Federal Law of June 12, 1959, on the Tax for Exemption from the Obligation to Serve (LTEO) - Principle (WPEG)

Swiss citizens who do not fulfill or only partially fulfill their obligation to serve in the form of personal service (military service or civil service) are required to provide monetary compensation.

Subject to the tax are men liable for service who are domiciled in Switzerland or abroad and who, during a calendar year (taxable year): a. are not, for more than six months, incorporated in a military unit or obliged to perform civil service; b. ... c. do not perform the military service or civil service required of them as men liable for service.

Also subject to the tax are men liable for military service or civil service who are released from the obligation to serve without having completed all mandatory service days.

Not subject to the tax is one who, during the taxable year, has actually performed his military service, although he was not incorporated for the entire year as a man liable for service.

The liability to the tax begins at the earliest at the start of the year during which the man obligated reaches the age of 19. It ends at the latest at the end of the year during which he reaches the age of 37.

For those liable as referred to in Art. 2, para. 1, let. a, who do not perform civil protection service, the liability to the tax begins the year following recruitment. It lasts for eleven years.

For those liable as referred to in Art. 2, para. 1, let. a, who perform civil protection service, the liability to the tax begins the year following the one in which the individual started basic training in civil protection. It lasts for eleven years.

For those liable as referred to in Art. 2, para. 1, let. c, who, although required to perform military service, do not do so, the liability to the tax begins the year following the one in which the individual completed recruit school, but no later than the year during which he reaches the age of 25. It ends at the conclusion of the military service obligation.

For those liable as referred to in Art. 2, para. 1, let. c, who, although required to perform civil service, do not do so, the liability to the tax begins the year following the one during which the decision for admission to civil service becomes effective, but no later than the year during which the individual reaches the age of 25. It ends at the conclusion of the civil service obligation.

Anyone is exempt from the tax if, during the year of liability: a. they have, due to a significant physical, mental, or psychological disability, an income subject to tax which, after the additional deduction of insurance benefits mentioned in Art. 12, para. 1, letter c, and maintenance expenses caused by the disability, does not exceed their subsistence level as defined by debt enforcement law by more than 100%; abis. are deemed unfit for service due to a significant disability and receive a pension or an allowance for incapacity from the federal disability insurance or accident insurance; ater. are deemed unfit for service due to a significant disability and do not benefit from an allowance for incapacity, but still meet one of the two minimal criteria for the granting of such an allowance; b. have been declared unfit for service or exempted from service because military or civil service has adversely affected their health; c. could not fulfill their military or civil service due to participation in sessions of the Federal Assembly, belong to military personnel, or are exempt from personal service in accordance with military or civil service law; d. ... e. have acquired or lost Swiss nationality.

In addition, exempt from the tax, subject to Art. 21, para. 2, is anyone who, during the year of liability, is subject to military criminal law for at least 30 days because they are part of a company placed under war operation regulations.

Also exempt from the tax is anyone who has fully satisfied their service obligation according to military or civil service legislation. This exemption does not apply during years of active service.

If the taxpayer dies, the tax is not collected for the year of death.

A Swiss national abroad is exempt from the tax if, during at least six months of the year in question, they are domiciled abroad provided that: a. at the beginning of the year in question, they have been continuously domiciled abroad for more than three years; b. during the year in question, they are required to perform actual military service or civil service in the foreign state where they are domiciled or pay a tax equivalent to the Swiss exemption tax; c. during the year in question, as a citizen of the foreign state where they are domiciled, they are available for the army or civil service of that state after having completed the required services there.

If the person obligated to serve had previously been domiciled abroad, these periods are counted towards the three-year period mentioned in paragraph 1, letter a, provided that each stay was at least twelve months in duration.

The Swiss national obligated to serve who is domiciled abroad but must report for military or civil service in Switzerland and fulfill their obligations there does not benefit from the exemption.

If the liable person dies, their heirs succeed to their rights and obligations; they are jointly liable for any taxes still owed. An heir is released from the obligation to pay to the extent that they demonstrate that the taxes exceed their share of the estate, taking into account advancements on inheritance.

Military service includes the service days credited in accordance with the provisions of military legislation.

Civil service includes the service days accounted for in accordance with civil service legislation.

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The following are not considered as military or civil service within the meaning of this Act: a. participation in a course within the framework of premilitary technical instruction, compulsory shooting exercises outside of service, or a shooting course for latecomers; b. participation in exercises or courses of military associations and “Youth+Sport”; c. service performed for a daily indemnity or under a contractual employment relationship.

