.

Organization, Procedure, and Tax Reference - Tax Authorities - Tax Assessment - Appeal Procedure - Procedure
§ 165 Act on Direct Taxes (Steuergesetz, StG) - a) Principle Open official source

1. The appeal procedure is governed, subject to the provisions of this Act, by the regulations of the Act on Constitutional and Administrative Legal Proceedings.

Organization, Procedure, and Tax Reference - Tax Authorities - Tax Assessment - Appeal Procedure - Procedure
§ 165a Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The instruction of the procedure is the responsibility of the President of the Tax Appeals Commission. She or he takes all necessary procedural measures, such as granting legal aid, withdrawing suspensive effect, or ordering the necessary investigation and evidence measures.

2. The presidency may assign commission secretaries with the deputy performance of instructional duties.

Organization, Procedure, and Tax Reference - Tax Authorities - Tax Assessment - Appeal Procedure - Procedure
§ 166 Act on Direct Taxes (Steuergesetz, StG) - b) Consultation Open official source

1. The President of the Tax Appeals Commission invites the Tax Administration to submit a statement and requests the transmission of the files. In justified cases, she or he may waive this requirement. If necessary, a second exchange of written statements may be ordered.

2. The Tax Administration may reconsider its objection decision until the conclusion of the exchange of written statements.

3. The response from the Tax Administration shall be delivered to the appellant.

Organization, Procedure, and Tax Reference - Tax Authorities - Tax Assessment - Appeal Procedure - Procedure
§ 167 Act on Direct Taxes (Steuergesetz, StG) - c) Oral Hearing Open official source

1. The President of the Tax Appeals Commission may, on their own initiative or upon request by a commission member or a party, schedule the conduct of an oral hearing. The personal appearance of the appellant may be ordered.

2. In tax penal matters, an oral hearing shall take place unless the parties waive it.

Organization, Procedure and Tax Reference - Tax Authorities - Tax Assessment - Appeal Procedure - Procedure
§ 168 Act on Direct Taxes (Steuergesetz, StG) - d) Powers Open official source

1. In the appeal procedure, the Tax Appeal Commission has the same powers as the Tax Administration in the assessment and objection procedures.

2. The Tax Appeal Commission independently orders the necessary investigation and evidence measures. It can also examine witnesses.

Organization, Procedure, and Tax Reference - Tax Authorities - Tax Assessment - Appeal Procedure - Procedure
§ 168a Act on Direct Taxes (Steuergesetz, StG) - e) Jurisdiction Open official source

1. The President of the Tax Appeals Commission acts as a sole judge

a) on the dismissal of proceedings due to withdrawal of the appeal, acknowledgment of the appeal through reconsideration, obsolescence, default, failure to provide an advance on costs, or other grounds for dismissal,

b) if appeals cannot be admitted due to lateness or other reasons,

c) in cases where a request for tax remission or deferral is the subject of the proceedings,

d) in cases of appeals that are obviously to be dismissed or granted.

2. The President may refer a dispute to the Tax Appeals Commission for a decision if the significance of the case or the legal questions to be decided make this appear appropriate.

3. The Vice President or, if necessary, another member of the Tax Appeals Commission has the same powers as the President of the Tax Appeals Commission.

4. The President may delegate the handling of tasks according to paragraphs 1(a) and (b), in whole or in part, to the legal secretariat.

Organization, Procedure, and Tax Reference - Tax Authorities - Tax Assessment - Appeal Procedure - Procedure
§ 169 Act on Direct Taxes (Steuergesetz, StG) - f) Decision and Announcement Open official source

1. The Tax Appeal Commission decides based on the results of its investigations. It is not bound by the petitions of the parties. It may, after hearing the taxpayer, also amend the assessment to the detriment of the taxpayer. The Commission continues the proceedings despite the withdrawal or acknowledgment of the appeal if there are indications that the contested decision or the concordant petitions contradict the law.

2. The Tax Appeal Commission decides in secret deliberation.

3. The Tax Appeal Commission communicates its decision with a written justification to the appellant and the tax administration.

4. It may communicate its decisions without a justification and inform the parties that they may request the justification in writing within ten days, otherwise the decision will become legally binding.

If the justification is requested within the time limit, the appeal period begins with the delivery of the justified decision.

Organization, Procedure, and Tax Reference - Tax Authorities - Tax Assessment - Appeal Procedure - Procedure
§ 170 Act on Direct Taxes (Steuergesetz, StG) - g) Costs [[1]](#articletitle_text_fn_1342004_2_1_c) Open official source

1. The costs of the proceedings shall be imposed on the losing party. If the appeal is partially upheld, they shall be allocated proportionately.

2. The costs of the proceedings may also be imposed on the winning party if they could have achieved their rights in the assessment or objection proceedings by acting in compliance with duty or if they impeded the procedure through vexatious conduct.

3. The partially or wholly winning party may be awarded party compensation for the necessary costs of representation (§ 146) at the expense of the tax administration.

4. The appealing party may be required to provide a reasonable advance on costs. If they do not pay the requested amount within the set deadline, the appeal shall be dismissed as withdrawn.

5. Otherwise, the provisions of the Law on Court Fees shall apply.

Organization, Procedure, and Tax Reference - Tax Authorities - Tax Assessment - Appeal Procedure - Appeal to the Administrative Court
**§ 171 Tax Law, TL** Act on Direct Taxes (Steuergesetz, StG) Open official source

1. An affected person may appeal the decision of the Tax Appeal Commission to the Administrative Court.

2. The appeal must be filed with the Administrative Court within 30 days of the delivery of the decision. § 164 paragraph 2 applies correspondingly.

3. The right to appeal to the Administrative Court is also available to the Tax Administration.

4. Furthermore, the procedure is governed by the provisions of the Law on Administrative Justice.

**Organization, Procedure, and Tax Reference - Tax Authorities - Tax Assessment - Appeal Procedure - Appeal to the Federal Supreme Court**
§ 172 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Against the decision of the Administrative Court, the affected person, the cantonal tax administration, or the Federal Tax Administration may file a complaint in public law matters with the Federal Supreme Court in accordance with the Federal Supreme Court Act of June 17, 2005.

Organization, Procedure and Tax Reference - Tax Authorities - Assessment of Tax - Amendment of Final and Binding Orders and Decisions - Grounds for Revision
§ 173 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. A legally binding order or decision can be revised upon request or ex officio in favor of the taxpayer if

a) new significant facts or decisive evidence are discovered;

b) the adjudicating authority has ignored significant facts or decisive evidence that were known or should have been known to it, or otherwise violated essential procedural principles;

c) a crime or offense has influenced the order or decision.

2. Revision is excluded if the applicant presents as a reason for revision something that they could have asserted with reasonable diligence during the ordinary proceedings.

1. Organization, Procedure and Tax Reference - Tax Authorities - Assessment of Tax - Amendment of Final Decisions and Rulings - Request for Revision
§ 174 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The appeal request must be submitted in writing and include a justification, specifying the grounds for appeal, to the authority that rendered the decision.

2. The appeal request must be submitted within 90 days of discovering the grounds for appeal, but no later than ten years after the issuance of the order or decision.

3. With the request, the evidence supporting the grounds for appeal and the observance of the deadlines must be submitted or specified.

Organization, Procedure, and Tax Reference - Tax Authorities - Assessment of Tax - Amendment of Final Decisions and Orders - Procedure and Decision
§ 175 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. If the authority considers the request for revision to be justified, it shall annul the previous decision and issue a new decision.

2. Against the dismissal of a request for revision or against the new decision made upon acceptance of the revision, the same legal remedies may be pursued as could be pursued against the previous decision.

3. In all other respects, the provisions concerning the procedure under which the previous decision was made shall apply.

**Organization, Procedure, and Tax Reference - Tax Authorities - Assessment of Tax - Amendment of Legally Binding Orders and Decisions - Correction of Calculation Errors and Clerical Mistakes**
§ 176 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Calculation errors and clerical mistakes in final orders and decisions can be corrected within five years after their issuance, either upon request or ex officio, by the authority that made them.

2. The same legal remedies available against the order or decision may be pursued against the correction or its refusal.

3. The right to make a correction expires ten years after the end of the tax period to which it relates.

Organization, Procedure, and Tax Reference - Tax Authorities - Assessment of Tax - Amendment of Final and Binding Orders and Decisions - Ordinary Supplementary Tax
§ 177 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. If it becomes apparent due to facts or evidence unknown to the tax administration that an assessment was unjustly omitted or a finalized assessment is incomplete, or if an omitted or incomplete assessment is due to a crime or offense against the tax administration, the unpaid tax along with interest will be claimed as back taxes.

