Tax Act (StG) - Types of Taxes (STGB)

1. The canton levies, as state taxes according to this law,

a. an income and a wealth tax from natural persons,

b. a profit and a capital tax, or in its place a minimum tax on properties from legal entities,

c. a withholding tax from certain natural and legal persons.

1. The tax calculated based on the tax rates of this Act corresponds to the tax per unit, unless an explicit alternative provision is made.

2. The Cantonal Council annually determines the state taxes to be levied in units or fractions of units for assets, income, profit, and capital, following the approval of the budget and at the request of the Government Council, by a resolution of the Cantonal Council.

3. The Cantonal Council's resolution on the determination of the units of state taxes to be levied is subject to the optional referendum according to § 24 paragraph 1e of the Cantonal Constitution if more than 1.7 units are set and the tax rate increases compared to the previous year.

4. If no resolution regarding the tax units is in place after the end of the fiscal year, the last validly set tax units apply.

5. If the tax is to be calculated independently of the tax units as a whole, it is distributed between the canton and municipalities based on the units in effect at the end of the tax period. The same provision applies to fines, with the exception of fines according to § 208.

**1. In trust relationships, the trustor is liable for taxation. If the trust relationship is not proven or if the trustor is not disclosed, their taxable services and assets are attributed to the trustee.**

**1. Permanent Establishment**

A permanent establishment is deemed to be a fixed place of business through which the business activities of an enterprise or a freelance profession are wholly or partly carried out.

**2. Permanent establishments include, in particular:**

a. Branch offices,

b. Manufacturing plants,

c. Workshops,

d. Sales outlets,

e. Permanent representatives (even without a fixed place of business), provided that a person is acting on behalf of the enterprise with the authority to conclude contracts in the name of the enterprise,

f. Mines and other sites for the extraction of natural resources,

g. Construction or installation sites with a duration of at least twelve months.

1. Newly established enterprises that serve the economic interests of the canton may be granted appropriate tax concessions for the first year of operation and the following nine years. A significant change in business activity is considered equivalent to a new opening.

2. The Department of Construction, Environment, and Economic Affairs shall decide on the granting of tax concessions in agreement with the Department of Finance. The affected municipalities shall be consulted.

3. The tax concession may be revoked either from the time it is granted or at a later date if the conditions are not met. The provisions of §§ 174 et seq. regarding supplementary tax shall apply mutatis mutandis.

1. The Government Council is authorized to

a. conclude agreements with other cantons or foreign states regarding mutual tax exemptions or other mutual restrictions on tax sovereignty,

b. in the interest of a nationwide harmonization of direct taxes, conclude agreements with other cantons on all matters regulated by the Federal Act on the Harmonization of Direct Taxes of Cantons and Municipalities of December 14, 1990,

c. agree to or terminate amendments to the Concordat on the Exclusion of Tax Agreements of December 10, 1948,

d. impose retaliatory measures in relation to foreign states,

e. issue a regulation with a corresponding deviation from the law in the event of changes to inter-cantonal double taxation rules.

1. The municipality may designate a municipal tax office, another administrative office, or a commission to fulfill tasks assigned to it.

2. Several municipalities can jointly operate a municipal tax office.

3. Unless this law and the regulatory decrees of the municipality provide otherwise, the body responsible for taxation in the municipality is the municipal council.

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

2. A person has a tax domicile in the canton if they are present here with the intention of permanent residence or if federal law assigns them a specific legal domicile here. Once established, the domicile remains until a new domicile is established.

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

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

a. maintain business enterprises or permanent establishments in the canton,

b. * have ownership, real rights, or personal usage rights economically equivalent to real rights in real property located in the canton.

c. * ...

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

a. engage in gainful employment in the Canton of Lucerne,

b. receive royalties, attendance fees, fixed compensations, pecuniary benefits from employee participation, or similar remunerations as members of the management or board of directors of legal entities with a domicile or establishment in the Canton,

c. are creditors or beneficiaries of claims secured by mortgages or pledged property located in the Canton,

d. receive pensions, retirement allowances, or other benefits resulting from a former public-law employment relationship provided by an employer or pension institution with a domicile in the Canton,

e. receive benefits from Swiss private-law occupational pension schemes or from recognized forms of tied self-provision with a domicile or establishment in the Canton,

f. receive wages or other compensations for work in international traffic on board a ship or aircraft, or for road transportation from an employer with a domicile or establishment in the Canton,

g. broker real estate in the Canton.

1. Assets or income managed in the Canton of Lucerne that belong to no specific person or to a missing person without contact are subject to taxation, unless such obligation is fulfilled elsewhere by a superior legal claim.

2. Persons managing such assets or income are required to submit a tax declaration. They are jointly liable for the payment of the taxes.

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

2. In the case of economic affiliation, tax liability is limited to the portions of income and assets for which, according to §§ 9-11, a tax obligation exists in the canton.

3. Taxpayers without a tax residence or habitual abode in Switzerland must at least declare the income earned in the canton and the assets located in the canton for business enterprises, permanent establishments, and real property within the canton.

1. The allocation of tax liability among cantons is governed by the principles of federal law prohibiting inter-cantonal double taxation, and with respect to foreign countries, by the international agreements for the avoidance of double taxation.

2. Foreign losses are only to be considered for rate determination purposes. This is subject to Paragraph 3, § 14 Paragraph 2, and the provisions contained in double taxation agreements.

3. If a Swiss company offsets losses from a foreign permanent establishment against domestic profits, and within the following seven years earns profits from this establishment, a revision of the original assessment must be made to the extent of the profits that are eligible for offsetting in the permanent establishment's state. In such cases, the losses from this establishment will only be considered for rate determination purposes in Switzerland retroactively.

4. Permanent establishments abroad are only recognized if the ordinary taxes are paid there.

1. Taxpayers who are liable to tax in the canton only for part of their income and assets shall pay taxes on the taxable values in the canton at the tax rate corresponding to their total income and assets.

2. Taxpayers without a tax residence or domicile in Switzerland shall pay taxes on business operations, permanent establishments, and real estate in the canton at least at the tax rate corresponding to the income earned in the canton and the assets located in the canton.

1. Tax liability commences on the day the taxable person establishes a tax residence or stays in the Canton of Lucerne, or acquires taxable assets within the Canton. Paragraph 3 remains reserved.

2. Tax liability terminates upon death, departure from the Canton, or upon the cessation of taxable assets within the Canton. Paragraph 3 remains reserved.

3. In inter-cantonal situations, the consequences of the commencement, change, and termination of tax liability based on personal and economic affiliation are determined by the Federal Act on the Harmonization of Direct Taxes of Cantons and Municipalities, as well as the principles of federal law regarding the prohibition of inter-cantonal double taxation.

1. Income and assets of spouses who live in a legally and actually undivided marriage shall be aggregated regardless of the marital property regime.

2. Income and assets of children under parental care shall be attributed to the persons exercising such care until the beginning of the tax period in which the children come of age. For income derived from gainful employment, the child shall be taxed independently.

3. The income and assets of individuals living in a legally and actually undivided registered partnership shall be aggregated. The status of registered partners corresponds to that of spouses under this law. This also applies to maintenance contributions during the existence of the registered partnership, as well as maintenance contributions and the division of property in the event of separation and dissolution of the registered partnership.

1. Income and assets of inheritance communities are attributed to the individual heirs or the beneficiaries.

2. If the succession or the size of the shares accruing to the individual persons is uncertain, the inheritance community is taxed according to the provisions applicable to natural persons at the last residence of the deceased person.

3. Upon dissolution of an inheritance community taxed according to paragraph 2, taxes are owed until the completion of the estate division.

1. Income and assets of simple partnerships, general partnerships, and limited partnerships are attributed to the partners.

2. Foreign commercial companies and other foreign entities without legal personality, which are subject to tax due to economic affiliation, pay their taxes according to the provisions for legal entities.

3. The income of collective investment schemes, pursuant to the Collective Investment Schemes Act of 23 June 2006 (CISA), is attributed proportionally to the investors; excepted from this are collective investment schemes with direct real estate holdings.

1. The rights and obligations of a deceased person are assumed by the heirs. They are jointly and severally liable for all tax claims against the estate up to the amount of their respective inheritance shares, including any advancements. The inheritance shares are to be determined without regard to the tax claims.

2. The surviving spouse is liable with their inheritance share and the amount they receive based on marital property rights from the surplus or the community property exceeding the statutory share according to Swiss law.

3. The surviving registered partners are liable with their inheritance share and the amount they have received based on a financial arrangement pursuant to Article 25, paragraph 1 of the Partnership Act of June 18, 2004.

1. Spouses who are living in a legally and actually undivided marriage are jointly and severally liable for the total tax. However, each spouse is only liable for his or her share of the total tax if one of them is insolvent. Furthermore, they are jointly and severally liable for the portion of the total tax attributable to the child's income.

2. In the case of a legally or actually separated marriage, joint and several liability ceases to apply to all outstanding tax debts.

3. The following are jointly and severally liable with the taxpayers

a. children under parental authority, up to the amount of their share of the total tax,

b. partners residing in Switzerland who are part of a simple partnership, general partnership, or limited partnership, up to the amount of their partnership shares, for the taxes of partners residing abroad,

c. the party to a purchase contract for a property located in the canton, up to three percent of the purchase price for the taxes due from an intermediary engaged by the party, provided this person does not have a tax residence in Switzerland,

d. persons who wind up businesses or business establishments in Switzerland, or who sell or utilize properties located in Switzerland or claims secured by such properties, up to the amount of the net proceeds, if the taxpayer does not have a tax residence in Switzerland.

4. Heirs are jointly and severally liable for the taxes of the heirs' community taxed under § 17.

5. In addition to the heirs, the persons entrusted with the administration of the estate or execution of the will are jointly and severally liable for the taxes of the deceased person up to the amount that is based on the estate's assets as of the date of death. The liability ceases if the liable person proves that they exercised all due care required under the circumstances.

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

a. do not possess Swiss citizenship,

b. are subject to unlimited tax liability (§ 8) for the first time or after an interruption of at least ten years, and

c. do not engage in any gainful employment in Switzerland.

2. Married couples living in a legally and factually undivided marriage must both meet the requirements of paragraph 1.

3. The tax that replaces the income tax is assessed based on the annual living expenses incurred in the assessment period both domestically and abroad by the taxable person and those maintained by them, but at least based on the highest of the following amounts

a. 647,100 Swiss Francs,

b. for taxpayers with their own household: seven times the annual rent or rental value (100%) according to § 28 paragraphs 2 and 3,

c. for other taxpayers: three times the annual pension price for accommodation and board at the place of residence according to § 8.

4. The tax on wealth is assessed based on a taxable wealth amounting to at least twenty times the assessment basis according to paragraph 3. It is calculated according to the ordinary wealth tax rate.

5. The tax based on expenditure must in total be set at least as high as the taxes calculated according to the ordinary rates from the entire gross amount

a. of immovable property located in Switzerland and its income,

b. of movable property located in Switzerland and its income,

c. of movable capital assets invested in Switzerland, including claims secured by mortgage, and its income,

d. of copyrights, patents, and similar rights exploited in Switzerland and their income,

e. of annuities, pensions, and retirement benefits flowing from Swiss sources,

f. of income for which the taxable person claims full or partial relief from foreign taxes based on a treaty concluded by Switzerland to avoid double taxation.

6. If income from a state is only relieved from its taxes if Switzerland taxes this income alone or with other income at the rate of total income, the tax is assessed not only on the income designated in paragraph 5 but also on all income components assigned to Switzerland from the source state under the relevant double taxation treaty.

7. The government council adjusts the amount in paragraph 3a according to the national consumer price index. § 61 paragraph 2 applies mutatis mutandis.

1. The individuals exempted from tax liability as specified in Article 2, Paragraph 2 of the Host State Act of June 22, 2007, are not taxed to the extent that federal law provides for a tax exemption.

2. In cases of partial tax liability, § 14, Paragraph 1 shall apply.

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

2. Income also includes benefits in kind of any type, in particular free meals and accommodation, as well as the value of goods and products consumed by the owner from their own business; they are assessed at their market value.

1. Taxable are all incomes from a private-law or public-law employment relationship, including ancillary incomes such as compensation for special services, commissions, allowances, long service and jubilee gifts, bonuses, gratuities, royalties, benefits in kind from employee participations, and other pecuniary advantages.

2. Capital compensations from a pension scheme associated with the employment relationship or similar capital compensations from employers are taxed according to § 58.

3. The costs borne by employers for job-oriented education and training, including retraining costs, do not constitute any other pecuniary advantage within the meaning of paragraph 1, regardless of their amount.

1. Genuine Employee Participations are deemed to be

a. Shares, profit participation certificates, participation certificates, cooperative shares, or other types of participations issued by the employer, its parent company, or another group company to the employees,

b. Options for acquiring participations as mentioned in paragraph 1a.

2. Non-genuine Employee Participation is deemed to be claims to mere cash compensations.

1. Monetary benefits arising from genuine employee participation, excluding those from restricted or unlisted options, are taxable as income from dependent employment at the time of acquisition. The taxable benefit corresponds to its fair market value reduced by any potential acquisition price.

2. For employee shares, to calculate the taxable benefit, restriction periods must be considered with a discount of 6 percent per year of restriction on their fair market value. This discount applies for a maximum of ten years.

3. Monetary benefits from restricted or unlisted employee options are taxed at the time of exercise. The taxable benefit corresponds to the fair market value of the stock at the time of exercise reduced by the exercise price.

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

1. If the taxable person did not have a tax residence or presence in Switzerland for the entire period between the acquisition and the vesting of the restricted employee options (§ 24b para. 3), the pecuniary benefits thereof shall be taxed proportionately according to the ratio between the total period and the period spent in Switzerland.

1. All income derived from a commercial, industrial, business, agricultural, and forestry enterprise, from a freelance occupation, as well as from any other self-employed activity, is subject to taxation.

2. Income from self-employed activity also includes all capital gains from the sale, utilization, or book valuation increases of business assets. The transfer of business assets to private assets or foreign enterprises or permanent establishments is equivalent to a sale. Business assets are considered to include all assets that primarily or entirely serve the purpose of self-employment. The same applies to holdings of at least 20 percent in the share capital or basic capital of a corporation or cooperative, provided the owner declares them as business assets at the time of acquisition. § 25b is reserved.

3. For taxpayers who maintain proper accounting records, § 72 applies correspondingly.

4. Capital gains in the sense of paragraph 2 on agricultural and forestry properties are taxable to the extent of the difference between the relevant income tax value and the acquisition costs.

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

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

3. If, during an inheritance distribution, not all heirs continue the business operation, the taxation of the hidden reserves is deferred upon request by the heirs taking over the business until a later realization, provided they assume the existing values relevant for income taxation.

1. Dividends, profit shares, liquidation proceeds, and pecuniary benefits from shares, interests in limited liability companies, cooperative shares, and participation certificates, as well as profits from the disposal of such participation rights, are taxable at a rate of 50 percent after the deduction of attributable expenses, provided that these participation rights represent at least 10 percent of the share or capital stock of a corporation or cooperative.

2. Partial taxation of capital gains from disposals is granted only if the disposed participation rights were held in the ownership of the taxable person or the enterprise for at least one year.

1. For income from patents and comparable rights in self-employment, Sections 72a and 72b apply mutatis mutandis.

**1. Hidden Reserves of a Sole Proprietorship or Partnership (Sole Proprietorship, Partnership) Are Not Taxed During Restructuring, Including in Cases of Merger, Division, or Transformation, Provided the Tax Obligation Persists in Switzerland and the Values Previously Relevant for Income Tax Are Adopted:**

a. in the transfer of assets to another sole proprietorship or partnership,

b. in the transfer of a business or part of a business to a legal entity,

c. in the exchange of ownership or membership rights during restructuring as per § 75 paragraph 1 or merger-like consolidations.

