6. Finances, **Royalties 64. Taxes and Duties 641. Direct Taxes of the State and Municipalities** (STG)

1 The State levies the following direct taxes

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

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

c) a real estate gains tax.

2 In lieu of the taxes listed in paragraph 1, the State levies a withholding tax on certain natural and legal persons according to the modalities specified by this law.

1 The State tax due for one year is obtained, for each type of tax, by multiplying the basic tax by the coefficient.

2 The basic tax is determined by the unit rates set forth in the law.

3 The coefficient is established each year by Parliament during the budget process; it applies to all taxes.

1 The Government shall adjust, by means of an ordinance, for each fiscal year, the deductions and unit rates, according to the Swiss consumer price index as of June 30 of the previous calendar year.

2 No adjustment shall be made if inflation is negative.

3 Any adjustment made following negative inflation shall be based on the deductions and rates from the last adjustment.

In relation to income tax, the adjustment is made by increasing by a percentage the franc deductions provided for in Articles 24, 31, letter d, 32, paragraph 1, letters g and h, and paragraph 2, and 34, as well as the income brackets listed in Articles 35 and 37, paragraph 2, and 123, paragraphs 2 and 3, letter c; the new amounts are rounded down to the nearest ten francs if they do not reach 1,000 francs and to the nearest hundred francs in other cases. The residual amounts that have not been accounted for are considered in the next adjustment.

Regarding wealth tax, the adjustment is made by increasing the percentage of deductions in francs and the limit provided for in Articles 47 and 48, paragraph 2, as well as the wealth brackets listed in Article 48, paragraph 1. Corrections less than 1,000 francs are deferred to the next adjustment.

Concerning the deductions in Articles 76, paragraph 3, and 81, the adjustment is made by a percentage increase; corrections under 1,000 francs are carried forward to the next adjustment.

1 Jurassian Fiscal Sovereignty is limited by federal law and international double taxation agreements.

2 The Government may prescribe and regulate the taxation of income, wealth, profit, and capital in cases not provided for by the present law, but for which international law permits taxation within the Canton.

When the income, wealth, profit, or capital of a taxpayer is also taxed abroad, the Department of Finance may grant tax relief if significant interests of the Jurassian economy justify it.

1 The Government may grant a tax privilege to a company

a) when the founding or establishment of this company serves the interests of the Jura economy;

b) when the transfer of the company is desirable for reasons of local or regional planning;

c) when, in the interest of the Jura economy, it is a matter of facilitating the transformation, restructuring, merger, or division of companies;

d) when the significant change in the company's activity can be equated to a new foundation;

e) when it benefits from the "NEI" status.

2 The beneficiary commits, for the entire duration of the privilege, to respect the industry's collective agreement, or failing that, the working conditions customary in the region, as well as the legislation on gender equality in accordance with the legal provisions.

3 The privilege consists of a partial or total exemption from periodic direct taxes, for a maximum of ten years.

4 If the conditions to which this privilege is subject are not respected, it is revocable with retroactive effect to the date of the grant.

5 Tax agreements that contradict this law are null and void.

1 The agreement between a taxpayer and a third party regarding the assumption of or payment for the tax does not bind the State.

2 The agreement entered into by the State with a third party concerning the payment of the tax or the guarantee of payment is subject to civil law.

1 Individuals are subject to taxation on the basis of personal attachment if they have their domicile or reside in the Canton.

2 A person has their tax domicile in the Canton if they reside there with the intention of establishing a permanent home or if they possess a special legal domicile there under federal law.

3 A person has a tax stay in the Canton if, without significant interruption

a) they reside there for at least 30 days and engage in gainful employment in Switzerland;

b) they reside there for at least 90 days without engaging in gainful employment in Switzerland.

4 Individuals domiciled in another canton or abroad who stay in the Canton solely to attend an educational institution or to receive medical treatment in an establishment do not meet the conditions of either domicile or tax stay.

Individuals who neither reside nor are staying in the Canton are subject to tax due to an economic attachment

a) when they are owners or usufructuaries of a business located in the Canton or have interests in it as partners;

b) when they operate a permanent establishment in the Canton;

c) when they own a building situated in the Canton or hold real rights of enjoyment over such a building or economically comparable personal rights;

d) when they are engaged in the trading of buildings situated in the Canton.

1 Persons who are not domiciled or staying in Switzerland are also subject to tax in the Canton due to an economic connection

a) when they engage in dependent or independent gainful activities within the Canton;

abis) when they engage in dependent gainful activities for an employer with its head office, effective management, or a permanent establishment in the Canton, and when a taxing right on the income from the gainful activities carried out abroad is granted to Switzerland under the applicable international tax agreement concluded with the neighboring state concerned;

b) when, in their capacity as members of the administration or management of a legal entity with its head office or a permanent establishment in the Canton, they receive directors' fees, attendance fees, fixed compensation, employee participations, or other remuneration;

c) when they are holders or usufructuaries of claims secured by a mortgage or pledge on real estate located in the Canton;

d) when, as a result of an employment relationship governed by public law, they receive pensions, retirements, or other benefits from an employer or a pension institution headquartered in the Canton;

dbis) when they receive income from Swiss private law institutions related to professional pension schemes or recognized forms of tied individual pension schemes;

e) when, due to their activity in international traffic on board a ship, an aircraft, or a road transport vehicle, they receive a salary or other remunerations from an employer with its head office, effective management, or a permanent establishment in the Canton; sailors working on board a ship flying the Swiss flag operated by such an employer are exempt from this tax;

f) …

g) when they act as intermediaries in trade operations concerning real estate located in the Canton;

h) …

2 When the benefit is paid to a third party, the latter is subject to the tax instead of the person concerned.

1 Beneficiaries of tax exemptions referred to in Article 2, paragraph 2, of the Federal Act of 22 June 2007 on the Host State (LEH) are exempt from taxes to the extent provided for by federal law.

2 In the case of partial tax liability, Article 11, paragraph 1, is applicable.

1 Unlimited Liability Based on Personal Attachment; however, it does not extend to businesses, permanent establishments, and real estate located outside the Canton.

2 Liability Based on Economic Attachment is Limited to Taxable Elements within the Canton. Income earned in the Canton and assets located therein must at least be taxed there.

3 The Federal Rules on the Prohibition of Intercantonal Double Taxation apply to both intercantonal and international relations, subject to double taxation treaties.

1 If a company from Jura offsets, based on domestic law, the losses incurred abroad by a permanent establishment with income earned in the Canton, and that permanent establishment records profits within the following seven years, the loss incurred by the foreign permanent establishment shall only retrospectively be taken into account for the purpose of determining the tax rate in the Canton.

2 For this purpose, the initial taxation is subject to revision up to the amount of the profits realized by the permanent establishment.

3 In all other cases, losses incurred abroad shall only be considered in the Canton for the determination of the tax rate.

4 The provisions provided in treaties aimed at avoiding double taxation are reserved.

1. Natural persons who are subject to taxation in the Canton only for a portion of their income or assets pay tax on the taxable elements at the rate corresponding to their total income and assets.

2. Taxpayers domiciled abroad pay tax on businesses, permanent establishments, or real estate located in the Canton at least at the rate corresponding to the income earned in the Canton and the assets located therein.

1 Commencement of Tax Liability

1 The tax liability commences on the day the taxpayer takes residence, begins their stay, or acquires a taxable element within the Canton.

1bis In inter-cantonal relations, the effects of the commencement, modification, or termination of tax liability based on personal or economic ties are defined by the Federal Act on the Harmonization of Direct Taxes of the Cantons and Municipalities (FADTCM), as well as by federal regulations concerning the prohibition of inter-cantonal double taxation.

2 It terminates on the day of the taxpayer's death, their departure from the Canton, or the disappearance of the taxable element.

1 The purpose of the income tax is the taxpayer's global net income.

2 All income and benefits, whether in cash or in kind, are subject to tax, regardless of their unique or periodic nature or their designation. Income in kind is assessed at its market value.

3 Capital gains realized from the disposal of private assets are not taxable; separate taxation of real estate gains is reserved.

Are exempt from tax

a) acquisitions of wealth resulting from an inheritance, a legacy, a gift, or the liquidation of marital property;

b) payouts from life insurance policies that are redeemable, except those from vested benefits policies; Article 18, paragraph 1, letter a, applies;

c) lump-sum payments made by an employer or a professional pension institution upon a change of employment, provided that, within twelve months, the beneficiary reinvests them in a professional pension institution or uses them to acquire a vested benefits policy;

d) payments awarded for non-material damages;

e) subsidies from public and private funds and supplementary AVS/AI benefits;

f) payments made in execution of a family law-based obligation, except for alimony and maintenance contributions mentioned in Article 22, letter e;

g) military pay and pay for civil protection service, as well as pocket money for those obligated to perform civil service;

gbis) militia firefighter pay, up to an annual amount of 8,000 francs, for activities related to performing their essential tasks (drills, standby services, courses, inspections, and interventions, particularly for rescue operations, firefighting, dealing with disasters in general, and disasters caused by natural elements); additional flat-rate allowances for leadership, additional functional allowances, administrative work allowances, and allowances for voluntarily provided services are not exempt;

h) …

i) winnings from casino games operated in gambling houses and authorized by the Federal Act of September 29, 2017, on Games of Chance (hereinafter referred to as "LJAr"), provided these winnings do not stem from a self-employed activity;

j) single winnings up to a maximum amount of one million francs (allowance) from participation in a large-scale game authorized by the LJAr and online participation in casino games authorized by the LJAr;

k) winnings from a small-scale game authorized by the LJAr;

l) single winnings under 4,000 francs from skill games or promotional lotteries not subject to the LJAr according to Article 1, paragraph 2, letters d and e, of this law;

m) income received under the Federal Act of June 19, 2020, on Transitional Benefits for Older Unemployed Persons.

1 All income derived from an employment relationship is taxable; considered as such, in addition to wages, are supplementary income (compensation for special services, commissions, allowances, seniority bonuses, gratuities, tips, shares of profits, etc.), benefits appreciable in monetary terms derived from employee participation and any other benefits appreciable in monetary terms.

1bis Regardless of their amount, expenses for professional training and continuing education assumed by the employer, including retraining expenses, do not constitute benefits appreciable in monetary terms within the meaning of paragraph 1.

2 Lump-sum benefits paid by a provident institution and arising from a dependent activity, as well as similar lump-sum compensations provided by the employer, are taxed according to the provisions of Article 37.

1 Direct employee participations are considered to be

a) shares, profit-sharing certificates, participation certificates, equity shares, and any other participation offered to the employee by the employer, the parent company, or another group company;

b) options entitling the acquisition of participations mentioned in letter a.

2 Indirect employee participations are considered to be expectations of simple cash compensations.

1. The cash-equivalent benefits arising from employee participation, excluding non-tradable or unlisted options, are taxable as income from gainful employment at the time of acquisition. The taxable benefit corresponds to the market value of the participation, reduced, if applicable, by its acquisition price.

2. When calculating the taxable benefit of employee shares, any blocking periods are taken into account by applying a discount of 6% on the market value of the shares for each year of the blocking period. The discount is limited to ten years.

3. The cash-equivalent benefits arising from non-tradable or unlisted employee options are taxed at the time of the exercise of the options. The taxable benefit is equal to the market value of the stock minus the exercise price.

Appreciable monetary benefits deriving from improperly designated employee participations are taxable at the time of receipt of the compensation.

If the taxpayer was domiciled or staying in Switzerland for tax purposes only during part of the interval between the acquisition and the vesting date of the non-transferable employee stock option (art. 15b, para. 3), the monetary benefits derived from this option are taxed proportionally to the ratio between the period spent in Switzerland and the entirety of this interval.

1 All income derived from a self-employed gainful activity, such as the operation of a commercial, industrial, artisanal, agricultural, or forestry enterprise, or the practice of a liberal profession, is taxable.

2 Such income notably includes

a) capital gains resulting from the alienation, realization, or accounting revaluation of elements of the business assets; the transfer of business assets into private assets or into an enterprise or permanent establishment located abroad is considered an alienation;

b) capital gains resulting from the non-temporary leasing of an enterprise, considered as a transfer into private assets, subject to Article 16a, paragraph 1;

c) withdrawals by the operator for private purposes;

d) the realized, but not yet taxed, value of the taxpayer's personal labor in the interest of his immovable property (Article 97, paragraph 2, letter e), with such labor being assessed at current value.

2bis Business assets comprise all elements of the assets that serve, entirely or predominantly, the exercise of the self-employed gainful activity; the same applies to shares of at least 20% in the share capital or capital stock of a stock company or a cooperative, insofar as the holder declares them as business assets at the time of acquisition.

3 Article 70 applies by analogy to taxpayers who keep accounts in proper form.

1 The leasing of a business is considered a transfer into private assets only at the request of the taxpayer.

2 In the event of an inheritance division, if only some of the heirs continue the business operations, they may request that the taxation of hidden reserves be deferred until their eventual realization, provided that the values relevant for income tax are assumed.

1 Dividends, profit shares, liquidation surpluses, and all other monetary benefits derived from shares, interests in limited liability companies, interests in cooperative societies, and participation certificates, as well as profits from the disposal of such participation rights, are taxable, after deducting attributable expenses, at a rate of 70%, provided that these participation rights constitute at least 10% of the share capital or the equity capital of a corporation or a cooperative society.

2 Partial taxation is only granted on the disposal profits if the participation rights have been owned by the taxpayer or the partnership for at least one year.

Articles 70a and 70b apply by analogy to income derived from patents and comparable rights in the case of independent gainful activity.

1. The latent reserves of a partnership (sole proprietorship, partnership) are not taxed during restructurings, such as mergers, demergers, or transformations, provided that the partnership remains subject to tax in Switzerland and the business assets are carried over at their last value used for income tax purposes. This applies in the case of

a) transfer of assets to another partnership;

b) transfer of a business or a distinct part of a business to a corporation;

c) exchange of participation rights or partnership rights as a result of restructurings within the meaning of Article 73, as well as concentrations economically equivalent to mergers.

2. The taxation of revaluations and compensatory payments is reserved.

3. In the event of a restructuring as per paragraph 1, letter b, any transferred latent reserves are subject to a tax recapture in accordance with the procedure outlined in Articles 173 to 175, insofar as, within five years following the restructuring, participation rights or partnership rights are sold at a price exceeding the tax-determined value of the transferred equity; in such a case, the corporation may claim the corresponding taxed latent reserves as profit.

1 The taxable income from movable assets includes in particular

a) interest on assets, including returns paid out in case of life upon maturity or redemption of redeemable capital-insurance policies paid for through a single premium, except when these insurances are for pensions; the insurance benefit is deemed to serve as a pension if paid to an insured person of 60 years of age or older, under a contract lasting at least five years and concluded before the insured's 66th birthday; in such cases, the benefit is exempt;

abis) income from the sale or redemption of bonds with predominantly singular interest (total interest bonds, zero-coupon bonds) which accrue to the holder;

b) dividends, shares in profits, liquidation surpluses, and all other money-appreciable advantages stemming from participations of any kind, including the allocation of free shares, the free increase of nominal value, and the release of shares through company funds; when participation rights are sold according to Article 4a of the Federal Act of October 13, 1965, on the withholding tax (WTA) to the capital company or cooperative society that issued them, the liquidation surplus is considered realized in the year in which the withholding tax claim arises (art. 12, paras. 1 and 1bis, WTA); paragraph 2bis remains reserved;

c) income from the rental, leasing, and usufruct of movable properties;

d) income generated by granting or enjoying rights of any nature;

e) income from intangible assets;

f) the return from shares in collective capital investments that possess real estate in direct ownership, insofar as the total income from the investment exceeds the returns of these real estate assets.

2 Any money-appreciable provision that does not possess the legal character of a repayment of capital or a social share is regarded as interest of an asset or return from a participation.

2bis Dividends, profit shares, liquidation surpluses, and all other money-appreciable advantages from shares, shares in limited liability companies, shares in cooperative societies, and participation certificates (including free shares, free nominal value increases, etc.), are taxable at 70% when these participation rights amount to at least 10% of the share capital or social capital of a capital company or cooperative society.

3 The proceeds from the sale of subscription rights do not constitute a return from movable assets when these patrimonial rights form part of the taxpayer's private assets.

4 The repayment of contributions, agios, and additional payments (reserves from capital contributions) made by holders of participation rights after December 31, 1996, is treated the same as the repayment of share capital or social capital. Paragraph 5 remains reserved.

5 If, during the repayment of reserves arising from capital contributions pursuant to paragraph 4, a listed capital company or cooperative society on a Swiss stock exchange does not distribute other reserves at least for an equivalent amount, the repayment is taxable up to half the difference between the repayment and the distribution of other reserves, but at most up to the amount of other reserves that can be distributed under commercial law available to the company.

6 Paragraph 5 does not apply to reserves from capital contributions

a) which have been constituted after February 24, 2008, within the framework of concentrations economically equivalent to mergers, through the contribution of participation rights or membership rights in a foreign capital company or cooperative society according to article 73, paragraph 1, letter c, or in the case of a cross-border relocation to a Swiss capital company according to article 73, paragraph 1, letter d;

b) which already existed in a foreign capital company or cooperative society at the moment of a cross-border merger or restructuring according to article 73, paragraphs 1, letter b, and 3, or upon the movement of the seat or effective administration after February 24, 2008;

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

7 Paragraphs 5 and 6 apply by analogy in the case of the use of reserves arising from capital contributions for issuing free shares or free increase of nominal value.

8 If, during the sale of participation rights to a capital company or cooperative society that is listed on a Swiss stock exchange and that has issued them, the repayment of reserves arising from capital contributions does not correspond to at least half of the obtained liquidation surplus, the taxable part of this liquidation surplus is reduced by an amount equivalent to half the difference between this part and the repayment, but at most by the amount of reserves that are attributable to these participation rights and are available in the company.

9 Paragraph 4 applies to contributions and agios paid during the duration of a capital fluctuation margin as defined by articles 653 and following of the Code of Obligations only insofar as they exceed the repayments of reserves within the framework of said capital fluctuation margin.

1. Also considered as income from movable property within the meaning of Article 18, paragraph 1, letter b

a) the proceeds from the sale of a stake of at least 20% in the share capital or equity capital of a corporation or cooperative society that represents a transfer from private wealth to the commercial wealth of another natural person or legal entity, provided that the non-essential operational assets existing and distributable under commercial law at the time of the sale are distributed within five years with the participation of the seller; the same applies when several participants jointly sell such a stake or when several stakes representing together at least 20% are sold within five years; if the assets or a portion thereof are distributed, the seller may be subject to subsequent taxation through a tax recall procedure pursuant to Articles 173 to 175;

b) the proceeds from the transfer of a stake in the share capital or equity capital of a corporation or cooperative society representing a transfer from private wealth to the commercial wealth of a partnership or legal entity in which the seller or the contributor holds a stake of at least 50% in the capital after the transfer, insofar as the total consideration received exceeds the sum of the nominal value of the transferred stake and the reserves from capital contributions referred to in Article 18, paragraphs 4 to 8; the same applies when several participants make the transfer jointly.

2. There is a participation within the meaning of paragraph 1, letter a, when the seller knows or should have known that funds would be withdrawn from the company to finance the purchase price and that they would not be returned to him.

1 Taxable Income from Real Estate Includes in Particular

a) Income derived from rental, leasing, usufruct, or the granting and enjoyment of other rights pertaining to a property;

b) The rental value of buildings or parts of buildings which the taxpayer reserves for personal use due to ownership rights or a right of use acquired gratuitously; if the property is rented at a favorable rate, the real estate income corresponds to the rental value;

c) Income from the right of superficies.