Organization, Procedure, and Tax Reference - Tax Authorities - Assessment of Tax - Amendment of Legally Binding Orders and Decisions - Forfeiture
§ 178 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The right to initiate a supplementary tax proceeding expires

a) for income, wealth, profit, capital, and property tax, ten years after the end of the tax period for which an assessment was unjustly omitted or an enforceable assessment is incomplete;

b) for property gain as well as inheritance and gift tax, ten years after the tax claim arises.

2. The right to assess the supplementary tax expires

a) for income, wealth, profit, capital, and property tax, fifteen years after the end of the tax period to which it relates;

b) for property gain as well as inheritance and gift tax, fifteen years after the tax claim arises.

Organization, Procedure, and Tax Reference - Tax Authorities - Assessment of Tax - Amendment of Legally Binding Orders and Decisions - Procedure
§ 179 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The initiation of a supplementary tax procedure is communicated to the taxpayer in writing.

2. If, at the initiation of the procedure, no criminal proceedings for tax evasion have been initiated, are pending, or can be ruled out from the outset, the taxpayer is informed of the possibility of such criminal proceedings being initiated at a later date.

3. The procedure, which has not yet been initiated or concluded at the time of the taxpayer's death, is initiated or continued with respect to the heirs.

4. Otherwise, the provisions on procedural principles, the assessment, objection, and appeal procedures are applicable mutatis mutandis.

Organization, Procedure, and Tax Reference - Tax Authorities - Assessment of the Tax - Amendment of Final and Binding Rulings and Decisions - Simplified Subsequent Taxation of Heirs
§ 179a Act on Direct Taxes (Steuergesetz, StG) Open official source

1. All heirs, both male and female, are independently entitled to a simplified supplementary taxation of the undeclared components of assets and income by the decedent, if

a) the evasion is unknown to any tax authority;

b) they unconditionally support the administration in determining the undeclared asset and income elements; and

c) they make a serious effort to pay the owed supplementary tax.

2. The supplementary tax is calculated for the last three tax periods preceding the year of death according to the regulations on ordinary assessment and is reassessed along with interest on arrears.

3. Simplified supplementary taxation is excluded if the inheritance is officially or bankruptcy-officially liquidated.

4. The executor, both male and female, and the estate administrator, both male and female, may also request simplified supplementary taxation.

Organization, Procedures, and Tax Reference - Tax Authorities - Tax Assessment - Inventory - Inventory Obligation
§ 180 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. An official inventory shall be taken within two weeks following the death of the taxable person.

2. The inventory taking may be dispensed with if it is assumed that no assets are present.

Organization, Procedure, and Tax Reference - Tax Authorities - Assessment of Tax - Inventory - Subject Matter
§ 181 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The inventory shall include the estate of the deceased as it existed on the date of death, as well as all benefits associated with the death that are subject to income tax.

2. The inventory shall also include the estate of the deceased person's spouse as it existed on the date of death and the estate of the minor children under their parental care.

3. The inventory shall also include all advancements and previous gifts within the meaning of § 132 paragraph 1, as well as other taxable gifts made during the deceased's lifetime to third parties.

4. Facts that are significant for tax assessment shall be determined and noted in the inventory.

**Organization, Procedure, and Tax Reference - Tax Authorities - Tax Assessment - Inventory - Procedure**
§ 182 Act on Direct Taxes (Steuergesetz, StG) - a) Jurisdiction Open official source

1. The Probate Office is responsible for the inventory taking and the sealing.

**Organization, Procedure, and Tax Reference - Tax Authorities - Tax Assessment - Inventory - Procedure**
§ 183 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The heirs and heiresses, as well as the persons who manage or safeguard the estate assets, may only dispose of them prior to the inventory being taken with the consent of the inventory authority.

2. To secure the inventory, the inventory authority may proceed with immediate sealing.

Organization, Procedure and Tax Reference - Tax Authorities - Assessment of Tax - Inventory - Procedure
§ 184 Act on Direct Taxes (Steuergesetz, StG) - c) Cooperation Obligations Open official source

1. The heirs and heiresses, as well as the persons entrusted with their legal representation, the administration of the estate, or the execution of the will, are obligated to

a) provide truthful information about all circumstances that may be relevant to determining the tax factors of the deceased;

b) present all books, documents, identification, and records that may provide insight into the estate;

c) open all premises and containers that were at the disposal of the deceased.

2. The heirs and heiresses and their legal representation who lived in a household community with the deceased person or have stored or managed their assets must also grant access to their rooms and containers.

3. If the heirs and heiresses and the persons entrusted with their legal representation, the administration of the estate, or the execution of the will become aware of estate items not listed in the inventory after the inventory has been taken, they must report these items to the inventory authority within ten days.

4. At least one legally competent heir and the legal representative of minor or incapacitated heirs must be present during the inventory taking.

**Organization, Procedure, and Tax Reference - Tax Authorities - Tax Assessment - Inventory - Procedure**
§ 185 Act on Direct Taxes (Steuergesetz, StG) - d) Duty to Provide Information and Certification Open official source

1. Third parties who held or managed the deceased person's assets, or who were owed valuable rights or claims by the deceased person, are obliged to provide the heirs with all relevant information in writing upon request to the inventory authority. If there are significant reasons preventing the fulfillment of this obligation, the third party may provide the required information directly to the inventory authority.

2. Individuals who lived in the same household as the decedent are obliged to truthfully provide the inventory authority with information regarding the decedent's financial circumstances.

3. Additionally, §§ 155 and 156 apply accordingly.

**Organization, Procedure, and Tax Reference - Tax Authorities - Tax Assessment - Inventory - Procedure**
§ 186 Act on Direct Taxes (Steuergesetz, StG) - e) Examination of the Inventory by the Tax Administration Open official source

1. Prior to completion, the tax administration must be granted access to the inventory, except when it can be assumed that no further tax claims exist against the estate or are still to be asserted.

2. The tax administration reviews the accuracy and completeness of the inventory and initiates the necessary corrections. It possesses the same powers as the inventory authority.

**Organization, Procedure, and Tax Reference - Tax Authorities - Tax Assessment - Inventory - Procedure**
§ 187 Act on Direct Taxes (Steuergesetz, StG) - f) Notification of the Inventory Open official source

1. An executed copy of the inventory shall be delivered to the heirs and heiresses, as well as to the persons entrusted with their legal representation, the administration of the estate, or the execution of the will.

Organization, Procedure, and Tax Reference - Tax Authorities - Assessment of Tax - Inventory - Tax Assessment Based on the Inventory
§ 188 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Upon completion of the inventory, the tax administration assesses the taxes owed by the estate.

2. Once the decision on the taxes owed by the estate becomes legally binding, the tax administration assesses the inheritance tax with the involvement of the inventory authority.

Organization, Procedure and Tax Reference - Tax Authorities - Assessment of the Tax - Special Provisions on the Procedure for Withholding Tax - Duties of Debtors of the Taxable Performance
§ 189 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The debtor of the taxable service is obliged to take all necessary measures for the correct collection of taxes, in particular

a) in the event of due money payments, to withhold the owed tax regardless of any objections or wage garnishments and to demand the owed tax from the taxable person for other services (especially in-kind benefits and tips);

b) to issue the taxable person a statement or a confirmation regarding the tax deduction;

c) to periodically deliver the taxes to the tax administration, to settle with them, and to allow them access to all documents for the purpose of tax collection control, as well as to provide oral or written information upon request;

d) * to pay the pro rata taxes on employee stock options exercised abroad; the employer owes the pro rata tax even if the monetary benefit is granted by a foreign group company.

2. The withholding tax deduction must be made even if the taxable person has a domicile or residence in another canton.

3. The debtor of the taxable service is liable for the payment of the withholding tax.

4. The debtor of the taxable service receives a collection commission of 1 to 2 percent of the total withholding tax amount; the tax administration sets the collection commission. For capital benefits, the collection commission is 1 percent of the total withholding tax amount, but no more than 50 Swiss Francs per capital benefit for the federal, cantonal, and municipal withholding tax.

Organization, Procedure, and Tax Reference - Tax Authorities - Tax Assessment - Special Provisions Regarding the Procedure for Withholding Tax - Obligations of the Taxable Person
§ 190 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The taxable person is required to provide oral or written information to the cantonal tax administration and to the debtor of the taxable benefit regarding the circumstances relevant to the collection of the withholding tax.