**2. In a Restructuring Under Paragraph 1b, the Transferred Hidden Reserves Are Subsequently Taxed According to the Procedure in §§ 174-178, to the Extent That Within the Five Years Following the Restructuring, Ownership or Membership Rights Are Sold at a Price Above the Transferred Tax Equity; In This Case, the Legal Entity May Claim the Corresponding Hidden Reserves Taxed as Profit.**

1. Taxable are the income from movable assets, in particular

a. Interest from deposits, including paid earnings from redeemable capital insurance policies with a single premium upon maturity or redemption unless these capital insurance policies serve as retirement provision; serving as retirement provision is considered the payment of the insurance benefit from the completed 60th year of age of the insured person based on a contractual relationship of at least five years, which was established before the completion of the 66th year of age; in this case, the benefit is tax-free,

b. Income from the sale or redemption of bonds with predominately single interest payments (global interest bonds, discount bonds) accruing to the holder,

c. * Dividends, profit shares, liquidation surpluses, and pecuniary benefits from participations of all kinds (including bonus shares, free nominal value increases, and the like); a liquidation surplus achieved upon the return of participations within the meaning of Article 4a of the Federal Act on Withholding Tax of 13 October 1965 (WHTA)[11] to the corporation or cooperative is considered realized in the year in which the withholding tax claim arises (Art. 12 para. 1 and 1bis WHTA); paragraph 3 remains reserved,

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

e. * Income from shares in collective investment schemes, insofar as the total earnings exceed the earnings from direct real estate ownership,

f. Income from intangible assets.

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

3. Dividends, profit shares, liquidation surpluses, and pecuniary benefits from shares, interests in limited liability companies, cooperative shares, and participation certificates (including bonus shares, free nominal value increases, and the like) are taxable at 60 percent, if these participation rights constitute at least 10 percent of the capital stock or nominal capital of a corporation or cooperative.

4. The repayment of contributions, additional capital, and subsidies provided by the holders of participatory rights after December 31, 1996, is treated equally as the repayment of capital stock or nominal capital. Paragraph 5 remains reserved.

5. If a corporation or cooperative listed on a Swiss stock exchange distributes less than an equivalent amount of other reserves upon repayment of reserves from capital contributions pursuant to paragraph 4, the repayment is taxable to the extent of half the difference between the repayment and the distribution of the other reserves, but at most to the extent of the available, legally distributable other reserves within the company.

6. Paragraph 5 is not applicable to reserves from capital contributions

a. That arose from merger-like consolidations by introducing participation and membership rights in a foreign corporation or cooperative according to § 75 paragraph 1c, or by a cross-border transfer to a domestic subsidiary according to § 75 paragraph 1d after February 24, 2008,

b. That were already present in a foreign corporation or cooperative at the time of a cross-border merger or restructuring according to § 75 paragraphs 1b and 3, or the relocation of the seat or actual management after February 24, 2008,

c. In the case of liquidation of the corporation or cooperative.

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

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

9. Paragraph 4 applies to contributions and additional capital provided during a capital band pursuant to Articles 653s et seq. of the Swiss Code of Obligations (CO)[12] only insofar as they exceed repayments of reserves within the scope of this capital band.

1. Earnings from Movable Assets in the Sense of § 27 Paragraph 1c also include

a. the proceeds from the sale of a participation of at least 20 percent in the capital stock or equity capital of a corporation or cooperative from private assets into the business assets of another natural person or a legal person, provided that within five years after the sale, with the involvement of the selling person, non-essential substance is distributed that was already present at the time of sale and was legally eligible for distribution; this applies analogously also if within five years several participants sell such participation jointly or if participations of at least 20 percent in total are sold; any distributed substance will be subsequently taxed on the selling person in accordance with the procedure under §§ 174-178, if applicable,

b. * the proceeds from the transfer of a participation in the capital stock or equity capital of a corporation or cooperative from private assets into the business assets of a partnership or a legal entity, in which the transferring or contributing person holds at least a 50 percent capital interest after the transfer, insofar as the total consideration received exceeds the sum of the nominal value of the transferred participation and the contributions, premiums, and grants according to § 27 Paragraph 4; this applies analogously also if several participants jointly undertake the transfer.

2. Cooperation in the sense of Paragraph 1a occurs when the selling person knows or must know that funds are withdrawn from the company for the purpose of financing the purchase price and are not returned.

1. Taxable are the proceeds from immovable property, in particular

a. all income from leasing, renting, usufruct, or other utilization,

b. the rental value of real estate or parts of real estate that are available to the taxpayer due to ownership or a gratuitous right of use for personal use,

c. income from building lease contracts,

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

2. The rental value shall be determined moderately, taking into account the promotion of home ownership and self-care. It amounts to 70 percent of the average market rent. The average market rent corresponds to the average rent that would be achievable for comparable rental properties in a comparable location.

3. ...

4. The rental value of properties that taxable persons permanently occupy at their place of residence shall be appropriately reduced upon request, if it leads to an excessive burden in relation to the means available to the taxpayer and other persons living in the same household for covering living expenses. The details are regulated by the government council.

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

2. Incomes from occupational pension schemes particularly include benefits from pension funds, savings and group insurances, as well as from vested benefits policies.

3. Incomes from annuities and from usufructuary benefits are taxable at 40 percent.

4. Section 31 subsection b remains reserved.

1. Taxable are also

a. all other income that replaces income from employment,

b. one-time or recurring payments due to death and for permanent physical or health disadvantages,

c. compensations for the cessation or non-exercise of an activity,

d. compensations for the non-exercise of a right,

e. * ...

f. alimony payments that a taxable person receives in the case of divorce, judicial or actual separation for themselves, as well as alimony payments that a parent receives for children under their parental care or custody.

1. Tax Exemptions

a. The acquisition of wealth through inheritance, bequest, gift, or division of matrimonial property,

b. The acquisition of wealth from redeemable private life insurance policies, except for policies related to occupational pension plans; § 27 paragraph 1a remains reserved,

c. Lump-sum payments made upon a change of employment by the employer or occupational pension plans, if they are used within one year to purchase into an occupational pension plan or to acquire a policy under the occupational pension scheme,

d. Support received from public or private sources,

e. Payments made in fulfillment of family law obligations, except maintenance contributions according to § 30 subparagraph f,

f. The pay for military and defense service as well as the pocket money for civilian service,

g. Payments of compensation for moral damages,

h. Income based on federal legislation concerning supplementary benefits to old age, survivors, and disability insurance,

i. Capital gains from the sale of private assets; subject to the provisions of the Real Estate Gains Tax Act,

k. * The winnings from casino games that are permitted under the Money Gaming Act of September 29, 2017 (MGA), provided these winnings do not come from self-employment,

kbis. * Individual winnings up to the amount of 1,071,000 Swiss francs from participation in large-scale games permitted under the MGA, and from online participation in casino games permitted under the MGA,

kter. * Winnings from small games permitted under the MGA,

l. * The pay of volunteer firefighters for services related to fulfilling the core tasks of the fire brigade (trainings, on-call duties, courses, inspections, and emergency operations for rescue, firefighting, general damage prevention, management of natural disaster damage, and similar operations) up to an amount of 5,400 Swiss francs annually; excepting flat-rate allowances for leadership, function allowances, as well as compensation for administrative work and for services voluntarily provided by the fire brigade,

m. * Individual winnings from lotteries and skill-based promotional games that are not subject to the MGA under Article 1 paragraph 2d and e, provided the limit of 1,100 Swiss francs is not exceeded,

n. * Income under the Federal Law on Transition Benefits for Older Unemployed Persons dated June 19, 2020.

1. For the determination of the net income, the necessary expenses incurred for its acquisition and the general deductions according to §§ 33-40 are deducted from the total taxable income.

1. The following are deducted as professional expenses

a. * the necessary costs for travel between home and workplace up to a maximum amount of 6500 francs,

b. the necessary additional costs for meals outside the home and for shift work,

c. * the other costs required for the exercise of the profession, § 40 paragraph 1m remains reserved.

d. * ...

2. For the professional expenses according to paragraphs 1b and c, the Department of Finance sets flat rates; in the case of paragraph 1c, the taxable person has the right to provide evidence of higher costs.

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

2. These include in particular

a. depreciations, provisions, and value adjustments according to sections 35 and 36,

b. incurred and recorded losses on business assets,

c. contributions to pension schemes for the benefit of one's own personnel, provided that any misuse for other purposes is excluded,

d. * interest on business debts as well as interest attributable to participations pursuant to section 25 paragraph 2,

e. * costs of vocational training and continuing education, including retraining costs, for one's own personnel,

f. * profit-stripping sanctions, as long as they do not serve a punitive purpose.

3. Non-deductible are in particular

a. * payments of bribes in the sense of Swiss criminal law,

b. * expenses to facilitate offenses or as compensation for the commission of offenses,

c. * fines and monetary penalties,

d. * financial administrative sanctions, to the extent that they serve a punitive purpose.

4. If sanctions under paragraphs 3c and d have been imposed by a foreign criminal or administrative authority, they are deductible if

a. the sanction violates the Swiss ordre public, or

b. the taxable person credibly demonstrates that they have undertaken all reasonable steps to act in compliance with the law.

1. Commercially justified depreciation of assets is permissible, provided that it is recorded in the accounts or, in the case of simplified accounting pursuant to Article 957, paragraph 2 of the Swiss Code of Obligations, shown in special depreciation tables.

2. As a rule, depreciation is calculated based on the actual value of individual assets or appropriately distributed according to their anticipated useful life.

3. Depreciation of assets that have been revalued to offset losses may only be undertaken if the revaluations were legally permissible under commercial law and the losses would have been compensable at the time of depreciation pursuant to § 38.

1. Provisions charged to the profit and loss account are permissible to the extent that they are necessary to compensate for impending losses or to cover existing obligations whose legal status or amount is still uncertain.

2. Equated with provisions are reserves for research and development contracts with third parties up to ten percent of the taxable business income, but in total not more than 1 million Swiss francs.

3. Write-downs are permissible to the extent that they correspond to a reasonable compensation for the temporary depreciation in value that occurred during the tax period.

4. Previous provisions and write-downs are credited to the taxable business income insofar as they are no longer justified.

1. Replacement of Essential Operating Fixed Assets: When assets of the essential operating fixed assets are replaced, the hidden reserves can be transferred to the replacement assets that are acquired, provided these are also essential for operations and are located in Switzerland. This is subject to taxation when replacing real estate with assets of movable property.

2. If the replacement acquisition does not occur in the same fiscal year, a provision can be created to the extent of the hidden reserves. This provision must be used to depreciate the replacement object within a reasonable period or be dissolved in favor of the income statement.

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

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

2. Third-party contributions made to offset an underbalance in the context of a restructuring may also be used to offset losses incurred in previous fiscal years that have not yet been set off against income.

1. For movable private assets, costs of management by third parties and foreign withholding taxes that are neither reclaimable nor creditable can be deducted.

2. For real estate in private assets, maintenance costs, costs of renovating newly acquired properties, insurance premiums, and costs of management by third parties can be deducted. Maintenance costs are equated with investments made for energy saving and environmental protection, insofar as they are deductible under direct federal tax, and with demolition costs related to a replacement new build. The deductible investment and demolition costs can be deducted in the two subsequent tax periods to the extent they cannot be fully accounted for in the current tax period in which they are incurred.

3. Also deductible are the costs of conservation work, which the taxable person has carried out due to legal requirements, in agreement with the authorities, or at their instruction, provided that these works are not subsidized.

4. For real estate in private assets, a lump-sum deduction may be claimed in place of actual costs and premiums. The government council regulates this lump-sum deduction.

1. The following shall be deducted from income

a. * private interest on debts to the extent of taxable income from property as per §§ 27, 27a, and 28 and an additional 50,000 Swiss Francs; building loan interest as well as interest on loans granted by a corporation to an individual with significant involvement in its capital or otherwise closely affiliated, under conditions considerably deviating from those customary in transactions between independent parties, are not deductible,

b. the ongoing burdens and 40 percent of paid annuities,

c. maintenance payments to a divorced, legally or de facto separated spouse, and child maintenance to a guardian parent under whose care the children are; however, performances fulfilling other family law support obligations are not included,

d. * contributions, premiums, and payments to old-age, survivors', and disability insurance and employee pension plans made in accordance with law, statute, or regulation,

e. contributions, premiums, and payments for acquiring contractual entitlements from recognized forms of self-provision within the sense and scope of Article 82 of the Federal Act on occupational old-age, survivors', and disability provisions,

f. the premiums and contributions for earnings compensation scheme, unemployment insurance, and mandatory accident insurance,

g. * contributions, premiums, and payments for life, health, and accident insurances not covered by paragraph 1f, as well as interest from savings capital of the taxable person and persons maintained by them up to a total amount of 5,200 Swiss Francs for married persons living in a legally and factually undivided marriage; 2,600 Swiss Francs for other taxable persons; deductions of 5,200 Francs or 2,600 Francs are increased by 1,500 Francs or 700 Francs for taxable persons without contributions according to paragraphs 1d and 1e and by 700 Francs for each child eligible for deductions under § 42, paragraph 1a,

h. * health and accident costs of the taxable person and persons maintained by them, to the extent that the taxable person bears the costs themselves and these exceed five percent of the taxable income reduced by expenditures according to §§ 33-40 paragraph 1g, as well as disability-related costs of the taxable person or persons maintained by them, within the sense of the Disability Discrimination Act, to the extent that the taxable person bears the costs themselves; the government council is authorized to issue supplementary provisions; the finance department may establish lump sum rates for the allowable costs,

i. * voluntary payments of money and other assets to legal entities domiciled in Switzerland, exempted from tax due to their public or charitable purposes (§ 70 paragraph 1h), when these contributions reach 100 Francs in the tax period and do not exceed 20 percent of the taxable income reduced by expenditures according to §§ 33-40 paragraph 1g; in equal measure deductible are analogous voluntary services to the Confederation, canton, municipalities, and their institutions (§ 70 paragraph 1 a-d); the government council may approve a higher deduction for contributions to legal entities substantially supported by the canton or municipalities if significant public interest exists,

k. * membership contributions and donations up to a total of 5,600 Swiss Francs to political parties that

1. * are registered in the party register according to § 76a of the Federal Act of December 17, 1976, on political rights,

2. * are represented in a cantonal parliament,

3. * achieved at least 3 percent of the votes in a canton in the last elections of the cantonal parliament,

l. * proven costs up to 20,200 Swiss Francs for third-party care of each child who has not yet reached age 14 and lives with the taxable person responsible for their support, insofar as these costs are directly causally connected to the taxable person's employment, education, or incapacity for work,

m. * costs for vocational training and further education, including retraining costs, up to a total of 13,000 Swiss Francs, provided

1. a first qualification at the secondary level II exists, or

2. the individual has reached the age of 20 and it is not for education costs until the first qualification at secondary level II.

2. If spouses live in a legally and de facto undivided marriage, 5,000 Swiss Francs shall be deducted from the earned income earned by one spouse independent of the profession, business, or trade of the other spouse. An equivalent deduction is permissible in the case of significant cooperation of one spouse in the profession, business, or trade of the other spouse. The two deductions may not be claimed simultaneously.

3. From the individual winnings from participation in gambling, which is not tax-exempt under § 31 paragraphs 1k-m, 5 percent but not exceeding 5,400 Swiss Francs is deducted as wager costs. From individual winnings from online participation in casino games under § 31 paragraph 1kbis, the games stakes deducted from the online account in the tax year, but not in excess of 26,800 Swiss Francs, are deducted.