When a man has suffered an accident affecting his health by participating in the activities listed in para. 3, let. a, art. 4, para. 1, let. b, is applicable.

If a man liable for military service has not completed a full service in any of the years following the year in which he attended recruit school, the military service is deemed unfulfilled for that year under the meaning of this Act.

If a man liable for civil service has not completed at least 26 attributable days of service in any of the years following the year in which the admission decision came into force, the civil service is deemed unfulfilled for that year under the meaning of this Act.

If a man liable for service has been unable to complete a full service in a given year for any of the following reasons, he is not required to pay the tax for that year

a. for military reasons, because his presence was required to meet the needs of specialist units or cadre training services;

b. for civil service reasons, because he was not obligated to perform an assignment during the year of liability;

c. because an epidemic or epizootic might have endangered his health.

If the conditions for liability to the tax are met during the year of liability, the liability remains for the entire year.

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Men subject to military service or civil service as referred to in Art. 2, para. 1bis, are required to pay a final exemption tax in the year they are released from their service obligation if they have more than 15 military service days or more than 25 civil service days missing to fulfill the total required service days.

To determine if the final exemption tax is owed, the following are converted into service days

a. exemption taxes already paid;

b. years during which the obligated man was exempt from the tax for one of the reasons listed in Art. 4, 4a, or 8, para. 3.

Except for Chapter 7, the provisions of this Act also apply to the final exemption tax.

The tax is levied, according to the legislation on direct federal tax, on the total net income that the taxpayer earns in Switzerland and abroad.

The following are deducted from the net income: a. ... b. social deductions for each year of liability, according to the provisions in force for the federal direct tax; c. taxable benefits received by the liable person from military insurance, disability insurance, the Swiss National Accident Insurance Fund, or any other accident, illness, or disability insurance of public or private law; d. ...

The conditions of the liable person during the taxation period under the tax that served as the basis for the tax calculation are decisive. If the tax is determined based on a special declaration, the right to deductions is based on the conditions in which the liable person found themselves at the end of the year of liability.

The tax amounts to 3 francs per 100 francs of taxable income, but at least 400 francs.

For disabled individuals subject to the tax who are not exempt from the tax within the meaning of Art. 4, para. 1, let. a, the tax is reduced by half.

A man subject to military service who has completed more than half of his accountable service days during the year of liability must pay half of the tax.

A man subject to civil service who has completed between 14 and 25 valid service days during the year of liability must pay half of the tax.

The tax is reduced in proportion to the total number of accountable service days that the taxpayer has completed by the end of the year of tax liability.

The reduction is one-tenth for 50 to 99 days of military service (75 to 149 days of civilian service) and one-tenth for each additional increment of 50 days of military service (75 days of civilian service) or fraction thereof.

The Federal Assembly may increase the tax up to double its amount for the years during which the majority of troops are called upon to perform active service.

If the Federal Assembly exercises this option, the persons obligated as mentioned in Art. 4, para. 2, only pay the additional amount of the exemption tax.

The tax is collected by the cantons under the supervision of the Confederation.

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Each canton establishes an independent appeals authority separate from the administration. It may provide for a second-instance appeals authority. The highest cantonal authority is a superior court.

Cantonal law governs the organization and management of cantonal authorities, subject to the provisions of federal law. If a canton is unable to take the necessary measures in a timely manner, the Federal Council shall issue the necessary ordinances provisionally.

Several cantons may decide to collect the tax jointly. They establish the applicable procedure, the organization of the collection, and the composition of the appeals commission. If such regulations are lacking, the procedure of the canton competent under Art. 23 shall apply.

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The competent canton for the collection of the tax is the one in which the taxpayer is registered, according to the regulations concerning military or civil service, or in which they are domiciled, as of December 31 of the year in which the liability arises.

The Federal Council may, in special cases, modify jurisdiction by deviating from paragraph 1, if it simplifies the tax collection process.

The authorities responsible for implementing this law shall provide administrative assistance free of charge.

The following authorities and services must freely provide the necessary information to the authorities responsible for implementing this law, provide them with insight, and grant access to their files: a. the military authorities of the Confederation and the cantons; b. the federal authority and regional bodies responsible for civil service implementation; c. the tax authorities of the Confederation, cantons, districts, circles, and municipalities; d. the AVS/AI compensation office; e. the cantonal AI offices; f. military insurance; g. social insurance institutions within the meaning of the Federal Act of March 20, 1981, on Accident Insurance; h. municipal civil protection services; i. ... j. the cantonal offices of debt enforcement and bankruptcy; k. the Federal Social Insurance Office; l. the social security offices of the cantons and municipalities; m. the municipal residents' registration offices.