2. The taxable person may be obliged by the cantonal tax administration to pay the withholding tax retrospectively if the taxable benefit paid out was not, or not fully, reduced by the withholding tax, and if it is not possible to recover the tax from the debtor of the taxable benefit.

Organization, Procedure, and Tax Reference - Tax Authorities - Tax Assessment - Special Provisions Regarding the Procedure for Withholding Tax - Obligations of the Taxable Person
§ 190a Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The tax authorities may require a taxable person residing or domiciled abroad to appoint a representative in Switzerland.

2. Persons who request a subsequent ordinary assessment according to § 101a must submit the required documents and designate a delivery address in Switzerland. If no delivery address is specified or if the delivery address becomes invalid during the assessment process, the competent authority shall grant the taxable person a reasonable period to specify a valid delivery address. If this period expires without result, the withholding tax shall replace the taxes on earned income to be assessed in the ordinary procedure. § 147 paragraph 5 applies accordingly.

**Organization, Procedure and Tax Connection - Tax Authorities - Tax Assessment - Special Provisions for Withholding Tax Procedure - Ruling and Legal Remedies**
§ 191 Act on Direct Taxes (Steuergesetz, StG) Open official source

**1. The taxable person may request a decision from the assessment authority regarding the existence and extent of 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 under § 189; or

b) * have not received the certificate under § 189 from the employer.

**2. The debtor of the taxable performance may request a decision from the assessment authority regarding the existence and extent of tax liability by March 31 of the tax year following the due date of the performance.**

**3. They remain obligated to collect the withholding tax until a final decision is reached.**

**Organization, Procedure and Tax Connection - Tax Authorities - Tax Assessment - Special Provisions for Withholding Tax Procedure - Ruling and Legal Remedies**
§ 191a Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Against the decision on withholding tax, the taxable person or the debtor of the taxable benefit may file an objection pursuant to § 160, and an appeal against the objection decision pursuant to § 164.

Organization, Procedure, and Tax Reference - Tax Authorities - Assessment of Tax - Special Provisions on Procedure for Withholding Tax - Additional Demand and Refund
§ 192 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. If the debtor of the taxable service has not made the tax deduction or has made an insufficient deduction, he or she is obliged to make an additional payment. The debtor's recourse to the taxable person remains reserved.

2. If the debtor of the taxable service has made an excessive tax deduction, he or she must refund the difference to the taxable person. The tax administration may also directly reimburse the taxable person for excessively deducted and accounted withholding taxes.

Organization, Procedure and Tax Reference - Tax Authorities - Assessment of the Tax - Special Provisions on the Procedure for Withholding Tax - Implementing Provisions
§ 193 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The Executive Council issues the implementing provisions necessary for the enforcement of the withholding tax, including, in particular, regulations for tax collection in intercommunal, intercantonal, and international contexts.

Organization, Procedure, and Tax Reference - Tax Authorities - Collection and Securing of Taxes - Tax Due Date
§ 194 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Due Dates

a) Periodically owed taxes (income, wealth, profit, capital, and property taxes) are due on May 31 of the calendar year following the tax period;

b) Withholding taxes are due at the time specified in § 207;

c) Property profit tax is due 90 days after the tax claim arises;

d) Inheritance and gift tax is due 30 days after the assessment notice is delivered, but no later than 12 months after the tax claim arises.

2. In any case, taxes become due

a) * On the day the taxable person, who intends to permanently leave Switzerland, takes steps to depart;

b) * At the time a taxable person, without domicile in Switzerland, gives up their business operations in the canton or their interest in such, their business establishment in the canton, their real estate in the canton, or their claims secured by real estate in the canton;

c) * Upon the death of the taxable person, 30 days after the assessment notice is delivered, but no later than 12 months after their death;

d) Upon the opening of bankruptcy proceedings against the taxable person;

e) Upon the registration for the deletion of a taxable legal entity in the commercial register.

3. The statutory due dates apply regardless of the time the tax return is filed or the assessment notice is delivered; they also apply if an appeal against the assessment has been filed.

Organization, Procedure, and Tax Reference - Tax Authorities - Collection and Security of Tax - Interest Adjustment
§ 195 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Interest equalization is made on the due date of tax payment.

2. The interest equalization is borne by the taxpayer for all tax payments made after the due date (debit interest) and benefits the taxpayer for all advance payments made before the due date (credit interest).

3. Interest equalization also applies to tax refunds as per § 202 (refund interest).

4. The government council sets the interest rates. It determines up to what amount advance payments will earn interest.

5. Interest equalization may be omitted for negligible tax amounts or in cases of insignificant and blameless payment default.

Organization, Procedures, and Tax Affiliation - Tax Authorities - Collection and Security of Tax - Advance Payments
§ 196 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. For periodically owed taxes, the tax administration will timely call for advance payments.

Organization, Procedure, and Taxation - Tax Authorities - Collection and Security of the Tax - Tax Payment
§ 197 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. A tax assessment will be sent to the taxable person along with the tax calculation.

2. Any outstanding tax amounts, interest, and fees will be demanded and must be paid within a period of 30 days.

3. Overpaid amounts will be credited to or refunded to the taxable person.

Organization, Procedure and Tax Reference - Tax Authorities - Assessment and Security of the Tax - Provisional Assessment
§ 197a Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The tax authority may issue a provisional tax assessment to the person liable for tax or payment if such is requested, if the amount of the estimated tax liability justifies it, or if the assessment cannot be concluded in due time.

2. The basis for the provisional tax assessment is the tax return, the most recent assessment order, or the anticipated tax amount.

3. The provisionally collected tax is credited in the final tax statement.

4. The provisional tax assessment can be issued as an appealable and enforceable order (advance payment order) in accordance with § 198.

5. Within 30 days of notification, an appeal against the order can be filed in writing with the tax authority, and further recourse appeal against the decision can be submitted to the Tax Appeal Commission. The appeal or recourse can only argue that no tax liability exists or that the anticipated tax amount is lower than the amount demanded in the assessment.

6. In the case of capital benefits from pension plans as per § 39, a provisional tax assessment is issued ex officio according to paragraph 4. An appeal or recourse against it does not have a suspensive effect.

Organization, Procedure, and Tax Reference - Tax Authorities - Collection and Security of Taxes - Enforcement
§ 198 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. If the outstanding tax amounts, interest, or fees are not paid following a reminder, debt enforcement proceedings shall be initiated against the liable person.

2. If the liable person does not have a domicile in Switzerland, if assets belonging to them are seized, or if payment facilities as per § 200 paragraph 3 are nullified, debt enforcement proceedings can be initiated without a prior reminder.

3. Final and binding orders and decisions of the authorities entrusted with the execution of this law are equivalent to enforceable court judgments within the meaning of Article 80 paragraph 2 of the Federal Act on Debt Collection and Bankruptcy.

Organization, Procedure and Tax Reference - Tax Authorities - Collection and Security of Tax - Collection Limitation Period
§ 199 Act on Direct Taxes (Steuergesetz, StG) Open official source

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

2. Suspension and interruption of the limitation period are governed by § 148 paragraphs 2 and 3.

3. In any case, the statute of limitations occurs ten years after the end of the year in which the tax was definitively assessed.

Title, Procedure and Tax Reference - Tax Authorities - Collection and Securing of Tax - Payment Facilities
§ 200 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Upon a substantiated request, the tax administration may extend the payment deadline or authorize installment payments.

2. Payment facilitations may be subject to the provision of appropriate security.

3. Payment facilitations cease to apply if their conditions no longer exist or if the conditions to which they are tied are not fulfilled.

Organization, Procedure, and Tax Reference - Tax Authorities - Collection and Securing of Tax - Tax Waiver
§ 201 Act on Direct Taxes (Steuergesetz, StG) - a) Requirements Open official source

1. A taxpayer for whom the payment of taxes, interest, or procedural costs would constitute undue hardship due to a state of emergency may have the amounts owed wholly or partially waived. Fines and related additional taxes can only be waived in particularly justified exceptional cases.

2. A state of emergency exists when the amount owed is disproportionate to the taxpayer's economic capacity. For individuals, a disproportion is particularly present when the tax liability cannot be fully paid within a foreseeable period, despite reducing living expenses to the subsistence level.

3 ...

4. If an individual has been assessed according to discretion in good faith pursuant to § 158 para. 2, the tax claim for these tax periods can be waived once, to the extent of the demonstrably overestimated amount, even without the presence of a state of emergency; § 201a does not apply.