1bis Within the limits authorized by federal law, the rental value of property used for the owner's personal use is set moderately in relation to market rents, in order to encourage property ownership and individual provision.

2 The Parliament establishes by decree the rental value based on the official value of buildings or parts of buildings.

1 Life Annuity Insurances as well as Life Annuity and Life Maintenance Contracts are taxable on the basis of their yield portion. This is determined as follows

a) for guaranteed benefits from life annuity insurances subject to the Federal Law of April 2, 1908, on the Insurance Contract (ICA), the maximum technical interest rate (m) defined in accordance with Article 36, paragraph 1, of the Federal Law of December 17, 2004, on the Supervision of Insurance which was applicable at the conclusion of the contract is decisive for the entire duration of the contract

1. if the interest rate is greater than zero, the yield portion is calculated using the following formula, rounding the result to the nearest whole percentage

yield portion = [1 - ((1+m)^22 - 1) / (22 * m * (1+m)^23)] * 100%

2. if the interest rate is zero or negative, the yield portion is 0%;

b) for surplus benefits realized on life annuity insurances subject to the ICA, it is 70%;

c) for benefits from foreign life annuity insurances or life annuity or maintenance contracts, the annualized yield, increased by 0.5 percentage point, of bonds issued by the Confederation for a period of ten years (r) during the relevant fiscal year and the nine preceding years is decisive

1. if the yield is greater than zero, the yield portion is calculated using the following formula, rounding the result to the nearest whole percentage

yield portion = [1 - ((1+r)^22 - 1) / (22 * r * (1+r)^23)] * 100%

2. if the yield is zero or negative, the yield portion is 0%.

2 …

1 All income from old-age and survivors' insurance and disability insurance, as well as from occupational pension schemes and recognized forms of tied individual pension plans, is taxable, including capital benefits and the repayment of contributions, premiums, and fees.

1bis Income from occupational pension institutions notably includes benefits from pension funds, endowment and group insurances, as well as vested benefits policies.

2 …

3 Articles 14, letter d, 36, and 37 are reserved.

The following are also taxable

a) any income received as compensation for the proceeds of a gainful activity;

b) lump-sum or periodic indemnities paid in the event of death, bodily harm, or lasting damage to health, excluding benefits granted for moral damages;

c) capital benefits from private insurances that are not redeemable;

d) indemnities received for the abandonment or renunciation of the exercise of an activity or a right;

e) alimony acquired by the divorced or legally or de facto separated taxpayer for themselves, as well as maintenance contributions obtained by one parent for the children under their parental authority;

f) …

g) …

1 The following professional expenses are deductible

a) travel expenses necessary for commuting from home to the workplace;

b) the additional expenses incurred from meals taken away from home and team work;

c) …

d) other essential expenses for the exercise of the profession; Article 32, paragraph 1, letter i, is reserved.

2 A Government ordinance regulates the detailed provisions related to the assessment of these expenses.

**Instead of Actual Professional Expenses, the Following Lump Sum Amounts Can Be Deducted from Dependent Activity Income:**

a) 20% for taxpayers who exercise a primary activity, but not exceeding 3,800 francs*;

b) 20%, but not exceeding 1,900 francs*, for taxpayers who primarily engage in a self-employed activity;

c) ...

1 Expenses related to an independent gainful activity, justified by commercial or professional use, are deductible.

2 Such expenses notably include

a) depreciations and provisions according to articles 26 and 27;

b) recorded losses incurred on commercial assets;

c) contributions to staff welfare institutions of the company, provided that any use contrary to their purpose is excluded and that said institutions comply with the prescriptions established by the Government;

d) interest on commercial debts as well as interest paid on participations referred to in article 16, paragraph 2bis;

e) training and professional development expenses of the company's personnel, including retraining expenses;

f) sanctions aimed at reducing the profit, provided they do not have a penal nature.

3 The following are notably not deductible

a) payments of secret commissions in the sense of Swiss criminal law;

b) expenses that facilitate the commission of offenses or that constitute consideration for the commission of offenses;

c) fines and financial penalties;

d) administrative financial sanctions, to the extent they have a penal nature.

4 If sanctions in the sense of paragraph 3, letters c and d, have been imposed by a foreign criminal or administrative authority, they are deductible if

a) the sanction is contrary to Swiss public order; or if

b) the taxpayer can credibly demonstrate that they have undertaken everything reasonably required to behave in accordance with the law.

1. Depreciation reflecting the decrease in value of business assets used for profit-generating activities is permitted provided that it is recorded in financial accounts or, in the absence of accounting maintained in accordance with commercial practice, appears in a special depreciation plan. In cases of appraisal taxation, depreciation that aligns with customary practice is taken into account.

2. Depreciation applied to assets that have been revalued to offset losses is only permitted if the revaluations were authorized and the losses could be deducted pursuant to Article 29 at the time of the depreciation.

3. When furniture or equipment is, fully or partially, leased or rented along with commercial or artisanal premises, an appropriate deduction may be applied for deterioration through use. Amounts deducted that are recovered as a result of alienation or revaluation are treated as profits under Article 16, paragraph 2, letter a.

4. The Government enacts the necessary implementing provisions.

**1 Provisions may be constituted for commitments of an amount still undetermined as well as for risks of imminent losses that exist at the end of the financial year.**

**1bis Future research and development mandates entrusted to third parties are considered equivalent to provisions, up to 10% of the taxable commercial profit, but in total up to a maximum of one million francs.**

**2 Provisions that are no longer justified are added to the taxable commercial income.**

**3 The Government enacts the necessary implementing provisions.**

**1** When fixed tangible assets necessary for business operations are replaced, the hidden reserves on these assets may be carried over to the newly acquired replacement assets, provided that the replacement assets are also necessary for business operations and are located in Switzerland. Taxation in the case of replacing real estate with tangible assets is reserved.

**2** If the replacement does not occur within the same fiscal year, a provision corresponding to the hidden reserves may be established; this provision must be dissolved and applied to the depreciation of the replacement asset, or credited to the profit and loss account, within a reasonable period of time.

**3** Only fixed tangible assets directly useful to a business are considered necessary for business operations; this does not include assets that are only useful to the business because of their investment value or yield, among others.

1 Losses from the seven years preceding the fiscal year can be deducted provided that they have not been considered when calculating the taxable income for those years.

2 Losses from previous fiscal periods that have not yet been deducted from income can be offset against third-party contributions intended to balance a deficit in the context of a restructuring.

3 Losses resulting from the disposal of real estate that is part of the business assets are only deductible if it is not possible to offset them with real estate gains.

**Article 71a** applies by analogy to the deduction of research and development expenses in the case of self-employed gainful activities.

**1 The expenses required for the administration of movable assets, as well as foreign withholding taxes that cannot be refunded or credited, are deductible.**

**2 Expenses for maintenance, insurance premiums, real estate taxes, and costs required for the administration of private properties by third parties can also be deducted. Investment expenses aimed at saving energy and protecting the environment are deductible within the limits set by the Department of Finance. Demolition costs for the purpose of replacement construction are treated as deductible energy-saving expenses.**

**2bis Additionally, expenses incurred from restoration works on historical monuments, which the taxpayer undertakes pursuant to legal provisions, in agreement with the authorities or upon their order, are deductible for the portion that exceeds the subsidies received.**

**2ter The investment expenses mentioned in paragraph 2, second sentence, and the demolition costs for replacement construction, are deductible during the two following fiscal periods if they cannot be fully considered during the current fiscal period in which the expenses were incurred.**

**3 Instead of the actual amount of maintenance and administration expenses, as well as insurance premiums related to private properties, the taxpayer may claim a standard deduction.**

**4 The Government enacts the necessary implementing provisions. It particularly sets the rate for the standard deduction and may prescribe that transitioning from the deduction of actual expenses to a lump sum for the same taxpayer is not allowed.**

The taxpayer may deduct

a) the amounts, premiums, and contributions that are legal, statutory, regulatory, or contractual paid within the framework of social and professional welfare (art. 21);

b) the amounts, premiums, and contributions paid to acquire contractual rights in a recognized institution for linked individual welfare within the meaning of Article 82 of the federal law on occupational old age, survivors, and disability pension plans (LPP) and to the extent provided by the Federal Council;

c) the premiums and contributions paid under the regulations on allowances for loss of earnings, provisions on unemployment insurance, and mandatory accident insurance;

d) the payments, premiums, and insurance contributions for capital insurance and insurance in the event of illness and accidents that do not fall under letter c, as well as interest on savings capital up to a maximum of 6,400 francs* for married taxpayers living in a shared household and half of this amount for other taxpayers; these amounts are increased for young people in training, from the year following their 18th birthday, by the same amount as that applicable for other taxpayers; by 1,020 francs* per dependent child and 740 francs* when the taxpayer or one of the spouses living in a shared household does not make contributions according to letters a and b; these amounts are reviewed every two years based on the development of health insurance premiums.

1. The following are also deductible

a) Private passive interest due up to the amount of taxable income generated from assets as defined in Articles 18, 18a, and 19, increased by an amount of 50,000 francs, provided they do not constitute investment expenses;

b) The long-term expenses and the income portion as defined in Article 20, paragraph 1, from benefits based on annuity or lifetime maintenance contracts;

c) Alimony paid to a divorced, legally separated or de facto separated spouse, as well as maintenance contributions paid to a parent for children over whom they have parental authority;

d) Donations in cash and other asset values in favor of legal entities domiciled in Switzerland that are tax-exempt due to their public service or charitable purposes (Art. 69, par. 1, letter h), or in favor of the Confederation, the cantons, the municipalities and their establishments, as well as recognized churches and their parishes (Art. 69, par. 1, letters a, b, c, d, e), up to a limit of 10% of net income; the Department of Finance may authorize a higher deduction when the donations in question are intended for the state and its establishments, municipalities, recognized churches and their parishes, or institutions significantly supported by the state or municipalities; the Government issues the necessary application regulations;

e) Expenses incurred due to illness or accidents of the taxpayer or a person supported by the taxpayer, when the taxpayer bears these expenses personally, for the portion that exceeds 5% of the net income (Art. 33); costs of fertility treatment are considered as health-related expenses and are deductible to the same extent;

f) Expenses related to the disability of the taxpayer or a person supported by the taxpayer, when the taxpayer or this person is disabled as defined in the Federal Law on the Elimination of Inequalities Affecting People with Disabilities (Disability Equality Act) and the taxpayer bears the expenses personally;

g) Costs incurred for childcare entrusted to a third party, up to a maximum of 10,000 francs* for each child under 14 years living in the taxpayer's household and being supported by the taxpayer, if the documented childcare expenses have a direct causal connection with the taxpayer's gainful activity, training, or incapacity to earn income;

h) Contributions and payments, up to a maximum of 10,000 francs*, in favor of a political party that meets one of the following conditions

− Be registered in the party register in accordance with Article 76a of the Federal Law of December 17, 1976, on Political Rights;

− Be represented in the cantonal parliament;

− Have obtained at least 3% of the votes in the last elections to the cantonal parliament;

i) Training and professional development expenses, including retraining expenses, up to a maximum of 12,000 francs, provided that the taxpayer fulfills one of the following conditions

– Holds a secondary level II diploma;

– Has reached the age of 20 and is undergoing training to obtain a diploma other than a first secondary level II diploma.

2. When spouses live in a common household, an amount of 2,500 francs* is deducted from the income derived from the work that one spouse obtains independently of the profession, trade, or business of the other; a similar deduction is granted when one spouse significantly and regularly assists the other in their profession, trade, or business.

3. Unit winnings from gambling not exempt from tax as per Article 14, letters j to l, are deducted by 5% as a stake, but not more than 5,000 francs. Unit winnings from online participation in casino games referred to in Article 14, letter j, are deducted by the stakes withdrawn from the player's online account during the fiscal year, but not more than 25,000 francs.

Taxable income corresponds to net income reduced by the personal deductions provided for in Article 34.

**1 The following personal deductions are granted:**

a) …

b) 1,700 francs* for divorced or separated individuals who maintain an independent household, without dependent children, while having the right to host their minor children according to the provisions of the Swiss Civil Code (SCC);

c) 3,800 francs* for taxpayers who are primarily engaged in an apprenticeship or studies;

d) 5,400 francs* for each child up to 18 years of age or who is an apprentice or student, for whom the taxpayer provides for predominantly; this amount is increased to 6,000 francs* per child starting from three dependent children;

dbis) …

e) a supplement of 10,000 francs* maximum for each child educated outside the family home and residing externally; the supplement is 2,900 francs* maximum if the child must take only one principal meal outside per working day, and 2,600 francs* maximum for transportation costs, provided the total education expenses amount to at least 1,000 francs* and the child's annual net income, including grants, does not exceed 18,000 francs;

f) 2,300 francs* for contributions to the support of a needy person, partially or totally unable to engage in gainful employment, provided the taxpayer's aid reaches at least the amount of the deduction; this deduction is neither granted for children for whom the deduction mentioned under letter d is granted nor for the spouse eligible for the deduction mentioned under letter g;

g) 8,400 francs* when the taxpayer or their spouse is disabled or has reached the age entitling them to receive a basic old-age insurance pension, provided the net income reduced by other personal deductions does not exceed 35,100 francs* for married taxpayers living in a joint household and 27,400 francs* for others, after the following adjustments

- unabsorbed business losses are added;

- the excess of expenses from private real estate and commercial real estate is added;

- the excess of expenses concerning co-ownerships, hereditary communities, and other collectives is added;

- 3% of the taxable wealth reduced by twice the amount of the deduction from Article 47, letter a, for married taxpayers living in a joint household, and twice the amount of the deduction from Article 47, letter b, for other taxpayers, is added;

the deduction is increased to 9,700 francs* when both spouses are disabled or have reached the age entitling them to the aforementioned pension; it is reduced by 510 francs* for every 810 francs* exceeding the income limits set;

h) 2,500 francs* for widows, divorced, separated, or single individuals who engage in gainful employment and maintain an independent household with their dependent children; in cases of joint exercise of parental authority and provided no maintenance contribution is paid for the dependent children, the deduction is granted to the parent benefiting from the tariff of Article 35, paragraph 1; the Government may, by ordinance, amend this provision if it allows harmonizing the practice with that of other cantons;

i) 3,500 francs* for spouses living in a joint household.

2 The determining conditions are those existing at the end of the fiscal period or the assessment period; for the deductions provided under letters e and f, the expenses incurred during the fiscal year are taken into account.

3 If the father and mother are assessed separately, the one who deducts the maintenance contributions paid to the children is not entitled to the deductions provided under letters d and e of paragraph 1. However, they may claim half of the aforementioned deductions when they exercise joint parental authority over their dependent children and no maintenance contribution is paid for the children. The Government may, by ordinance, amend this provision if it allows harmonizing the practice with that of other cantons.

4 In cases of partial assessment, personal deductions are granted only in proportion to the part of the taxable elements within the Canton.

1 The unit rates of income tax owed for a year by married taxpayers living in a common household and widows, divorced, separated, or single individuals who maintain a separate household independently with dependent children or needy persons for whom they mainly provide maintenance are

0% for the first 11,900 francs* of income;

0.880% for the next 5,900 francs*;

2.269% for the next 8,800 francs*;

3.242% for the next 19,200 francs*;

4.122% for the next 39,800 francs*;

4.771% for the next 106,300 francs*;

5.697% for the next 221,500 francs*;

5.789% beyond that.

1bis When single, divorced, or separated taxpayers jointly exercise parental authority over their dependent children, for whom no maintenance contribution is paid, and they meet the conditions for the rate set out in paragraph 1, this rate is applied to the parent who has the most significant factual custody. The Government may, by ordinance, amend this provision if it allows it to align with the practice of other cantons.

2 The unit rates of income tax owed for a year by other taxpayers are as follows

0% for the first 6,500 francs* of income;

1.667% for the next 7,300 francs*;

3.149% for the next 13,200 francs*;

4.029% for the next 20,600 francs*;

4.909% for the next 38,900 francs*;

5.558% for the next 106,300 francs*;

5.789% beyond that.

1 When the income includes capital allowances that replace periodic benefits, the tax is calculated, taking into account other income and allowable deductions, at the rate applicable to an annual benefit paid instead of the single allowance.

2 ...

**1** The total of hidden reserves realized during the last two business years is taxed separately from other income if the taxpayer, who is over 55 years old, ceases to permanently engage in their independent earning activity or is unable to continue this activity due to disability. Buy-ins as per Article 31, letter a, are deductible. If such a buy-in is not made, the tax is levied in the same manner as for lump sum benefits from provident funds according to Article 37, on the portion of the realized hidden reserves corresponding to the amount the taxpayer proves is eligible as a buy-in under Article 31, letter a. For the remaining balance of realized hidden reserves, only half of the amount is considered for determining the rate; however, a tax of 2% will be levied in all cases on the balance.

**2** Paragraph 1 also applies to the surviving spouse, other heirs, and legatees, provided they do not continue operating the business they have taken over. The tax assessment must occur at the latest five calendar years after the end of the calendar year in which the taxpayer passed away.

**1. Capital Benefits from Occupational and Individual Provident Schemes**

1. Capital benefits originating from occupational and individual provident schemes, similar capital indemnities paid by the employer, and those paid by accident or liability insurance in cases of death, bodily injury, or permanent health impairment are taxed separately. In all cases, they are subject to a full annual tax.

2. The tax is calculated at the time the capital benefit is due, according to the following tax rates

- Taxpayers as defined in Article 35, Paragraph 1

0.9% for the first 53,600 francs*;

1.1% for the next 53,600 francs*;

1.3% beyond;

- Taxpayers as defined in Article 35, Paragraph 2

1.1% for the first 53,600 francs*;

1.3% for the next 53,600 francs*;

1.7% beyond.

3. The deductions provided for in Article 34 are not granted.

The gains realized from gambling activities, insofar as they are not exempt under Article 14, are subject to a separate annual full tax, calculated at a unitary rate of 2%.

1 For small remunerations from lucrative employment, the tax is levied at a rate of 4.5% without considering other income, potential professional expenses, or social deductions, provided that the employer pays the tax under the simplified procedure set forth in Articles 2 and 3 of the Federal Act of June 17, 2005, on Undeclared Work. Thus, the cantonal and communal income taxes are settled.

2 Article 125, paragraph 1, letter a, applies by analogy.

3 The debtor of the taxable service is obliged to periodically pay the taxes to the AVS compensation fund.

4 The AVS compensation fund provides the taxpayer with a statement or certificate indicating the amount of tax withheld. It remits the collected taxes to the tax authority.

5 The right to a collection commission according to Article 125, paragraph 4, is transferred to the AVS compensation fund.

6 The Government shall regulate the terms and conditions by way of ordinance.

1. Income equivalent to non-commercial investments made in new innovative companies holding the "NEI" status under the law of 21 November 2012 concerning new innovative enterprises is subject, separately from other income, to a full annual cantonal tax of 1%. Municipal and parish taxes are calculated proportionately.

2. Constitute fiscally privileged investments: contributions, premiums, donations, grants without return, and share acquisitions made by an individual.

3. The amount of fiscally privileged investments can amount to, at most, half of the taxable income, but at a minimum of 10,000 francs and a maximum of 200,000 francs.

4. If the amount of investments is less than the amount of taxable income, the balance is taxed in the ordinary manner at the overall rate.

5. Articles 173 to 175 are applicable in the event of reimbursement of the investment within five years following its payment.