The Federal Council may impose the administrative assistance outlined in para. 2 to other services.

The necessary data for determining the tax liability, exemption, taxation, tax collection, and reimbursement, including: a. contact information of persons concerned; b. data related to military controls and civil service controls; c. data included in the tax declaration; d. data related to assets; e. data justifying a tax reduction; f. health-related data.

The data may be communicated in specific cases, in list form, or on electronic data carriers.

Personal data and the equipment used, such as data carriers, software programs, and documentation concerning these programs, must be protected against unauthorized manipulation, alteration, destruction, or theft.

The tax is determined annually: a. for those liable persons domiciled in Switzerland; b. for men obliged to serve who are domiciled abroad but are required to report to the military or civil service in Switzerland and fulfill their related obligations there.

The taxation year is generally the calendar year following the year of liability.

The tax that men obliged to serve who wish to go abroad must pay is determined and collected before the start of said leave.

The tax for men subject to military obligations domiciled abroad is determined upon their return to Switzerland. Art. 38 is applicable.

The taxing authority shall take all necessary measures to determine the liability and the basis for calculating the tax.

The tax is calculated based on the final taxation decision for the direct federal tax.

If the tax cannot be calculated according to para. 2, it shall be determined based on a special declaration in accordance with Art. 12, para. 2.

The liable party must conscientiously inform the authority, upon its request, about all facts that may be important for determining the liability or the bases for calculating the tax. The following are required to issue certificates to the liable party, upon their request: a. natural persons, legal entities, and groups of individuals who are or were contractually related to them (employers, creditors or debtors, asset managers, co-associates, etc.): regarding the common contractual relationship, as well as on mutual claims and performances assessable in monetary terms; b. legal entities: regarding the services they have provided to the liable party as a member, organ of the legal entity, or as a beneficiary of a foundation.

The taxation decision is communicated in writing to the taxpayer. It specifies the reason for liability, the calculation basis, the amount of the tax, any potential reduction of the tax, the payment deadline, and the available legal remedies.

When the taxpayer does not have a known domicile or is abroad without a representative in Switzerland, decisions and orders can be validly notified to them through publication in the official journal of the canton.

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When the taxing authority must determine whether a taxpayer is entitled to exemption from the tax for a period exceeding that of the year of taxation, it issues a special decision on this matter.

Once such a decision has become final, it remains valid as long as no new essential facts arise.

Taxation decisions, as well as decisions regarding exemption from the tax, may be subject to a written complaint submitted to the taxation authority within 30 days of their notification.

The complaint must contain precise conclusions and state the facts supporting its justification.

If the complaint has been validly lodged, the taxation authority shall review its decision without being bound by the conclusions presented.

The decision regarding the complaint must be reasoned; it shall indicate the legal remedies available.

The complaint procedure is free of charge; however, the costs of investigative measures abusively prompted by the complainant may be charged to them, regardless of the outcome of the procedure.

The cantons provide for the possibility of utilizing electronic procedures. In this context, they ensure, in accordance with cantonal law, the authenticity and integrity of the data transmitted.

When a document requiring a signature by law is submitted electronically, the cantons provide for the possibility of an electronic confirmation of the data by the liable individual in lieu of the signature.

They stipulate that the authority competent in matters of the exemption tax from the obligation to serve delivers documents to the liable individual in electronic form with the latter's consent.

Decisions on claims can be contested through a written appeal to the cantonal appeal commission within 30 days following their notification. The provisions of Art. 30, para. 2, 3, and 4, apply by analogy.

If the appellant loses, the costs of the procedure before the appeal commission are generally charged to them; if they are only partially unsuccessful, the procedure costs are reduced or exceptionally waived. When the appeal is upheld, the costs are charged to the appellant if, by fulfilling their obligations, they could have already won in the previous instance.

The amount of court and chancery fees, as well as compensation for costs, is determined according to cantonal law.

The decision of the highest cantonal authority may be appealed to the Federal Supreme Court in accordance with the Federal Supreme Court Act of 17 June 2005.

The legal holidays as defined in Art. 22a of the Federal Act of December 20, 1968, on Administrative Procedure do not apply to the complaint and appeal procedures referred to in Arts. 30 and 31.

As a rule, the tax is due on May 1st of the calendar year following the year of liability (general due date).

The following are due upon notification of the tax assessment decision: a. the tax on lump-sum payments from pension plans; b. tax recalls.