**Organization, Procedures, and Tax Reference - Tax Authorities - Collection and Security of Tax - Tax Waiver**
§ 201a Act on Direct Taxes (Steuergesetz, StG) - b) Grounds for Exclusion Open official source

1. A full or partial waiver may particularly be disregarded if the taxable person

a) has seriously or repeatedly violated their obligations in the assessment procedure;

b) at the time the tax liability was due, does not make payments or create reserves despite having available resources;

c) has caused the lack of financial capability by voluntarily renouncing income or assets without significant reason, through excessive living expenses or the like, either recklessly or through gross negligence;

d) has given preferential treatment to other creditors of the same rank during the assessment period;

e) is overindebted and a waiver would primarily benefit their other creditors.

**Organization, Procedures, and Tax Reference - Tax Authorities - Collection and Security of Tax - Tax Waiver**
§ 201b Act on Direct Taxes (Steuergesetz, StG) - c) Procedure Open official source

1. Competent for the handling of applications for tax remission is the tax administration. The government council determines the remission amount from which the decision of the tax administration requires approval by the finance department.

2. Applications for tax remission must be submitted in writing, be substantiated, and include the necessary evidence.

3. An application for tax remission does not suspend tax collection.

4. The tax administration does not consider a remission application that is not substantiated or is submitted only after the issuance of a payment order (Article 38 para. 2 of the Debt Enforcement and Bankruptcy Act).

Organization, Procedure and Tax Reference - Tax Authorities - Reference and Security of Tax - Tax Refund
§ 202 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The taxable person may reclaim a tax amount paid by them if they have erroneously paid a tax that is wholly or partially not owed.

2. The claim for reimbursement must be asserted within five years after the end of the calendar year in which the payment was made.

3. Reimbursement claims can be offset against due tax liabilities.

4. The reimbursement to spouses living in a legally and factually undivided marriage is made jointly to both spouses; however, each spouse may request a separate reimbursement of half of the amount. The reimbursement of taxes to divorced spouses and to those legally or factually separated, which were previously collected jointly by them, is made according to the allocation mutually requested by them; if no mutual allocation is reached, reimbursement is made by a half allocation.

Organization, Procedure, and Tax Reference - Tax Authorities - Collection and Security of Tax - Tax Security
§ 203 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. If the taxable person has no residence in Switzerland or if the payment of the tax they owe appears to be at risk, the tax administration may require the provision of security for the estimated tax liability by order even before the assessment becomes legally binding.

2. The order for security indicates the amount to be secured and is immediately enforceable. It has the same effects in debt enforcement proceedings as an enforceable court judgment.

3. Security must generally be provided in cash, by depositing secure, marketable securities, by means of a real estate lien, or through a bank guarantee.

4. The affected person may appeal the order for security to the Tax Appeal Commission within 30 days of delivery. The appeal does not suspend the enforcement of the order for security.

Article: Organization, Procedure, and Tax Relation - Tax Authorities - Collection and Security of Tax - Seizure
§ 204 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The order for securing assets is considered an attachment order pursuant to Article 274 of the Federal Act on Debt Collection and Bankruptcy. The attachment is executed by the competent debt enforcement office.

2. An objection to the attachment order under Article 278 of the Federal Act on Debt Collection and Bankruptcy is not permissible.

Organization, Procedure, and Tax Reference - Tax Authorities - Reference and Security of Tax - Tax Lien
§ 205 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. For securing taxes on profits from the sale of real estate by persons who, at the time of transfer of ownership, have their domicile or residence abroad, both the canton and the municipalities are entitled to a statutory lien. If the lien is not registered in the land register upon the request of the canton or a municipality within six months of the transfer of ownership, it shall lapse.

Organization, Procedure and Tax Reference - Tax Authorities - Collection and Securing of Tax - Collection Procedure
§ 206 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The provisions regarding the assessment of tax apply mutatis mutandis to the procedure for tax collection.

Organization, Procedure, and Tax Relation - Tax Authorities - Collection and Assurance of Tax - Special Provisions for the Collection of Withholding Tax
§ 207 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The tax withheld at source is due at the time of payment, transfer, credit, or offset of the taxable service.

2. The tax amount must be transferred to the tax administration by the debtor of the taxable service within 30 days after it becomes due. The government council may establish different delivery dates.

3. Interest on arrears will be charged for taxes paid late.

4. The government council may establish minimum thresholds for the collection regarding sections 97-100.

Tax Penal Law - Breach of Procedural Obligations and Tax Evasion - Breach of Procedural Obligations
§ 208 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Anyone who fails to comply with an obligation imposed on them by the provisions of this law or by an order issued pursuant to this law, despite a reminder, either intentionally or negligently, particularly

a) does not submit the tax return or the required attachments,

b) does not fulfill a certification, information, or reporting obligation,

c) violates duties incumbent upon them as an heir or as a third party in the inventory proceedings,

2. The fine shall be up to 1,000 Francs, and in severe cases or in the event of recurrence, up to 10,000 Francs.

3. If procedural obligations are violated with effect for a legal entity, the legal entity shall be fined. § 215 shall apply mutatis mutandis.

Tax Criminal Law - Breach of Procedural Obligations and Tax Evasion - Breach of Procedural Obligations - Tax Evasion - Completed Tax Evasion
§ 209 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. A fine will be imposed on anyone who

a) as a taxable person, intentionally or negligently causes an assessment to be unjustifiably omitted or a legally binding assessment to be incomplete;

b) as a person obliged to deduct tax at source, intentionally or negligently fails to make a deduction or does not make it fully;

c) intentionally or negligently procures an unlawful refund or an unjustified waiver.

2. The fine generally amounts to the equivalent of the evaded tax. It may be reduced to one-third for minor offences and increased to three times for serious offences.

3. If the taxable person voluntarily reports tax evasion for the first time, prosecution will be waived (voluntary disclosure without penalty), provided that

a) the evasion is not known to any tax authority;

b) the person unconditionally supports the authorities in determining the additional tax owed; and

c) the person makes a serious effort to pay the owed additional tax.

4. For each further voluntary disclosure, the fine will be reduced to one-fifth of the evaded tax under the conditions outlined in paragraph 3.

Tax Criminal Law - Breach of Procedural Obligations and Tax Evasion - Breach of Procedural Obligations - Tax Evasion - Attempted Tax Evasion
§ 210 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Anyone who attempts to evade taxes shall be punished with a fine.

2. The fine amounts to two-thirds of the fine that would be imposed for intentional and completed tax evasion.

Tax Criminal Law - Breach of Procedural Obligations and Tax Evasion - Breach of Procedural Obligations - Tax Evasion - Incitement, Aiding and Abetting, Participation
§ 211 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Any person who intentionally incites tax evasion, provides assistance, or causes tax evasion as a representative of the taxable person, or participates in such an act, shall be fined, irrespective of the punishability of the taxable person.

2. The fine shall amount to up to 10,000 Swiss Francs, and in severe cases or in the event of a repeat offense, up to 50,000 Swiss Francs.

3. The participating third party shall furthermore be jointly liable for the back taxes up to the amount of the evaded tax.

4. If a person makes a voluntary disclosure for the first time as outlined in paragraph 1, and the conditions of § 209 paragraph 3 letter a and b are fulfilled, prosecution will be waived and joint liability will be dismissed.

**Tax Criminal Law - Breach of Procedural Obligations and Tax Evasion - Breach of Procedural Obligations - Tax Evasion - Concealment or Removal of Estate Assets in Inventory Proceedings**
§ 212 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Anyone who conceals or removes estate assets, which they are obligated to disclose in the inventory process, with the intent to exclude them from the inventory, or anyone who incites or aids in such an action, shall be punished with a fine.

2. The fine amounts to up to 10,000 Swiss Francs, and in severe cases or in case of repeat offenses, up to 50,000 Swiss Francs.

3. The attempt to conceal or remove estate assets is also punishable. The penalty may be more lenient than for the completed offense.

4. If a person self-reports for the first time under paragraph 1, prosecution for the concealment or removal of estate assets in the inventory process and for any other offenses committed in relation to this is waived (immune self-disclosure), provided that

a) the violation is not known by any tax authority; and

b) the person unreservedly assists the authorities in the correction of the inventory.

Tax Criminal Law - Violation of Procedural Duties and Tax Evasion - Violation of Procedural Duties - Tax Evasion - Tax Evasion by Spouses
§ 214 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The taxable person who is living in a legally and factually undivided marriage will only be punished for the evasion of their own tax factors. Section 211 remains reserved. The co-signing of the tax return alone does not constitute an offense under Section 211.