1 The wealth tax is levied on the entirety of the taxpayer's movable and immovable assets, after deducting debts and taking into account the exception provided in Article 40, paragraph 1, letter a.

2 Assets subject to usufruct are taxable to the usufructuary.

3 Shares in collective investment schemes are taxable on the difference between the total value of the investment's assets and that of the real estate directly owned by the taxpayer.

1 Are not subject to wealth tax

a) personal items for everyday use and household furniture;

b) …

c) …

d) …

2 …

1. Established Debts for Which the Taxpayer Alone is Liable are Fully Deductible.

2. Joint Debts Can Only Be Deducted for the Portion for Which the Taxpayer is Actually Responsible.

3. The Deduction of Guarantees is Only Allowed in the Event of Confirmed Insolvency of the Principal Debtor.

4. The Capitalized Value of Periodic Services Does Not Constitute a Deductible Debt.

Subject to the following provisions, assets are valued at their fair market value.

1 The value of real estate properties and hydraulic forces is determined through an official appraisal process.

2 It is determined based on the market value and the income value.

2bis Within the limits permitted by federal law, the official value of real estate properties determined on the basis of market value is estimated prudently and moderately.

3 Land and buildings used exclusively or primarily for agriculture and whose value is primarily determined by such use are assessed according to the income value.

4 The detailed appraisal rules and the procedure are established by parliamentary decree.

1 Real properties are officially assessed in the municipality where they are located.

2 Municipalities maintain the register of official values.

Official values are typically subject to a general revision every ten years, subject to updates.

1 The Parliament mandates a general review; it may alter the ten-year term depending on changes in yield values and market values for all or part of the real estate.

2 The Parliament establishes the principles for the assessment of different properties and regulates the official evaluation procedure.

3 The Government forms a cantonal appraisal commission, which sets the evaluation standards. It is composed of nine members, selected from different regions of the Canton and various economic groups.

1 The municipal assessment commission shall update the official values ex officio by recording one of the following changes affecting properties and hydraulic forces until the end of the fiscal year

a) the construction, transformation, or demolition of buildings and installations;

b) the modification of the intended use or condition of land and buildings;

c) changes in zoning, particularly the conversion of agricultural land into building plots, and vice versa;

d) the establishment, modification, or termination of rights, encumbrances, and concessions;

e) the existence of particular circumstances indicating that a new assessment would lead to a modification of the official value by more than 20%.

2 When any of the conditions outlined in paragraph 1 is met, the official value of agricultural and forestry properties must be updated based on the applicable federal standards for the assessment of agricultural yield value.

At the request and expense of the taxpayer, the updates provided for in Article 43d may be made at any time. They take effect at the end of the fiscal year during which the update was made.

1 Intangible assets and elements of the movable property wealth that are part of the commercial wealth are valued at the value relevant for income tax purposes.

2 Livestock is valued according to the standards determined by the average between the market value and the yield value.

3 Goods are valued at their cost price or at their market value if the latter is lower.

4 Commercial elements of real estate wealth are valued at their official value.

1 Quoted securities are taxed at the closing price on the last trading day of December or the last business day preceding the end of the tax liability period.

1bis Securities that are part of private assets and are not quoted are evaluated based on their intrinsic value and their yield value. The yield value is calculated by taking into account the risks presented by the company.

2 To mitigate economic double taxation, holdings in Swiss corporations and cooperatives, whose shares are neither listed on the stock exchange nor traded in an organized over-the-counter market, are assessed at their market value, reduced by 30% of the difference between the market value and the nominal value.

3 Claims and rights are taxed at their nominal value, taking into account the degree of probability of recovery.

1 Life insurance policies are assessed at their fiscal value.

2 …

1 Employee participations within the meaning of Article 15b, paragraph 1, are assessed at their fair market value, reduced if applicable to account for any lock-up period.

2 Employee participations within the meaning of Articles 15b, paragraph 3, and 15c are declared with no fiscal value at the time of allocation.

3 The Government enacts the necessary implementing provisions.

May be deducted from the net assets

a) 54,000 francs* for married couples living in a common household;

b) half of this amount for other taxpayers and for each dependent child entitling to the deduction provided for in Article 34, paragraph 1, letter d; for parents assessed separately, insofar as they jointly exercise parental authority over their dependent children and provided that no maintenance contribution is paid in favor of the children, this deduction is granted to the parent who benefits from the rate of Article 35, paragraph 1; if neither parent benefits from this rate, the deduction is granted to the one who benefits from the deduction provided for in Article 34, paragraph 1, letter d; the Government may, by ordinance, amend this provision if it allows it to harmonize the practice with that of other cantons;

c) ...

d) ...

1 The unit rate of the wealth tax due for a year is as follows

0.50 ‰ for the first 106,000 francs* of wealth;

0.75 ‰ for the next 318,000 francs*;

0.95 ‰ for the next 371,000 francs*;

1.10 ‰ for the next 796,000 francs*;

1.20 ‰ for the surplus.

2 The taxable wealth is subject to tax when it reaches at least 55,000 francs*.

1 The income and assets of spouses living in a common household are combined, regardless of the marital regime.

2 The income and assets of children under parental authority are added to those of the holder of the parental authority.

2bis When parental authority is exercised jointly and no maintenance contribution is paid for the children, their income and assets are added to the income and assets of the parent who benefits from the tariff of Article 35, paragraph 1. The Government may, by ordinance, amend this provision if it allows them to harmonize the practice with that of other cantons.

3 The child is taxed separately on the proceeds of their gainful activity, their income received in compensation (Art. 22, letters a, b, and d), and their real estate gains.

1 Registered partners have the same status as spouses under Jura tax law.

2 In particular, the rules of the present law concerning married, separated, divorced, or widowed persons apply, where appropriate by analogy, to individuals respectively bound by a registered partnership, who suspend their cohabitation or whose registered partnership is dissolved judicially or due to death.

Foreign commercial companies and other foreign groups of persons without legal personality, subject to tax due to an economic connection, are taxable in accordance with the provisions applicable to legal entities.

1 Each heir or associate adds to their own taxable elements their share of the income and wealth of the estate or partnership.

2 Each of the investors adds to their own taxable elements their share of the income and wealth from collective investment schemes within the meaning of the Federal Act of 23 June 2006 on Collective Investment Schemes (hereinafter referred to as "CISA"), except in the case of collective investments that own real estate directly.

1 Upon the death of the taxpayer, the heirs succeed to the taxpayer's rights and obligations; they are jointly and severally liable for the taxes owed by the deceased up to the amount of their hereditary share, including advancements on inheritance.

2 The taxes owed by the deceased must be settled prior to any distribution of the estate.

3 The surviving spouse is liable up to the amount of their share and, if they receive, due to the matrimonial regime, a portion of the benefits or community greater than their statutory share under Swiss law, up to the amount of that additional portion.

**1.** Spouses living in a common household are jointly liable for the total tax and for the share attributable to the income and assets of the children under their parental authority.

**2.** If one of the spouses is notoriously insolvent, the other spouse is jointly liable only for the portion of the total tax attributable to their own income and assets, as well as to those of the children.

**2bis.** When the spouses no longer live in a common household, the obligation to be jointly liable for the total amount of the tax ceases for all tax amounts still due.

**3.** A married taxpayer living in a common household with their spouse is only liable for the underreporting of taxable elements that are their own.

**4.** Additionally, the following are jointly responsible with the taxpayer

a) Children under parental authority for their share of the total tax;

b) Buyers and sellers of a property located in the Canton, up to 3% of the purchase price, for taxes due as a result of intervention by a merchant or intermediary domiciled abroad;

c) Persons responsible for the liquidation of businesses or permanent establishments located in the Canton, for the disposal or realization of properties located in the Canton, or for claims secured by such properties, up to the net proceeds, when the taxpayer is domiciled abroad;

d) Debtors of the services mentioned in letters b, d, and e of Article 9, paragraph 1, unless they prove they have taken all due care required by the circumstances;

e) The administrator of an estate or the executor of a will for taxes due by the deceased, up to the value of the estate, unless they prove they have taken all due care required by the circumstances;

f) Partners of a partnership domiciled in Switzerland, up to their social share, for the payment of taxes due by partners domiciled abroad.

**5.** The tax authority determines the principle and extent of joint liability in a decision subject to objection and then to appeal.

1 Individuals have the right to be taxed based on expenditure instead of paying taxes on income and wealth if they meet the following conditions

a) not hold Swiss nationality;

b) be subject to unlimited tax liability (art. 7) for the first time or after an absence of at least ten years;

c) not engage in gainful activity in Switzerland.

2 Spouses living in a common household must both meet the conditions of paragraph 1.

3 The tax that replaces the income tax is calculated on the basis of the taxpayer's annual expenses and those of the persons they support, incurred during the assessment period in Switzerland and abroad to maintain their lifestyle, but at a minimum based on the highest of the following amounts

a) an amount fixed by the Government;

b) for taxpayers who are heads of household: seven times the annual rent or the rental value set by the competent authorities;

c) for other taxpayers: three times the annual cost of room and board at the place of residence as defined in Article 7.

4 The tax is levied according to the rate of the ordinary tax.

5 The wealth tax is calculated on the basis of an amount equivalent to at least eight times the income amount used to calculate the expenditure tax.

6 The amount of the tax based on expenditure must be at least equal to the sum of the income and wealth taxes calculated according to the ordinary rate on the total amount of the following gross elements

a) real estate located in Switzerland and its return;

b) movable objects located in Switzerland and the income they generate;

c) movable capital invested in Switzerland, including claims secured by a mortgage, and the income they generate;

d) copyrights, patents, and similar rights exploited in Switzerland and the income they generate;

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

f) income for which the taxpayer requests partial or total relief from foreign taxes under a double taxation agreement concluded by Switzerland.

7 If the income from a foreign country is exempted there on condition that Switzerland taxes it, alone or together with other income, at the rate of total income, the tax is calculated not only on the basis of the income mentioned in paragraph 6 but also on all income elements from the source country attributed to Switzerland under the corresponding double taxation agreement.

8 The Government shall issue regulations concerning the assessment of expenditure and the calculation of the tax.

1 Income and wealth taxes are assessed and levied for each fiscal year.

2 The fiscal year corresponds to the calendar year.

3 If the conditions for tax liability are only met during part of the fiscal year, the tax is levied on the income earned during that period. For income of a periodic nature, the tax rate is determined based on income calculated over twelve months. Non-periodic income is subject to a full annual tax but is not converted into annual income for the purpose of determining the tax rate. Articles 36, 37, and 37a are reserved.

4 Paragraph 3 and Article 34, paragraph 4, apply analogously to deductions.

1 The taxable income is determined based on the income earned during the fiscal year.

2 The income from self-employed activity is determined based on the results of the business operations concluded during the fiscal year.

3 Taxpayers engaged in self-employed activities must close their accounts at each fiscal period, upon the cessation of their self-employed activities, as well as upon the end of their tax liability. Closing of the accounts is not mandatory when the self-employed activity only commenced in the last quarter.

4 The Government enacts the necessary implementing provisions.

1 The wealth tax is determined based on the state of the wealth at the end of the fiscal period or the period of liability.

2 For taxpayers who conduct an independent gainful activity and whose business fiscal years do not coincide with the calendar year, the taxable business wealth is determined based on the equity existing at the end of the commercial fiscal year that closed during the fiscal period.

3 If the conditions for liability are met only for part of the fiscal period, only the amount of tax corresponding to that duration is collected.

4 In case of estate succession during the fiscal period or in case of the end of liability due to an economic connection during the fiscal period, paragraph 3 applies by analogy.

1 In the case of marriage, the spouses are jointly taxed for the entire fiscal period during which their marriage took place.

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

3 In the event of the death of one of the spouses, they are taxed jointly until the day of death. The death is considered as the end of the tax obligation for both spouses and the beginning of the tax obligation for the surviving spouse.

**1. The income and assets of a child under parental authority are added to those of the holder of the parental authority until the end of the year preceding the year in which the child reaches majority.**

**2. When the child is under the joint parental authority of divorced, separated, or single parents and no maintenance contribution is paid to the child, his or her income and assets are added to those of the parent who benefits from the rate in Article 35, paragraph 1. If neither parent benefits from this rate, they are added to those of the parent who benefits from the deduction provided for in Article 34, paragraph 1, letter d. The Government may, by ordinance, amend this provision if it allows for harmonization of the practice with that of other cantons.**

1 The income taxes mentioned in Articles 37 and 37a are levied for the fiscal year during which the right to receive such income was acquired.

2 The real estate gain tax is levied for the fiscal year during which the gain was realized.

1. Capital companies, cooperative societies, associations, foundations, and other legal entities are subject to tax if they have their registered office or effective management in the Canton.

2. Collective investment schemes that possess real estate in direct ownership within the meaning of Article 58 of the LPCC (Collective Investment Schemes Act) are treated as other legal entities. Fixed-capital investment companies within the meaning of Article 110 of the LPCC are taxed like capital companies.

3. Foreign legal entities, commercial companies, and associations of persons are assimilated to Swiss legal entities to which they resemble the most by their legal form or their effective structure.

1 Legal entities whose registered office or effective management is located outside the Canton are subject to tax

a) when they are associated with a business located in the Canton;

b) when they operate a permanent establishment in the Canton;

c) when they own real estate located in the Canton or have on such real estate usufruct rights or similar private economic rights;

d) when they trade real estate located in the Canton.

2 Legal entities with their registered office or effective management abroad are further subject to tax

a) when they hold or have usufruct on claims secured by a mortgage or pledge on real estate located in the Canton;

b) when they act as intermediaries in commercial transactions involving real estate located in the Canton;

c) ...

3 A permanent establishment is understood to mean any fixed installation in which all or part of the entity's business activities are carried out. Permanent establishments are notably considered to include branches, factories, workshops, sales offices, permanent representations, mines and other sites for the exploitation of natural resources, as well as construction or assembly sites lasting at least twelve months.

1 Liability based on personal attachment is unlimited; however, it does not extend to enterprises, permanent establishments, and real estate located outside the Canton.

2 Liability based on economic attachment is limited to the portion of the profit and taxable capital in the Canton according to Article 65.

3 ...

4 Taxpayers who have their registered office and effective management abroad are liable for taxes at least on the profit earned in the Canton and on the capital invested there, at the corresponding rate.

1. In international relations, the extent of the taxation obligation of a company, a permanent establishment, or a real estate is defined in accordance with the rules of federal law concerning the prohibition of intercantonal double taxation. A company based in Jura may offset the losses of a permanent establishment abroad with profits made in the Canton of Jura if the country in which this establishment is located has not already taken these losses into account. If this establishment generates profits during the next seven years, the tax will be recovered during those years to the extent that the loss carryforwards are offset in the country where it is located. Losses related to real estate abroad will only be considered if a permanent establishment is operated in the concerned country.

2 …

3 …

4. The provisions provided in conventions aimed at eliminating double taxation are reserved.

1 The liability to taxation begins on the day the legal entity is established, when it sets up its registered office or its effective management in the Canton, or as soon as it acquires a taxable element there.

2 The liability to taxation ends on the day the liquidation of the legal entity is concluded, when its registered office or effective management is moved outside the Canton, or when the taxable element within the Canton ceases to exist.

2bis In the event of a transfer of the registered office or effective management within Switzerland, the commencement and termination of the liability to taxation are governed by the federal law on the harmonization of direct taxes of the cantons and municipalities.

3 In the event of a transfer of assets and liabilities from one legal entity to another, the taxes owed by the former must be paid by the latter.

**1** At the termination of the tax liability of a legal entity, the persons responsible for the administration and liquidation are jointly and severally liable for the taxes owed by the entity, up to the amount of the proceeds from the liquidation or, in the event that the legal entity transfers its headquarters or place of effective management outside of the Canton, up to the net assets of the legal entity. They are released from all liability if they can prove that they exercised all the due care dictated by the circumstances.

**2** When a legal entity is liable to taxation due to an economic connection, the persons responsible

a) for the liquidation of a business or a permanent establishment in the Canton,

b) for the alienation or realization of real estate situated in the Canton or of claims secured by such real estate,

are jointly and severally liable for the taxes owed by this legal entity, up to the amount of the net proceeds realized.

**3** The members of commercial companies and other bodies of persons organized under foreign law without legal personality are jointly and severally liable for the taxes owed by these companies and bodies.

**4** When a legal entity that has neither its headquarters nor its effective management in Switzerland acts as an intermediary in a transaction involving real estate situated in Switzerland, the buyers and sellers of the real estate are jointly and severally responsible, up to 3% of the purchase price, for the taxes owed by this legal entity due to its intermediary activity.

1 Are exempt from tax

a) the Confederation and its institutions within the limits set by federal legislation;

b) the Canton and its institutions, including the Property Insurance Establishment, but excluding the Cantonal Bank of Jura;

c) municipal communes, mixed communes, sections and associations of communes, on resources allocated to public services;

d) bourgeois communes, on resources directly allocated to public utility tasks carried out by the Canton or the communes;

e) recognized churches and parishes, on resources allocated to their tasks;

f) occupational pension institutions whose resources are permanently and exclusively dedicated to pension provision for staff; bank foundations whose income and assets are exclusively allocated to tied individual pensions, in accordance with Article 82 of the Federal Law on Occupational Old Age, Survivors and Invalidity Pension Provision, are regarded as similar;

g) indigenous social insurance and compensation funds, in particular unemployment, sickness, old age, invalidity and survivors insurance funds, with the exception of licensed insurance companies;

h) legal entities pursuing public service or public utility objectives, on profits and capital exclusively and irrevocably allocated to these objectives; economic goals cannot generally be considered as being in the public interest; the acquisition and management of significant capital participation in businesses have a public utility character when the interest in maintaining the business is subordinate to the public utility goal, and no leading activities are exercised;

hbis) legal entities with cult-related objectives in the Canton or on a Swiss level, on profits and capital exclusively and irrevocably allocated to these objectives;

i) foreign states, on their properties located in the Canton and exclusively used for their diplomatic and consular representations, as well as institutional beneficiaries of tax exemptions referred to in Article 2, paragraph 1, of the Federal Law of June 22, 2007, on the Host State, for properties they own and are occupied by their services;

j) collective investments that own properties directly, insofar as the investors are exclusively occupational pension institutions as per letter f, or indigenous social insurance and compensation funds as per letter g, exempt from tax;

k) transport and infrastructure companies holding a Confederation concession receiving compensation for this activity or required by their concession to maintain a year-round service of national importance; profits arising from a concession-subjected activity and freely available are also exempt from tax; however, ancillary operations and real estate unrelated to the concession-subjected activity are excluded from the exemption.

2 …

3 Articles 88, paragraph 2, and 113 are reserved.

4 The Government shall issue, by ordinance, the necessary implementing provisions.

1 The Tax on Profit concerns the net profit.

2 The taxable net profit includes

a) the balance of the profit and loss account, eliminating any carryover from the previous year;

b) all deductions made from the commercial result before calculating the balance of the profit and loss account, which do not serve to cover expenditures justified by commercial practice, such as

− acquisition, production, or improvement costs of fixed assets;

− depreciations and provisions not justified by commercial practice;

− allocations to reserve funds;

− the release of equity capital using funds belonging to the legal entity, provided they come from reserves established by profits that have not been taxed;

− open or concealed distributions of profit and benefits provided to third parties not justified by commercial practice;

c) interest on concealed equity capital (Art. 79, para. 2, letter b);

d) capital income and profits, excluding real estate gains, as well as liquidation and reevaluation proceeds that have not been credited to the profit and loss account.