The tax is due in all cases: a. on the day the liable party intending to permanently leave the country makes arrangements for their departure; b. upon the opening of the liable party's bankruptcy, only concerning taxes due for the years preceding this opening; c. upon the death of the liable party.

The due date remains unchanged, even if the liable party has only received a provisional tax calculation on this date or if they have filed a claim or appeal against the tax assessment.

The tax is collected based on the assessment. When the assessment has not yet been completed by the due date, the tax is collected provisionally. It is determined based on the declaration for the direct federal tax or on the previous direct federal tax assessment, on the assessment for the previous exemption tax, or according to an estimation of the amount due.

The tax collected provisionally is credited against the tax due according to the definitive assessment.

If the amounts collected are insufficient, the difference is required; any excess amounts collected are refunded. The conditions under which these amounts bear interest are determined by the law governing direct federal tax.

The tax must be paid within 30 days following the due date.

Advance payments made before the due date shall bear compensatory interest set according to the provisions governing the direct federal tax.

The debtor of the tax who has not paid the amounts due within the deadlines must pay default interest. The provisions governing federal direct tax are applicable.

If, at the due date, the debtor of the tax has not yet received notification of the tax calculation and is not responsible for this delay, the interest only begins to accrue 30 days after the notification.

When a tax that has become enforceable has not been paid by the due date, a summons with an additional period of 15 days is notified to the taxpayer.

When a tax that has become enforceable is not paid following a demand, a debt collection procedure is initiated against the debtor.

If the tax debtor does not have a domicile in Switzerland or if an attachment has been ordered on assets belonging to them, the debt collection procedure may be initiated without prior notice.

In the debt collection procedure, tax decisions and decisions on objections and appeals, once they have become final, have the same effects as an enforceable judgment within the meaning of Art. 80 of the Federal Act of April 11, 1889, on Debt Collection and Bankruptcy.

It is not necessary to produce the tax claims in the official inventories and creditor calls.

The liable party may request a refund of an amount of tax paid in error, if they were not liable for the tax or were only partially liable.

Amounts refunded more than 30 days after their payment are subject to interest from the date of their payment, at the rate applicable to federal direct taxes.

The request for a refund must be submitted to the competent cantonal authority within five years following the end of the calendar year in which the payment was made. The rejection of the refund request grants the same legal remedies as a tax assessment decision. The right to a refund expires ten years after the end of the year in which the payment took place.

For men subject to service who wish to travel abroad, the granting or extension of leave abroad, granted within the framework of military service or civil service, may be conditional upon the payment of the taxes owed or the provision of securities for their amount.

The Federal Council establishes the principles according to which guarantee measures must be taken. It ensures that the personal interests of those liable do not suffer undue harm.

The authority responsible for collection may require securities for the taxes of the current and previous years, even if these taxes are neither yet determined by a final decision nor due: a. when the recovery seems threatened; b. when the taxpayer does not have a domicile in Switzerland and violates the legal prescriptions regarding military service, civil service, or exemption tax applicable to Swiss citizens absent from the country; c. when the taxpayer makes arrangements to abandon their domicile in Switzerland.

The request for securities must state the legal basis for the guarantee, the amount to be secured, and the office receiving the securities. It is considered an attachment order within the meaning of Art. 274 of the Federal Law of April 11, 1889, on Debt Collection and Bankruptcy and is equivalent to an enforceable judgment within the meaning of Art. 80 of this law. The action for the lifting of the attachment cannot be initiated.

The request for securities may, within 30 days following its notification, be appealed to the cantonal appeals commission. Art. 31, para. 3, is applicable.

The appeal against requests for securities does not have a suspensive effect.

If the payment of the tax and fees within the prescribed period causes the taxpayer significant hardship, the payment period may be extended, or the taxpayer may be allowed to pay in installments. In such cases, the collection of interest may be waived.

Taxes and other fees may be remitted in whole or in part upon a written request by the interested party if their recovery would cause particularly severe difficulties for the debtor, especially if they are in distress or if the payment is likely to cause them distress.

Taxes are subject to a statute of limitations of five years. The prescription period begins at the end of the calendar year following the year in which the final taxation decision for the direct federal tax becomes effective. A tax evaded is not subject to prescription until the criminal prosecution and the execution of the penalty are prescribed. Taxes determined based on a special declaration are subject to a five-year statute of limitations from the end of the year of liability.

The prescription does not run and is suspended during the duration of an objection or appeal procedure and as long as none of the persons liable for payment are domiciled in Switzerland.