**Tax Criminal Law - Violation of Procedural Obligations and Tax Evasion - Violation of Procedural Obligations - Tax Evasion - Legal Entities**
§ 215 Act on Direct Taxes (Steuergesetz, StG) - a) General Provisions Open official source

1. If taxes are evaded or attempted to be evaded with effect for a legal entity, the legal entity shall be fined. The punishment of the acting organs or representatives according to § 211 remains reserved.

2. If acts of participation (instigation, aiding and abetting, involvement) in the tax evasion of third parties are committed within the business domain of a legal entity, § 211 is applicable to the legal entity.

3. For corporations under foreign law and foreign associations without legal personality, paragraphs 1 and 2 apply accordingly.

Tax Criminal Law - Breach of Procedural Obligations and Tax Evasion - Breach of Procedural Obligations - Tax Evasion - Legal Entities
§ 215a Act on Direct Taxes (Steuergesetz, StG) - b) Voluntary Disclosure Open official source

1. If a taxable legal entity reports for the first time a tax evasion committed in its business operations, prosecution shall be waived (voluntary disclosure without penalty), if

a) the evasion is not known to any tax authority;

b) it unconditionally assists the authorities in determining the back taxes; and

c) it makes a genuine effort to pay the owed back taxes.

2. Voluntary disclosure without penalty may also be submitted

a) after a change of the company name or relocation of the headquarters within Switzerland;

b) after a transformation pursuant to Articles 53-68 of the Merger Act of October 3, 2003 (Merger Act) by the new legal entity for tax evasions committed before the transformation;

c) after an absorption (Art. 3 para. 1 letter a Merger Act) or demerger (Art. 29 letter b Merger Act) by the continuing legal entity for tax evasions committed before the absorption or demerger.

3. The voluntary disclosure without penalty must be submitted by the organs or representatives of the legal entity. Prosecution against these organs or representatives is waived, and their joint liability ceases.

4. If a former member of an organ or a former representative of the legal entity first reports the legal entity for tax evasion, and the tax evasion is not known to any tax authority, prosecution of the legal entity, all current and former members of the organs, and all current and former representatives is waived. Their joint liability ceases.

5. For each subsequent voluntary disclosure, the fine under the conditions of paragraph 1 is reduced to one-fifth of the evaded tax.

6. After the termination of the tax liability of a legal entity in Switzerland, no voluntary disclosure can be submitted.

Tax Criminal Law - Violation of Procedural Obligations and Tax Evasion - Violation of Procedural Obligations - Procedures - General Provisions
§ 216 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Competent for the initiation and conduct of a criminal proceeding due to violations of procedural obligations or tax evasion is the tax administration.

2. The provisions regarding the regular assessment procedure and collection apply mutatis mutandis.

Tax Criminal Law - Violation of Procedural Obligations and Tax Evasion - Violation of Procedural Obligations - Procedure - Initiation of Proceedings
§ 217 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The initiation of criminal proceedings for tax evasion is formally communicated to the accused person in writing, stating the reason. The accused is given the opportunity to respond to the accusation against them; they are informed of their right to refuse to testify and cooperate.

2. The initiation of criminal proceedings for violation of procedural obligations and in the case of voluntary disclosure (§ 209 para. 3) may be directly conducted by issuing a penal order.

Tax Criminal Law - Violation of Procedural Obligations and Tax Evasion - Violation of Procedural Obligations - Procedure - Investigation
§ 218 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The tax authority shall undertake the necessary investigative actions to ascertain the facts.

2. The accused person may examine the files as soon as this is possible without jeopardizing the purpose of the investigation.

3. Evidence obtained in a supplementary tax assessment procedure may only be used in a criminal proceeding for tax evasion if obtained without the threat of an assessment according to reasonable discretion (§ 158 para. 2) with the reversal of the burden of proof according to § 160 para. 4, nor under the threat of a fine for violation of procedural obligations.

Tax Criminal Law - Violation of Procedural Obligations and Tax Evasion - Violation of Procedural Obligations - Procedure - Decision
§ 219 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Upon completion of the investigation, the tax administration issues a penal order or an order of dismissal.

2. Before issuing an order, the accused person is given the opportunity to comment.

3. The penal order is issued in writing. It contains a brief statement of reasons and an indication of the right to appeal.

4. The accused person may be charged the procedural costs; such costs may also be imposed on them in the event of dismissal of the investigation if they have caused the prosecution by wrongful conduct or have significantly impeded or delayed the investigation.

**Tax Criminal Law - Violation of Procedural Obligations and Tax Evasion - Violation of Procedural Obligations - Procedure - Legal Remedies**
§ 220 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The accused person has the same rights of legal recourse as in the ordinary tax procedure.

Tax Criminal Law - Breach of Procedural Obligations and Tax Evasion - Breach of Procedural Obligations - Procedure - Statute of Limitations
§ 221 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Prosecution is barred by statute of limitations in the case of breach of procedural duties three years after the final and binding conclusion of the proceedings in which the procedural duties were violated.

2. Prosecution is barred by statute of limitations in the case of completed tax evasion

a) for income tax, wealth tax, profit tax, capital tax, and property tax, ten years after the end of the tax period for which the taxpayer was not assessed or was incompletely assessed;

b) for withholding tax, ten years after the end of the tax period in which the deduction at source was not legally carried out;

c) for property gains tax, inheritance tax, and gift tax, ten years after the claim to the tax arises, for which the taxpayer was not assessed or was incompletely assessed;

d) in other cases, ten years after the time at which an illegal refund or an unjustified waiver was obtained, or assets were concealed or dissipated during inventory proceedings.

3. Prosecution is barred by statute of limitations in the case of attempted tax evasion six years after the final and binding conclusion of the proceedings in which the attempted tax evasion was committed.

4. The statute of limitations does not apply if the tax administration has issued a ruling before the expiration of the limitation period.

Tax Criminal Law - Violation of Procedural Obligations and Tax Evasion - Violation of Procedural Obligations - Procedure - Collection of Fines and Costs
§ 222 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Fines and costs become due 30 days after the service of the penalty order.

2. The provisions regarding the collection and securing of the tax apply mutatis mutandis to the fines and costs imposed in the tax penalty proceedings.

3. Claims for fines and costs become time-barred five years after the assessment becomes final.

4. Suspension and interruption of the limitation period are governed by § 148 paragraphs 2 and 3.

5. In any case, the limitation period expires ten years after the end of the year in which the taxes were definitively assessed.

Tax Criminal Law - Violation of Procedural Obligations and Tax Evasion - Tax Offenses - Tax Fraud
§ 223 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Anyone who for the purpose of tax evasion as defined in §§ 209 to 211 uses forged, falsified, or substantively false documents such as business books, balance sheets, profit and loss accounts, or salary statements and other third-party certificates for deception, shall be punished with imprisonment of up to three years or a fine. A suspended sentence may be combined with a fine of up to 10,000 Swiss Francs.

2. Punishment for tax evasion remains reserved.

3. If there is a voluntary disclosure according to § 209 paragraph 3 or § 215a paragraph 1, prosecution for all other offenses committed for the purpose of this tax evasion shall be waived. This provision also applies in cases under §§ 211 paragraph 4 and 215a paragraphs 3 and 4.

Tax Criminal Law - Violation of Procedural Duties and Tax Evasion - Tax Offenses - Embezzlement of Withholding Taxes
§ 224 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Any person obligated to withhold tax at the source and utilizes the deducted taxes for their own or another's benefit shall be punished with imprisonment for up to three years or a monetary fine. A conditional sentence may be combined with a fine of up to 10,000 francs.

2. If withholding taxes in the business area of a legal entity, a sole proprietorship, a corporation, or an institution under public law are embezzled, paragraph 1 shall apply to the individuals who acted or should have acted on their behalf.

3. If there is a voluntary disclosure pursuant to § 209 paragraph 3 or § 215a paragraph 1, prosecution for embezzlement of withholding taxes and other offenses committed for the purpose of embezzling withholding taxes shall be waived. This provision also applies in cases according to §§ 211 paragraph 4 and 215a paragraphs 3 and 4.

Tax Criminal Law - Violation of Procedural Duties and Tax Evasion - Tax Offenses - Relation to General Criminal Law
§ 225 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The general provisions of the Swiss Criminal Code shall apply unless this law provides otherwise.