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

a. the expenses for the maintenance of the taxable person and their family, especially rent and ground rent as well as private expenses necessitated by the professional status of the taxable person,

b. * ...

c. the expenses for debt repayment,

d. the expenses for the acquisition, production or enhancement of assets,

e. the income, property gain, and wealth taxes from the federal government, cantons, and municipalities, and similar foreign taxes.

1. The following are deducted from the net income

a. * For each minor child or child in education for whom the taxable person provides maintenance,

1. * 8,100 Swiss francs,

2. * ...

3. * 13,200 Swiss francs if the child is in school or vocational training and has to stay permanently at an external place of training,

b. * For each child living in one's own household who has not yet reached the age of 14, 2,000 Swiss francs for own care; the deduction is increased to a maximum of 20,200 Swiss francs for the uncovered costs of third-party care for each child, provided these costs are in direct causal connection with the taxable person's employment or education,

c. * For each child living in one's own household who has not yet reached the age of 14, 2,000 Swiss francs for own care; the deduction is increased by the uncovered costs of third-party care for each child, provided these costs are in direct causal connection with the incapacity for work of the taxable person,

d. * For each person unable to work or with limited working capacity to whose maintenance the taxable person contributes at least an amount equal to the deduction, 2,800 Swiss francs; the deduction cannot be claimed for the spouse or for children for whom the taxable person is entitled to a deduction according to paragraph 1a or § 40 paragraph 1c; widowed, separated, divorced, and single taxpayers without children who are entitled to the rate according to § 57 paragraph 2 are granted the deduction only for dependent persons who do not live in the household of the taxable person,

e. * 14 percent of the difference between 50,400 Swiss francs and the net income for persons taxed according to the income tax rate in § 57 paragraph 1,

f. * 14 percent of the difference between 80,700 Swiss francs and the net income for persons taxed according to the income tax rate in § 57 paragraph 2.

2. Spouses in legally and factually undivided marriages may claim the deductions according to paragraph 1a-d only once. If the parents are taxed separately, the deduction according to paragraph 1a, the insurance deduction for children according to § 40 paragraph 1g, and the tax-free amount according to § 52 paragraph 1c are halved when the child is under joint parental care and no maintenance contributions are claimed for the child according to § 40 paragraph 1c.

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

4. In the case of limited tax liability or if tax liability only exists for part of the tax period, the social deductions are granted proportionally; for the rate determination, they are fully taken into account.

1. The entire estate is subject to wealth tax.

2. Usufructuary property is attributed to the usufructuary.

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

1. The assets are valued at fair market value, unless the following provisions provide otherwise.

1. Intangible Assets and Movable Property belonging to the Business Assets of the Taxpayer are Valued at the Relevant Value for Income Tax Purposes.

1. Life insurance policies are subject to wealth tax based on their surrender value.

1. For securities that are regularly traded, the market value is considered the fair market value.

2. For shares, cooperative shares, and other participatory rights that are not regularly traded, the fair market value must be estimated.

1. Immovable property is taxed based on its taxable value.

2. The taxable value corresponds to

a. 75 percent of the cadastral value for properties or parts of properties that the taxable person permanently inhabits as their residence, provided that the cadastral value corresponds to the market value,

b. the cadastral value in other cases.

3. If, at the relevant assessment date (§ 55), investments have been made for which no cadastral value is available, these investments shall be considered at their full value. For self-inhabited properties as mentioned in paragraph 2a, they shall be considered at 75 percent of their value. If an assessment of agricultural yield value is anticipated, the investments shall be recorded at one-third of their value.

1. The cadastral value of agricultural and forestry land is to be determined based on the income value. The income value is to be ascertained according to the provisions applicable to federal law valuations.

2. The cadastral value of other properties corresponds to the market value.

1. The Tax Office of the Canton determines the cadastral value and informs the owners about the assessment.

2. It also handles all tasks related to property appraisal that are not assigned by law or ordinance to another authority or office. Specifically, it determines

a. the property values and imputed values of farm inventory as required by the Federal Act on Rural Land Law (BGBB),

b. the imputed value relevant for the division of an estate (Art. 617 and 618 ZGB),

c. the average annual yield of an agricultural enterprise or property when forming an income community (Art. 347 ZGB),

d. the market value of immovable property, provided it is requested by a cantonal or communal authority; cases where an expropriation procedure can be initiated are excluded.

3. The federal regulations on appraisals apply mutatis mutandis to the determination of the cadastral value, unless federal law stipulates otherwise.

1. The cadastral value shall be reassessed every five years.

2. In the event of changes to the factual circumstances relevant to the valuation and upon the cessation of the conditions for an income or market value assessment, the cadastral value shall be reassessed at the time of the change.

3. If a cadastral value proves to be incorrect due to the disregard of essential facts or as a result of incorrect application of the law, it shall be reassessed.

4. If the change in the newly assessed cadastral value exceeds the previous cadastral value by more than five percent and more than 25,000 francs, the new value shall replace the previous cadastral value.

5. Property owners and local municipalities are required to report changes to the factual circumstances relevant to the assessment to the tax office free of charge.

1. The cantonal and municipal offices are required to grant the cantonal tax office access to relevant documents upon request. They may be instructed by the government council to independently report certain facts designated by it without charge.

2. The land registry offices report all registered changes in ownership and changes in property boundaries, as well as the establishment and cancellation of building rights, condominium ownership, and independent co-ownership to the cantonal tax office free of charge.

3. The cadastral surveyors are required to provide the cantonal tax office with a duplicate of the mutation plans, including information about the type of cultivation and its dimensions, at the expense of the client.

4. The Lucerne Building Insurance provides the cantonal tax office with documents necessary for determining building values free of charge and reports new constructions and structural changes to it.

1. The cadastral value and the rental value according to § 28 can be contested in the tax assessment procedure.

2. If the assessment authority changes the cadastral or rental value, the tax department of the canton informs the owner upon the conclusive determination of the assessment about the new valuation.

3. To the extent that federal appraisals can be contested, the provisions regarding the contestation of assessments apply mutatis mutandis. The objection authority is the tax department of the canton.

1. Employee participation pursuant to § 24b paragraph 1 must be recognized at fair market value. Any applicable lock-up periods are to be reasonably considered.

2. Employee participation pursuant to §§ 24b paragraph 3 and 24c must be declared without a tax value at the time of allocation.

1. Debts for which a taxable person alone is liable are fully deductible; other debts are deductible only to the extent that they must be borne by the taxable person.

1. Household Goods and Personal Items of Use Are Not Taxed.

1. From the net assets, the following amounts are deducted for the calculation of taxable assets

a. * for taxpayers living in an unseparated marriage, 125,000 Swiss francs,

b. * for other taxpayers, 62,500 Swiss francs,

c. * for each child eligible for deduction as per § 42 paragraph 1a, 12,500 Swiss francs.

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

3. In the case of limited tax liability, the tax-free amounts are granted proportionally.

1. Taxes on income and wealth are assessed and levied for each tax period.

2. The tax period is deemed to be the calendar year.

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

2. For the assessment of income from self-employment, the results of the financial statements falling within the tax period are decisive.

3. Taxpayers with self-employment must prepare a financial statement during each tax period and at the end of the tax obligation. A financial statement is not required if the employment activity begins only in the last quarter of the tax period.

4. If the tax obligation exists only during part of the tax period, the tax is levied on the income earned in that period. In this context, the tax rate for regularly occurring income is determined based on the income calculated over twelve months; irregularly occurring income is not recalculated for the determination of the tax rate. Section 58 remains reserved.

5. The deductions are subject to paragraph 4 mutatis mutandis.

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

2. For taxpayers engaged in independent business activities whose fiscal year does not coincide with the calendar year, the taxable business assets are assessed based on their status at the end of the fiscal year concluded during the tax period.

3. If the tax liability exists only during part of the tax period, the tax corresponding to this time period will be levied.

4. If the taxable person inherits assets during the tax period or if the economic affiliation to another canton ceases during the tax period, paragraph 3 applies mutatis mutandis.

1. Upon marriage, the spouses shall be jointly taxed for the current tax period.

2. In the event of a divorce, and in cases of legal or de facto separation, the spouses shall be taxed separately for the entire tax period.

3. Upon the death of a spouse, the spouses shall be jointly taxed until the day of death. The death shall be considered as the termination of the tax liability of both spouses and the commencement of the tax liability of the surviving spouse.

1. The tax per unit for a tax period is as follows

a. * 0.00 percent of the first: CHF 9,900.-

b. * 0.50 percent of the next: CHF 2,400.-

c. * 1.00 percent of the next: CHF 3,200.-

d. * 2.00 percent of the next: CHF 1,200.-

e. * 3.00 percent of the next: CHF 1,200.-

f. * 4.00 percent of the next: CHF 2,900.-

g. * 4.50 percent of the next: CHF 4,300.-

h. * 5.00 percent of the next: CHF 85,000.-

i. * 5.25 percent of the next: CHF 53,800.-

k. * 5.50 percent of the next: CHF 26,200.-

l. * 5.80 percent of the next: CHF 1,906,700.-

2. For married individuals living in a legally and factually undivided marriage, as well as for widowed, judicially or factually separated, divorced, and single individuals living in the same household with children or persons in need of support and primarily covering their maintenance, the tax per unit for a tax period is as follows

a. * 0.00 percent of the first: CHF 19,900.-

b. * 0.50 percent of the next: CHF 4,100.-

c. 1.50 percent of the next: CHF 1,000.-

d. * 2.50 percent of the next: CHF 1,200.-

e. * 3.00 percent of the next: CHF 2,100.-

f. * 3.50 percent of the next: CHF 4,200.-

g. * 4.50 percent of the next: CHF 66,700.-

h. * 5.00 percent of the next: CHF 38,900.-

i. * 5.50 percent of the next: CHF 21,100.-

k. * 5.80 percent of the next: CHF 1,266,300.-

3. A residual amount of less than 100 Swiss francs is disregarded in the determination of the taxable income.

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

5. ...

6. ...

1. Capital Benefits According to Sections 24 Paragraph 2 and 29 Paragraph 1, as well as Payments in Case of Death or for Permanent Physical or Health Disadvantages

Capital benefits as specified in Sections 24 paragraph 2 and 29 paragraph 1, along with payments made in the event of death or for permanent physical or health disadvantages, are aggregated and taxed separately. They are always subject to a full annual tax.

2. The tax per unit is 0.5 percent for the first 40,000 francs and 1 percent for amounts exceeding 40,000 francs.

3. Social deductions according to Section 42 are not granted.

1. If capital settlements for recurring services are part of the income, the tax shall be calculated taking into account the other income at the rate that would apply if, instead of the one-time payment, a corresponding annual payment were made.

2. The tax shall be at least 0.5 percent.

1. For small employment incomes from dependent gainful employment, the tax shall be levied without consideration of other income, possible professional expenses, and social deductions at a rate of 4.5 percent. The condition is that the employers pay the tax within the framework of the simplified settlement procedure according to Articles 2 and 3 of the Federal Act against Undeclared Work of June 17, 2005. This settles the income taxes from canton and municipality.

2. The provisions of § 114 paragraphs 1a as well as 2-4 apply mutatis mutandis.

3. The taxes are to be periodically delivered to the competent AHV compensation fund. This fund issues the taxpayers with a statement or confirmation of the tax deduction. It transfers the collected tax payments to the competent tax authority.

4. If employees are not liable to tax in the canton, the canton's tax office transfers the received tax amounts to the tax authority of the canton in which they are liable to tax.

5. If the competent compensation fund is not based in the canton, but the employees are liable to tax in the canton, the cantonal tax office reimburses them for overpaid taxes or collects from them underpaid taxes.

6. The direct settlement between the competent AHV compensation fund and the tax authority of the canton of residence remains reserved.

7. The government council is authorized to establish a tax rate differing from paragraph 1 for the creation of a uniform tax rate in Switzerland.

**1. If self-employment is permanently ceased after the completion of the 55th year of age or due to inability to continue as a result of disability, the sum of the hidden reserves realized in the last two fiscal years shall be taxed separately from the other income. Purchase contributions according to § 40 paragraph 1d are deductible. If no such purchases are made, the tax on the amount of the realized hidden reserves, for which the taxable person provides proof of the eligibility of a purchase according to § 40 paragraph 1d, is calculated at one third of the rates according to § 57, but at least 0.5 percent per unit. For determining the applicable rate on the remaining amount of the realized hidden reserves, one third of this remaining amount is decisive, but in any case, a tax at a rate of at least 2 percent per unit is levied.**

**2. Paragraph 1 also applies to surviving spouses, other heirs, and legatees, provided they do not continue the acquired enterprise; the tax settlement must occur no later than five calendar years after the end of the year of the decedent's death.**

1. The tax on wealth amounts to 0.75 per mille per unit for a tax year.

2. A remainder of less than 1000 francs is disregarded in the determination of taxable wealth.

3. ...

1. The effects of fiscal drag in the personal income tax are fully offset by the uniform adjustment of the tax brackets and the deductions from income set in Swiss Franc amounts. The amounts shall be rounded up or down to the nearest 100 Swiss Francs.

2. The cantonal government shall adjust the tax brackets and deductions annually in accordance with the national consumer price index. The relevant index level is the one on June 30 prior to the start of the tax period. An adjustment is precluded in the case of negative inflation. The offset following negative inflation is based on the last offset.

1. The total amount of the state's income tax, as well as the residents' and church municipalities' taxes, must not exceed 22.8 percent (tariff according to § 57 paragraph 1) or 22.4 percent (tariff according to § 57 paragraph 2) of the taxable income within the Canton of Lucerne.

2. The total amount of the state's wealth tax, as well as the residents' and church municipalities' taxes, must not exceed 3.0 per mille of the taxable wealth within the Canton of Lucerne.

1. Taxation of Legal Entities

a. Corporations (public limited companies, limited partnerships with shares, limited liability companies) and cooperatives;

b. Associations, foundations, and other legal entities.

2. Collective investment schemes with direct real estate holdings pursuant to Article 58 of the Collective Investment Schemes Act (CISA) are equated with other legal entities. Investment companies with fixed capital under Article 110 CISA are taxed as corporations.

3. Foreign legal entities, as well as foreign commercial partnerships and other foreign entities without legal personality subject to taxation pursuant to § 18 paragraph 2, are equated with domestic legal entities to which they are legally or factually most similar.

1. Legal entities are subject to tax on the basis of personal affiliation if their domicile or effective management is located in the Canton of Lucerne.

1. Legal entities with a registered office or actual administration outside the Canton of Lucerne are subject to tax liability if they

a. are partners in businesses within the canton,

b. maintain permanent establishments in the Canton of Lucerne,

c. have ownership of real estate in the Canton of Lucerne, possess in rem rights, or have personal usage rights that are economically equivalent.

d. * ...

2. Legal entities with a registered office or actual administration abroad are subject to tax liability if they are creditors or beneficiaries of claims secured by mortgage or pledge on properties in the Canton of Lucerne, or if they broker properties located in the Canton of Lucerne.

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

2. In the case of economic affiliation, the tax liability is limited to the portions of the profits and capital for which a tax liability exists in the Canton of Lucerne pursuant to § 65.

3. Taxpayers without a seat or actual administration in Switzerland must at least declare the profit generated and the capital located within the Canton of Lucerne for business operations, permanent establishments, and real estate in the Canton.

1. Tax Apportionment is carried out in relation to other cantons according to the principles of federal law concerning the prohibition of intercantonal double taxation, and in relation to foreign countries according to international treaties to avoid double taxation.

2. Losses from foreign real estate can only be taken into account if there is also a permanent establishment maintained in the respective country. A Swiss company can offset losses from a foreign permanent establishment against domestic profits, provided these losses have not yet been considered in the state where the permanent establishment is located. If this permanent establishment records profits within the following seven fiscal years, taxation will occur in these fiscal years to the extent of the loss carryforwards offset in the permanent establishment state. Otherwise, foreign losses are only to be considered in the cases prescribed by double taxation agreements.