3 The taxable net profit of legal entities that do not maintain a profit and loss account is determined according to paragraph 2, applied by analogy.

4 The services predominantly provided by mixed-economy enterprises fulfilling a public interest task to affiliated enterprises are evaluated at the current market price, at their current production cost increased by an appropriate margin, or at their current final sale price decreased by a profit margin; the result of each enterprise is adjusted accordingly.

1. The following are deemed to be patents

a) patents as defined by the Convention on the Grant of European Patents of October 5, 1973, in its revised version of November 29, 2000, designating Switzerland;

b) patents as defined by the Federal Act on Patents for Inventions of June 25, 1954 (Patents Act);

c) foreign patents corresponding to the patents referred to in letters a or b.

2. The following are deemed to be comparable rights

a) supplementary protection certificates as defined by the Federal Act on Patents for Inventions of June 25, 1954 (Patents Act), as well as the extension of their duration;

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

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

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

e) reports protected under an implementing provision of the Federal Act on Agriculture of April 29, 1998;

f) foreign rights corresponding to the rights referred to in letters a to e.

1 If requested by the taxpayer, the net profit derived from patents and comparable rights is included in the calculation of the taxable net profit in proportion to the eligible research and development expenses relative to the total research and development expenses per patent or comparable right (Nexus ratio) with a reduction of 90%.

2 The net profit derived from patents and comparable rights included in revenue is determined by subtracting from the net profit of each of these products 6% of the costs attributed to these products as well as the brand remuneration.

3 When the net profit derived from patents and comparable rights is taxed for the first time at a reduced rate, the research and development expenses that have already been accounted for in previous fiscal periods, as well as any potential deduction within the meaning of Article 71a, are added to the taxable net profit. A latent reserve must be established to the extent of the amount added. Upon the company's request, the latent reserves may be taxed within five years from the start of the reduced taxation.

4 Otherwise, the federal ordinance of November 13, 2019, regarding the reduced taxation of profits derived from patents and comparable rights is applicable.

1 If the taxpayer declares hidden reserves at the beginning of liability, including the self-created surplus value, these reserves are not subject to profit tax. Hidden reserves of a corporation or cooperative society arising from an ownership of at least 10% of the share capital or social capital of another company, or from a participation of at least 10% in the profit and reserves of another company, cannot be declared.

2 The beginning of the liability is considered to be the transfer of assets, operations, distinct parts of operations or functions from abroad to a company or a permanent establishment located in Switzerland, the end of an exemption referred to in Article 69, paragraph 1, as well as the transfer of the headquarters or the place of effective management to Switzerland.

3 The declared hidden reserves must be depreciated annually at the tax rate applied to the depreciation of the concerned assets.

4 The surplus value created by the taxpayer themselves which is declared must be depreciated within a ten-year period.

**1** When the tax liability ends, the untaxed hidden reserves existing at that time, including any self-created increase in value by the taxpayer, are subject to taxation.

**2** The cessation of tax liability is deemed to occur upon the transfer of assets, businesses, distinct parts of a business, or functions from Switzerland to a company or a permanent establishment located abroad, the transition to an exemption as referred to in Article 69, paragraph 1, as well as the transfer of the headquarters or the place of effective management abroad.

**1 Justified Business Expenses Include Notably:**

a) Federal, cantonal, and communal taxes;

b) Contributions to employee pension institutions of the business, provided that any use contrary to their purpose is excluded;

c) Donations in cash and other property assets to legal entities based in Switzerland and exempt from tax due to their public service or public utility purposes (Art. 69, Para. 1, letter h) or to the Confederation, cantons, communes and their establishments, as well as recognized churches and their parishes (Art. 69, Para. 1, letters a, b, c, d, e), up to 10% of the net profit; the Department of Finance may authorize a higher deduction when the aforementioned donations are intended for the state, its establishments, communes, recognized churches and their parishes, or institutions supported significantly by the state or communes; the Government shall issue the necessary implementing regulations;

d) Discounts, rebates, credits, and refunds granted on the consideration of deliveries and services, as well as the shares of insurance company profits intended to be distributed among the insured;

e) Training and professional development expenses for the enterprise's employees, including retraining costs;

f) Penalties aimed at reducing profit, insofar as they do not have a penal character.

**2 Not Included as Justified Business Expenses Are:**

a) Payments of kickbacks in the sense of Swiss criminal law;

b) Expenses that facilitate the commission of offenses or constitute the counterpart to the commission of offenses;

c) Fines;

d) Administrative financial penalties, insofar as they have a penal character.

**3 If Sanctions as per Paragraph 2, Letters c and d, Have Been Issued by a Foreign Penal or Administrative Authority, They Are Deductible if:**

a) The sanction is contrary to Swiss public order; or if

b) The taxpayer can credibly demonstrate that they have undertaken all reasonably required steps to comply with the law.

1 Upon request, the deduction of research and development expenses incurred by the taxpayer in Switzerland, directly or through third parties, is authorized in an amount exceeding by 50% the research and development expenses justified by commercial use.

2 Research and development are deemed to include scientific research and science-based innovation as defined in Article 2 of the Federal Act of December 14, 2012, on the Promotion of Research and Innovation.

3 An enhanced deduction is admissible for

a) personnel expenses directly attributable to research and development, plus an additional 35% of these expenses, but up to the total expenses of the taxpayer;

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

4 If the principal of the research and development work is authorized to make the deduction, the agent has no right to any deduction for this purpose.

1 The total tax reduction based on Articles 70b, paragraphs 1 and 2, and 71a must not exceed 70% of the taxable profit before loss compensation, excluding the net return on investments as defined in Article 78, paragraphs 1, 2, second sentence, and 5, letter b, and before deduction of reductions made.

2 Neither the reductions based on Articles 70b, paragraphs 1 or 2, or 71a, nor the total tax reduction may result in loss carryforwards.

Do not constitute taxable income

a) contributions from members of corporations and cooperative societies, including premium and capital contributions without consideration;

b) increases in wealth resulting from an inheritance, a legacy, or a donation;

c) the transfer, to another canton, of the headquarters, administration, a business, or a permanent establishment, provided that there is neither an alienation nor an accounting revaluation.

**1. The latent reserves of a legal entity are not taxed during restructuring, particularly in cases of mergers, demergers or transformations, provided that the legal entity remains subject to tax in Switzerland and that the business elements are carried over at their last tax-relevant value for profit taxation. This applies in cases of:**

a) transformation into a partnership or another legal entity;

b) division or separation of a legal entity, provided that this transfer involves one or more distinct operations or parts of operations and provided that the legal entities existing after the demerger continue a business or a distinct part of a business;

c) exchange of participation rights or membership rights as a result of a restructuring or a concentration that is economically equivalent to a merger;

d) transfer to a Swiss subsidiary of businesses or distinct parts of businesses, as well as elements that are part of the fixed business assets; a subsidiary is defined as a joint-stock company or a cooperative in which the transferring joint-stock company or cooperative owns at least 20% of the share capital or cooperative capital.

2. In the case of a transfer to a subsidiary as defined in paragraph 1, letter d, the transferred latent reserves are subject to a tax recall according to the procedure provided in Articles 173 to 175, insofar as within five years following the restructuring, the transferred assets, participation rights, or membership rights are disposed of by the subsidiary; in this case, the subsidiary may claim the corresponding taxed latent reserves as profit.

3. Direct or indirect holdings of at least 20% of the share capital or cooperative capital of another joint-stock company or cooperative, as well as businesses or distinct parts of businesses and elements that belong to the fixed assets of the business, may be transferred, at their last tax-relevant value for profit taxation, between Swiss joint-stock companies or cooperatives that, through majority voting rights or another manner, are united under the single direction of a joint-stock company or cooperative. The transfer to a Swiss subsidiary under paragraph 1, letter d, is reserved.

4. If, within five years following a transfer under paragraph 3, the transferred assets are disposed of or if the single direction is abandoned during this period, the transferred latent reserves are subject to a tax recall according to the procedure provided in Articles 173 to 175. The receiving legal entity may in this case claim the corresponding taxed latent reserves as profit. The Swiss joint-stock companies and cooperatives united under single direction at the time of the breach of the lock-up period are jointly liable for the tax recall.

5. …

6. The imposition of accounting revaluations and compensatory benefits remains reserved.

7. The company that incurs an accounting loss on the participation it had in a joint-stock company or cooperative from which it takes over the assets and liabilities cannot deduct this loss; any eventual accounting profit on the participation is taxable.

The provisions relating to income tax (art. 16, 25, 27, 29 to 32) apply by analogy to the increases in value recorded, to the deduction of income-generating expenses, property maintenance costs, interest liabilities, employee benefits, losses, and for the creation of provisions.

1. Depreciation of assets justified by commercial use is permitted, provided that these are recorded in the accounts or, in the absence of accounts maintained according to commercial usage, appear in a special depreciation plan.

2. In general, depreciation is calculated based on the actual value of the various assets or must be allocated according to the probable duration of use of each of these assets.

3. Depreciation on investments that are related to previous distributions of profits is not considered justified by commercial use.

4. Depreciation carried out on assets that have been revalued to compensate for losses is only allowed if the revaluations were authorized by commercial law and the losses could be deducted in accordance with Article 75, paragraph 1, at the time of the depreciation.

5. Value adjustments and depreciation performed on the investment cost of participations of at least 10% are added to taxable income to the extent that they are no longer justified.

6. The Government enacts the necessary implementing provisions.

1 When capitalized moveable assets necessary for operations are replaced, the hidden reserves on these assets may be transferred to the replacement assets, provided the new assets are also necessary for operations and are located in Switzerland. Taxation in cases of replacing real estate with moveable property is reserved.

2 In the event of replacing participations, the hidden reserves may be transferred to a new participation if the alienated participation represented at least 10% of the share capital or social capital, or at least 10% of the profit and reserves of the other company, and if the joint-stock company or cooperative has held this participation for at least one year.

3 If the replacement does not occur within the same fiscal year, a provision corresponding to the hidden reserves may be constituted; it must be dissolved and allocated to the depreciation of the replacement asset or credited to the profit and loss account within a reasonable period.

4 Only capitalized moveable assets directly beneficial to a business are considered necessary for operations; those not considered necessary include, notably, assets that are only useful to the business by their investment value or yield.

1 The losses from the seven fiscal periods preceding the current fiscal period may be deducted from the profits of this period, provided they have not been deducted from the taxable profits of previous periods.

2 Furthermore, paragraphs 2 and 3 of Article 29 shall apply mutatis mutandis.

1 Statutory contributions paid to associations by their members and contributions to the capital of foundations do not form part of taxable profit.

2 Passive interest, maintenance expenses for buildings, donations for public utility, as well as expenses related to the acquisition of taxable income of associations can be fully deducted from the income; other expenses can only be deducted to the extent that they exceed members' contributions.

3 Legal entities other than capital companies and cooperative societies may deduct 20,000 francs* from their taxable profit.

4 Collective investment schemes are subject to profit tax on the income from their directly owned properties.

1. Exempt from tax are the profits of legal entities pursuing non-profit purposes, provided they do not exceed 30,000 francs and are allocated exclusively and irrevocably to these purposes.

2. Legal entities pursuing non-profit purposes may, on their extraordinary income, proceed with amortizations or establish provisions to cover future expenses for non-economic purposes. Provisions that are no longer justified are added to the taxable income.

1 The unit rate of the profit tax is equivalent to 1.837% of the taxable profit.

2 The unit rate may be increased in special cases related to international relations.

1 For companies that hold at least a 10% participation in the share capital or equity of other companies or cooperatives, or own a participation representing a market value of at least one million francs, the tax due on the profits is proportionally reduced based on the ratio between the net income from participations and the total net profit.

2 The net income from participations corresponds to the income from these participations reduced by the related financing expenses and a contribution of 5% intended to cover administrative expenses, subject to proof of actual administrative expenses lower or higher than this rate. Financing expenses are considered to be interest expenses as well as other costs economically equivalent to interest expenses. Capital gains from participations, proceeds from the sale of related subscription rights, as well as revaluation profits according to Article 670 of the Code of Obligations also form part of the income from participations.

3 The following are not part of the income from participations

a) ...

b) income that represents justified commercial expenses for the capital company or cooperative society paying them;

c) ...

4 The income from a participation is only included in the reduction calculation to the extent that such participation is not subject to depreciation related to the distribution of profits and deducted from the taxable net profit.

5 Capital gains and revaluation profits according to Article 670 of the Code of Obligations are only included in the reduction calculation if

a) the sale proceeds exceed the investment cost;

b) the sold participation represented at least 10% of the share capital or equity of the other company, or had a right based on at least 10% of the profits and reserves of the other company, and the capital company or cooperative held it for at least one year. If the participation fell below 10% following a partial sale, the reduction can only be granted on each profit resulting from a subsequent sale if the market value of the participation rights amounted to at least one million francs at the end of the fiscal year preceding the sale.

6 The investment cost is reduced by depreciations according to paragraph 4, or in the case of a revaluation according to Article 670 of the Code of Obligations, increased by the revaluation profits. For participations transferred at book value during a restructuring without profit impact, the original investment cost is used.

7 Transactions resulting in an unjustified tax saving within the group lead to an adjustment of the taxable profit or a reduction of the deduction. The tax saving is unjustified when the capital gains and capital losses, or depreciations related to participations as defined in Articles 74a and 78, are causally related.

8 In the case of parent companies of systemically important banks as defined in Article 7, paragraph 1, of the Federal Act of November 8, 1934, on Banks, for the calculation of net income as per paragraph 1, the financing expenses related to the following borrowings and the receivable recorded on the balance sheet as a result of the transfer within the group of the funds from the following borrowings are not taken into account

a) mandatory convertible loans and loans with a waiver of claims as referred to in Article 11, paragraph 4, of the Federal Act on Banks; and

b) debt instruments intended to absorb losses in the presence of insolvency measures as defined in Articles 28 to 32 of the Federal Act on Banks.

The unit tax rate on the profit from collective capital investments that hold properties in direct ownership is equivalent to one-third of the rate provided for in Article 77.

The unit rate of the tax on the profits of legal entities pursuing ideal purposes, with the exception of capital companies and cooperative societies, is equivalent to half the rate provided for in Article 77.

1 The tax on capital pertains to equity capital.

2 The taxable equity capital includes

a) paid-in share capital or company capital as well as open reserves and hidden reserves formed through taxed profits;

abis) ...

b) the portion of foreign funds that economically functions as equity capital (thin capitalization).

2bis At a minimum, the paid-in share capital or company capital is taxable.

3 The taxable equity capital of corporations and cooperative societies in liquidation, as well as that of associations, foundations, and other legal entities, corresponds to their net assets.

4 Collective investment schemes are subject to capital tax on the property wealth represented by real estate held in direct ownership.

Taxable reserves are determined based on bookkeeping records and the actual circumstances.

Legal entities other than capital companies and cooperative societies may deduct 50,000 francs* from their taxable capital. The deduction is doubled for legal entities pursuing non-profit purposes.

1 The unit rate of the capital tax is equal to 0.375 ‰ of the taxable net worth.

2 The unit rate of the capital tax pertaining to participation rights as referred to in Article 78, patents and comparable rights as referred to in Article 70a, as well as loans granted to group companies is 0.05 ‰.

1 Taxes on profits and on capital are determined and collected for the fiscal period, which corresponds to the business year.

2 Every calendar year, except the year of incorporation, taxpayers must close their accounts and prepare a balance sheet and a profit and loss statement; they are also obliged to do so in the event of a transfer of the headquarters, administration, a business, or a permanent establishment, as well as at the end of liquidation.

1 The taxable profit is determined based on the result of the fiscal period; when the fiscal year is longer or shorter than twelve months, the tax rate on profits is set considering a net profit calculated over twelve months.

1bis If the annual financial statements are prepared in a foreign currency, the net taxable profit must be converted into Swiss francs. The average exchange rate (selling rate) of the fiscal period is decisive.

2 Upon the liquidation of a legal entity or the transfer of its headquarters, administration, business, or a permanent establishment abroad, the latent reserves formed by means of tax-exempt profits are taxed together with the net profit of the last fiscal year.

3 The taxable capital is determined according to the situation at the end of the fiscal period.

3bis If the annual financial statements are prepared in a foreign currency, the taxable equity must be converted into Swiss francs. The exchange rate (selling rate) at the end of the fiscal period is decisive.

4 When the commercial year is longer or shorter than twelve months, the capital tax is calculated based on the duration of the respective year.

**1 Tax on Real Estate Gains**

1. The tax on real estate gains is applied to profits realized upon the alienation of real estate property, a share of a property, or a hydraulic power, which are part of the taxpayer's private or commercial assets, as well as upon the alienation of rights associated with such assets.

2. The profit associated with the transfer to a third party of a right encumbering a property does not constitute a real estate gain.

3. Gains are only taxed if they amount to at least 4,000 francs.

4. As an exception, the following are subject to income or profit tax

a) Gains realized on properties the taxpayer trades in the exercise of their profession;

b) Allowances or compensations for the temporary burden of properties and hydraulic power constituted by easements, or by property restrictions based on public law, and for the temporary granting of personal rights to utilization or enjoyment; when these allowances relate to legal acts equivalent to a partial alienation, they are only taxable to the extent that they exceed the portion of the acquisition price;

c) Amounts amortized in accordance with tax law and not taxed, which are realized upon an alienation (Art. 16, para. 2, letter a);

d) Gains realized by collective investment schemes that hold properties in direct ownership.

1. Any person who transfers real estate or a hydraulic power facility located in the Canton, or who assigns a right to real estate, is subject to the real estate gains tax.

1bis. Co-heirs are subject to the real estate gains tax for their share of the gain as defined in Article 619 of the Swiss Civil Code (CC) and Articles 28 to 35 of the Federal Act on Rural Land Rights (FLA).

2. The Confederation, according to federal law, and the State of Jura are exempt from the real estate gains tax, as are municipal communes, mixed communes, and associations of communes, recognized churches and their parishes for gains realized within their own territory. The same applies to transport and infrastructure companies holding a concession from the Confederation as defined in Article 69, paragraph 1, letter k, for gains realized from the disposal of real estate connected with the activity subject to concession.

1. Any transfer that results in the conveyance of ownership of real property is subject to taxation.

2. Particularly considered as transfers are the sale, exchange, expropriation, contribution to a company, transfer of real property from a company to a holder of participation rights, inheritance division, dissolution of a community, participation of a co-heir in the benefit (Art. 619 of the Civil Code and Articles 28 to 35 of the Federal Act on Rural Land Rights) and participations in real estate gains based on public law.

3. Considered equivalent to a transfer are

a) Legal acts that, concerning the power to dispose of real property, effectively and economically equate to a transfer, such as the realization of the majority participation in a real estate company and the transfer for valuable consideration of a preemption right encumbering a real property;

b) The establishment of private servitudes on a real property or hydraulic force or public law restrictions on property ownership, when they significantly and permanently limit exploitation or decrease the market value of the real property and result in compensation; the compensation is not subject to real estate gains tax when it is taxable as income from real estate assets, particularly when it consists of an income from a building lease (Art. 19, para. 1, letter c) or income from an exploitation right.

4. The exploitation right particularly includes the rights to extract stone, gravel, sand, marl, peat, coal, and other minerals, as well as the rights to take or utilize water or hydraulic power.