Tax Criminal Law - Violation of Procedural Obligations and Tax Evasion - Tax Offenses - Procedure
§ 226 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Competent authorities for prosecuting tax offenses under this law are the law enforcement agencies as defined in the Law on the Organization of Courts and Public Prosecutors' Offices (Court Organization Act, COA) of June 3, 2015, as well as the Law on the Introduction of the Swiss Code of Criminal Procedure.

2. ...

3. Decisions of the last cantonal instance are subject to an appeal in criminal matters to the Federal Supreme Court.

Tax Criminal Law - Violation of Procedural Duties and Tax Evasion - Tax Offense - Statute of Limitations
§ 227 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The prosecution of tax offenses becomes statute-barred fifteen years after the perpetrator has committed the last punishable act.

2. The statute of limitations no longer applies if a first-instance judgment has been rendered before the expiration of the limitation period.

Relationship with Municipalities and the Publicly Recognized Churches and Religious Communities, Delimitation of Tax Authorities - Income and Wealth Tax of Natural Persons
§ 228 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The Canton levies from the taxpayers of the municipalities of Bettingen and Riehen 50% (cantonal tax rate) of the income and wealth tax of natural persons calculated according to the provisions of this law. The municipalities retain 50% (municipal tax rate) for their own usage. The Canton levies the full tax on the immovable property located in the city of Basel and on the income flowing from it.

2. In the event of a change of residence or a change in economic affiliation between the city of Basel and the municipalities of Bettingen and Riehen or between the municipalities, § 8 paragraphs 3 and 4 apply mutatis mutandis.

3. The municipalities of Bettingen and Riehen receive a share of the withholding tax attributable to the natural or economic residents associated with them, excluding their own taxation powers, in the amount of the municipal tax rate pursuant to paragraph 1.

Relationship with Municipalities and Publicly Recognized Churches and Religious Communities, Delimitation of Tax Authorities - Profit, Capital, and Property Tax of Legal Entities
§ 228a Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The municipalities of Bettingen and Riehen shall receive, excluding their own powers of taxation, a share of the profit tax, capital tax, and property tax according to the municipal tax rate pursuant to § 228 paragraph 1, which legal entities as holders or partners of a business operation or permanent establishment in the territory of the municipalities, or for ownership, real or equivalent personal usage rights to properties in the territory of the municipalities, have paid.

2. In the event of a relocation of the registered office or actual administration, or a change in the economic affiliation in relation between the city of Basel and the municipalities of Bettingen and Riehen or between the municipalities, § 63 paragraph 3 shall apply accordingly.

Relation to the Municipalities as well as the Publicly Recognized Churches and Religious Communities, Delimitation of Tax Jurisdictions - Capital Gains Tax on Real Estate
§ 228b Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The canton levies a portion of the real estate capital gains tax, calculated according to the provisions of this law, on properties of natural and legal persons located within the territories of the municipalities of Bettingen and Riehen, at the rate of the cantonal tax quota pursuant to § 228 paragraph 1.

2. The canton levies the municipal share of the real estate capital gains tax on legal persons, for the municipalities of Bettingen and Riehen, on properties located within their territory, based on the municipal tax rates applicable to natural persons.

3. To secure the municipal real estate capital gains tax, the municipalities of Bettingen and Riehen are entitled to a tax lien pursuant to § 205.

Relationship with the Municipalities and the Publicly Recognized Churches and Religious Communities, Delimitation of Tax Authorities - 4. Transfer of Powers
§ 229a Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Municipalities and publicly recognized churches and religious communities authorized to levy taxes may agree with the canton to have the following powers exercised by the cantonal tax administration

a) the assessment of municipal taxes or church taxes;

b) the decision on legal remedies against the assessment of municipal taxes or church taxes;

c) the collection of municipal taxes or church taxes, including the management of loss certificates;

d) the decision on the waiver of municipal taxes or church taxes.

2. The authorization to exercise the powers pursuant to paragraph 1 and the details are agreed upon in an administrative contract to be concluded between the municipalities, publicly recognized churches and religious communities, and the government council.

3. The canton charges a fee for exercising the powers pursuant to paragraph 1. The amount is agreed upon in the administrative contract in accordance with paragraph 2.

4. The execution of the powers pursuant to paragraph 1 takes place with analogous application of the principles applicable to cantonal taxes.

5. The collection of municipal taxes and church taxes is carried out together with the cantonal taxes. All provisions and internal administrative instructions applicable to the collection of cantonal taxes apply accordingly.

6. The government council regulates the implementation provisions.

Final Provisions - Implementing Provisions
§ 230 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The government council may issue the necessary implementation provisions for this law, even if not explicitly provided for.

2. It may set fees for reminders, official assessments, certifications, and other procedural measures by the authorities entrusted with the enforcement of the law.

Final Provisions - Repeal and Amendment of Existing Law - Repeal of the Previous Tax Act
§ 231 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Upon the entry into force of this law, the Law on Direct Taxes of December 22, 1949, is repealed.

Final Provisions - Repeal and Amendment of Existing Law - Amendment of the Cantonal Misdemeanor Penal Code
§ 232 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Section 52 of the Cantonal Misdemeanor Penal Code of June 15, 1978 is repealed.

Final Provisions - Repeal and Amendment of Applicable Law - Amendment of the Property Transfer Tax Act
§ 233 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The Law on the Property Transfer Tax of June 26, 1996, is amended as follows

Final Provisions - Transitional Provisions - Change of Residence in Relation to Praenumerando Cantons
**§ 233a Tax Law, TL** Act on Direct Taxes (Steuergesetz, StG) Open official source

1. In the event of a change in tax residence in relation to a canton with biennial assessment based on past income (praenumerando assessment), the rules regarding changes of residence in an international context shall apply for the timing of assessment and the due date of the tax.

Final Provisions - Transitional Provisions - Initial Application of the New Law
§ 234 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The new law shall be applied for the first time

a) to income, wealth, profit, capital, and property taxes for the tax period 2001;

b) to capital gains tax and inheritance and gift taxes for the taxable events that occurred in the calendar year 2001.

2. For tax proceedings and tax collection, the new law shall apply from the date this Act comes into force.

3. The assessment of tax offenses committed before this Act comes into force shall be conducted under the old law, unless the new law proves to be more lenient for the taxable person.

4. The amendments and additions according to the Resolution of the Grand Council dated 20 March 2002 shall be applied for the first time to income tax and fiscal equalization for the tax period 2003.

5. The amendments and additions according to the Resolution of the Grand Council dated 20 March 2002 shall be applied for the first time to income and wealth taxes for the tax period 2003.

6. The amendments according to the Resolution of the Grand Council dated 13 November 2002 shall be applied for the first time to income tax for the tax period 2003.

7. The amendments and additions according to the drafted "Initiative for a Family-Friendly Inheritance Tax," transformed by the Resolution of the Grand Council dated 24 October 2002, shall come into force immediately after being approved by the voters. Accordingly, inheritance and gift taxes for inheritances and gifts in favor of descendants, adoptive, and foster children accruing after the voting day shall no longer be levied.

8. The amendments and additions according to the Resolution of the Grand Council dated 21 May 2003 shall be applied for the first time to the taxable events that occurred on the day following the date on which they become legally binding.

9. The amendments and additions according to the Resolution of the Grand Council dated 22 October 2003 shall be applied for the first time to the taxable events that occurred on the day following the date on which they become legally binding.

10. The amendments and additions according to the Resolution of the Grand Council dated 18 February 2004 shall be applied for the first time to income tax for the tax period 2005; however, the amendment concerning § 37 shall be applicable for the first time for the tax period 2004.

11. The amendments and additions according to the Resolution of the Grand Council dated 21 October 2004 shall be applied for the first time to restructuring events that occurred as from 1 July 2004.

12. The amendments and additions according to the Resolution of the Grand Council dated 14 September 2005 shall be applied for the first time to the taxes of the tax year 2006, with those according to §§ 131 para. 2 and 197a becoming legally binding.

13. The amendments and additions according to the Resolution of the Grand Council dated 6 June 2007 shall be applied for the first time to periodic taxes for the tax period 2008 and for capital gains tax to taxable events that occurred in the year 2008.

14. The amendments and additions according to the Resolution of the Grand Council dated 7 November 2007 concerning §§ 21a, 32 para. 1 lit. a, 33 lit. b, 38a, 46 para. 5, 48, 70 para. 1 lit. c, 90 para. 1 and 241a shall be applicable for the first time for the taxes of the tax year 2008, and those concerning §§ 197a para. 5 and 201 para. 2 from 1 January 2009. The remaining amendments and additions shall be effective upon the Resolution of the Grand Council becoming legally binding.