3. ...

1. Tax liability commences with the establishment of a legal entity, with the relocation of its domicile or its effective management to the Canton of Lucerne, or with the acquisition of values taxable in the canton. Paragraph 3 remains reserved.

2. Tax liability ends with the completion of liquidation, with the relocation of the domicile and effective management out of the Canton of Lucerne, or with the cessation of values taxable in the canton. Paragraph 3 remains reserved.

3. In inter-cantonal relations, the consequences of the commencement, modification, and termination of tax liability due to personal and economic affiliation are determined by the Federal Law on the Harmonization of Direct Taxes of Cantons and Municipalities as well as by the principles of federal law on the prohibition of inter-cantonal double taxation.

4. If a legal entity transfers its assets and liabilities to another legal entity, the taxes it owes are to be paid by the acquiring legal entity.

1. If the tax liability of a legal entity ends, the persons responsible for its management and liquidation are jointly and severally liable for the taxes owed by the entity up to the amount of the liquidation proceeds or, if the legal entity relocates its seat or effective management abroad, up to the amount of the net assets of the legal entity.

2. For the taxes of a legal entity subject to taxation due to economic affiliation, persons are jointly and severally liable up to the amount of the net proceeds who

a. dissolve businesses or permanent establishments in the canton of Lucerne,

b. sell or utilize real property located in the canton of Lucerne or claims secured by such properties.

3. A party to a sales contract concerning a property located in the canton of Lucerne is jointly and severally liable for the taxes owed from the brokerage activity up to three percent of the purchase price if the legal entity that brokered the property and was engaged by the party has neither its registered office nor its effective management in Switzerland.

4. For the taxes of foreign commercial partnerships and other foreign entities without legal personality, the partners are jointly and severally liable.

1. Exemption from Tax Liability

a. The Confederation and its institutions, subject to Federal law;

b. The Canton and its institutions, subject to paragraphs 2 and 3;

c. The municipalities and municipal associations of the Canton of Lucerne for their income and assets, subject to paragraphs 2 and 3;

d. The church communities for their assets and income, insofar as it is used for ecclesiastical purposes;

e. Occupational pension schemes of companies with domicile, registered office, or permanent establishment in Switzerland and their affiliated companies, provided that the resources of the scheme are devoted permanently and exclusively to employee benefits;

f. Domestic social insurance and compensation funds, particularly unemployment, old-age, disability, and survivors' insurance funds, with the exception of licensed insurance companies, subject to Federal law;

g. Health insurance funds and insurance companies, insofar as their income and assets are exclusively used for the implementation of social health insurance and the delivery or assurance of their services, subject to Federal law;

h. Legal entities pursuing public or charitable purposes for the profit and capital exclusively and irrevocably dedicated to these purposes; business purposes are generally not charitable; the acquisition and management of substantial capital investments in companies are considered charitable if the interest in maintaining the company is subordinate to the charitable purpose and no executive activities are conducted;

i. Legal entities pursuing religious purposes at the cantonal or nationwide level for the profit and capital exclusively and irrevocably dedicated to these purposes;

k. Foreign states for their domestic real estate intended exclusively for the direct use of diplomatic and consular representations, as well as institutional beneficiaries exempt from tax liability per Article 2 paragraph 1 of the Host State Act for the real estate owned by the institutional beneficiaries and used by their offices;

l. Traffic and infrastructure companies licensed by the Confederation that receive compensation for this activity or must maintain year-round operations of national importance due to their license; the tax exemption also extends to freely available profits from the licensed activity; however, auxiliary operations and real estate with no necessary connection to the licensed activity are excluded from the tax exemption;

m. The political parties represented in the Cantonal Council;

n. Collective investment schemes with direct real estate ownership, provided their investors are exclusively tax-exempt occupational pension schemes per paragraph 1e or tax-exempt domestic social insurance and compensation funds per paragraph 1f.

2. The Canton of Lucerne, the municipalities, and the municipal associations pay the profit tax on the net profit of their commercial and industrial enterprises according to the principles applicable to corporations and cooperatives.

3. The Canton of Lucerne, the municipalities, and the municipal associations pay a capital tax on the net assets of their commercial and industrial enterprises according to the principles applicable to corporations and cooperatives.

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

1. The taxable net profit consists of

a. the balance of the profit and loss account, taking into account the carry-forward of the previous year,

b. all parts of the business result excluded before the calculation of the profit and loss account balance, which are not used to cover business-related expenses, particularly

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

2. non-business-related depreciations, value adjustments, and provisions;

3. allocations to reserves;

4. payments on equity from the legal entity's own funds, insofar as they do not originate from reserves taxed as profit;

5. open and hidden profit distributions and non-business-related benefits to third parties,

c. revenues not credited to the profit and loss account, including capital, revaluation, and liquidation gains; subject to § 78;

d. interest on hidden equity.

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

1. Patents are considered to be

a. Patents under the European Patent Convention of October 5, 1973, in its revised version of November 29, 2000, with designation Switzerland,

b. Patents under the Patent Act of June 25, 1954,

c. Foreign patents equivalent to the patents under paragraphs 1a and b.

2. Comparable rights are considered to be

a. Supplementary protection certificates under the Patent Act of June 25, 1954, and their extensions,

b. Topographies protected under the Topography Act of October 9, 1992,

c. Plant varieties protected under the Plant Variety Protection Act of March 20, 1975,

d. Documentation protected under the Therapeutic Products Act of December 15, 2000,

e. Reports protected based on the implementing provisions of the Agriculture Act of April 29, 1998,

f. Foreign rights equivalent to the rights under paragraphs 2a-e.

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

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

3. If the net profit from patents and comparable rights is taxed with a reduction for the first time, the research and development expenditure already considered in past tax periods is added to the taxable net profit. A taxed hidden reserve is to be formed to the extent of the added amount.

1. The total tax relief pursuant to Sections 72b paragraphs 1 and 2 and 72f may not exceed 70 percent of the taxable profit before loss offsetting, excluding net participation income as defined in Sections 82 and 83 and prior to the deduction of the aforementioned reliefs.

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

1. If the taxpayer reveals hidden reserves, including self-generated added value, at the commencement of tax liability, these shall not be subject to income tax. Hidden reserves of a corporation or cooperative from participations of at least 10 percent in the share or equity capital or in the profits and reserves of another company must not be disclosed.

2. The commencement of tax liability shall be deemed as the transfer of assets, businesses, business units, or functions from abroad to a domestic business operation or to a domestic permanent establishment, the cessation of a tax exemption under § 70 paragraph 1, as well as the relocation of the seat or the effective management to Switzerland.

3. The disclosed hidden reserves must be amortized annually at the rate that is applied for tax depreciation on the respective assets.

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

1. Upon the termination of tax liability, any existing, untaxed hidden reserves, including self-created added value, shall be subject to taxation.

2. The termination of tax liability is deemed to occur upon the relocation of assets, businesses, parts of businesses, or functions from the domestic territory to a foreign business operation or foreign establishment, the transition to a tax exemption according to § 70 paragraph 1, as well as the relocation of the domicile or the actual management to a foreign country.

1. **Research and Development Expenses**: Research and development expenses incurred directly or indirectly by the taxable person through third parties domestically may, upon request, be allowed as a deduction up to the percentage stipulated by the government council through regulations, but no more than 50 percent beyond the commercially justified research and development expenses. Section 72c remains reserved.

2. **Definition of Research and Development**: Research and development shall be deemed to include scientific research and science-based innovation as defined in Article 2 of the Federal Act on the Promotion of Research and Innovation dated December 14, 2012.

3. **Eligibility for Increased Deduction**: An increased deduction is permissible for

a. The directly attributable personnel expenses for research and development, plus a surcharge of 35 percent of these personnel expenses, but not exceeding the total expenses of the taxable person,

b. 80 percent of the expenses invoiced for research and development conducted by third parties.

4. **Restriction on Deduction**: If the person who commissioned the research and development is eligible for the deduction, the person who executed the assignment shall not be entitled to such a deduction.

1. The business-related expenses include

a. * the federal, cantonal, and municipal taxes,

b. the contributions to pension schemes for the benefit of the company's own personnel, provided any misuse of the funds is excluded,

c. * voluntary donations of money and other assets up to 20 percent of the net profit to legal entities based in Switzerland, which are exempt from tax due to their public or charitable purposes (§ 70 para. 1h), as well as to the Confederation, cantons, municipalities, and their institutions (§ 70 para. 1 a-d); the government council may approve a higher deduction for donations to legal entities that receive substantial support from the canton or municipalities if there is a significant public interest,

d. * the costs of professional education and training, including retraining costs, for the company's own personnel,

e. * profit-siphoning sanctions, to the extent that they do not serve a punitive purpose.

2. Equated to business-related expenses are discounts, cash discounts, sales bonuses, and rebates on the compensation for deliveries and services, as well as surpluses determined for distribution to insured persons from insurance companies.

3. Not considered business-related expenses are, in particular

a. * payments of bribes as defined in Swiss criminal law,

b. * expenses to enable criminal offenses or as consideration for the commission of criminal offenses,

c. * fines,

d. * financial administrative sanctions, to the extent that they have a punitive purpose.

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

a. the sanction violates Swiss public policy, or

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

1. No taxable gain arises from

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

b. Transfer of the registered office, administration, business operations, or a permanent establishment within Switzerland, provided no disposals or book value adjustments are made,

c. Capital increase from inheritance, legacy, or gift.

1. Hidden reserves of a legal entity are not taxed during reorganizations, particularly in the case of mergers, demergers, or conversions, provided that the tax liability in Switzerland continues and the values relevant for profit tax are adopted

a. in the conversion into a partnership or another legal entity,

b. in the demerger of a legal entity, provided that one or more businesses or parts of businesses are transferred and to the extent that the legal entities existing after the demerger continue to operate a business or part of a business,

c. in the exchange of participation or membership rights in the context of reorganizations or merger-like combinations,

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

2. In the case of a transfer to a subsidiary pursuant to paragraph 1d, the transferred hidden reserves are subsequently taxed according to the procedure under §§ 174-178, to the extent that the transferred assets or participation or membership rights in the subsidiary are sold within five years following the reorganization; in such cases, the subsidiary may claim the corresponding hidden reserves taxed as profit.

3. Among domestic corporations and cooperatives, which are consolidated under the unified management of a corporation or cooperative through majority voting or other means based on the overall image of actual circumstances, directly or indirectly held participations of at least 20 percent of the capital or nominal capital of another corporation or cooperative, businesses or part businesses, as well as assets of operating fixed assets, may be transferred at the values previously relevant for profit tax. The transfer to a subsidiary pursuant to paragraph 1d remains reserved.

4. If, in the event of a transfer pursuant to paragraph 3, the transferred assets are sold within the following five years, or if the unified management is abandoned during this period, the transferred hidden reserves are subsequently taxed according to the procedure under §§ 174-178. In such cases, the privileged legal entity may claim the corresponding hidden reserves taxed as profit. Domestic corporations and cooperatives consolidated under unified management at the time of the breach of the holding period are jointly and severally liable for the additional tax.

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

6. If a corporation or cooperative transfers a participation to a foreign group company, the taxation on the difference between the value for profit tax purposes and the market value of the participation is deferred. The tax deferral ceases if the transferred participation is sold to third parties outside the group, if the company whose participation rights were transferred significantly sells its assets and liabilities, or if it is liquidated.

1. Business-related justifiable depreciation of assets is permissible, provided they are recorded in the accounts, or, in the case of simplified accounting pursuant to Article 957 paragraph 2 of the Swiss Code of Obligations, shown in special depreciation schedules.

2. Generally, depreciation is calculated based on the actual value of the individual assets or appropriately distributed according to their expected useful life.

3. Depreciation on assets that were previously revalued to offset losses can only be made if the revaluations were permissible under commercial law and if the losses, at the time of depreciation, could have been offset according to § 80 paragraph 1.

4. Value adjustments and depreciation on the acquisition costs of participations that meet the requirements of § 83 paragraph 2b are added back to the taxable profit to the extent they are no longer justified.

1. Provisions charged to the income statement are permissible insofar as they are necessary to offset impending losses or to settle existing obligations whose legal existence or amount is still indeterminate.

2. Equated with provisions are reserves for research and development contracts with third parties up to 10 percent of taxable profit, but not exceeding a total of 1 million Swiss francs.

3. Value adjustments are permissible insofar as they correspond to a reasonable compensation of the temporary impairment of value that occurred during the tax period.

4. Previous provisions and value adjustments are attributed to the taxable business income insofar as they are no longer justified.

1. If items of essential operating fixed assets are replaced, the hidden reserves can be transferred to the replacement assets acquired as substitutes, provided these are also essential for operations and are located in Switzerland. Taxation reservations remain applicable when replacing real estate with movable asset items.

2. If the replacement acquisition does not occur in the same fiscal year, a provision can be made up to the amount of the hidden reserves. This provision must be used to write down the replacement asset within a reasonable period or to be dissolved in favor of the profit and loss account.

3. Only fixed assets that serve the business directly are considered essential for operations; assets that serve the enterprise solely as an investment or solely by their income are particularly excluded.

4. When replacing participations, the hidden reserves can be transferred to a new participation, provided that the disposed participation constituted at least 10 percent of the share or equity capital or at least 10 percent of the profits and reserves of the other company and was held by the corporation or cooperative for at least one year.

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

2. From the taxable revenues of associations, the expenses required to achieve these revenues can be fully deducted, while other expenses can only be deducted to the extent that they exceed the membership fees.

3. Collective investment schemes with direct real estate ownership are subject to profit tax for income from direct real estate ownership.

1. Losses from the seven business years preceding the tax period may be deducted from the net profit of the tax period, provided they could not be taken into account when calculating the taxable net profit of those years.

2. In the context of financial restructuring, losses that occurred in previous business years and have not yet been offset against profits may also be offset by contributions to balance an undercapitalization, which are not capital contributions under § 74 subparagraph a.

1. The tax per unit for corporations and cooperatives amounts to 1.5 percent of the net profit.

2. If, in the case of cross-border matters, another state or canton requires a minimum tax burden for the tax recognition on profits of corporations or cooperatives taxed in the canton, the tax rate shall be increased, taking into account the direct federal tax, to meet the minimum tax burden required by the other state or canton.

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

a. holds at least 10 percent of the share or capital stock of another company,

b. holds at least 10 percent of the profit and reserves of another company, or

c. holds participation rights with a market value of at least 1 million Swiss francs.

2. The net income from participations pursuant to paragraph 1 corresponds to the income from these participations minus the related financing expenses and a contribution of five percent to cover administrative expenses. The evidence of the actual administrative expenses is reserved. Financing expenses include interest on debt as well as other expenses that are economically equivalent to interest on debt.

3. The following are not considered participation income

a. Income that constitutes business-related expenses for the paying corporation or cooperative,

b. Revaluation gains on participations; subject to § 83.

4. Income from a participation is only taken into account in the calculation of the reduction to the extent that no depreciation has been made on the same participation, at the expense of taxable net profit, which is related to the profit distribution.

5. Transactions within a group that result in an unjustified tax saving lead to a correction of the taxable net profit and equity capital or to a reduction of the reduction. An unjustified tax saving occurs when capital gains and capital losses or depreciation on participations within the meaning of §§ 76, 82, and 83 are causally related.

6. For parent companies of systemically important banks according to Article 7 paragraph 1 of the Banking Act of November 8, 1934 (BankG), the financing expenses and the receivables on the balance sheet from intra-group distributed funds are not considered in the calculation of net income pursuant to paragraph 1, if these funds originate from debt instruments under Articles 11 paragraph 4 or 30b paragraph 6 or 7 letter b BankG, approved by the Swiss Financial Market Supervisory Authority for the fulfillment of regulatory requirements.