1 The taxation of real estate gains is deferred

a) in the event of land consolidation carried out for purposes such as land reallocation, district planning, boundary adjustment, or expansion of agricultural areas, or within an expropriation procedure or due to imminent expropriation;

b) …

c) in the case of business restructurings for sole proprietorships or partnerships according to Article 17 and for legal entities according to Article 73; Articles 17, paragraph 3, and 73, paragraphs 2 and 4, apply mutatis mutandis;

d) in the case of the disposal of real estate that is part of the fixed assets necessary for operations (Art. 28 and 74b), provided that the proceeds from such disposal are reinvested within a reasonable period in the acquisition of a similar property in Switzerland intended to fulfill the same function within the enterprise; for agricultural and forestry properties, taxation is also deferred if the replacement property belongs to the taxpayer and is operated by them, but does not serve the same function in the enterprise, or if the proceeds from the disposal are used for the improvement of agricultural or forestry properties;

e) in the case of pension institution restructurings as referred to in Article 69, paragraph 1, letter f;

f) in the case of property transfer between spouses relating to the marital property regime or compensation for extraordinary contributions by one spouse to family maintenance (Art. 165 CC) or claims arising from divorce laws, provided both spouses agree;

g) in the case of the disposal of a dwelling (house or apartment) that has been used exclusively and consistently for the personal use of the disposer, insofar as the proceeds thus obtained are used, within an appropriate time, for the acquisition or construction in Switzerland of a dwelling serving the same use;

h) in the case of the transfer of property by succession (inheritance devolvement, succession sharing, legacy), donation or advancement of an inheritance; in the case of an advancement of inheritance, the gift is accepted if the transferee's consideration consists exclusively of

− assuming a burden constituted by mortgage claims for third parties;

− creating, in the case of a transfer to descendants, a right of habitation or usufruct in favor of the transferor;

− committing to pay compensations to co-heirs.

2 When the replacement property acquired (letters d and g of paragraph 1) is located outside the Canton and is subsequently disposed of, the gross gains that have been subject to deferred taxation in the Canton are subject to tax.

3 When taxation is deferred due to private replacement (letter g of paragraph 1) or commercial replacement (letter d of paragraph 1), the tax is deferred only for the part of the gain compensated in the amount reinvested in the replacement property. The portion of the latent reserves realized from the disposal of the former asset that is not reinvested is subject to income tax.

1 The difference between the cost price of the property and the proceeds from its alienation constitutes the real estate gain.

2 The cost price corresponds to the acquisition price increased by the expenses.

3 …

1 The acquisition price corresponds to the purchase price recorded in the land register or the lower actual amount paid. A higher price is only considered if the previous owner has settled the real estate gain tax, including any potential tax penalties, on the full actual proceeds from the alienation.

2 Periodic payments credited to the account of the alienator are capitalized and form part of the acquisition price, regardless of those actually provided. Articles 22, letter f, and 32, paragraph 1, letter b, are reserved.

3 The acquisition price of a property acquired through exchange is equivalent to the amount attributed to the acquirer for the property transferred in exchange.

4 If the last taxable alienation occurred more than 30 years ago, the alienator may claim, as the acquisition price, the official value in effect 30 years prior; in this case, the period of possession (Art. 104) is 30 years and only the expenditures incurred on the property during this same period can be considered.

1. If, at the time of acquisition, the taxation was deferred according to Article 91, paragraph 1, letters c, e, f, and h, the determining acquisition price is that of the previous taxable alienation.

2. If, at the time of acquisition, the taxation was deferred according to Article 91, paragraph 1, letters a, d, and g, the determining acquisition price is that of the property transferred during the alienation whose taxation was deferred.

3. Upon the alienation of a property whose acquisition or improvement has led to deferred taxation, according to Article 91, paragraph 1, letters d and g, the reinvested gain is deducted from the investment expenses.

1 When a real estate property is only partially alienated or if a right encumbering a real estate is established, the corresponding part of the total acquisition price serves as the basis for taxing the partial alienation.

2 If the acquisition price could not be entirely attributed to the sale price, previous assessments are revised after the final partial alienation. Any taxes that may have been overpaid are reimbursed.

3 The sum of all fractions of the acquisition price formed during the different partial alienations must not exceed the total amount of the acquisition price.

1 Expenses are the costs inseparably linked to the acquisition or disposition and the costs that have contributed to the improvement or durable increase in the value of the property.

2 These include notably

a) transfer taxes, fees for deeds and auctions (cents per franc);

b) usual brokerage commissions and fees, as well as legal expenses related to the purchase or sale;

c) expenses that result in a durable increase in the value of the property, notably those related to new constructions, renovations, water, lighting and heating installations, road constructions, land improvements, and embankments, including voluntary contributions paid for this purpose to a public or private entity, after deducting insurance benefits and federal, cantonal, and municipal subsidies;

d) contributions imposed on property owners, notably contributions to the construction of roads, sidewalks, and pipelines;

e) the value of the taxpayer's personal work that increased the property's value, provided it was extinguished for income tax purposes;

f) indemnities paid for the establishment of a private law servitude or charge, or for a public law restriction limiting exploitation or reducing the market value of the property in a durable and significant manner, or for the suppression of such a right encumbering the property;

g) the determined value of future expenses if the taxpayer commits by contract to incur them in the near future after the disposition;

h) costs devoted to an unexecuted project specifically designed for the property and unfeasible elsewhere;

i) the contribution levied on the added value resulting from land planning measures.

3 Management and regular maintenance costs do not constitute expenses.

4 Expenses are generally established through supporting documentation. The Government determines by regulation the conditions under which an expert assessment may be admitted and the content thereof.

1 The proceeds of the alienation include all benefits charged to the acquirer. Periodic benefits are calculated based on their capital value.

2 In the case of an exchange, the market value is deemed to be the proceeds, subject to contractual provisions corresponding to economic conditions.

3 When there is a sale of real estate between a corporation and a significant shareholder of that corporation, the market value is considered as the proceeds of the alienation.

4 The amount paid to co-heirs as participation in the gain, according to Article 619 of the Swiss Civil Code and Articles 28 to 35 of the Federal Act on Rural Land Rights, is deducted from the proceeds of the alienation. The same applies to the amount paid to another entitled party under public law. The alienator is jointly liable with the beneficiary of the share in the gain for the tax payable by the latter.

1 All gains or losses of at least 4,000 francs realized by the transferor upon the transfer of real estate during the same calendar year are aggregated for the purpose of taxation, provided that such transfers have been subject to tax in the Canton due to the taxpayer's subjective tax liability.

1bis For taxpayers maintaining accounts, gains and losses are aggregated insofar as they are realized during the same business period.

2 If applicable, previous tax assessments concerning the gain for the same period as referred to in paragraphs 1 and 1bis are revised.

**Tax on Real Estate Gains**

The tax on real estate gains is calculated based on the following rate schedule

Taxable Gain (in francs) | Simple Tax Rate

4,000 to 50,000 | 3.5%

50,100 to 100,000 | 4.5%

100,100 to 200,000 | 5.5%

200,100 and above | 6%

1. If the taxpayer has owned the alienated property for less than five years, the real estate gains tax is increased according to the following rules

Duration of Ownership | Tax Amount Increase

Less than 2 years | 50%

From 2 to less than 5 years | 25%

2. The real estate gains tax is not increased

- When the property is alienated during the liquidation of an estate;

- When circumstances exclude any intention of speculation.

1 If the taxpayer has owned the alienated property for at least ten years, the tax on the real estate gain is reduced by 1% for each year of possession beyond the tenth year and by 2% for each year of possession beyond the fortieth year. The maximum deduction is 50%.

2 The reduction provided for in the previous paragraph is calculated from the last taxable alienation if the property was acquired through a transaction resulting in deferred taxation (art. 91).

3 ...

1. The municipal communes, mixed communes, and sections of communes collect the ordinary communal taxes, namely

a) the income and wealth tax;

b) the profit and capital tax;

c) the real estate gains tax.

1bis In place of the taxes enumerated in paragraph 1, the communes levy a withholding tax on certain natural and legal persons according to the modalities established by the present law.

2. Subject to the following provisions, the rules concerning cantonal taxes also apply to the ordinary communal taxes.

1 The amount of regular municipal taxes is determined annually by the municipality during the budget vote.

The municipal tax regulation assigns the following tasks to the various municipal bodies

a) maintenance of the taxpayers' register;

b) ...

c) collection;

d) advisory opinion on a request for tax relief;

e) ...

f) ...

1 If the taxpayer is connected to multiple Jura municipalities by virtue of personal and economic ties, each municipality concerned by a specific connection is entitled to the corresponding share of the municipal tax.

2 Any modification of the tax liability due to a personal or economic connection is taken into account at the end of the fiscal year.

1. Following the claims procedure, the Tax Service establishes a distribution plan for the municipal taxes owed by the taxpayer to the concerned municipalities.

2. The distribution plan is communicated to the taxpayer and the interested municipalities; it is subject to objection and appeal according to the provisions of this law (Art. 157 et seq.).

1 The Tax Service establishes the allocation of taxable elements of legal entities.

2 The distribution plan is communicated to the taxpayer and the interested municipalities; it is subject to objection and appeal according to the provisions of the present law (art.157 et seq.).

1 The Parliament enacts the necessary implementing provisions by decree.

2 The decree specifically regulates

− the method of calculating municipal shares based on different types of affiliations;

− the procedure for claiming municipal shares within the framework of personal income tax, the preparation of the distribution plan, as well as the claim and appeal against this plan.

Rules Governing Double Taxation Between Cantons Apply Supplementarily to Intercommunal Relations.

Communes and sections of communes levy, as a special tax, a real estate tax on buildings and hydraulic forces registered in the official value register.

1 The following are not subject to property tax

a) properties owned by the Confederation and its establishments that are exempt from cantonal and communal taxes under federal law;

b) properties owned by the Canton, communes, associations of communes, recognized Churches, and parishes that are directly used for the purposes of these entities;

c) properties owned by transport and infrastructure companies holding a concession from the Confederation as defined in Article 69, paragraph 1, letter k, which are related to the activity under concession.

2 Furthermore, the general rules concerning exemption from direct cantonal and communal taxes do not apply to property tax.

1 The property tax is calculated per thousand of the official value recorded in the official value register; no deductions are permitted.

2 The tax rate varies between 0.5 ‰ and 1.8 ‰ of the official value.

3 …

4 The municipality determines the rate of the property tax each year when establishing the budget.

1 The municipality establishes the tax collection roll based on the register of official values. It notifies the taxation on the payment slip.

2 The notification is subject to objection and appeal. Articles 157 and following apply by analogy.

3 Payment slips that have not been subject to an objection are equivalent to enforceable judgments within the meaning of Article 80 of the Federal Act on Debt Collection and Bankruptcy.

4 ...

1 Municipalities and municipal sections may levy extraordinary taxes.

2 Extraordinary taxes must be based on a regulation.

3 They may not affect the matter subject to charges for the benefit of the State unless expressly provided for by law.

1 The regulation that introduces a special municipal tax must determine its purpose, the method of calculation, the taxation procedure, the method of collection, and the penalties resulting from a violation.

2 Decisions related to the special municipal tax are subject to opposition and appeal before the administrative judge, in accordance with the Administrative Procedure Code.

1. Foreign workers who, without holding a permanent residence permit, are, in terms of tax law, domiciled or residing in the Canton, are subject to a withholding tax on the income from their dependent activity. Revenues subject to taxation according to Article 37b are excluded from this.

2. Spouses living in a common household are not taxed at source if one of them is a Swiss national or holds a permanent residence permit.

1 The tax is calculated on gross income.

2 Are subject to withholding tax

a) income derived from dependent gainful employment according to Article 118, paragraph 1, ancillary income, such as cash-appreciable benefits obtained from employee participation, as well as benefits in kind, with the exception of vocational training and continuing professional education costs borne by the employer as per Article 15, paragraph 1bis;

b) income received as compensation; and

c) benefits as per Article 18, paragraph 3, of the Federal Law on Old Age and Survivors' Insurance.

3 …

**1 The Tax Service establishes the withholding tax schedule based on the rates of the personal income tax, subject to incidental earnings.**

2 The withholdings include federal tax, cantonal tax, municipal tax, and church tax; paragraph 5 remains reserved.

3 When both spouses living in a common household engage in gainful employment, the withholdings are calculated according to a special schedule that takes this dual activity into account.

4 The schedule takes into account professional expenses (Art. 24) and insurance premiums and contributions (Art. 31, letters a, c, and d) in the form of a lump sum, as well as deductions for the dual activity of spouses (Art. 32, para. 2) and for family charges (Art. 34, para. 1, letters d, h, and i).

5 The Tax Service must refund the withheld church tax if a person subject to source tax requests it by proving that they are not a member of a recognized Church; Article 188 is applicable.

1 Withholding tax replaces the taxes collected according to the ordinary procedure on employment income.

2 and 3 ...

1 Taxpayers with taxes withheld at source under Article 118, paragraph 1, are subject to a subsequent regular taxation

a) if their gross income reaches or exceeds a certain amount set by the Federal Department of Finance during a fiscal year; or

b) if the assets and income they possess are not subject to withholding tax.

2 Spouses of the persons defined in paragraph 1 are also subject to subsequent regular taxation insofar as the spouses live in a common household.

3 Persons who possess assets and income referred to in paragraph 1, letter b, have until March 31 of the year following the relevant fiscal year to request the tax declaration form from the competent authority.

4 The subsequent regular taxation applies until the end of withholding tax liability. The amount of tax withheld at the source is credited without interest.

1 Persons taxed at source pursuant to Article 118, paragraph 1, who do not meet any of the conditions set out in Article 121a may, upon request, be subject to subsequent taxation according to the ordinary procedure.

2 The request also extends to the spouse living in a joint household with the person who has requested subsequent ordinary taxation.

3 The request must be submitted no later than March 31 of the year following the relevant tax year. Persons leaving Switzerland must have requested subsequent ordinary taxation at the time of filing the departure declaration.

4 In the absence of a subsequent ordinary taxation upon request, the tax at source substitutes for the cantonal, communal, and ecclesiastical taxes on income from gainful employment collected according to the ordinary procedure. No additional subsequent deduction is granted.

5 Article 121a, paragraph 4, is applicable.

1 The following natural persons who are neither domiciled nor residing in Switzerland for tax purposes, and the following legal entities that neither have their registered office nor their effective management in Switzerland, are subject to withholding tax

a) Workers who engage in dependent gainful employment in the Canton for short periods, during the week, or as cross-border commuters, on the income from their activity;

abis) Workers domiciled in a neighboring state, on the income generated abroad from their dependent employment for an employer with its registered office, effective management, or permanent establishment in the Canton, provided that a right of tax on the income from work carried out abroad is granted to Switzerland pursuant to the applicable international tax agreement concluded with the neighboring state concerned;

b) Artists, athletes, and speakers, on the income from their personal activity in the Canton, including income and fees not paid to the artist, athlete, or speaker themselves but to a third party who organized their activities; the organizer of the event is jointly responsible for the payment of the tax;

c) Members of the management or board of directors of legal entities with their registered office or effective management in the Canton, on directors' fees, attendance fees, fixed indemnities, employee participation, and other remunerations paid to them;

d) Members of the management or board of directors of foreign companies having a permanent establishment in the Canton, on directors' fees, attendance fees, fixed indemnities, employee participation, and other remunerations paid to them through the permanent establishment;

e) Persons holding or enjoying the usufruct of claims secured by a mortgage or pledge on real estate located in the Canton, on the interest paid to them;

f) Persons who, following an activity on behalf of others governed by public law, receive pensions, annuities, or other benefits from an employer or pension fund that has its seat in the Canton, on these benefits;

fbis) Beneficiaries of income from Swiss occupational pension institutions of private law or procured according to recognized forms of tied individual pension plans, on this income;

g) Persons working in international transport aboard a ship, aircraft, or road transport vehicle, who receive a salary or other remunerations from an employer with its registered office, effective management, or a permanent establishment in the Canton, on these benefits; sailors working on board a ship flying the Swiss flag operated by such an employer are exempt from this tax;

h) …

i) Persons domiciled abroad at the time they receive substantial monetary benefits from non-negotiable employee options (Art. 15b, Para. 3); these benefits are taxed proportionally in accordance with Article 15d;

j) Beneficiaries of benefits within the meaning of Article 18, paragraph 3, of the Federal Law on Old-Age and Survivors Insurance, on these benefits.

2 Excluded are incomes subject to taxation according to the simplified procedure of Article 37b.

3 The tax regime applicable to cross-border commuters is based on agreements to avoid double taxation on income and wealth taxes, as well as agreements related to the taxation of remunerations of cross-border commuters.

1 Persons subject to withholding tax pursuant to Article 122, paragraph 1, letters a and g, may request, no later than March 31 of the year following the relevant fiscal year, an ordinary assessment for each fiscal period in one of the following cases

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

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

c) a subsequent ordinary assessment is necessary to assert their right to deductions provided by a double taxation agreement.

2 The amount collected at the source is credited without interest.

In the event of a clear problematic situation, particularly concerning the standard deductions calculated in the withholding tax rate, the competent cantonal authorities may, on their own initiative, request a subsequent ordinary assessment in favor or to the detriment of the taxpayer.

1 In the cases provided for in Article 122, paragraph 1, letters a and g, the withholding tax is levied in accordance with the provisions of Articles 118 to 120.

2 In the cases provided for in Article 122, paragraph 1, letter b, the withholding tax is levied on the gross income, after deduction of acquisition costs, at the following rates

a) 8.30% for daily income up to 200 francs*;

b) 12.45% for daily income from 201 francs* to 1,000 francs*;

c) 16.60% for daily income from 1,001 francs* to 3,000 francs*;

d) 20.75% for daily income exceeding 3,000 francs*.

2bis The acquisition costs amount to

a) 50% of the gross income for artists;

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

3 In the cases provided for in Article 122, paragraph 1, letters c to fbis, the tax is levied on the gross income at the following rates

a) 16.60% for royalties, director's fees, fixed allowances, and other remuneration (Art. 122, para. 1, letters c and d);

b) 12.45% for interest on mortgage loans (Art. 122, para. 1, letter e);

c) 8.30% for pensions, retirements, or other benefits (Art. 122, para. 1, letters f and fbis); for lump sum benefits, the tax amounts to

− 5.0% for the first 53,600 francs*;

− 6.0% for the next 32,100 francs*;

− 6.5% for the next 32,100 francs*;

− 7.0% for the next 32,100 francs*;

− 7.5% above that.

4 In the cases provided for in Article 122, paragraph 1, letter i, the withholding tax is levied on the cash equivalent advantage at the rate of 20%.

5 The tax is not levied when the taxable gross income defined in paragraphs 2 and 3 does not reach the amounts set by the Government.

1 The withholding tax replaces the cantonal tax, the municipal tax, and the ecclesiastical tax levied according to the standard procedure.

2 Article 120, paragraph 5, is applicable.

3 No additional subsequent deduction is granted. For married couples with two incomes, it is possible to provide for an adjustment of the income determining the spouse's tax rate.

1 The debtor of taxable services has the obligation

a) to withhold tax at the due date of cash benefits and to collect from the taxpayer the tax due on other benefits, particularly on benefits in kind and gratuities;

b) to issue to the taxpayer a statement or certificate indicating the amount of tax withheld;

c) to periodically pay the taxes to the Tax Authority, to prepare the corresponding statements for it, and to allow it to consult all the documents necessary for auditing the collection;

d) to pay the proportional part of the tax on employee options exercised abroad; the employer must pay the proportional part of the tax even if the monetary advantage is granted by a group company abroad.