15. The amendments and additions according to the Resolution of the Grand Council dated 13 December 2007 shall apply for the first time to the taxes of the tax period 2008, provided this Resolution becomes legally binding by 15 February 2008; otherwise, they shall apply for the tax period 2009.

16. The amendments and additions according to the Resolution of the Grand Council dated 11 November 2009 shall be applied for the first time as follows

a) §§ 15 para. 1, 49 para. 1 lit. a, 66 lit. h and 141 from the date the Resolution of the Grand Council becomes legally binding;

b) §§ 31 para. 2 lit. a, 179a, 209 paras. 3 and 4, 211 para. 4, 212 paras. 1 and 4, 215a, 223 para. 3, and 224 para. 3 from 1 January 2010; for inheritances opened before this date, the provisions on additional taxation according to the previous law shall apply;

c) §§ 19 para. 2, 19a, 19b, 21 para. 1 lit. c, 1bis, and 3, 29 para. 1, 38b, 46 para. 6, 69 para. 4, 73 paras. 1 and 1bis, 77 paras. 1 and 5 lit. b, as well as 152 para. 3 for the taxes of the tax period 2011.

17. The amendments and additions shall become effective with the legal binding of the Resolution of the Grand Council dated 8 September 2010. They shall also apply to appeals pending with the Tax Appeals Commission at the time of coming into force, for which no decision has yet been made.

18. The amendments and additions according to the Resolution of the Grand Council dated 10 November 2010 on income tax concerning § 35 para. 1 lit. h shall apply for the first time for the tax period 2011, and those concerning §§ 36 paras. 1 and 2 and 239b for the tax period 2012.

19. The amendments and additions according to the Resolution of the Grand Council dated 10 November 2010 on wealth tax shall be applicable for the first time for the tax period 2012.

20. The amendments and additions according to the Resolution of the Grand Council dated 10 November 2010 on profit tax shall be applicable for the first time for the tax period 2011.

21. The amendments and additions according to the Resolution of the Grand Council dated 2 March 2011 shall apply for the first time to income tax for the tax period 2011.

22. The amendments and additions according to the Resolution of the Grand Council dated 21 September 2011 concerning § 32 para. 1 lit. j shall be applicable for the first time for the taxes of the tax period 2012, with the remaining amendments and additions becoming legally binding with the Resolution of the Grand Council.

23. The amendments according to the Resolution of the Grand Council dated 19 September 2012 shall apply for the first time to the taxes of the tax period 2014.

24. The amendments and additions according to the Resolution of the Grand Council dated 24 October 2012 shall apply for the first time to the taxes of the tax period 2013, subject to the amendments and additions to §§ 164 para. 2 and 171 paras. 2 and 4, which shall become effective upon the legal binding of the Resolution of the Grand Council.

25. The amendments and additions according to the Resolution of the Grand Council dated 23 October 2013 shall be applicable for the first time to the taxes of the tax period 2014. However, the amendments according to §§ 201 to 201b shall be applicable to all waiver applications submitted after the Resolution of the Grand Council comes into force.

26. The amendments and additions according to the Resolution of the Grand Council dated 16 September 2015 shall be applicable for the first time to the taxes of the tax period 2016.

27. The amendments and additions according to the Resolution of the Grand Council dated 16 September 2015 shall be applicable for the first time to the taxes of the tax period 2016.

28. The amendments and additions according to the Resolution of the Grand Council dated 21 September 2016 shall be applied for the first time to periodic taxes for the tax period 2017 and for capital gains tax to taxable events that occurred in the year 2017.

30. The amendments and additions according to the Resolution of the Grand Council dated 8 November 2017 shall be applicable as follows

a) § 14 shall be repealed on 1 January 2017.

b) § 74a shall come into force on 1 January 2018. On the same date, § 74 para. 3 shall be repealed.

c) The remaining amendments and additions of the Resolution of the Grand Council shall come into force on 1 January 2017; the new law shall be applicable for assessing offenses committed before these amendments come into force if it is milder than the law in effect until 31 December 2016.

31. The amendments and additions according to the Resolution of the Grand Council dated 8 November 2017 shall be applicable for the first time for the tax period following the calendar year in which the Agreement between the Swiss Federal Council and the Government of the French Republic regarding the applicable tax regime at the Basel-Mulhouse Airport dated 23 March 2017 comes into force.

32. The amendments according to the Resolution of the Grand Council dated 19 September 2018 regarding the deduction for insurance premiums and interest on savings concerning § 32 para. 1 lit. g shall come into force as soon as the deduction according to the provisions of § 241bis reaches an amount of 6,400 Swiss Francs for spouses living in legally and factually undivided marriages or 3,200 Swiss Francs for all other taxpayers.

The amendments according to the Resolution of the Grand Council dated 19 September 2018 concerning income tax regarding § 36 paras. 1 and 2 shall come into force as soon as the tax rate of the first bracket according to the provisions of § 239b reaches a value of 21.50 percent.

33. The amendments and additions according to the Resolution of the Grand Council dated 14 November 2018 concerning § 2a para. 1, § 229a paras. 1 - 6, title after §§ 1, 227, and 229 shall (except for additional taxes, extraordinary legal remedies, and loss certificates that may also concern previous periods) be applicable for the first time to the taxes of the tax period 2019.

34. The amendments according to the formulated popular initiative "Top Income Tax: For Fair Income Taxes in Basel" shall come into effect on the January 1 following their approval by the voters.

35. The amendments and additions according to the Resolution of the Grand Council dated 9 September 2020 shall be applicable for the first time to the taxes of the tax period 2021.

Final Provisions - Transitional Provisions - Capital Insurance with Single Premium
§ 235 Act on Direct Taxes (Steuergesetz, StG) Open official source

**1. Section 21 Paragraph 1 Letter a is applicable to capital insurances with a single premium that were concluded after December 31, 1998.**

Final Provisions - Transitional Provisions - Cantonal Old Age and Survivors Insurance
§ 236 Act on Direct Taxes (Steuergesetz, StG) Open official source

**1. Benefits of the Cantonal Old-Age and Survivors' Insurance are 60 Percent Taxable.**

2. The compensations granted upon the dissolution of the Cantonal Old-Age and Survivors' Insurance to the insured persons are taxable as capital benefits pursuant to § 39 and are subject to a withholding tax of 3 percent at the source. The withholding tax replaces the tax to be assessed through the ordinary procedure. The provisions regarding the procedure and collection of the withholding tax apply mutatis mutandis.

Final Provisions - Transitional Provisions - Occupational Benefits
§ 237 Act on Direct Taxes (Steuergesetz, StG) - a) Pensions Open official source

**1. Pensions from Occupational Pension Schemes**

Pensions from occupational pension schemes that commenced before January 1, 1986, or that commenced before January 1, 2002, and are based on a pension relationship that already existed as of December 31, 1985, are taxable as follows

a) At 60 percent, if the contributions (such as deposits, contributions, premium payments) on which the taxable person's entitlement is based were made exclusively by this person;

b) At 80 percent, if the contributions on which the taxable person's entitlement is based were made only in part, but at least 20 percent by this person;

c) In full, in all other cases.

2. The contributions made by the taxable person as mentioned in paragraph 1, letters a and b, are considered equivalent to contributions made by relatives; the same applies to contributions made by third parties if the taxable person acquired the insurance entitlement through inheritance, legacy, or gift.

Final Provisions - Transitional Provisions - Occupational Benefits
§ 238 Act on Direct Taxes (Steuergesetz, StG) - b) Capital Settlements Open official source

1. For lump-sum settlements from occupational pension schemes that became due before January 1, 2002, any personal contributions made towards acquiring pension entitlements, to the extent they were non-deductible and taxed under the old law, must be deducted from the settlement amount.

Final Provisions - Transitional Provisions - Occupational Benefits
§ 239 Act on Direct Taxes (Steuergesetz, StG) - c) Purchase of Contribution Years Open official source

1. Contributions by the insured person to occupational pension plans for the purchase of contribution years are not deductible from income if the pension relationship already existed on December 31, 1985, and the retirement benefits began or became payable before January 1, 2002.

Final Provisions - Transitional Provisions - Tax Rate
§ 239a Act on Direct Taxes (Steuergesetz, StG) Open official source

1. For the tax period 2003, the annual income tax amounts to 97 percent of the basic tax according to § 36.

Final Provisions - Transitional Provisions - Adjustment of Fiscal Drag
§ 239c Act on Direct Taxes (Steuergesetz, StG) Open official source

1. For the tax period 2014, the adjustment for bracket creep is made in accordance with the inflation that occurred from June 30, 2008, to June 30, 2013.