The prescription is interrupted

a. whenever an investigation is undertaken to find the liable person who has violated the declaration obligations related to military or civil service;

b. whenever an official action aimed at assessing or recovering the tax is brought to the attention of a person liable for payment;

c. whenever a person liable for payment expressly acknowledges the debt. With each interruption, a new prescription period begins to run.

The suspension and interruption of the prescription cannot extend it by more than five years.

The exemption tax paid is reimbursed to the man liable for military or civil service if he has completed all the mandatory service days.

The tax is reimbursed to the man liable for service: a. upon his request, or b. ex officio, when the competent authority becomes aware of the completion of all mandatory service days.

The reimbursement request can be submitted to the competent cantonal authority of the canton that collected the last tax. It must be accompanied by a certificate of completion of all mandatory service days.

The decision made by the authority regarding the tax reimbursement can be subject to a complaint or an appeal in accordance with Articles 30 and 31.

The right to reimbursement and the obligation to reimburse are time-barred at the end of the fifth year following the release from military or civil service. Exceptions are taxes for which the amount has not yet been determined at the end of the fifth year following such release; in this case, the right to reimbursement and the obligation to reimburse are time-barred five years after all the taxes have been determined.

The reimbursed amounts do not bear interest.

Anyone who, with the intent to evade payment of a tax or to obtain for themselves or another party any other unlawful pecuniary advantage, creates a false document, falsifies a document, fabricates a supposed document or, to deceive others, uses such a document created, falsified, or fabricated by another, shall be liable to a custodial sentence of up to three years or to a monetary penalty.

Anyone who intentionally evades the payment of a tax or procures or provides a third party with any other illicit monetary advantage shall be punished with a fine up to triple the amount of the evaded tax, notwithstanding the punishment for tax fraud.

If the offense is committed through negligence, the perpetrator is liable to a fine up to the amount of the evaded tax.

The attempt at evasion and complicity are punishable.

The evasion and the penalty in the event of evasion are subject to a statute of limitations of five years.

The taxpayer is obliged to pay the tax which was omitted from collection or which was reimbursed or waived incorrectly, even if no specific person can be prosecuted or convicted. The claim for recovery is notified in a tax assessment decision, subject to objection and appeal.

Anyone who, intentionally or negligently, fails to comply, despite being summoned, with a provision of this law or an implementing ordinance, or with a specific decision that has been notified to them based on these provisions, is liable to a fine of up to 200 francs.

The prosecution and judgment of offenses under this law fall to the authorities of the canton responsible for taxation; they are governed by the Code of Criminal Procedure of October 5, 2007.

The cantonal administration responsible for collecting the exemption tax is competent to render the judgment when the conditions necessary for imposing a custodial sentence are not met. If it deems that these conditions are fulfilled, it forwards the file to the authority responsible for criminal prosecution.

The administration must notify the accused in writing of the administrative decision and inform them that they may contact the administration within 30 days following the notification to request a trial by a court.

If a court trial is requested within the legal time frame, the administration forwards the file to the criminal judge. If a court trial is not requested within the legal time frame, the administrative decision is equivalent to a judgment with the force of res judicata.

The cantons shall remit to the Confederation, within 30 days following the end of the calendar year during which the collection occurred, the gross revenue of the exemption tax, after deduction of the collection commission.

The gross revenue is considered to be the sum of the taxes collected by the cantons based on their own taxation authority as well as the interest, after deduction of the taxes refunded under Art. 39.

The collection commission amounts to 20% of the gross revenue of the tax.

The use of documents in a procedure concerning the application of this law does not entail the obligation to pay cantonal stamp duties.

The Federal Council enacts the implementing provisions. In particular, it sets the rules relating to the taxation and collection of the tax from those liable who are on leave abroad, as well as those concerning the revision of decisions that have become final.

The Federal Council may declare this law applicable to nationals of foreign states residing in Switzerland, if these states require Swiss nationals to personally perform military service or civil service, or to pay an exemption tax.

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All provisions contrary to this law concerning the exemption tax are repealed upon its entry into force.

Specifically repealed are: a. the Federal Law of June 28, 1878, on the Exemption Tax from Military Service; b. the Federal Law of March 29, 1901, supplementing that of June 28, 1878, on the Exemption Tax from Military Service; c. the Federal Decree of April 4, 1946, concerning the calculation of the military tax based on service rendered; d. Art. 166 of the Military Organization of April 12, 1907.

The Federal Council shall determine the date of commencement of this Act.

and 3 ... Date of commencement: January 1, 1960