2 The debtor of taxable services is responsible for payment of the withholding tax.

3 He must also withhold tax when the taxpayer is subject to tax in another canton.

4 The debtor of taxable services receives a collection commission set by the Government, ranging between 1% and 2% of the total amount of the withholding tax. For capital benefits, the collection commission amounts to 1% of the total amount of the withholding tax, but at most CHF 50 per capital benefit with regard to the withholding tax of the Confederation, cantons, and municipalities.

1 If the debtor of the taxable benefits does not collect, in whole or in part, the withholding tax, the Tax Service decides the amount to be paid.

2 The debtor of the taxable benefits, the taxpayer, and the interested municipality may file an objection and appeal against such a decision according to the provisions of this law (Art. 157 et seq.).

1 The debtor of the taxable service calculates and withholds tax at the source according to this law in the following cases

a) for workers defined in Article 118 when they are domiciled or residing in the canton for tax purposes at the time the taxable service is due; the same applies to workers referred to in Article 122 when they are weekly residents;

b) for persons defined in Article 122, paragraph 1, letters a and c to i, when the debtor of the taxable service is domiciled or residing in the canton for tax purposes or has its headquarters or administration there at the time the taxable service is due; when the taxable service is paid by a permanent establishment located in another canton or by a permanent establishment belonging to an enterprise whose headquarters or effective administration is not located in Switzerland, the calculation and withholding are governed by the law of the canton where the permanent establishment is situated;

c) for persons defined in Article 122, paragraph 1, letter b, when they carry out their activity in the canton.

2 The competent authority for subsequent ordinary taxation is

a) for workers within the meaning of paragraph 1, letter a: the canton in which the taxpayer was domiciled or residing for tax purposes at the end of the fiscal period or of the liability;

b) for persons within the meaning of paragraph 1, letter b: the canton in which the taxpayer carried out their activity at the end of the fiscal period or of the liability;

c) for workers residing weekly: the canton in which the taxpayer was staying weekly at the end of the fiscal period or of the liability.

3 In the case of subsequent ordinary taxation, the competent canton is entitled to the amounts of tax withheld at the source by other cantons during the calendar year. If the tax collected is too high, the difference is reimbursed to the worker; if it is insufficient, the difference is claimed retrospectively.

The Government enacts, by way of ordinance, the implementing provisions.

1 The Taxation Service and its sections implement this law in collaboration with the municipalities.

2 They ensure a uniform and correct taxation.

3 They manage the official register of property values and hydraulic power, as well as tax registers.

4 They are subject to the oversight of the Department of Finance and the supreme supervision of the Government.

5 The Department of Finance may grant the municipalities an appropriate compensation for their collaboration.

1 The tax authorities operate according to the general rules governing administrative activity (Articles 20 to 29 and 39 to 43 of the Administrative Procedure Code).

2 They act in particular according to the principles of legality, equality, good faith, and diligence.

1 Members of the tax authorities are required to keep confidential any facts that come to their knowledge in the exercise of their duties.

2 They only provide information to other authorities when an express legal provision requires it or in the presence of an overriding public interest.

3 The obligation of confidentiality can be waived by the taxpayer.

A Decree of Parliament Regulates the Organization of Tax Authorities and Procedure.

1 Taxation is determined based on a tax return filed by the taxpayer.

2 The taxpayer has the right to provide any information they deem useful for the determination of their taxation.

3 They may offer evidence and request investigative measures.

4 The authority is obligated to examine the facts alleged by the taxpayer as well as the evidence offered and to administer the required evidence, provided that these means do not appear to be irrelevant from the outset.

1 The taxpayer enjoys the right to be heard. However, the authority is not obliged to hear them before issuing the tax assessment decision.

2 When it appears that the tax assessment decision will significantly differ from the return filed by the taxpayer, the authority has the discretion to hear the taxpayer before issuing the decision.

3 The authority invites the taxpayer to present their viewpoint either verbally or in writing.

1 The taxpayer has the right to consult their file. Spouses who must be taxed jointly have a reciprocal right to access the file.

2 Access to documents other than those submitted by the taxpayer may be denied as long as the facts have not been established, or when significant public or private interests require it.

3 A document to which access has been denied may only be used to the detriment of the taxpayer if the authority has communicated its essential content to them, orally or in writing, providing them with the opportunity to express their opinion on the matter.

1 To the extent that the personal collaboration of the taxpayer is not necessary, the taxpayer has the right to be represented by an agent, who establishes their authority by submitting a power of attorney.

2 When spouses living in a shared household have not appointed a common representative or have not jointly designated a person authorized to receive mail, any notification must be addressed to both spouses jointly.

3 ...

1 Decisions are notified to the taxpayer in writing and indicate the legal remedies.

2 A taxpayer whose domicile or registered office is abroad is required to designate a representative or a notification address in Switzerland.

3 When the taxpayer has no known domicile or registered office or is abroad without a representative or notification address in Switzerland, the decisions are validly notified to them by publication in the Official Journal.

Furthermore, the Administrative Procedure Code is applicable by analogy.

1 The taxpayer is obligated to submit to the authority an accurate and complete declaration and to attach all documents that justify their claims or are required to be provided.

2 Upon request, they must provide the authority with all information necessary for an accurate assessment.

3 They must present their business books and all other relevant documents.

4 Individuals whose income derives from a self-employed activity and legal entities must attach to their declaration

a) the signed annual accounts (balance sheet, profit and loss statement) for the fiscal period; or

b) in the case of simplified accounting pursuant to Article 957, paragraph 2, of the Code of Obligations: a statement of income and expenses, an inventory of assets (a detailed list of assets, notably the inventory of stock and accounts receivable, and liabilities) as well as private withdrawals and contributions concerning the fiscal period.

4bis The manner of keeping and preserving the documents referred to in paragraph 4 is governed by Articles 957 to 958f of the Code of Obligations.

5 The taxpayer informs the authority of facts likely to modify the assessment basis or the tax liability.

1 The taxpayer who, through fault, does not comply with the authority's requisitions is deemed to waive the right to be heard.

2 They are liable for the resulting costs.

3 Provisions relating to offenses remain reserved.

1 The taxpayer is assessed ex officio if, despite formal notice, they have failed to fulfill their procedural obligations or if their taxable elements cannot be determined with the required precision due to insufficient data.

2 In such cases, the authority makes an assessment based on experimental coefficients, the evolution of the taxpayer's assets, or their expenditure.

The authority may proceed with a provisional assessment based on the declared elements, without modification.

1 The taxation authority shall take the necessary measures independently to fulfill its duties.

2 It may order hearings, conduct accounting expert assessments, and demand the production of all relevant documents.

**1 The outcome of any hearing is recorded in writing. The taxpayer attests to its accuracy by their signature.**

**2 The report following an expert assessment is, in principle, submitted to the taxpayer and approved or contested by them on the spot. If it is prepared later, it is notified to the concerned party, who can express their opinion on it within the time limit set by the authority.**

**3 If the expertise reveals that the taxpayer's declaration was significantly lower than the reality, the taxpayer bears the costs.**

1 The tax authorities exchange all relevant information free of charge and mutually authorize each other to consult their files.

1bis When it appears from the tax return of a taxpayer domiciled or headquartered in the Canton that they are also subject to tax in another canton, the taxing authority informs the tax authorities of the other canton of the contents of the tax return and the taxation.

2 The authorities of the Confederation, the cantons, the districts, and the municipalities provide, upon request, to the authorities responsible for the implementation of this law, any information that may be important for its application. The state, district, and municipal authorities voluntarily report to them any cases that may have been subject to incomplete taxation.

3 In particular, the registrar of the Land Register informs the Tax Department within eight days of any fact that comes to their knowledge that may result in real estate gain.

4 The bodies of the communities and institutions to which public administration tasks have been delegated are, regarding their duty to cooperate, assimilated to the authorities mentioned in the second paragraph.

5 The bodies of Swiss Post and public credit institutions are exempt from the obligation to provide information and details concerning facts that they must keep confidential under special legal provisions.

6 The authorities referred to in paragraphs 1 and 2 are authorized to systematically use the AVS insured number to perform their legal tasks, in accordance with the provisions of the Federal Law of December 20, 1946, on Old Age and Survivors Insurance.

7 If a legal entity has not submitted its annual accounts in accordance with Article 138, paragraph 4, letter a, the tax authorities shall inform the commercial register officer within three months following the expiration of the corresponding deadlines.

1 The Federal Tax Administration and the authorities mentioned in Article 143, Paragraph 1, exchange data that may be useful for the fulfillment of their duties. The authorities mentioned in Article 143, Paragraph 2, communicate to the authorities responsible for the implementation of this law the data that may be important for its execution.

2 Data is communicated in specific cases or in the form of lists or on electronic data carriers. They can also be made accessible through a retrieval procedure. This administrative assistance is free of charge.

3 The communication of all data that may be useful for taxation and tax collection is mandatory, notably

a) identity;

b) civil status, place of domicile or residence, residence permit, and gainful activity;

c) legal transactions;

d) benefits from public authorities.

1 **The tax authorities are authorized to transmit documents subject to tax secrecy, which may contain personal data including sensitive information, to another administrative unit for printing purposes.**

2 **The mandated entity shall delete all data in its possession after the completion of its task.**

3 **Any person collaborating, in any capacity, with or within the mandated third-party entity and who is likely to become aware of the content of the documents mentioned in the first paragraph is subject to the same obligations as the collaborators of the tax authorities. They are, in particular, subject to official secrecy and cantonal data protection regulations.**

4 **In addition, the Government shall contractually take other necessary measures to preserve tax secrecy, particularly on organizational, technical, and procedural levels. It shall specifically designate the mandated entity and define the scope of the mandate.**

1 The following are required to provide written certificates to the taxpayer

a) creditors and debtors, regarding the existence, amount, and interest of debts and claims, as well as the securities attached to them;

b) insurers, regarding the tax value of life insurance and the benefits paid or due pursuant to an insurance contract; for life annuities subject to the Federal Act on Insurance Contracts (ICA), they must also provide a certificate on the year the contract was concluded, the amount of the guaranteed life annuity, the total taxable yield pursuant to Article 20, paragraph 1, as well as any excess benefits and the yield portion stemming from these benefits pursuant to Article 20, paragraph 1, letter b;

c) pension institutions, regarding the amounts, premiums, and contributions received;

d) persons who have or had contractual relations with the taxpayer, concerning the mutual claims and benefits arising therefrom;

e) trustees, asset managers, pledge creditors, agents, and other persons who have or had possession or administration of the taxpayer's assets, regarding these assets and the income derived from them.

2 Tax authorities may demand these certificates directly from the third party if, despite a warning, the taxpayer does not provide them. In the event of non-compliance, Article 139 applies analogously.

3 The legally protected professional secrecy remains reserved.

1 For each fiscal period, a certificate is submitted to the tax authorities by

a) the employer, regarding their contributions to the employee, including amounts paid by pension, unemployment, compensation funds, and other similar institutions, as well as on the allocation and exercise of employee participations (art. 15a) and on the monetary benefits derived therefrom (art. 15b and 15c);

b) legal entities, regarding contributions paid to members of the administration or other bodies;

c) foundations, additionally, regarding benefits provided to their beneficiaries;

d) simple partnerships and partnerships, regarding all elements important for the taxation of their partners, particularly their share in the income and wealth of the partnership; a duplicate of the certificate is sent to the taxpayer;

e) collective investment schemes, regarding the key elements for the taxation of real estate held in direct ownership and their yield;

f) pension institutions, regarding benefits provided under occupational pension plans and tied individual pension plans;

g) unemployment insurance funds, regarding benefits provided to their insured members;

h) employers, regarding salary data relating to workers as specified in Article 122, paragraph 1, letters a and abis, for whom an international tax agreement provides for the automatic international exchange of information on these data.

1bis A duplicate of the certificate must be sent to the taxpayer.

2 Partners, co-owners, and common property owners report to the authority regarding their legal relationships with the taxpayer, particularly concerning their share, rights, and income.

1 The parties involved in the taxation procedure are the Tax Service, acting as necessary through its sections, the municipality, and the taxpayer.

2 The municipality collaborates in the taxation; it has the rights to file claims and appeals. However, it is not a party to the procedure if the claim or appeal is filed by another party.

1 The heirs of the taxpayer, his guardian, his curator, to the extent that it falls within the scope of their mission, or the liquidator are subrogated in an ongoing taxation procedure.

2 The heirs designate a common representative within a reasonable time; failing this, the representative is appointed by the Tax Service.

1 The spouses who live in a common household both hold the rights and obligations conferred by law to the taxpayer. They act jointly and both must sign the procedural documents intended for the authority.

2 The tax return submitted in paper form must bear both signatures. If it is only signed by one of the spouses, a deadline is given to the spouse who did not sign. If the deadline passes without being used, the contractual representation between spouses is presumed to be established.

2bis In the case of submitting the tax return in electronic form, the contractual representation between spouses is presumed.

3 For appeals and other writings to be considered timely filed, it suffices that one of the spouses has acted within the deadlines.

For deadlines and their restoration, the provisions of the Code of Obligations (Art. 76 et seq.) and the Administrative Procedure Code (Art. 44 to 48) apply by analogy.

1 Taxations related to income tax, profit tax, and real estate gains tax are rounded down to the nearest hundred francs.

2 Taxations related to wealth tax and own capital tax are rounded down to the nearest thousand francs.

1 The right to conduct taxation is subject to a statute of limitations of five years from the end of the fiscal year.

2 The limitation period does not commence or is suspended

a) during proceedings for claims, appeals, or revisions;

b) as long as the tax debt is secured by guarantees or its collection is deferred;

c) as long as the taxpayer or a person jointly liable with them for the tax payment does not have a domicile or is not residing in Switzerland.

3 A new limitation period begins to run

a) when the authority takes a measure aiming to establish or assert the tax debt and informs the taxpayer or a person jointly liable with them for the tax payment;

b) when the taxpayer or a person jointly liable with them expressly acknowledges the tax debt;

c) when a criminal prosecution is initiated following consummated tax evasion or a tax offense.

4 The statute of limitations for the right to conduct taxation expires in any case 15 years after the end of the fiscal year.

The Tax Service may proceed with the electronic recording of tax returns as well as attachments and other documents compiled on paper.

Upon electronic recording by the Tax Service, the tax returns as well as the attachments and other documents collected on a paper medium may be eliminated.

1 The place of taxation is determined by personal connection or, failing that, by the taxpayer's economic connection.

2 If there are multiple economic connections, the place of taxation is determined by the location of the highest taxable values at the end of the fiscal period or of the tax liability.

3 In cases of uncertainty or conflict between municipalities (within Jura or outside the canton), the Tax Service determines the place of taxation and conducts the case review.

1 For periodic taxes, the municipality and the Tax Service distribute tax returns to all taxpayers by the end of January following the fiscal year.

2 Tax returns are prepared based on the taxpayer register maintained by the municipality, in accordance with the decree that governs the taxation procedure and the guidelines of the Tax Service.

3 After sending the tax returns, the Tax Service publicly invites taxpayers to complete and submit them within the legal deadline.

4 When the tax liability arises during the fiscal period, as well as for real estate capital gains tax, the tax return is given to the taxpayer as soon as the authority becomes aware of the event triggering the tax.

5 The taxpayer is not relieved of tax obligations by failing to receive a tax return. In particular, they are required to voluntarily report their real estate gains.

1. The taxpayer submits their tax return on a paper medium or electronically, by the end of February following the fiscal year or within 30 days of receiving it. In case of electronic submission, an electronic confirmation of the data declared by the taxpayer is equivalent to a handwritten signature on the tax return.

2. When the taxpayer does not submit their declaration within the legal timeframe, or if it is found to be incomplete, the authority grants them a 10-day period to comply with their obligations.

3. Upon request, the Tax Service may extend the deadline for submitting the declaration.

4. …

5. The Government enacts the necessary implementing provisions.

The municipality promptly forwards the received tax declarations, along with annexes and other necessary documents, to the Tax Service.

1 The Tax Authority audits the tax return and conducts the necessary investigations.

2 If the provided data remains insufficient, the Tax Authority proceeds with ex officio taxation (art. 140).

3 It communicates the taxation decision to the taxpayer, indicating the modifications made to their declaration as well as the legal remedies available.

4 The municipality receives the status of the decisions communicated to its taxpayers.

The taxpayer and the debtor of taxable benefits must, upon request from tax authorities, provide all oral or written information concerning the elements relevant to the collection of withholding tax. Articles 141 to 145 apply by analogy.

1 When the taxpayer, the debtor of the taxable benefit, or the municipality disputes the tax withholding, they can request that the Tax Service issue a decision regarding the existence and extent of the tax obligation by the end of March of the year following the due date of the benefit.

1bis Additionally, the taxpayer can demand, by March 31 of the fiscal year following the due date of the benefit, that the Tax Service issue a decision regarding the existence and extent of the tax obligation

a) if they dispute the withholding tax indicated on the certificate mentioned in Article 125, paragraph 1, letter b; or

b) if the employer has not provided them with the certificate mentioned in Article 125, paragraph 1, letter b.

2 The debtor of the taxable benefit is required to withhold the tax until the decision comes into force.

3 The withheld tax owed by the debtor of the taxable benefit, after a formal request, is notified to them by a decision of the Tax Service.

**1 When the Debtor of the Taxable Service Makes an Insufficient Deduction or None at All**

1. When the debtor of the taxable service has made an insufficient withholding or has made no withholding at all, the Tax Authority shall require them to pay the tax that was not withheld. The right of the debtor to take recourse against the taxpayer is reserved.

1bis. When the Tax Authority is unable to subsequently recover this tax from the debtor of the taxable service, it may require the taxpayer to settle the due withholding tax.

2. When the debtor of the taxable service has made an excessively high tax withholding, they must return the difference to the taxpayer.

3. If the taxpayer is no longer employed by the debtor of the taxable service who made an excessively high tax withholding, the Tax Authority shall return the difference to the taxpayer. Article 188, paragraphs 3 and 4, remain reserved.

Decisions rendered concerning withholding tax are treated as tax assessment decisions. As such, they may be contested by the taxpayer, the debtor of the taxable benefit, or the municipality by way of objection (Art. 157 to 159), appeal to the Cantonal Appeals Commission (Art. 160 to 164), or appeal to the Cantonal Court (Art. 165 to 168).

Art 157

1 The taxpayer and the interested municipality may submit a written objection to the Tax Service against any decision concerning matters governed by parts one, two, three, and four, title one, subject to decisions rendered in the areas mentioned in Article 168b. The objection must be filed within 30 days following the notification of the decision.

2 An objection filed against an already reasoned tax assessment decision may be considered as an appeal and forwarded to the Cantonal Appeals Commission if the taxpayer and other entitled parties consent to it.

3 A taxpayer who has been assessed ex officio may file an objection against this assessment solely on the grounds that it is manifestly incorrect. The objection must be substantiated and, where applicable, indicate the means of proof.

4 The Tax Service forwards the objection from the interested municipality to the taxpayer and grants them a 30-day period to submit their observations.

**1. The Tax Authority reviews all aspects of the tax and may, after hearing the taxpayer, amend the assessment to the taxpayer's detriment.**

**2. The complaint may be withdrawn as long as the Tax Authority has not rendered a decision. However, the Tax Authority will not process a withdrawal if it deems that the challenged decision is unfounded.**

**3. The principles governing the taxation procedure are applicable.**

**4. The new decision of the Tax Authority includes the reasons and the avenues for appeal.**

**5. It is notified to the taxpayer and communicated to the municipality.**

1 The claims procedure is generally free of charge.

2 However, the costs of expertise are borne by the taxpayer whose claim is rejected. In the case of partial admission of the claim, the authority decides at its discretion.