1. The income from participations, subject to paragraphs 2 and 3, also includes capital gains on these participations, the proceeds from the associated subscription rights, and book profits resulting from revaluation in accordance with Article 725c of the Swiss Code of Obligations (OR).

2. Capital gains and book profits resulting from revaluation pursuant to Article 725c OR are only considered in the calculation of the reduction according to § 82,

a. insofar as the proceeds or the revaluation exceed the acquisition costs,

b. * if the disposed participation represented at least 10 percent of the share capital or equity of another company, or entitled the holder to at least 10 percent of the profit and reserves of another company, and was held for at least one year by the disposing corporation or cooperative; if the participation ratio falls below 10 percent due to partial disposal, the reduction can only be claimed for each subsequent disposal gain if the participation rights had a market value of at least 1 million Swiss francs at the end of the fiscal year before the sale.

3. The acquisition costs are reduced by the depreciations carried out, insofar as these led to a reduction in the relief pursuant to § 82 paragraph 4. After a revaluation as per Article 725c OR, the acquisition costs are correspondingly increased. For participations transferred at book values during a tax-neutral restructuring, the original acquisition costs are considered.

1. The tax per unit for associations, foundations, and other legal entities amounts to 1.5 percent of the net profit.

2. Profits up to a maximum of 20,000 francs are not taxed.

1. Profits of legal entities with non-profit purposes are not taxed, provided they do not exceed 20,000 Swiss Francs and are exclusively and irrevocably dedicated to these purposes.

1. The tax per unit of collective investment schemes with direct real estate ownership amounts to 1.5 percent of the net profit.

1. Subject of the Capital Tax is the Equity.

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

2. ...

3. At a minimum, taxable is the paid-in share, primary, or common capital, including the paid-in participation capital.

1. The taxable equity of corporations and cooperatives is increased by the portion of debt capital that economically holds the significance of equity.

1. Taxable Equity Capital

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

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

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

3. ...

1. The tax amounts to 0.01 per mille of the taxable equity capital.

2. Equity capital under 100,000 francs of associations, foundations, and other legal entities, with the exception of collective investment schemes, is not taxed.

3. Equity capital under 100,000 francs of legal entities with non-profit purposes is not taxed, provided it is exclusively and irrevocably dedicated to these purposes.

4. ...

1. Corporations and cooperatives shall pay a minimum tax of 1 per mille of the tax value of real estate located in the Canton of Lucerne, instead of regular taxes, if the minimum tax amount exceeds the taxes resulting from §§ 72-93. The tax value at the end of the tax period is decisive.

2. Exempt from the minimum tax according to paragraph 1 are

a. Properties of corporations and cooperatives that meet the requirements for federal assistance in accordance with Articles 51 and 52 of the Housing and Property Promotion Act,

b. Properties of corporations and cooperatives where predominantly the business of an enterprise managed in a commercial manner by the owner or a controlling natural or legal person takes place, provided the latter has invested at least a quarter of the property's tax value as capital. Mere administration and use of the property as a capital investment or trading in it are not considered as business.

3. Corporations shall pay a minimum tax of 500 Swiss Francs instead of regular taxes, if this amount exceeds the taxes resulting from §§ 72-95 paragraphs 1 and 2.

4. Cooperatives shall pay a minimum tax of 200 Swiss Francs instead of regular taxes, if this amount exceeds the taxes resulting from §§ 72-95 paragraphs 1 and 2.

1. Taxes on the net profit and equity of legal entities are assessed and levied for each tax period.

2. The financial year is considered the tax period.

3. In every calendar year, except the year of incorporation, financial statements with annual accounts must be prepared. Additionally, a financial statement is required when relocating the registered office, administration, a business operation, or a permanent establishment abroad, as well as upon completion of liquidation.

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

2. If a legal entity is dissolved or relocates its headquarters, administration, business operations, or a permanent establishment abroad, the hidden reserves formed from untaxed profits are taxed together with the net profit of the last financial year.

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

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

2. In cases of non-annual or under-annual financial statements, the amount of the capital tax is determined by the length of the fiscal year.

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

1. Applicable are the tax units in effect at the end of the tax period.

1. The total tax burden on corporations through state and municipal taxes (net profit and capital tax) shall not exceed 12 percent of the taxable net profit, but must be at least 1 per mille of the taxable equity capital.

1. Employees without a permanent residence permit who have a tax residence or stay in the Canton of Lucerne are subject to withholding tax on their income from dependent employment.

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

1. Withholding tax is calculated from the gross income.

2. Subject to taxation are

a. * Income from dependent employment as per § 101 paragraph 1, including ancillary income such as monetary benefits from employee participation and benefits in kind, but not the costs borne by the employer for career-oriented education and training as per § 24 paragraph 3,

b. * Substitute income,

c. * Benefits according to Article 18 paragraph 3 of the Federal Law on Old-Age and Survivors Insurance (AHVG) of December 20, 1946[31].

3. Benefits in kind and gratuities are generally assessed according to the rates applicable to the Federal Old-Age and Survivors Insurance.

1. The Tax Office of the Canton calculates the amount of withholding tax based on the tax rates applicable to the income tax of natural persons.

2. For income from secondary employment, the tax rate is 9 percent.

3. For benefits that an insurance does not provide according to the insured earnings or which are in addition to any employment income, the tax rate is 9 percent.

4. The tax deduction includes both state and municipal taxes. Relevant for the state taxes are the tax units in the calendar year preceding the tax year. The municipal taxes are calculated according to the weighted average of the municipal taxes in the calendar year preceding the tax year.

1. In the calculation of the withholding tax deduction, allowances for professional expenses (§ 33) and for insurance premiums (§ 40 para. 1d, f, and g) as well as deductions for family burdens (§ 42 para. 1a) are taken into account. The tax office of the canton publishes the individual allowances.

2. ...

3. The withholding tax deduction for spouses living in a legally and factually undivided marriage, both of whom are gainfully employed, is based on rates that take into account their total income (§ 16 para. 1), the allowances and deductions according to paragraph 1, as well as the deduction for the gainful employment of both spouses (§ 40 para. 2).

1. Persons subject to withholding tax according to § 101 paragraph 1 shall be subsequently assessed under the ordinary procedure if

a. * their gross income in a tax year reaches or exceeds a certain amount, or

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

2. The Federal Department of Finance shall determine the amount under paragraph 1a in collaboration with the Cantons.

3. Subject to subsequent ordinary assessment is also any person who lives in a legally and factually undivided marriage with a person under paragraph 1.

4. Persons with assets and income according to paragraph 1b must request the form for the tax declaration by March 31st of the year following the tax year from the competent authority.

5. The subsequent ordinary assessment shall apply until the end of the withholding tax obligation.

6. The tax deducted at source shall be credited without interest.

1. Persons who are subject to withholding tax pursuant to § 101 paragraph 1 and do not meet any of the requirements according to § 105 paragraph 1 shall, upon request, be assessed retroactively under the ordinary procedure.

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

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

4. If no retroactive ordinary assessment is made upon request, the withholding tax replaces the direct federal tax and the cantonal and municipal taxes on earned income assessable under the ordinary procedure. No additional deductions will be granted retroactively.

5. § 105 paragraphs 5 and 6 shall apply.

1. Cross-border commuters, weekly residents, and short-term residents living abroad are subject to withholding tax on their income from employment earned in the Canton of Lucerne, according to sections 102-104.

1. Employees residing abroad who receive wages or other compensation for work in international transport on board a ship, an aircraft, or during road transport from an employer with headquarters or a permanent establishment in the Canton of Lucerne are subject to withholding tax according to §§ 102-104 for these services. The taxation of seafarers for work on board an ocean-going ship remains excluded from this.

**1. Artists residing abroad, such as stage, film, radio or television artists, musicians, performers, and athletes, as well as speakers, are subject to withholding tax on income derived from their activities performed in the Canton of Lucerne and any additional related compensation. This also applies to income and compensation that is not received by the taxable person themselves but rather by a third party that organized their activities.**

**2. The tax amounts are:**

a. for daily earnings up to 200 Francs: 9.2%,

b. for daily earnings from 201-1000 Francs: 9.6%,

c. for daily earnings from 1001-3000 Francs: 10%,

d. for daily earnings over 3000 Francs: 13%.

**3. Daily earnings are considered to be gross earnings, including all allowances and additional benefits, after deduction of acquisition costs. These are:**

a. * 50 percent of the gross earnings for artists,

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

**4. In-kind benefits are generally evaluated according to the rates applicable to the Swiss Federal Old Age and Survivors Insurance.**

**5. Anyone who organizes performances by artists, athletes, or speakers in Switzerland is jointly liable for the payment of the withholding tax.**

1. Members of the management or administration of legal entities with domicile or actual management in the canton who reside abroad are liable to tax on the fees, meeting allowances, fixed compensations, employee participation, and similar remunerations paid to them.

2. Members of the management or administration of foreign enterprises that maintain permanent establishments in the canton and reside abroad are liable to tax on the fees, meeting allowances, fixed compensations, employee participation, and similar remunerations paid to them, charged to these permanent establishments.

3. The tax amounts to 20 percent of the taxable income. Taxable income is considered to be the gross income, including all allowances and fringe benefits. This also includes compensations that do not accrue to the taxable person themselves but to a third party.

1. Creditors and beneficiaries of claims secured by mortgages or pledges on properties located in the Canton of Lucerne, who reside abroad, are subject to a withholding tax at the source on this property and the interest paid to them.

2. Taxable income is considered to be the gross income. This includes interest that is paid to a third party rather than the taxpayer themselves. The tax amounts to 17 percent of the taxable income.

3. Taxable assets are considered to be the pledge-secured claim. The tax amounts to 3 per mille of the taxable assets.

1. Persons residing abroad who

a. receive pensions, retirement payments, capital benefits, or other compensations due to a former public-law employment relationship from an employer or a pension fund with a seat or place of business in the Canton of Lucerne,

b. receive annuities, capital benefits, or other compensations from private-law occupational pension schemes or recognized forms of tied personal pension schemes with a seat or place of business in the Canton of Lucerne, are subject to a withholding tax on these benefits.

2. Taxable income shall be considered as gross income.

3. The tax amounts to 9 percent of the taxable income.

4. For capital benefits, the tax is calculated in accordance with § 58.

1. Individuals who are residing abroad at the time of the inflow of monetary benefits from restricted employee options (§ 24b para. 3) are subject to tax on the monetary benefit proportionally according to § 24d.

2. The tax amounts to 20 percent of the monetary benefit.

1. Persons subject to withholding tax under § 106 or § 107 can apply for a subsequent ordinary assessment for each tax period by March 31 of the year following the tax year if

a. * the predominant part of their worldwide income, including the income of their spouse, is taxable in Switzerland,

b. * their situation is comparable to that of a taxpayer residing in Switzerland, or

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

2. The tax deducted at the source shall be credited without interest.

3. Persons applying for a subsequent ordinary assessment must submit the necessary documents and designate a delivery address in Switzerland. If no delivery address is designated or the delivery address becomes invalid during the assessment procedure, the assessment authority shall grant the taxpayer an appropriate period to designate a valid delivery address. If this period expires unused, the withholding tax replaces the state and municipal taxes on earned income to be assessed under the ordinary procedure.

1. In cases of gross discrepancies, particularly concerning the flat-rate deductions included in the withholding tax rate, the competent cantonal tax authorities may, ex officio, request a subsequent ordinary assessment in favor of or against the taxable person.

2. The Federal Department of Finance, in collaboration with the cantons, establishes the conditions.

1. Withholding tax replaces the state and municipal taxes on earned income that would normally be assessed in the regular procedure. No additional deductions are granted retroactively.

1. The debtor of the taxable service is obliged to undertake all measures necessary for the correct collection of taxes, in particular

a. to withhold the owed tax upon the due date of monetary payments, regardless of any objections or wage garnishments, and to demand the owed tax from the taxable person for other services (especially benefits in kind and gratuities),

b. to issue to the taxable person a statement or confirmation of the amount of the tax deduction and, upon request, a salary statement,

c. to remit the taxes to the Cantonal Tax Office, to settle accounts with it, to grant it access to all documents for the purpose of tax collection control, and to provide information upon request either orally or in writing,

d. * to report persons subject to subsequent ordinary assessment to the Cantonal Tax Office without being prompted,

e. * to pay the proportional taxes on employee stock options exercised abroad; the employer owes the proportional tax even when the monetary benefit is granted by a foreign group company.

2. The withholding of the tax must also occur if the taxable person is subject to taxation in another canton.

3. The debtors of the taxable service are liable for the payment of the withholding tax.

4. The debtor of the taxable service receives a collection commission of 1 to 2 percent of the total withholding tax amount. The government council determines the applicable percentage within this framework. For capital benefits, the collection commission is 1 percent of the total withholding tax amount, but no more than 50 francs per capital benefit for the withholding tax of the direct federal tax as well as the cantonal and municipal taxes.

1. The taxable person is required to provide information, either orally or in writing, to the Cantonal Tax Office as well as to the debtor of the taxable benefit, regarding the circumstances relevant for the collection of the withholding tax.

2. In the case of an ordinary assessment, the taxable person must submit a tax return within the prescribed deadline.

3. The taxable person may be required by the Cantonal Tax Office to pay any outstanding withholding taxes for which they are liable, if the taxable benefit paid was not or not completely reduced by the withholding tax and a subsequent collection from the debtor of the taxable benefit is not possible.

4. In all other respects, §§ 144-149 apply accordingly.

1. The debtor of the taxable benefit calculates and levies the withholding tax as follows

a. * for employees according to § 101: in accordance with the law of the canton where these individuals have their tax domicile or residence at the time the taxable benefit is due,

b. * for individuals according to §§ 106 and 107 as well as §§ 109-111a: in accordance with the law of the canton where the debtor of the taxable benefit has their tax domicile, residence, registered office, or management at the time the taxable benefit is due; if the taxable benefit is provided by a permanent establishment in another canton or by the permanent establishment of a company without a registered office or actual management in Switzerland, the calculation and collection of the withholding tax are governed by the law of the canton where the permanent establishment is located,

c. * for individuals according to § 108: in accordance with the law of the canton where these individuals perform their activity.

2. If the employee is a weekly resident in Switzerland without a tax domicile or residence, paragraph 1a applies mutatis mutandis.

3. The debtor of the taxable benefit transfers the withholding tax to the canton responsible as per paragraph 1.

4. The competent authority for subsequent ordinary assessment is

a. for individuals according to paragraph 1a: the canton where the taxable person had their tax domicile or residence at the end of the tax period or tax liability,

b. for individuals according to paragraph 1b: the canton where the taxable person was economically active at the end of the tax period or tax liability,

c. for individuals according to paragraph 2: the canton where the taxable person had a weekly residence at the end of the tax period or tax liability.

1. The canton responsible under Section 116, paragraph 4, is entitled to any withholding tax amounts transferred to other cantons during the calendar year.

2. ...

3. Taxes that were overpaid are refunded to the employee without interest, and taxes that were underpaid are collected without interest.

4. ...

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

a. * do not agree with the withholding tax deduction according to the certificate under § 114 paragraph 1b, or

b. * have not received the certificate under § 114 paragraph 1b from the employer.

**1bis.** The debtor of the taxable payment can request a decision from the tax assessment authority regarding the existence and extent of the tax liability by March 31 of the tax year following the due date of the payment.

**2.** The debtor of the taxable payment remains obliged to the tax deduction until a contrary legally binding decision is made.