Final Provisions - Transitional Provisions - Tax Reductions
§ 240 Act on Direct Taxes (Steuergesetz, StG) - a) Recipients of pensions from the Federal Old Age, Survivors, and Disability Insurance Open official source

1. To mitigate the tax burden due to the full taxation of pensions from the Federal Old Age, Survivors, and Disability Insurance, the income tax for recipients of such pensions shall be temporarily reduced as follows

for the tax period 2001 by 350 Swiss Francs,

for the tax period 2002 by 350 Swiss Francs,

for the tax period 2003 by 350 Swiss Francs,

for the tax period 2004 by 300 Swiss Francs,

for the tax period 2005 by 250 Swiss Francs,

for the tax period 2006 by 200 Swiss Francs,

for the tax period 2007 by 150 Swiss Francs,

for the tax period 2008 by 100 Swiss Francs.

2. In cases of limited tax liability, a reduction as per paragraph 1 is excluded.

3. If the tax liability exists only for a part of the tax period, the reduction is proportionately decreased.

Final Provisions - Transitional Provisions - Tax Reductions
§ 241 Act on Direct Taxes (Steuergesetz, StG) - b) Recipients of Child Support Open official source

1. To mitigate the additional tax burden resulting from the full taxation of maintenance contributions, the income tax for persons who receive maintenance contributions for children living with them, based on a judicial decision that became effective before January 1, 2001, or a legally valid contract, shall be reduced by 500 Swiss francs.

2. In the case of limited tax liability, a reduction pursuant to paragraph 1 is excluded.

3. If the tax liability exists only for part of the tax period, the reduction will be proportionately reduced.

Final Provisions - Transitional Provisions - Pension Insurances
§ 241a Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Annuity Insurance and Similar Claims for Periodic Payments, where the payments are already in progress at the time of tax assessment, are not subject to wealth tax, provided they were concluded before January 1, 2008.

Final Provisions - Transitional Provisions - Profit Tax Rate
§ 241b Act on Direct Taxes (Steuergesetz, StG) Open official source

1. The maximum tax rate of the profit tax according to § 76 paragraph 3 is 23 percent for the first tax period to which the Grand Council resolution of December 13, 2007, is applicable for the first time.

2. It is 21 percent for the 2011 tax period.

3. It decreases by 0.5 percentage points for two additional tax periods if

a) the growth of Switzerland's real Gross Domestic Product, according to the quarterly estimates published by the State Secretariat for Economic Affairs, was not negative in two consecutive quarters in the calendar year preceding the respective tax period, and

b) the net debt ratio of the canton on December 31 of the calendar year preceding the respective tax period was at least one per mille point below the permissible value according to § 4 paragraph 1 of the Financial Budget Act.

Final Provisions - Transitional Provisions - Mixed Participation Companies
§ 242 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. Capital gains on holdings and the proceeds from the sale of associated subscription rights are not considered in the calculation of net income pursuant to § 77, if the holdings in question were already in the possession of the corporation or cooperative before January 1, 1997, and the mentioned gains were realized before January 1, 2007.

2. For holdings that were in the possession of the corporation or cooperative before January 1, 1997, the book values relevant for tax purposes (profit tax values) at the beginning of the fiscal year ending in the calendar year 1997 are considered acquisition costs within the meaning of §§ 69 para. 4 and 77 para. 5 lit. a.

3. If a corporation or cooperative transfers a holding of at least 20 percent in 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 book value relevant for tax purposes (profit tax value) and the market value of the holding will be added to the taxable net profit. In this case, the relevant holdings continue to be part of the holdings held before January 1, 1997. Simultaneously, the corporation or cooperative is entitled to form a tax-exempt reserve in the amount of this difference. This reserve must be dissolved effectively for tax purposes if the transferred holding is sold to an external third party, if the company whose participation rights were transferred sells its assets and liabilities to a significant extent, or if it is liquidated. The corporation or cooperative must attach a list of the holdings for which a tax-exempt reserve exists according to this provision to each tax declaration. On December 31, 2006, the tax-exempt reserve is to be dissolved in a tax-neutral manner.

4. ...

Concluding Provisions - Transitional Provisions - Mixed Participation Companies
§ 242bis Act on Direct Taxes (Steuergesetz, StG) Open official source

1. If legal entities were taxed under §§ 78 or 79, upon application, the hidden reserves existing at the end of this taxation, including the self-generated value increase, will be taxed separately at a rate of 3 percent in the case of realization within the next 5 years.

2. The amount of hidden reserves, including self-generated value increase, is determined based on the extent to which they would have previously not been taxable. Excluded are hidden reserves on holdings of at least 10% of the equity or share capital of another company.

3. A signed reverse on holdings of at least 1,000,000 francs and on intangible assets under § 80 is waived in the case of a status change during the reverse period. To the extent of the waived reverse, no hidden reserves can be claimed that already existed upon entering the taxation under §§ 78 or 79.

4. Hidden reserves that were disclosed before the enactment of § 242bis at the end of the taxation under §§ 78 or 79 and have not yet been written off will be taxed according to paragraph 1. The remaining taxed hidden reserve will be dissolved tax-neutrally ex officio. If the status change occurred after December 31, 2016, taxation according to paragraph 1 can also be requested for the self-generated value increase existing at the time of the status change.

5. The hidden reserves, including the self-generated value increase, must be proven by the legal entity and determined by the assessment authority through a decree. The application must be submitted before the legal force of the assessment of the tax period of the status change is achieved, otherwise, the entitlement to taxation under paragraph 1 expires. The time of the status change is considered the start of the tax period during which the legal entity is first no longer taxed under §§ 78 or 79. For cases under paragraph 4, the application regarding the self-generated value increase must be submitted before the legal force of the assessment of the first tax period after the enactment of this paragraph.

6. As a realization under paragraph 1, the taxable net income achieved after the status change, excluding the net participation income under § 77, is considered to the extent of 75 percent. In simultaneous application of § 69b (Patent Box), the portion of the taxable net income considered as realization is additionally determined by the factor: 1 minus (Patent box deduction divided by the maximum tax relief under § 70a paragraph 1).

7. The realization under paragraph 6 is determined in the event of a restructuring by the extent of the ratio of previous profits. The last 3 business years prior to the restructuring are decisive. In the transfer of businesses, divisions, and items of fixed business assets, the profits are to be allocated proportionately.

8. Losses in the sense of § 75, which arose during the time of taxation under §§ 78 and 79, can only be used for tax offset to the extent of the taxable quota there.

9. If §§ 78 and 79 are no longer applicable, paragraphs 1-8 apply mutatis mutandis.

Final Provisions - Transitional Provisions - 11. Temporary Income Tax Rate
§ 242c Act on Direct Taxes (Steuergesetz, StG) Open official source

1. From the time this provision comes into effect, the following stipulations shall apply to the profit tax for this tax period and the 9 subsequent tax periods

a) Notwithstanding § 76 para. 1, the profit tax for legal entities is set at: 6.5 percent on the first 50 million francs of taxable net profit. For the portion of taxable net profit exceeding 50 million francs, the tax rate is 8.5 percent.

b) Legal entities subject to tax in the canton for only a portion of their profits shall pay taxes on the values taxable in the canton at the tax rate corresponding to their total profit before international and inter-cantonal tax allocation.

c) Legal entities whose taxable net profit is reduced in accordance with § 69b shall pay taxes at the tax rate corresponding to their total profit before the application of § 69b.

d) In the case of business closures occurring before or after the fiscal year, only the ordinary profits annualized to twelve months shall be used to determine the profit tax rate.

Concluding Provisions - Transitional Provisions - Mixed Participation Companies
§ 242ter Act on Direct Taxes (Steuergesetz, StG) Open official source

1. If legal entities have been taxed according to §§ 78 or 79, the research and development expenses to be considered under § 69b paragraphs 3 and 4 are calculated based on the applied taxation rates. The taxation rate corresponds to the ratio of the cantonal assessment base to the total net profit, excluding net income from participation according to § 77.

2. For legal entities that are taxed under §§ 78 or 79, §§ 69b (Patent Box) and 85 paragraph 5 (reduction of the assessment base for capital tax) are not applicable.

Final Provisions - Commencement
§ 243 Act on Direct Taxes (Steuergesetz, StG) Open official source

1. This law is to be published; it is subject to a referendum and will come into effect on January 1, 2001.

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