3 When taxation is determined ex officio (art. 140), a fee may be levied on the taxpayer in accordance with the legislation on fees.

Furthermore, the procedure is governed by the Administrative Procedure Code.

1 The taxpayer and the municipality may appeal against the decision on the complaint to the Cantonal Appeals Commission.

2 The organization and functioning of the Cantonal Appeals Commission, as well as the procedure, are regulated by a decree of the Parliament.

1 The appeal period is 30 days from the notification or communication of the decision.

2 The appeal memorandum must contain the conclusions and the grounds; means of evidence are attached thereto.

3 Any error in the contested decision and any procedural defect constitute grounds for appeal.

1 The Cantonal Appeals Commission invites the Tax Office to state its position and to produce the official file.

2 It establishes the facts ex officio and takes the necessary investigatory measures.

3 All means of evidence provided for in the Code of Administrative Procedure are admissible, with the exception of supplementary affirmation.

4 Furthermore, the Cantonal Appeals Commission has the same powers as the Tax Office in the taxation and appeal procedures.

1 The Cantonal Appeals Commission may divide into up to three chambers for the preparation of decisions.

2 Decisions are made in plenary session, subject to the powers of its president, who alone as judge resolves appeals that have become moot, concern a tax or fine not exceeding 300 francs, or are directed against decisions regarding costs.

3 If the Cantonal Appeals Commission intends to modify the decision on the claim to the detriment of the appellant, it shall inform him and give him an opportunity to express himself.

4 The decisions contain a summary of the facts, the legal considerations, and the ruling; they are communicated to the taxpayer, the Tax Service, and the municipality.

1 The Cantonal Appeal Commission levies fees in accordance with the decree.

2 Costs are charged to the parties according to the general rules of administrative procedure.

3 The Cantonal Appeal Commission only awards costs if the particular nature of the case justifies it.

The taxpayer, the Tax Service, and the municipality may appeal against the decision of the Cantonal Appeals Commission before the Administrative Court; with the exception of the municipality, they have the status of a party even if the appeal is not filed by them.

1 The time limit for appeal is 30 days from the notification of the decision.

2 The appeal brief must contain the conclusions and the grounds and indicate the means of evidence.

3 The following grounds may be invoked

a) violation of the law, including excess or abuse of discretionary power;

b) incorrect or incomplete determination of the relevant facts.

**1 The President of the Administrative Court shall, as a single judge, dismiss appeals that have become moot, involve a tax or fine not exceeding 1,000 francs, or are directed against decisions regarding costs.

2 Other decisions on appeals are made by the Administrative Court.

3 The Administrative Court is not bound by the parties' conclusions. After hearing the taxpayer, it may also modify the assessment to the disadvantage of the taxpayer.**

For the procedure, the provisions of the Administrative Procedure Code also apply.

1 The decision of the Administrative Court may be subject to an appeal in matters of public law before the Federal Court pursuant to Article 73, paragraph 1, of the Federal Act on the Harmonization of Direct Taxes of the Cantons and Municipalities. The taxpayer, the Tax Department, and the Federal Tax Administration have standing to appeal.

2 In matters of withholding tax, standing to appeal also belongs to the debtor of the tax claim.

1. As a principle, decisions that predominantly have a political character within the meaning of Article 162 of the Administrative Procedure Code particularly include those rendered

a) in matters of tax relief (Art. 4);

b) in matters of tax privilege (Art. 5);

c) in cases of deductions exceeding 10% of net income as defined in Article 32, paragraph 1, letter d;

d) …;

e) in cases of deductions exceeding 10% of net profit as defined in Article 71, paragraph 1, letter c.

2. If applicable, an appeal before the administrative judge and the Administrative Court is not admissible, and only an appeal before the Government is available if it has not issued the decision.

1 A decision that has come into force may be revised in favor of the taxpayer, upon their request or ex officio

a) when important facts or conclusive evidence are discovered;

b) when the authority that made the decision did not consider important facts or conclusive evidence that it knew or should have known, or otherwise violated one of the essential rules of procedure;

c) when a crime or offense influenced the decision.

2 Revision is excluded when the applicant, by exercising the reasonably required diligence, could have asserted the grounds for revision during the ordinary procedure.

The request for revision must be filed within 90 days following the discovery of the ground, but no later than ten years following the notification of the decision.

1 The revision of a decision falls under the jurisdiction of the authority that rendered this decision.

2 If there is a reason for revision, the authority annuls the previous decision and re-evaluates the case.

3 The rejection of the revision request and the new decision can be challenged through the same legal channels as the previous decision.

4 Furthermore, the provisions related to the procedure followed during the previous decision are applicable.

1 Calculation and transcription errors found in a final decision may be corrected by the authority that made them, either upon request or ex officio, within five years following notification.

2 The correction of the error or the refusal to proceed with such correction can be challenged by the same legal means as the decision.

1 When facts or evidence previously unknown to the tax authority reveal that a tax has not been duly levied, or that a tax assessment that has become final is incomplete, or that a tax not levied or incomplete is due to a crime or offense committed against the tax authority, the latter proceeds to recover the unpaid tax and to levy interest.

2 When the taxpayer has submitted a complete and accurate declaration regarding their income, wealth, net profit, or equity, and the tax authority has accepted this assessment, a tax recovery is excluded, even if this assessment was insufficient.

1 Within one year from the date of death, but no later than the establishment of the inventory, each heir individually has the right to a simplified tax adjustment on the elements of the estate and income concealed by the deceased, provided that

a) no tax authority is aware of the tax evasion;

b) the heir cooperates fully with the administration to identify the concealed elements of the estate and income;

c) the heir endeavors to settle the due tax adjustment.

2 The tax adjustment is calculated based on the three fiscal periods preceding the year of death, in accordance with the provisions on ordinary taxation and is collected with interest for late payment.

3 The simplified tax adjustment is excluded in cases of official liquidation of the estate or liquidation according to bankruptcy rules.

4 The executor of the will or the estate administrator may also request the simplified tax adjustment.

5 The Government may issue the necessary application provisions by ordinance.

1 The right to initiate a tax recall procedure expires ten years after the end of the fiscal period for which, improperly, the assessment was not conducted or for which the assessment that came into force was incomplete.

2 The initiation of criminal proceedings following tax evasion or a tax offense also triggers the commencement of the tax recall procedure.

3 The right to proceed with the tax recall expires fifteen years after the end of the fiscal period to which it relates.

1 The taxpayer is notified in writing of the initiation of a tax reassessment procedure.

1bis If, at the initiation of the tax reassessment procedure, no criminal proceedings for tax evasion are opened or pending, and they cannot be immediately excluded, the taxpayer is informed that criminal proceedings for tax evasion may subsequently be initiated against them.

2 If the procedure is not yet initiated at the taxpayer's death or it is not completed, it may be initiated or continued against the heirs.

3 Furthermore, the provisions concerning the general principles of procedure, as well as the assessment and appeal procedures, apply by analogy.

1 The Tax Authority, supported by other services, collects the cantonal and communal taxes provided for by this law.

2 The decree organizing the Government and the cantonal administration defines the competencies of the relevant services.

3 The Government may assign the collection of certain taxes to the municipalities.

4 In such cases, the municipalities are responsible for the collection and remittance of the cantonal taxes.

5 The Department of Finance may grant the municipalities an appropriate credit for the cantonal taxes collected by them. Similarly, it may require them to pay such a contribution for the collection of communal taxes carried out by the State.

1 The Tax Service is responsible for the assessment and collection of the minimal tax on large corporate groups in accordance with Article 15 of the Federal Ordinance of December 22, 2023, on the minimal taxation of large corporate groups.

2 The State reallocates to eligible municipalities a share of 15% of the total amount of the cantonal portion of the Jura supplementary tax.

3 The distribution of the 15% share among the eligible municipalities is carried out according to the factors determined within the framework of the tax distribution among the municipalities.

1 Taxes, including interest, fees, and penalties, are collected based on tax assessment decisions. When the tax assessment has not yet been completed by the general due date, the tax is collected on a provisional basis.

2 The provisional tax is calculated based on the most recent known assessment, the latest filed declaration, or the probable amount of tax due. Article 140a is reserved.

1 Provisional taxes may be collected by installments.

2 Installment payments are credited against the taxes due according to the final assessment.

3 The Parliament prescribes the terms of collection by decree.

1 A final account is notified to the taxpayer as soon as the assessment is carried out. It may be attached to the notification of the assessment.

2 It is established based on the assessment decision, previous payments made, as well as interest.

3 If the amounts collected provisionally are insufficient, the difference is required; any overpaid amounts are refunded.

1 When tax amounts collected based on joint taxation are to be refunded to spouses living together, each spouse is entitled to receive these amounts.

2 When tax amounts collected from married taxpayers must be refunded following their divorce or legal or de facto separation, the refund is made in equal halves to each spouse.

1. **Ordinary Periodic Taxes for Individuals and Legal Entities**

Ordinary periodic taxes for individuals are due at the end of February of the year following the fiscal year; those for legal entities are due in the year during which the fiscal period ends.

2. The Government sets the deadlines for advance payments.

2bis. For taxes owed by legal entities whose fiscal year does not coincide with the calendar year, the tax authority may bring forward the general due date to the closing date of the fiscal year.

2ter. Except for the due dates provided in paragraphs 3 and 4, the due date is not contingent upon invoicing.

3. Taxes are due upon notification of the decision

a) taxes assessed according to Articles 12, 37, and 37a;

b) the real estate gains tax;

c) tax reassessments and tax penalties.

4. The tax is also due

a) on the day the taxpayer who intends to permanently leave the country makes arrangements for their departure;

b) upon the request for removal from the commercial register of a legal entity;

c) as soon as a foreign taxpayer ceases to have a business or an interest in a business in the Canton, a permanent establishment located in the Canton, a real estate property situated in the Canton, or a claim secured by such property;

d) upon the opening of the taxpayer’s bankruptcy;

e) upon the death of the taxpayer.

1. The due date applies to tax amounts established by tax assessment decisions or included in provisional statements.

2. If the final tax amount is lower than the amount initially established, only this final amount is deemed to have been due.

3. The fact that the tax assessment is not established on the tax due date, or that the tax claim is contested, does not suspend the tax due date.

1 Periodic taxes on income and wealth, as well as on profit and capital, must be paid at the general due date.

2 Taxes resulting from the final assessment must be paid within 30 days.

3 Other taxes, as well as fines and fees, must be paid within 30 days following the due date.

The taxpayer may make voluntary payments until the final settlement or until the due date.

The final account includes the calculation of compensatory interest

a) in favor of the taxpayer on the amounts of tax overpaid from the date of payment until the final account;

b) charged to the taxpayer on the amounts of tax due based on the definitive assessment from the general due date.

1 Ordinary periodic taxes due based on the final account shall accrue interest if they are not paid within the payment deadline of the final account.

1bis For other due taxes, fines, and fees that have not been settled by the payment deadline, they shall accrue interest from the end of this deadline.

2 Voluntary payments and overpaid taxes shall receive compensatory interest from the day of payment. Article 188, paragraph 2, remains reserved.

3 Taxes due based on a provisional assessment in the sense of Article 140a do not accrue interest.

1 The Government sets the rates for compensatory, penalty, and remunerative interest for each fiscal year, as well as the rate of interest on voluntary payments.

2 The interest rate applies during the concerned calendar year to all tax claims, fines, and costs. However, the interest rate applicable at the beginning of enforcement proceedings remains valid until their conclusion.

1 The tax is prescribed after five years from the date the taxation decision comes into force.

2 …

3 For the suspension and interruption of the prescription, Article 151, paragraph 2, letters b and c, and paragraph 3, apply by analogy.

4 In all cases, the prescription is acquired ten years from the end of the fiscal period during which the taxation came into force.

1 The taxpayer who has not paid the tax due within the prescribed time is invited to settle it by means of a summons. The granting of a payment arrangement serves as the first summons.

2 Subject to the provision of guarantees, proceedings are initiated against the taxpayer who has not responded to a second summons.

2bis If the tax debtor does not have a domicile in Switzerland or if a seizure of their assets has been ordered, proceedings may be initiated without a prior summons.

3 In the proceedings, tax assessment decisions and final judgments that definitively establish a tax claim, as well as requests for securities, are considered equivalent to an enforceable judgment within the meaning of Article 80 of the Federal Act on Debt Collection and Bankruptcy.

4 The authority is exempt from producing the tax claims in official inventories and during creditors' summonses.

1 If the payment of the tax debt within the prescribed deadline would have very harsh consequences for the debtor, the collection authorities may extend the payment deadline or authorize payment by installments. They may waive the interest due on the amounts for which payment is deferred.

2 Payment facilities may be subject to conditions or to obtaining appropriate guarantees.

3 Payment facilities that have been granted are revoked when the circumstances justifying their grant no longer exist, or when the conditions to which they are subject are not fulfilled.

3bis The collection authorities shall make a final decision.

4 The Department of Finance specifies the modalities for the granting of payment facilities.

1 The taxpayer may be relieved from all or part of the tax due, interest, or penalty if they have fallen into destitution or if payment would result in very severe consequences for them.

2 The request for relief must be submitted to the competent District Revenue and Administration office, which will forward it to the concerned municipalities, granting them a 20-day period for an opinion.

3 The relief procedure is free of charge. However, costs may be imposed on the applicant, either in full or partially, if their request is manifestly unfounded.

1 The Tax Authority shall decide on the request for tax remission.

1a The procedure for tax remission does not have a suspensive effect.

1b A request for tax remission submitted after the issuance of the enforcement request is declared inadmissible.

2 The remission decision may be subject to conditions.

2a The remission decision also applies to municipal taxes.

3 It is subject to complaint and appeal to the Cantonal Appeals Commission and the Administrative Court of the Cantonal Tribunal, by both the taxpayer and the municipality. The right of appeal to the Government against the decision on the complaint is reserved, in accordance with Article 162, paragraph 2, letter c, of the Administrative Procedure Code.

4 The period for complaint and appeal is 30 days from the notification of the decision.

5 The complaint must be reasoned and include any offers of proof.

6 The remission decision may be revoked. The revocation decision is subject to the same legal recourses as the remission decision.

The Government regulates by ordinance the conditions for granting and the procedure for remission.

**1 The taxpayer may request the refund of a tax that they have paid in error, which was either not due or only partially due.**

2 Tax amounts refunded more than thirty days after their payment shall bear interest at the rate set by the Government from the date of their payment.

3 The refund request must be submitted to the Tax Services within five years following the end of the calendar year during which the payment was made. The rejection of the refund request provides the same legal remedies as a tax assessment decision.

4 The right to a refund extinguishes ten years after the end of the year during which the payment was made.

1 The Government is authorized to enact a tax amnesty for savings capital not exceeding 50,000 francs and their returns.

2 The amnesty consists of the waiver of the evaded tax recovery and the tax penalties.

3 The Government shall establish the terms of the amnesty by way of an ordinance.

1 Tax on real estate gains as well as income or profit tax of real estate traders, insofar as it concerns the property in question, are secured by a legal mortgage, in accordance with Article 88 of the Introductory Act to the Swiss Civil Code.

2 Article 190a is reserved.

1 In the event of the transfer of real estate that triggers the collection of income tax, profit tax, or real estate gain tax, the parties are required, unless an exception applies, to deposit 7% of the proceeds of the transfer with a public officer.

2 The amount deposited pursuant to paragraph 1, as well as any additional amounts, may be subject to a voluntary payment in accordance with Article 180a.

3 In the event of a violation of this provision, Article 198 applies by analogy.

4 The deposit provided for in paragraph 1 extinguishes the right to register the legal mortgage in the land register as provided in Article 190, paragraph 1.

5 Transfers carried out under the provisions of the Federal Law of April 11, 1889, on Debt Enforcement and Bankruptcy are not subject to the deposit requirement. In such cases, the income tax, profit tax, or real estate gain tax, if applicable, is secured by a legal mortgage, in accordance with Article 190.

1 If the taxpayer does not have a domicile in Switzerland or if the tax claim appears to be at risk, the Tax Service may require security at any time, even before the tax amount is determined by a final and binding decision.

2 The request for security specifies the amount to be secured; it is immediately enforceable. In the enforcement procedure, it has the same effect as an enforceable judgment.

3 Security must be provided in cash, in secure and negotiable securities, or in the form of a guarantee from a bank or two solvent joint guarantors.

3a Article 136a applies to the representation of the taxpayer and the notification of the security request decision.

4 The decision to request security is subject to an administrative law appeal to the Administrative Court within 30 days following its notification; it is not subject to opposition.

5 The appeal does not suspend the execution of the request for security.

6 The attachment procedure according to the provisions of the federal law on debt enforcement and bankruptcy is reserved.

1 The request for security is equivalent to the sequestration order within the meaning of Article 274 of the Federal Act on Debt Collection and Bankruptcy. The sequestration is carried out by the competent Debt Collection Office.

2 The objection to the sequestration order provided for in Article 278 of the Federal Act on Debt Collection and Bankruptcy is inadmissible.

A legal entity may only be removed from the commercial register when the tax authority informs the Commercial and Land Register Service that the taxes owed have been paid or have been secured.

1 A tax inventory is drawn up upon the death of any taxpayer in the Jura.

2 However, no inventory is drawn up when circumstances allow for the presumption that there is no estate.

1 The inventory includes, estimated as of the date of death, the estate of the deceased, that of their spouse living in a common household, and that of the minor children under their parental authority.

2 The facts that are significant for taxation are established and recorded in the inventory.

1 To ensure the accuracy of the inventory, the estate is sealed without delay.

2 The heirs and the individuals who manage or have custody of the estate's assets cannot dispose of them before the inventory without the consent of the Tax Authority.

1 The heirs, the legal representatives of heirs, the estate administrator, and the executor of the will must

a) provide, truthfully, all useful information for determining the taxable components of the deceased's estate;

b) produce all books, supporting documents, statements of account, or documents allowing the establishment of the estate's status;

c) grant access to all premises and furniture that were at the deceased's disposal.

2 The heirs and the legal representatives of the heirs who shared a household with the deceased or who had custody or administration of certain of the deceased's assets must also allow the inspection of their own premises and furniture.

3 The heirs, the legal representatives of heirs, the estate administrator, or the executor of the will who, after the inventory is established, become aware of any estate assets not included must inform the Tax Department within ten days.

4 At least one of the heirs exercising civil rights and the legal representative of heirs who are minors or protected by a general guardianship or a mandate for incapacity must attend the inventory.

1. Third parties who had custody or administration of the deceased's property, or against whom the deceased had rights or claims of a financial nature, are obliged to provide the heir, upon request, and for the authority's consideration, with all written information relating thereto.

2. If there are serious reasons preventing the fulfillment of the obligation to provide information, the third party may supply the requested information directly to the competent authority.

3. Additionally, Articles 144 and 145 apply by analogy.

1 The Parliament enacts the implementing provisions by decree.

2 It particularly determines

a) the competent authority for drafting the inventory;

b) the procedure for establishing the inventory;

c) the relationship between the tax inventory and the various forms of inventories stipulated by federal law.

1 Whoever, despite a warning and in a culpable manner, does not comply with an obligation incumbent upon them under this law or any of its implementing measures, shall be punished with a fine.