1. An objection to a decision regarding the withholding tax may be filed by the taxable person, the debtor of the taxable service, with the Tax Office of the Canton pursuant to § 154. Otherwise, §§ 154-157 apply mutatis mutandis.

2. The taxable person, the debtor of the taxable service, may appeal the objection decision to the Administrative Court pursuant to § 164. The procedure is governed by §§ 164-166.

1. If the debtor of the taxable service has not made or has insufficiently made the tax deduction, the Cantonal Tax Office obligates them to make a supplementary payment. The right of recourse of the debtor against the taxable person is reserved.

2. If the debtor of the taxable service has made an excessively high tax deduction, they must reimburse the difference to the taxable person. The collection authority may also directly refund to the taxable person the excessively deducted and accounted withholding taxes.

3. A refund is only possible as long as there has been no forfeiture according to § 118 paragraphs 1 and 1bis.

1. The government council shall designate the assessment and collection authority.

2. The tax withheld at the source is due at the time of payment, transfer, credit, or offset of the taxable benefit.

3. The tax amount must be transferred to the collection authority by the debtor of the taxable benefit within 30 days after it becomes due. The collection authority may specify special delivery dates.

4. For taxes paid late, default interest will be charged; interest starts accruing 30 days after the delivery date.

5. Otherwise, the provisions concerning the collection of taxes apply mutatis mutandis.

1. Exempt from withholding tax are incomes subject to taxation under the simplified accounting procedure according to § 59a.

2. ...

3. ...

4. ...

1. The government council issues the implementation provisions and regulates the distribution of the tax among the municipalities after deducting the administrative costs of the canton.

2. It may set minimum thresholds for §§ 108-111.

1. The Tax Office of the Canton enforces this law, unless it is regulated otherwise. It exercises direct supervision over the tax system.

2. It issues the instructions and orders necessary for its correct and uniform application. In particular, it regulates the electronic recording and processing of data as well as their exchange with the municipalities, the taxpayers, and third parties, and determines the tax forms.

3. If it issues a preliminary decision, this is binding for the assessment authority.

1. Municipalities assess natural persons. Exceptions include individuals taxed based on expenditure, self-employed persons, and individuals taxed at source.

2. The government council regulates the basic principles of assessment by municipalities in the ordinance.

3. The tax office of the canton authorizes persons empowered to assess.

1. The tax commissions decide on objections to assessment rulings.

2. Each tax commission consists of at least a president or chairperson and one other member.

3. The number of tax commissions and their organization are determined by the cantonal tax office.

1. The Tax Office of the Canton is under the supervision of the Department of Finance.

1. The Cantonal Court is the appellate authority in tax matters. The appeals procedure is governed by § 132 paragraph 2 and §§ 164 et seq.

1. The tax is assessed in the municipality where the taxable person has their legal domicile or residence at the end of the tax period or tax liability.

1. For taxable persons without a legal residence or domicile in the Canton of Lucerne, the assessment takes place in the municipality where the conditions of §§ 9 or 10 are met at the end of the tax period or tax liability.

2. Taxable income or assets in the sense of § 11 are assessed at the place of administration or where the property is located.

3. If the conditions are met in multiple municipalities, the assessment takes place in the municipality where the largest part of the taxable values is located.

1. If the place of assessment in an individual case is uncertain or disputed, it shall be finally determined by the Tax Office of the Canton.

2. The determination of the place of assessment can be requested by the assessment authorities and by the taxpayers.

3. The Tax Office of the Canton is authorized to annul assessment actions that are in contradiction with §§ 129 and 130.

1. In proceedings under this Act, the following provisions of the Administrative Procedure Act shall apply

a. Clarification of jurisdiction (Sections 11-13),

b. Recusal provisions (Sections 14-16), subject to Section 133,

c. Parties and their representation (Sections 17-24),

d. Formal requirements (Sections 25-30),

e. Deadlines and appointments (Sections 31-36).

2. For the taking of evidence and the complaint procedure, the provisions of the Administrative Procedure Act shall apply, insofar as this Act does not prescribe otherwise.

3. For supervisory complaints, Sections 180 et seq. of the Administrative Procedure Act[34] shall apply.

1. A person who has participated in the assessment procedure may not be consulted as an expert in the appeal procedure.

2. The taxable person may also reject the involvement of a member of an authority or an organ of that authority, provided they can credibly demonstrate that they are in a business competitive relationship with them.

3. Requests for recusal against members of authorities under the professional supervision of the Cantonal Tax Office shall be decided by its head.

1. Any person entrusted with or involved in the execution of this law must maintain confidentiality regarding facts that become known to them in the exercise of their duties and must refuse to allow third parties access to official records.

2. Information, including the provision of documents, is permissible if there is an express legal basis for it in federal or cantonal law. In the absence of such a basis, information may be provided to administrative authorities and courts insofar as it is warranted in the public interest.

3. The Department of Finance shall make final decisions on requests for information. It may grant general authorizations for certain information or transfer decision-making authority to the Tax Department of the canton.

4. The provisions of the Law on the Organization of the Government and Administration (Organizational Law, OL) of March 13, 1995, regarding access to official information under the principle of public access do not apply to tax matters.

1. The tax authorities operate automated registries and documentation systems with data necessary for the execution of their tasks. They may exchange data with other tax authorities and other authorities authorized to access tax data through retrieval procedures, in list form, or in other automated forms.

1. The tax authorities provide the tax authorities of the Federation and other cantons with the necessary information free of charge and grant them access to official records upon request.

2. If a person residing or domiciled in the canton of Lucerne is liable to tax in another canton based on the tax return, the assessment authority shall inform the tax authority of the other canton about the tax return and the assessment.

1. Administrative and judicial authorities are required to provide information to tax authorities from official registers and their records free of charge, upon request, notwithstanding any obligation of confidentiality. They may also voluntarily inform the tax authorities if they suspect that an assessment is incomplete.

2. They may be obligated by the government council to voluntarily report certain facts designated by the council to the tax authorities free of charge.

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

4. The obligation to provide information encompasses all data that can be used to determine tax liability and to assess income and assets. This specifically includes personal details, information regarding marital status, place of residence and domicile, employment relationships, professional activities, legal transactions, subsidies, and other benefits from public funds.

5. The data may also be provided to the authorities responsible for the implementation of this law in lists or electronic data carriers, or be made accessible through a retrieval procedure. The data and the data carriers, computer programs, and program documentation used for their processing must be protected against unauthorized editing, alteration, destruction, and theft.

6. If the other authority refuses to provide assistance, the tax authority may file a complaint with the cantonal court within 30 days.

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

2. They must sign the tax return together. If the tax return is signed by only one of the spouses, a deadline will be granted to the non-signing spouse. If this period expires unused, the contractual representation between spouses will be assumed.

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

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

2. The remaining files are open for inspection by the taxpayers, provided that the investigation of the facts has been completed and there are no public or private interests opposing it.

3. If a taxpayer is denied access to a file, it may only be used to their detriment if the authority has informed them orally or in writing of the essential content relevant to the matter and has also given them the opportunity to express comments and identify counter-evidence.

4. Upon the taxpayer's request, the authority confirms the denial of file inspection by issuing a ruling, which may be appealed through an administrative court complaint.

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

1. Orders and decisions shall be delivered in writing to the taxpayers and must include instructions on legal remedies.

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

1. The right to assess a tax becomes time-barred five years after the end of the tax period. The provisions regarding supplementary taxes and tax evasion are reserved.

2. The limitation period does not begin or is suspended

a. during an objection or appeal procedure,

b. as long as the tax claim is wholly or partially secured,

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

3. The limitation period begins anew with

a. any official action aimed at establishing or enforcing the tax claim, which is brought to the attention of a taxable or jointly liable person,

b. any explicit acknowledgment of the tax claim by the taxable person or jointly liable parties,

c. the initiation of criminal proceedings for attempted tax evasion or attempted tax offense.

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

1. Tax claims become time-barred five years after the assessment has become legally effective.

2. The commencement and suspension of the limitation period are governed by § 142 paragraph 2. Additionally, the limitation period does not begin or is suspended during a revision procedure or the deferral of the tax claim.

3. The interruption of the limitation period is governed by § 142 paragraph 3. Furthermore, the limitation period begins anew with the filing of a waiver request and the initiation of proceedings for completed tax evasion or tax offenses.

4. In any case, the limitation period occurs ten years after the end of the year in which the taxes were legally determined. The effects of the loss certificate remain reserved.

1. The assessment authority, together with the taxpayers, determines the factual and legal circumstances relevant for a complete and accurate taxation.

2. In particular, it may conduct interviews with parties, consult experts, carry out inspections, and examine business books and records on-site. The resulting costs may be wholly or partially imposed on the taxpayers or other persons obliged to provide information, who have made these necessary through a culpable breach of procedural obligations.

1. Taxpayers are required, through public announcement or delivery of the form, to submit the tax return. Taxpayers who do not receive a form must request it from the competent authority.

2. Taxpayers must complete the tax return form truthfully and completely, sign it personally, and submit it together with the required enclosures to the competent authority within the deadline.

3. Taxpayers who do not fulfill their obligations are requested to make up for the omissions within a reasonable period.

4. Reminders are subject to fees in cases of recurrence. The government council sets the fees and regulates their distribution.

5. The assessment authority may waive the requirement for a tax return if it receives a sufficient tax return from the canton of residence or domicile.

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

a. Salary statements for all income from employment,

b. Certificates of compensation as a member of the administration or another body of a legal entity,

c. Lists of all securities, receivables, and debts,

d. Certificates indicating the type and amount of personal contributions to occupational pension schemes and recognized pension forms, provided they are not listed in the salary statement.

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

a. * the signed annual financial statements (balance sheets, profit and loss accounts) of the tax period or

b. * in the case of simplified accounting pursuant to Article 957 Paragraph 2 of the Obligations Code: Statements of income and expenses, the financial position, as well as private withdrawals and deposits during the tax period.

3. In addition, corporations and cooperatives must disclose the equity capital serving their assessment for profit tax at the end of the tax period or tax obligation. This consists of the paid-in share or nominal capital, the contributions, premiums, and grants recognized in the commercial balance sheet in accordance with § 27 Paragraphs 4-8, the disclosed and the hidden reserves formed from taxed profits, as well as that part of the borrowed capital that economically constitutes equity.

1. Taxpayers must do everything necessary to enable a complete and correct assessment.

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

3. Natural persons with income from self-employment and legal entities must retain documents and other records related to their activities for ten years. The manner of keeping and retaining records is governed by Articles 957-958f. of the Code of Obligations.

4. The assessment authority may require a taxpayer with residence or headquarters abroad to designate a representative in Switzerland.

5. Taxpayers are required to cooperate in the collection of additional data that serves the implementation of the tax law. The collection requires the authorization of the government council.

1. The following entities are obligated to issue written certificates to the taxable person

a. Employers regarding their benefits to employees and the contributions deducted from wages to occupational pension schemes,

b. Legal entities regarding their benefits to members of the management or other bodies,

c. Creditors and debtors regarding the existence, amount, interest, and security of claims,

d. Insurers regarding the surrender value of insurance policies and benefits paid or owed from the insurance relationship,

e. Foundations regarding their benefits to beneficiaries,

f. Trustees, asset managers, pledgees, agents, and other persons who have or had possession or management of the taxable person's assets, regarding these assets and their income,

g. Persons who conduct or have conducted business with the taxable person, regarding mutual claims and benefits,

h. Occupational pension schemes, insurance institutions, and bank foundations regarding deposits, premiums, contributions, and benefits based on pension arrangements or recognized pension forms.

2. If the taxable person fails to submit the certificate despite being reminded, the assessment authority may demand it from third parties. The legally protected professional secret remains reserved.

1. Shareholders, co-owners, and joint owners must, upon request by the tax assessment authority, provide information regarding their legal relationship with the taxable person, particularly concerning their shares, claims, and benefits.

1. Tax assessment authorities must submit a certificate for each tax period

a. Legal entities regarding the benefits provided to the members of the management and other bodies; foundations must additionally submit a certificate concerning the benefits provided to their beneficiaries,

b. Institutions of occupational pension and tied self-provision regarding the benefits provided to the policyholders or the beneficiaries,

c. * Simple partnerships and general partnerships regarding all circumstances that are significant for the assessment of the partners, especially concerning their share in the income and assets of the partnership,

d. * Employers who grant employee participations to their employees, concerning all information necessary for their assessment.

2. If in cases according to paragraph 1b it involves capital benefits, the notification must be made to the tax office of the canton no later than 30 days prior to the payment.

3. A duplicate of the certificate must be provided to the taxpayers.

4. Collective investment schemes with direct real estate holdings must submit a certificate to the tax assessment authorities for each tax period regarding all circumstances that are decisive for the taxation of the direct real estate holdings and its yields.

5. Employers may submit a certificate to the tax office of the canton concerning their benefits to employees in the form of a copy of the salary statement or in another form approved by the office.

1. The authorities responsible for preparing the assessment are required to compile a register of taxpayers for each tax period, which must be continuously updated. They are to obtain all necessary information to ascertain the income and asset circumstances of a taxable person and to collect all documents that may be relevant to the assessment.

2. If a taxable person possesses taxable objects outside the assessment municipality, the preparation office of the municipality in which these objects are located must provide the assessment authority with the necessary information.

1. The assessment authority reviews the tax return and conducts the necessary investigations.

2. If a taxable person, despite a reminder, has not fulfilled their procedural obligations or if the tax factors cannot be accurately determined due to a lack of reliable documentation, the assessment authority will perform the assessment at its reasonable discretion. In doing so, it may take into account empirical values, asset development, and living expenses of the taxable person.

1. The assessment authority determines the tax factors (taxable income and assets, taxable net profit and taxable equity) and the tax amounts per unit in the assessment notice.

2. Any deviations from the tax return will be communicated to the taxable person no later than upon the issuance of the assessment notice.

1. The taxpayer may lodge a written objection against the assessment notice within 30 days of its receipt.

2. Objections lacking a specific request are to be returned with a reasonable deadline for correction, under the warning that the objection will not be entertained if the deadline is not met.

3. If the objection is against a thoroughly reasoned assessment notice, it may, with the consent of all parties involved, be forwarded to the Cantonal Court as an administrative court appeal.

4. An assessment made based on discretion due to violation of cooperation duties may only be contested by the taxpayer for clear inaccuracies. The objection must be substantiated and any possible evidence must be cited.

1. In the objection procedure, the tax commission has the same powers as the assessment authority in the assessment procedure.

2. A withdrawal of the objection will not be taken into account if, given the circumstances, it can be assumed that the assessment was incorrect.

1. The tax commission must, upon request, give the appellant the opportunity to present oral arguments and submit evidence. It may also summon parties to an oral hearing ex officio.

2. At least two members of the tax commission must participate in the appeal proceedings.

1. The tax commission decides on the objection based on the investigation. It may reassess all tax factors and, after hearing the taxable person, amend the assessment even to their detriment.

2. The decision must be justified and communicated in writing to the taxable person.

3. The objection procedure is free of charge. However, costs may be imposed if a frivolous or obviously unfounded objection is lodged.

1. The Tax Office of the Canton ensures uniform and prompt assessment throughout the entire canton.

2. It may participate in the deliberations of the assessment authorities with an advisory voice, submit motions, inspect all tax records, order or carry out investigative measures in individual cases, and request that an assessment or a decision on an objection also be disclosed to it.

3. If an assessment or a decision on an objection is to be disclosed to the Tax Office of the Canton pursuant to paragraph 2, it may file an objection or appeal within 30 days of the disclosure.

1. The financial department shall, upon request from the tax office of the canton, issue the necessary orders if the preparatory or assessment work in a municipality or an assessment district is inadequate.

2. The defaulting tax authority may be charged partially or entirely with the costs arising therefrom.

1. The state tax register contains the results of the assessment. A copy is to be sent to the canton tax office for verification.

2. ...

3. ...

2. The municipality or the tax office of the canton may file an objection against assessments with the competent assessment authority no later than 60 days after notification to the taxable person.

1. The assessment authority shall take the necessary investigative measures. It shall notify the taxpayer of the objection and set a reasonable deadline for their response.

2. Furthermore, §§ 155-157 shall apply mutatis mutandis.

1. For dispositions concerning obligations from tax liability relationships pursuant to Sections 11 paragraph 2, 19, 20, 69, 174 paragraph 4, 213 paragraph 1, 215 paragraph 1, and 242 paragraph 3, the relevant authority is competent. Otherwise, the provisions regarding the regular assessment procedure apply accordingly.

1. The taxable person may file an administrative court appeal against the objection decision.

2. The right to appeal is also granted to the local municipality or the cantonal tax office if they have previously lodged an objection based on § 161 paragraph 2.

3. The appeal period is 30 days from the delivery of the objection decision.

1. The authority whose decision is being appealed and the Cantonal Tax Office shall be given the opportunity to submit their opinions.

2. In the appeal proceedings, the Cantonal Court has the same powers as the assessment authority in the assessment procedure.

3. The Cantonal Court also holds the power of discretionary review, with the exception of waiver cases and cases where the assessment was conducted based on discretion due to a breach of procedural duties.

1. If the contested assessment proves to be incorrect, the Cantonal Court shall amend it ex officio in favor or to the detriment of the appealing party. It may also remit the case to the lower instance for reassessment for important reasons.

2. The review of the assessment based on a decision of remittal is limited to the subject matter of the remittal.

3. The decision on the appeal shall be delivered to the appealing party, the authority that issued the contested decision, and the Cantonal Tax Office.

1. Under the conditions set forth in Article 73, Paragraph 1 of the Federal Act on the Harmonization of Direct Taxes of Cantons and Municipalities dated December 14, 1990, the affected person, the cantonal Tax Office, and the Federal Tax Administration may file an appeal in matters of public law against the decision of the Cantonal Court with the Federal Supreme Court.

2. In the withholding tax procedure, the right of appeal is also available to the debtor of the taxable benefit.

1. A legally binding decision can be revised in favor of the taxpayer upon request or ex officio,

a. if significant facts or decisive evidence are discovered,

b. if the authority disregarded significant facts or decisive evidence that were known or should have been known to it, or otherwise violated essential procedural principles,

c. if a crime or offense influenced the decision,

d. if the taxation right of the Canton of Lucerne must be restricted in an inter-cantonal or international double taxation conflict.

2. Revision is excluded if the applicant presents as a ground for revision something they could have asserted in the ordinary procedure with reasonable diligence.

1. The application for revision must be submitted within 90 days of discovering the reason for revision, but no later than ten years after the decision has been issued.

1. The taxpayer and the cantonal tax office are entitled to submit a petition for revision.

2. The petition for revision must specifically demonstrate the grounds for revision and the timely submission, and present the requests in the event of a new decision on the matter.

3. The necessary evidence must be attached to the petition for revision or, if this is not possible, must be precisely specified.

1. The authority responsible for handling the application for revision is the authority that issued the previous decision.

2. The appellate instance may suspend or defer the enforcement of the challenged decision.

3. Otherwise, the regulations applicable to the procedure in which the previous decision was made apply.

1. If the conditions for an appeal are met, the appellate instance shall set aside the contested decision and make a new decision on the matter.

2. If the appellate instance sets aside an appellate decision, it may remand the matter back to the lower instance for a new decision.

3. If the appellate instance rejects the appeal request, the costs of the proceedings may be imposed on the applicant if they have willfully submitted an inadmissible or obviously unfounded appeal request.

4. The same legal remedies as against the earlier decision can be pursued against the rejection of the appeal request and against the new decision.

1. Calculation errors and clerical mistakes in final decisions may be corrected by the authority responsible, upon request or ex officio, within five years after the notification of the decision.

2. If the request for correction is denied, the person making the request may be charged with the costs of the proceedings if they have wantonly submitted an inadmissible or obviously unfounded correction request.

3. The same legal remedies available against the decision can be pursued against the correction or its denial.

1. If facts or evidence unknown to the competent tax authority indicate that an assessment did not take place or a final assessment is incomplete, or if a missed or incomplete assessment is due to a crime or offense against the tax authority, the uncollected tax along with interest will be claimed retrospectively. The governing council sets the interest rate.

2. If the taxpayer has reported income, assets, net profit, or equity completely and accurately in their tax return and the tax authorities have recognized the valuation of the individual components, no additional tax can be levied, even if the valuation was inadequate.

3. If the taxpayer proves over-taxation, the additional tax for that tax period is to be reduced accordingly.

4. After the dissolution of a legal entity, the participants are liable for the additional tax with their share of the liquidation result.

1. The office responsible for the execution of the supplementary tax procedure is the Tax Department of the canton.

2. It determines to what extent the execution of the procedure is delegated to the assessment authority.

1. The initiation of the supplementary tax procedure is commenced in writing. If at the initiation of the supplementary tax procedure, a criminal procedure for tax evasion has neither been initiated nor is pending, nor can it be ruled out from the outset, the taxpayer is informed of the possibility of a subsequent initiation of such a criminal procedure.

2. The initiation of the prosecution for tax evasion or tax offenses is simultaneously deemed to be the initiation of the supplementary tax procedure.

3. The procedure, which has not been initiated or concluded upon the death of the taxpayer, is initiated or continued in relation to the heirs.

1. The right to initiate a supplementary tax procedure expires ten years after the end of the tax period for which an assessment was unjustly omitted or a final assessment is incomplete.

2. The right to assess the supplementary tax expires 15 years after the end of the tax period to which it relates.

1. The Tax Office of the Canton or the assessment authority entrusted with the execution of the supplementary tax procedure shall carry out the necessary investigative measures. The provisions regarding the ordinary assessment shall apply mutatis mutandis to the supplementary tax procedure.

2. Upon completion of the investigation, the supplementary tax shall be determined or the procedure shall be terminated.

1. All heirs have the right, independently of one another, to a simplified supplementary taxation of the asset and income components concealed by the deceased, provided that

a. the concealment is not known to any tax authority,

b. they unreservedly support the administration in identifying the concealed asset and income components, and

c. they make a serious effort to pay the owed supplementary tax.

2. The supplementary tax is calculated for the last three tax periods preceding the year of death according to the provisions on ordinary assessment and demanded, along with interest on arrears.

3. The simplified supplementary taxation is excluded when the estate is liquidated by official or bankruptcy authorities.

4. A person charged with executing the will or administering the estate may also request a simplified supplementary taxation.

1. If a taxable person in the Canton of Lucerne is required to pay tax on only a portion of their income or assets, or profits or capital, the extent of the tax jurisdiction of the Canton of Lucerne in relation to that of other cantons or foreign countries must be determined simultaneously with the assessment.

1. The allocation of taxes is to be carried out by the authority responsible for the regular assessment.

1. Upon the death of a taxable person, an official inventory shall be taken within two weeks.

2. The inventory may be omitted if it is assumed that no assets are present.

1. The inventory includes the assets existing on the day of death of the deceased person, their spouse living in an undivided marriage, and their minor children under their parental care.

2. Facts that are relevant for the assessment of income, asset, and inheritance taxes are determined and recorded in the inventory.

1. The inventory shall be recorded by the partition authority of the municipality in which the deceased person had their last tax domicile or residence, or held taxable assets.

2. For the recording of the inventory, the partition authority possesses the same powers as the assessment authority in the ordinary assessment procedure.

3. If the Child and Adult Protection Authority or the court orders an inventory to be taken, a copy of the inventory must be submitted to the partition authority. It may adopt or, if necessary, supplement it.

4. Upon a death, the civil registry offices shall immediately inform the partition authority and the tax office at the last tax domicile or residence of the deceased person.

1. The heirs and persons who manage or hold the estate assets may only dispose of them with the consent of the inventory authority before the inventory is drawn up.

2. To safeguard the inventory, appropriate measures such as sealing, custody, and restrictions on disposition can be taken.

1. The heiresses and heirs, as well as persons entrusted with their legal representation, the administration of the estate, or the execution of the will, are obliged to

a. provide truthful information about all circumstances that may be relevant for determining the tax factors of the deceased,

b. present all books, documents, certificates, and records that may provide information about the estate,

c. open all premises and containers that were at the disposal of the deceased.

2. Heiresses and heirs, as well as their legal representatives, who lived in domestic community with the deceased or who kept or managed their assets, must also grant access to their rooms and containers.

3. If heiresses and heirs, as well as persons entrusted with their legal representation, the administration of the estate, or the execution of the will, become aware of items of the estate that are not listed in the inventory after the inventory is taken, they must report them to the inventory authority within ten days.

4. At least one capable heiress or heir and the legal representative of minor or comprehensively assisted heiresses and heirs must attend the inventory taking.

**1. Third Parties Holding or Managing Assets of the Deceased**

Third parties who held or managed the assets of the deceased, or against whom the deceased had monetary rights or claims, are obligated to provide the heirs with all related information in writing upon request to the inventory authority.

**2. Exceptions to Providing Information**

If there are important reasons preventing the fulfillment of this obligation to provide information, the third party may directly submit the requested information to the inventory authority.

**3. Application of Related Provisions**

Additionally, §§ 148 and 149 apply accordingly.

1. A copy of the inventory shall be served to the heiresses and heirs or their legal representatives, the executor or executrix, as well as the estate administration and the assessment authority. In cases of § 182 paragraph 2, a notification is made to the assessment authority.

2. The assessment authority may conduct its own investigations and correct the inventory or refer it back to the inventory authority for this purpose.

3. The assessment authority verifies the fulfillment of tax obligations by the decedent and initiates, if necessary, the commencement of a supplementary tax procedure.

1. State taxes are collected by the municipal authority of the place of assessment on behalf of the state. The provisions regarding local jurisdiction apply accordingly to the collection of state taxes from individuals taxed according to expenditure, self-employed persons, and legal entities.

2. The government council may delegate the collection for certain categories of persons to the cantonal tax department.

3. Municipal authorities may transfer collection activities to the cantonal tax department with their consent.

1. The balance of tax amounts at the end of each month must be transferred to the canton within 15 days. In the event of late delivery, interest determined by the government council will be charged.

2. The municipal authorities are responsible for the correct collection and timely delivery of taxes. They are directly liable for the actions and omissions of the municipal bodies entrusted with this task.

3. If a municipal authority endangers the state's tax claims through neglect of duty, the financial department will take the necessary measures.

1. General Due Date for periodically owed income, wealth, profit, and capital taxes, as well as personal tax, is December 31 of the calendar year in which the tax period ends.

2. Other taxes, fines, and reminder fees become due upon the delivery of the invoice.

3. In any case, the tax becomes due

a. on the day the taxable person who intends to leave the country permanently makes arrangements to depart,

b. upon registration for the dissolution of a taxable legal entity in the commercial register,

c. at the time the foreign taxable person gives up their business operation or their participation in a domestic business operation, their domestic establishment, their domestic real estate, or their claims secured by domestic real estate,

d. upon the opening of bankruptcy proceedings against the taxable person,

e. upon the death of the taxable person.

4. The due date remains unchanged even if, at that time, the assessment has not yet been conducted or if an objection or appeal has been filed against the assessment.

1. Periodically owed taxes on income, assets, profits, and capital, as well as the personal tax, must be paid by the general due date.

2. Other taxes, as well as fines and fees, must be paid within 30 days after the due date.

3. The Executive Council determines to what extent overdue payments are to incur interest.

4. The taxable person is to be reminded after the payment deadline has expired. Reminders are subject to fees in the event of repeated occurrences. The Executive Council sets the fee and regulates its distribution.

1. Taxpayers may make advance payments before the general due date.

2. The government council determines the extent to which advance payments are to be interest-bearing.

1. The tax is levied according to the assessment. If the assessment has not been carried out by the due date, advance payments are collected.

2. Advance payments are credited against the taxes owed according to the definitive assessment in the final invoice.

3. Underpaid amounts will be collected, and overpaid amounts will be refunded. The extent to which these amounts are to bear interest is determined by the government council.

4. If tax amounts paid for both spouses are to be refunded following their divorce, legal, or de facto separation, the refund shall be made half to each of the spouses, provided the tax authority is not aware of a different arrangement made between the spouses or a judicial order.

1. The issuing authority determines the amount of the advance payment. This is based on the tax declaration, the last assessment, or the estimated amount owed.

2. An objection can be filed against the invoice for the advance payment, and an administrative court appeal can be lodged against the objection decision. The deadline for legal recourse is 30 days.

3. Only the tax authority can be disputed or credibly demonstrated that the estimated tax amount for the tax period is lower than the invoiced advance payment. Otherwise, the provisions concerning the objection and appeal procedure apply accordingly.

1. After the final assessment has been made, the taxpayers shall be issued the final bill. This can be combined with the notification of the assessment.

2. The final bill includes the settlement of the advance and installment payments, as well as the interest.

3. Amounts invoiced with the final bill must be paid within 30 days. Interest for delay is owed on unpaid amounts after the payment deadline.

1. The government council periodically establishes the interest rates to be determined by it based on the conditions in the capital market.

2. It may establish different rates for active and passive interest concerns.

1. If the tax is not paid despite a reminder, enforcement proceedings shall be initiated.

2. If the liable person does not have a domicile in Switzerland or assets belonging to them are subject to seizure, enforcement proceedings may be initiated without a prior reminder.

3. Legally binding orders and decisions of the tax authorities and the cantonal court are equivalent to enforceable judicial judgments within the meaning of Article 80, paragraph 2 of the Swiss Federal Act on Debt Collection and Bankruptcy.

4. It is not necessary to file the tax claim in public inventories and on calls for claims.

1. If the payment of taxes, fines, interest, and costs within the prescribed period poses a substantial hardship for the liable person, the collection authority may extend the payment deadline or allow installment payments.

2. Payment facilities may be conditioned upon reasonable security being provided.

3. Payment facilities will be revoked if their requirements cease to exist or if the conditions to which they are subject are not fulfilled.

1. Taxpayers, for whom the payment of taxes, fines, interest, and costs would constitute significant hardship due to an emergency, may be granted a full or partial waiver of the amounts owed.

2. Insofar as an emergency, which justifies a full waiver, is already evident during the assessment, it may be taken into account in the assessment procedure.

3. Unless this law provides otherwise, Articles 167-167e of the Federal Act on Direct Federal Taxation shall apply mutatis mutandis to the waiver.

1. The application for payment relief or waiver must be submitted in writing and justified to the municipal authority of the place of assessment. Any evidence must be attached to the application.

2. The municipal authority makes the final decision on applications for payment relief concerning both state and municipal taxes.

3. The municipal authority decides on applications for tax waivers concerning both state and municipal taxes up to an amount set by the government council. The government council also regulates the competence for other cases.

4. The costs of the procedure may be imposed on the applicant if they have knowingly submitted an inadmissible or obviously unfounded waiver application.

5. An objection to waiver decisions can be filed in writing within 30 days of delivery to the authority that made the decision.

1. The taxable person may reclaim a paid tax amount if they have mistakenly paid a wholly or partially undue tax. Any tax assessed with final legal effect is deemed to be owed.

2. Tax amounts to be refunded are subject to interest at a rate set by the governing council, if more than 30 days have elapsed since the payment, starting from the date of payment.

3. The application for a refund must be submitted to the collection authority within five years after the end of the calendar year in which the payment was made. The collection authority forwards the application, along with their recommendation, to the cantonal tax office for decision.

4. If the refund application is denied, the applicant must bear the costs of the procedure if they have frivolously submitted an inadmissible or obviously unfounded refund application.