2 The fine shall not exceed 1,000 francs, and not exceed 10,000 francs in serious cases or in the event of a repeat offense.

1. A taxpayer who, intentionally or negligently, acts in such a manner that a taxation cannot be duly executed or a taxation in force is incomplete, or obtains an undue refund or remission of tax, or someone who, being required to withhold a tax at source, either fails to do so or withholds an insufficient amount, shall be punished with a fine.

2. Generally, the fine is fixed at the single amount of the tax evaded. It may be reduced to one-third in the case of a minor fault or increased up to three times in the case of a serious fault.

3. When the taxpayer voluntarily discloses tax evasion for the first time, prosecution is waived (non-punishable voluntary disclosure), provided that

a) no tax authority is aware of it;

b) the taxpayer collaborates unreservedly with the administration to determine the amount of the tax reassessment;

c) the taxpayer makes an effort to pay the due tax reassessment.

4. For any subsequent voluntary disclosure, the fine is reduced to one-fifth of the tax evaded if the conditions set forth in paragraph 3 are met.

Whoever intentionally attempts to commit tax evasion shall be punished with a fine set at two-thirds of the amount that would have been imposed in the case of consummated evasion.

1. Any person who incites tax evasion, assists in it, commits it intentionally as a representative of the taxpayer, or participates in it, shall be subject to a fine imposed independently of the penalty incurred by the taxpayer.

2. The fine shall be up to 10,000 francs, and up to 50,000 francs in serious or repeat cases. Furthermore, the tax authority may require the instigator or accomplice to jointly pay the evaded tax.

3. When a person as defined in paragraph 1 voluntarily reports themselves for the first time, and the conditions set forth in Article 199, paragraph 3, letters a and b, are met, criminal prosecution is waived, and joint liability is removed.

1. Any person who conceals or diverts estate assets that they are required to report during the sealing or inventory procedures, with the intention of excluding them from the inventory, shall be liable to a fine of up to 10,000 francs, and up to 50,000 francs in serious cases or upon repeat offense.

2. Articles 200 and 201 apply by analogy.

3. When a person referred to in paragraph 1 self-reports voluntarily and for the first time, the criminal prosecution for concealment or diversion of estate assets within the sealing or inventory procedures, and for infractions committed within these procedures, is waived (non-punishable voluntary disclosure), provided that

a) no tax authority is aware of it;

b) the person concerned collaborates fully with the administration to correct the inventory.

1 When procedural obligations have been violated or an embezzlement, either completed or attempted, has been committed for the benefit of a legal entity, the fines provided apply directly to the entity.

1a When a legal entity has incited, assisted, or participated, in the course of its activities, in the embezzlement committed by a third party, Article 201 applies to it by analogy.

2 The penalties incurred by the organs or its representatives under Article 201 remain reserved.

3 Paragraphs 1 and 2 apply by analogy to foreign corporations and institutions, as well as to foreign communities of persons without legal personality.

1 When a legal entity subject to taxation voluntarily and for the first time discloses a tax evasion committed in its commercial operations, criminal prosecution is waived (non-punishable voluntary disclosure), provided that

a) no tax authority is aware of it;

b) it cooperates unreservedly with the administration to determine the amount of the tax reassessment;

c) it endeavors to settle the due tax reassessment.

2 The non-punishable voluntary disclosure can also be submitted

a) after a change of the company name or a relocation of the headquarters within Swiss territory;

b) after a transformation in the sense of Articles 53 to 68 of the Federal Act of 3 October 2003 on mergers by the new legal entity, concerning evasions committed prior to the transformation;

c) after an absorption in the sense of Article 3, paragraph 1, letter a, of the Federal Act of 3 October 2003 on mergers or a division in the sense of Article 29, letter b, of said Act, by a surviving legal entity, concerning tax evasions committed before the absorption or division.

3 The non-punishable voluntary disclosure must be submitted by the organs or representatives of the legal entity. The joint liability of these organs or representatives is eliminated, and criminal prosecution is waived.

4 When former members of the legal entity's organs or former representatives of the legal entity disclose for the first time a tax evasion not known to any tax authority, criminal prosecution of the legal entity, as well as of all former or current members and representatives, is waived. Their joint liability is eliminated.

5 For any subsequent voluntary disclosure, the fine is reduced to one-fifth of the evaded tax when the conditions mentioned in paragraph 1 are met.

6 When a legal entity ceases to be subject to tax in Switzerland, it is no longer possible to submit a voluntary disclosure.

1 The married taxpayer who lives in a common household with their spouse is only liable for the omission of taxable elements that are specific to them. Article 201 is reserved.

2 The mere act of countersigning the joint tax declaration does not constitute an offense within the meaning of Article 201.

**1 Cases of Completed Misappropriation, Attempted Misappropriation, as well as Concealment or Distraction of Estate Assets are Handled by the Tax Department.**

2 The violation of procedural obligations is punished by the authority before which the tax file is pending.

3 The competent authority in respect of the perpetrator is also competent for the participants in the offense.

1. The initiation of a procedure for infringement is communicated in writing to the concerned party, who is invited to respond to the allegations made against them.

2. In cases of initiation of a procedure for tax evasion, the concerned party is additionally informed of their right to refuse to testify and to cooperate.

3. The evidence collected as part of the tax reassessment procedure can only be used in the tax evasion procedure if it was not gathered under the threat of an official tax assessment pursuant to Article 140, with a reversal of the burden of proof in application of Article 157, paragraph 3, nor under the threat of a fine for violation of a procedural obligation.

4. Once the investigation is complete, the authority issues a decision of conviction or dismissal, which is notified in writing to the concerned party.

5. The decision of conviction includes the following information

a) the name of the convicted person;

b) the tax periods concerned;

c) the punishable act;

d) the legal provisions applied;

e) the amount of tax evaded;

f) the evidence;

g) the fault;

h) the sanction;

i) the remedies;

j) brief reasons.

6. The provisions concerning the general principles of procedure, assessment, and appeal procedures apply by analogy.

7. The costs incurred by special investigative measures (accounting expertise, hearings) are generally charged to the person found guilty. They may also be charged to the person benefiting from a dismissal when, through their faulty behavior, they have led the authority to undertake the criminal prosecution or have significantly complicated or slowed down the investigation.

1 Criminal prosecution is subject to a statute of limitations

a) in cases of procedural obligation violations, three years, and in cases of attempted tax evasion, six years from the definitive closure of the proceedings during which the offense was committed;

b) in cases of consummated evasion, ten years from the end of the fiscal period for which the taxation was not carried out or was performed incompletely, or for which the withholding tax at source was not made in accordance with the law, or ten years from the end of the calendar year during which an illegal tax refund or an unjustified tax exemption was obtained;

c) in cases of concealment or diversion of estate assets, ten years from the end of the calendar year during which estate assets were concealed or diverted in the inventory procedure.

2 The statute of limitations ceases to run if a decision has been rendered by the competent cantonal authority before the expiration of the prescription period.

1 Fines and costs arising from a criminal procedure are collected in accordance with the provisions of Articles 176 to 191a.

2 The collection of fines and costs is subject to a statute of limitations of five years from the date the assessment becomes final.

3 The suspension and interruption of the statute of limitations are governed by Article 151, paragraphs 2 and 3.

4 In all cases, the statute of limitations is acquired ten years after the end of the year in which the taxes were definitively fixed.

1 Anyone who, with the intent to evade taxes, uses false, falsified, or inaccurate documents concerning their content, such as accounting books, balance sheets, profit and loss accounts, salary certificates, and other attestations by third parties, with the purpose of deceiving the tax authority, shall be punished with a custodial sentence of up to three years or a monetary penalty. A suspended sentence may be combined with a fine of up to 10,000 francs.

2 The prosecution of tax evasion is reserved.

3 In the event of voluntary disclosure as referred to in Articles 199, paragraph 3, or 203a, paragraph 1, prosecution is waived for all other offenses committed with the intent to evade taxes. This provision also applies to the cases covered by Articles 201, paragraph 3, and 203a, paragraphs 3 and 4.

1. Any person obligated to withhold tax at the source who misappropriates the collected amounts for their own benefit or that of a third party shall be subject to a custodial sentence not exceeding three years or a monetary penalty. A suspended sentence may be coupled with a fine not exceeding 10,000 francs.

2. In the case of a voluntary disclosure as defined under Articles 199, paragraph 3, or 203a, paragraph 1, prosecution for the misappropriation of source tax and for all other offenses committed with the intent to divert source taxes is waived. This provision also applies to cases referred to in Articles 201, paragraph 3, and 203a, paragraphs 3 and 4.

1 The criminal prosecution of tax offenses is subject to a statute of limitations of fifteen years from the day the perpetrator committed their last offense.

2 The statute of limitations ceases to run if a first instance judgment has been rendered before the expiration of the limitation period.

1 General Provisions of the Swiss Criminal Code are applicable subject to the contrary provisions of the present law.

2 The procedure is conducted according to the rules of the Code of Criminal Procedure.

1 For the fiscal year 1989, natural persons and legal entities assimilated to natural persons under the former law can deduct losses incurred starting from the fiscal year ending in 1983.

2 Corporations and cooperative societies can deduct losses incurred starting from the fiscal year ending in 1985.

1 Income tax owed by individuals for the fiscal year 1989 is determined on the basis of the average income earned during the years 1987 and 1988 (assessment period). Withholding tax is reserved.

2 Article 62 applies to extraordinary income earned in 1987 and 1988 that cannot be taxed during an entire fiscal year due to the end of liability or an interim taxation occurring in 1989.

3 A special tax calculated in accordance with Article 62 may furthermore be levied generally on extraordinary income earned in 1987 and 1988 when, in the absence of such taxation, the taxpayer would realize a significant tax saving due to the shift to annual taxation.

4 Extraordinary income notably includes capital gains and liquidation profits, extraordinary returns from holdings, gains from real estate trading, accounting revaluations of assets, dissolved provisions and reserves, depreciations and provisions justified by commercial usage that have been omitted, as well as unjustified debt write-offs.

### 1 For the First Fiscal Period (2001) Following the Amendment Referenced in Article 56, the Taxation Related to Individual Income Tax is Governed by the New Law.

2 Extraordinary income earned during the fiscal period preceding the amendment or during a fiscal year closed within this period is subject to a full annual tax, at the rate applicable to those specific incomes, for the fiscal year in which they were acquired; Articles 36, 37, and 37a are reserved. Expenses that are directly related to the acquisition of extraordinary income may be deducted. Deductions provided for in Article 34 are not granted.

3 Particularly considered as extraordinary income are capital benefits, unusually high income compared to previous years, non-periodic capital income, and extraordinary income derived from independent gainful activity, such as capital gains, accounting revaluations of capital assets, dissolved provisions, as well as provisions and depreciations justified by commercial use that have been omitted.

4 Extraordinary expenses incurred during the fiscal period preceding the amendment are deducted from the taxable income related to the fiscal period preceding the amendment, in the case of tax liability in the Canton on January 1, 2001; the assessments that have come into force are revised in favor of the taxpayer.

5 The following are considered extraordinary expenses

a) maintenance costs of private buildings, insofar as they exceed the flat-rate deduction amount;

b) contributions paid by the insured to professional pension institutions for the repurchase of contribution years;

c) medical, accident, disability, professional development, and retraining expenses, insofar as they exceed the expenses already accounted for.

The taxpayer must file a tax return in 2001 in accordance with the provisions of the annual praenumerando tax system. Its purpose is to determine income and extraordinary expenses pursuant to Article 215a and to request a refund of the advance tax on income for the year 2000.

1 The profit tax owed by entities assimilated to natural persons under the former law for the fiscal year 1989 is determined, in principle, based on the result of the fiscal period ending within that same year.

2 If the taxable profit, provisionally assessed, for the assessment years 1987 and 1988 is greater or lesser by 30%, but at least 5,000 francs and, in all cases, as soon as 50,000 francs, compared to the profit calculated according to paragraph 1, the tax will be determined based on the average between the latter and the taxable profit realized in 1987/1988.

3 A special tax, calculated in accordance with Article 86, paragraph 2, will be levied on extraordinary profits realized during the assessment years that have not been considered for the determination of the taxable profit.

The new law applies to corporations and cooperative societies for the first time in the determination of income tax and capital tax due for the fiscal year 1989.

Unemployment insurance benefits remain taxable at a rate of 90% until the complete adaptation of cantonal law to the federal law on the harmonization of direct taxes of the cantons and communes, but no later than December 31, 2000.

1 Divorced, separated, or single individuals who receive maintenance contributions for their dependent children set before January 1, 1994, are entitled, for the tax years 1994 to 1998, to an additional deduction of 1,200 francs per child for whom a contribution is paid.

2 The right to this deduction ceases if the maintenance contribution has been modified after January 1, 1994.

1 The adjustment of deductions and income tax brackets according to the changes in the consumer price index (Art. 38) is abolished for the fiscal year 1994.

2 The base index determining the subsequent adjustment is that of January 1, 1993. Any remaining balances as of January 1, 1993, will remain accounted for.

1 Expenses incurred due to illness, accidents, or disability of the taxpayer or a person whom they support, during the year 1993, are deductible according to Article 32, paragraph 1, letter e, during the taxation of the year 1994.

2 These expenses do not entitle the taxpayer to a tax rebate for the fiscal year 1993 (Art. 185), unless they are recurring and due to a chronic condition or illness (placement in a care home, diabetes).

Article 18, Paragraph 1, Letter a, applies to capital insurance paid by means of a single premium and concluded after December 31, 1998.

1 Capital gains from participations, the proceeds from the sale of related subscription rights, and revaluation gains according to Article 670 of the Code of Obligations do not count towards the calculation of net yield within the meaning of Article 78, paragraph 2, if the corporation or cooperative held the relevant participations before January 1, 2000, and realizes these gains by January 1, 2007.

2 For participations held before January 1, 2000, the values relevant for profit tax at the beginning of the fiscal year ending during the calendar year 2000 are considered as the cost of investment (Article 74a, paragraph 5, and 78, paragraph 5, letter a).

3 If a corporation or cooperative transfers a participation that it held before January 1, 2000, to a company within the same group located abroad, and this participation constitutes at least 20% of the share capital or social capital of another company, the difference between the value relevant for profit tax and the market value of this participation is added to the taxable net profit. In this case, the participations in question are considered to have been acquired before January 1, 2000. Simultaneously, the corporation or cooperative can establish an untaxed reserve equal to this difference. This reserve will be dissolved and taxed if the participation is sold to a third party outside the group, or if the company to which the participation rights were transferred disposes of a significant portion of its assets and liabilities, or if it is liquidated. The corporation or cooperative shall attach to its tax declaration a list of participations subject to an untaxed reserve under the terms of this article. The untaxed reserve is dissolved without tax consequences on December 31, 2006.

4 If the fiscal year ends after the entry into force of this amendment, the profit tax for this fiscal year is determined according to the new law.

1. The adjustment of income tax deductions in line with changes in the consumer price index (art. 38 LI) is abolished for the fiscal year 2001.

2. The base index determining the next adjustment is that of August 31, 2000. The carryovers resulting from the latest adjustments remain in account.

Lump-sum benefits as defined in Articles 37, paragraph 1, and 123, paragraph 3, letter c, that fell due between January 1, 2004, and the entry into force of the new rates of Articles 37, paragraph 2, and 123, paragraph 3, letter c, are taxed according to these new rates.

Provisions regarding the tax recall of the former law apply to estates opened prior to the enactment of this amendment.

For withholding tax, the schedules finalized at the end of November 2012 are applicable for the fiscal year 2013.

The new law applies to the judgment of offenses committed during tax periods prior to the entry into force of the amendment of October 26, 2016, if it is more favorable than the law in force during those tax periods.

The Parliament is authorized to make amendments by decree to the formal provisions of this law, provided that such amendments allow for adaptation to the provisions of the Federal Law of December 14, 1990, on Direct Federal Taxation and result in simplifications and relief for taxpayers.

1 The Government is competent to undertake steps for negotiating the initial rate of 4.5% provided for in the Agreement of April 11, 1983, between the Swiss Federal Council and the Government of the French Republic concerning the taxation of the remuneration of cross-border workers.

2 The Government determines at regular intervals, but at least once per legislature, whether the conditions that led to the establishment of the current rate have changed.

3 Following the examination provided for in paragraph 2, the Government submits a report to Parliament, which decides on the advisability of mandating the Government to undertake the appropriate steps to renegotiate the retrocession rate.

1 If legal entities were taxed based on Articles 83 and 84 of the former law, the latent reserves existing at the end of such taxation, including the capital gain created by the taxpayer itself, must, upon their realization, be taxed separately within the following five years, insofar as they have not been taxable until then. The unitary tax rate is set at 0.522% of the taxable profit.

2 The amount of latent reserves claimed by the taxpayer, including the capital gain it created itself, is determined by a decision of the taxation authority.

3 Depreciation of latent reserves, including the capital gain created by the taxpayer itself, which were declared at the end of the taxation based on Articles 83 and 84 of the former law, is taken into account in the calculation of the limitation of the tax reduction referred to in Article 71b.

1 For the first and second fiscal periods following the entry into force of this provision, the unit rate of tax on profits is equivalent to 2.406% of taxable profit.

2 For the third, fourth, fifth, and sixth fiscal periods following the entry into force of this provision, the unit rate of tax on profits is equivalent to 2.118% of taxable profit.

3 For the seventh fiscal period following the entry into force of this provision, the unit rate of tax on profits is equivalent to 2.062% of taxable profit.

4 For the eighth fiscal period following the entry into force of this provision, the unit rate of tax on profits is equivalent to 2.005% of taxable profit.

5 For the ninth fiscal period following the entry into force of this provision, the unit rate of tax on profits is equivalent to 1.949% of taxable profit.

6 For the tenth fiscal period following the entry into force of this provision, the unit rate of tax on profits is equivalent to 1.893% of taxable profit.

Upon the transfer of the municipality of Moutier to the canton of Jura, the official assessments conducted by the canton of Bern remain valid until the next update or, at the latest, until the next general revision of official values and hydraulic forces.

1 Upon the transfer of the municipality of Moutier to the canton of Jura, natural and legal persons who were granted the status of professional real estate trader by the Bernese tax authority as of December 31, 2025, shall be recognized with the same status by the Jura tax authority.

2 It is the responsibility of the taxpayer to provide proof of the grant of the professional real estate trader status by the Bernese tax authority.

3 Revocation of the professional real estate trader status by the Jura tax authority is reserved in the event of a change in the taxpayer's situation.

1. Upon the transfer of the municipality of Moutier to the canton of Jura, legal entities that benefited from a tax exemption granted by the Bernese tax authority as of December 31, 2025, due to pursuing public service purposes or purposes of pure public utility, shall be granted said tax exemption by the Jura tax authority.

2. It is the taxpayer's responsibility to provide proof of the granting of the tax exemption by the Bernese tax authority.

3. Revocation of the tax exemption by the Jura tax authority is reserved in the event of a change in the taxpayer's situation.

1 Upon the transfer of the municipality of Moutier to the canton of Jura, individuals who were taxed based on expenditure during the fiscal year 2025 are granted said status and the taxable bases by the Jura tax authority.

2 It is the responsibility of the taxpayer to provide proof of the granting of the status by the Bernese tax authority.

3 A revocation of the status or a modification of the taxable bases by the Jura tax authority in the event of a change in the taxpayer's situation is reserved.

**The Law of October 26, 1978, on State and Municipal Direct Taxes is Repealed.**

This law is subject to an optional referendum.

The Government determines the commencement of this law.