5. An objection can be filed in writing within 30 days of notification against the decision.

1. If the taxable person does not have a residence in Switzerland, or if the payment of the tax owed by them appears to be at risk, the tax collecting authority or the tax office of the canton can require security at any time before the tax amount is legally determined. The order for security specifies the amount to be secured and is immediately enforceable. It has the same effects in enforcement proceedings as an enforceable court judgment.

2. The security must be provided in cash, by depositing secure, marketable securities, or by providing a bank guarantee.

3. An appeal does not suspend the enforcement of the order for security.

1. The order of securing assets is considered an attachment order pursuant to Article 274 of the Federal Act on Debt Collection and Bankruptcy. The attachment is enforced by the competent debt collection office.

2. An objection against the attachment order pursuant to Article 278 of the Federal Act on Debt Collection and Bankruptcy is not permissible.

1. A legal entity may only be deleted from the commercial register once the Canton Tax Office has notified the Commercial Register and State Archives Office that the taxes owed have been paid or secured.

1. For income or profit tax as well as property or capital tax including interest, there exists a statutory lien that takes precedence over registered liens to the extent that the tax claim has a special relationship to a property.

2. If the lien is asserted for a tax owed as a result of the sale of the property, it is limited to 10 percent of the sale proceeds. However, it amounts in any case to a minimum of 10 percent of the cadastral value.

3. The lien exists without entry in the land register from the beginning of the tax period for which the respective tax is owed, but no longer than for a period of two years from the date the tax assessment becomes legally binding.

1. If a natural or legal person, who neither has a residence, nor a registered office, nor actual administration in Switzerland, mediates a property located in the canton, the tax authority or tax office of the canton may require one of the parties to the disposal transaction, who engaged the mediating person, to deposit three percent of the purchase price as security for the tax amount owed for the mediation activity.

1. Anyone who intentionally or negligently fails to fulfill an obligation imposed on them by the provisions of this law or by an order issued based on this law, despite a warning, notably by

a. not submitting the tax return or the required annexes,

b. not fulfilling a certification, information, or reporting obligation,

c. violating duties incumbent upon them as heir or third party in an inventory procedure,

shall be fined.

2. A warning is not required in the event of a breach of the retention obligation pursuant to § 147 paragraph 3 and the reporting obligation pursuant to § 150 paragraph 2.

3. If procedural duties are violated with effect for a legal entity, the legal entity shall be fined. The acting bodies or representatives may also be punished for participation.

4. For corporations and institutions governed by foreign law and for foreign associations without legal personality, paragraphs 1-3 apply accordingly.

1. Fines may be imposed by the assessment authority, the tax office of the canton, and the appeal authority. The procedural costs may be charged to the fined person.

2. The affected person may file a written objection against the fine decision within 30 days of its notification. The objection procedure is subject to a fee.

3. An appeal against the objection decision may be filed with the cantonal court within 30 days of its notification.

4. Under the conditions of Article 73, paragraph 1 of the Federal Act on the Harmonization of Direct Taxes of Cantons and Municipalities dated December 14, 1990, the affected person, the tax office of the canton, and the Federal Tax Administration may file an appeal on public law matters against the decision of the cantonal court with the Federal Supreme Court.

1. Prosecution becomes time-barred three years after the final conclusion of the proceedings in which procedural obligations were violated.

2. The statute of limitations no longer applies if the competent authority has issued an order before the expiration of the limitation period.

3. The authority that collects the state tax also collects the fines. These are distributed equally between the state and the local municipality.

1. A fine shall be imposed,

a. on anyone who, as a taxable person, intentionally or negligently causes an assessment to be unjustly omitted or causes a final assessment to be incomplete,

b. on anyone who, as a person obligated to withhold tax at the source, intentionally or negligently fails to withhold tax or does not withhold it completely, or

c. on anyone who intentionally or negligently causes an unlawful refund or an unjustified waiver.

2. The fine shall generally amount to the equivalent of the evaded tax. It may be reduced to one-third in cases of minor culpability, or increased to three times the amount in cases of severe culpability.

3. If the taxable person voluntarily discloses tax evasion for the first time, prosecution shall be waived (voluntary disclosure exemption from penalty), provided that

a. the evasion is not known to any tax authority,

b. the person unconditionally supports the administration in determining the back taxes, and

c. the person genuinely endeavors to pay the owed back taxes.

4. For each subsequent voluntary disclosure, the fine shall be reduced to one-fifth of the evaded tax under the conditions mentioned in paragraph 3.

5. In particularly minor cases, a fine may be waived altogether.

1. Anyone who attempts to evade taxes shall be punished with a fine.

2. The fine amounts to two-thirds of the fine that would be imposed for a completed tax evasion.

1. Anyone who intentionally incites tax evasion, assists in it, or, as a representative of the taxable person, causes or participates in such evasion, shall be fined irrespective of the criminal liability of the taxable person and shall be jointly responsible for the evaded tax.

2. The fine shall amount to up to 10,000 Swiss Francs; in serious cases or in case of recidivism, up to 50,000 Swiss Francs. In particularly minor cases, a fine may be waived.

3. If a person, for the first time as per paragraph 1, voluntarily reports themselves and the conditions according to § 211 paragraphs 3a and b are met, prosecution shall be waived and the joint liability shall lapse.

**1. Anyone who conceals or embezzles estate assets, which they are obliged to disclose in the inventory proceedings, with the intent of excluding them from the inventory, as well as anyone who incites, assists in, or facilitates such an act, shall be punished by a fine.**

2. The fine shall be up to 10,000 francs, and in serious cases or in the event of a repeat offense, up to 50,000 francs. In particularly minor cases, a fine may be waived.

3. An attempt to conceal or embezzle estate assets is also punishable. The penalty may be more lenient than for the completed offense.

4. If a person self-reports for the first time under paragraph 1, prosecution for concealing or embezzling estate assets in the inventory proceedings and for any other related offenses will be waived (exemption from punishment for voluntary disclosure), if

a. the violation is not known to any tax authority and

b. the person provides unconditional assistance to the administration in correcting the inventory.

1. The taxable person who lives in a legally and factually undivided marriage is only penalized for the evasion of their own tax factors. Subject to § 213. The co-signing of the tax return alone does not constitute an offense under § 213.

1. If taxes are evaded or attempted to be evaded for the benefit of a legal entity, the legal entity shall be fined.

2. If participation acts (incitement, aiding and abetting, involvement) in third-party tax evasion are committed in the business operations of a legal entity, § 213 is applicable to the legal entity.

3. The punishment of the acting organs and representatives according to § 213 remains reserved.

4. In the case of corporations and institutions governed by foreign law and foreign associations without legal personality, paragraphs 1-3 apply accordingly.

**1. If a taxable legal entity voluntarily discloses tax evasion committed within its business operations for the first time, prosecution will be waived (voluntary disclosure without penalty), provided that:**

a. the evasion is not known to any tax authority,

b. it unconditionally assists the authorities in assessing the supplementary tax, and

c. it makes a serious effort to pay the owed supplementary tax.

**2. Voluntary disclosure without penalty can also be submitted:**

a. after a change of company name or relocation of the head office within Switzerland,

b. after a transformation according to Articles 53-68 of the Merger Act of October 3, 2003 (FusG) by the new legal entity for tax evasion committed before the transformation,

c. after absorption (Art. 3 para. 1a FusG) or spinoff (Art. 29 subpara. b FusG) by the continuing legal entity for tax evasion committed before the absorption or spinoff.

**3. The voluntary disclosure without penalty must be submitted by the organs or representatives of the legal entity. Prosecution against these organs or representatives will be waived, and their joint liability ceases.**

**4. If a resigned organ member or a resigned representative of the legal entity discloses tax evasion committed by the entity for the first time, and the evasion is not known to any tax authority, prosecution of the legal entity, all current and former members of the organs, and all current and former representatives will be waived. Their joint liability ceases.**

**5. For every subsequent voluntary disclosure, the fine is reduced to one-fifth of the evaded tax, provided the conditions in paragraph 1 are met.**

**6. After the termination of a legal entity’s tax liability in Switzerland, voluntary disclosure can no longer be submitted.**

1. The office responsible for conducting criminal proceedings for tax evasion is the Tax Department of the Canton.

2. It determines to what extent the conduct of the proceedings is delegated to the assessment authority.

1. The criminal proceedings for tax evasion shall be initiated as soon as there are indications of tax evasion.

2. The initiation of criminal proceedings for tax evasion shall be communicated to the affected person in writing. They shall be given the opportunity to respond to the accusation made against them. They shall be informed of the right to refuse to testify and to cooperate.

1. The tax office of the canton or the assessment authority entrusted with conducting the criminal proceedings shall carry out the necessary investigations. It shall have the powers of the assessment authority in the assessment procedure. It is also entitled to examine witnesses. The accused person shall be granted the right to be heard. They may request to be interrogated regarding the offense.

2. Evidence obtained from a supplementary tax procedure may only be used in a tax criminal proceeding for tax evasion if it was not obtained under the threat of an assessment according to discretion (§ 152 paragraph 2) with a reversal of the burden of proof according to § 154 paragraph 4, or under the threat of a fine for non-compliance with procedural obligations.

3. If there is a well-founded suspicion that serious tax offenses have been committed, or that instigating or aiding such offenses has occurred, the head of the finance department may authorize the tax office of the canton to order handwriting samples, demand and seize documents and objects, and conduct house searches. The tax office of the canton may involve the police in such actions.

4. An appeal against a seizure or house search can be lodged with the cantonal court within 30 days.

1. Upon completion of the investigation, either a fine will be imposed or the proceedings will be dismissed.

2. If a fine is imposed, the fined person bears the costs of the proceedings. In the event the proceedings are dismissed, the costs are borne wholly or partially by the affected person, insofar as they have caused the proceedings through a culpable and substantial violation of legal obligations.

3. The decision will be communicated to the affected person in writing.

1. Against the fine decision, the affected person may file an objection in writing within 30 days of notification.

2. An appeal against the objection decision can be lodged with the Cantonal Court within 30 days of notification.

3. Under the conditions of Article 73 paragraph 1 of the Federal Act on the Harmonization of Direct Taxes of Cantons and Municipalities of December 14, 1990, the affected person, the Tax Office of the Canton, and the Federal Tax Administration may lodge an appeal in public law matters against the decision of the Cantonal Court with the Federal Court.

1. Prosecution for completed tax evasion becomes statute-barred ten years after the end of the tax period for which the taxable person was either not assessed or incompletely assessed, or the withholding tax was not lawfully executed, or ten years after the end of the calendar year in which an unlawful refund or an unjustified remission was obtained or estate values were concealed or removed during inventory proceedings.

2. Prosecution for attempted tax evasion becomes statute-barred six years after the final legal conclusion of the proceedings in which the attempt to evade taxes was made.

3. The statute of limitations no longer applies if the competent authority has issued a ruling before the expiration of the limitation period.

1. The fines and costs imposed in tax criminal proceedings are levied pursuant to Sections 189 et seq.

2. The statute of limitations for levying follows Section 143.

1. Anyone who, for the purpose of tax evasion, uses forged, falsified, or substantively false documents to deceive, or who, as a person obligated to deduct taxes at source, uses deducted taxes for their own or another person's benefit, shall be punished with imprisonment of up to three years or with a fine. A conditional sentence may be combined with a fine of up to 10,000 francs.

2. The punishment for tax evasion remains reserved.

3. If a voluntary disclosure is made according to § 211 paragraph 3 or § 217a paragraph 1, prosecution for all other offenses committed for the purpose of this tax evasion shall be waived. This provision also applies in cases according to § 213 paragraph 3 and § 217a paragraphs 3 and 4.

1. Any person obligated to deduct taxes at the source and who uses the deducted taxes for their own benefit or for the benefit of another person shall be punished with imprisonment for up to three years or with a fine. A suspended sentence may be combined with a fine of up to 10,000 Swiss Francs.

2. If withholding taxes are embezzled in the business area of a legal entity, a partnership, or a corporation or institution under public law, paragraph 1 of this provision applies to the persons who have acted or should have acted on its behalf.

3. If there is a voluntary disclosure pursuant to § 211 paragraph 3 or § 217a paragraph 1, prosecution for embezzlement of withholding taxes and other offenses committed for the purpose of embezzlement of withholding taxes will be waived. This provision is also applicable in the cases under § 213 paragraph 3 and § 217a paragraphs 3 and 4.

1. The general provisions of the Swiss Criminal Code shall apply unless this law prescribes otherwise.

1. The procedure is governed by the Swiss Code of Criminal Procedure of October 5, 2007.

2. Decisions of the last cantonal instance are subject to appeal in criminal matters to the Federal Supreme Court.

1. Prosecution of tax offenses becomes statute-barred after the expiration of 15 years from the date the offender performed the last punishable activity.

2. The statute of limitations does not apply if a first-instance judgment is issued before the expiration of the limitation period.

1. Any person who is liable for tax at the end of the calendar year in accordance with § 8 is required to pay a personal tax.

2. The tax obligation begins in the year in which the 18th year of age is completed.

3. Spouses living in a legally and factually undivided marriage shall jointly pay a single personal tax annually.

1. Persons known to be in need are exempt from the personal tax.

1. The personal tax amounts to 50 francs.

2. The revenue is allocated 70 percent to the canton and 30 percent to the municipality.

1. The personal tax is collected by the municipal authority of the place of assessment.

2. In all other respects, the provisions concerning tax collection apply mutatis mutandis.

1. Against the assessment for the personal tax, the taxable person may file a written objection with the collection authority within 30 days of delivery.

1. The provisions regarding state taxes shall apply, subject to the following special regulations, to municipal taxes as well.

2. ...

1. The municipalities and the state-recognized church communities levy the taxes mentioned in § 1 to cover their expenditures.

2. The eligible voters of the municipalities annually determine, with the budget, the municipal taxes to be collected in whole units or fractions of units for assets and income, profit, and capital.

1. The municipality responsible for the collection of municipal taxes is the one in which a person is taxable at the end of the tax period or tax obligation within the meaning of §§ 8-10 or §§ 64 and 65.

2. If the conditions for tax liability transfer from one Lucerne municipality to another municipality within the canton during the tax period, this does not result in a division of the tax claim between the respective municipalities, subject to § 239 paragraph 1.

1. Municipal taxes are levied based on the assessment notice applicable to state taxes.

1. If a person is liable to pay taxes in several municipalities, an allocation of taxes must be made among these municipalities. The government council shall issue the relevant provisions.

2. ...

1. Church taxes are levied only on members of the denomination and legal entities.

2. If the members of a family belong to different denominations, the collecting authority allocates the tax claim in proportion to the number of members of the denomination compared to the total number of members. In the case of an inheritance community taxed according to § 17 paragraph 2, the church tax is determined by the denomination of the deceased person.

3. The tax obligation ends on the day the written declaration of withdrawal from the religious community is received by the competent parish.

4. If several parishes of different denominations exist in a municipality, the church taxes to be paid by legal entities are to be distributed among the participating parishes in proportion to the members of the denomination. Legal entities with a denominational purpose can only be taxed by the parish of their denomination.

1. The Executive Council issues an implementing ordinance.

1. The following enactments are repealed

a. Tax Law of May 27, 1946[42],

b. Law concerning the Taxation of Foundations and Monasteries of May 16, 1928[43].

1. The following enactments are amended according to the annex[44]

a. Law concerning the Introduction of the Swiss Civil Code of December 10, 1907, in the Canton of Lucerne, of March 21, 1911[45],

b. Misdemeanor Penal Law of September 14, 1976[46],

c. Law concerning Inheritance Taxes of May 27, 1908[47],

d. Law on the Property Transfer Tax of June 28, 1983[48],

e. Law on Capital Gains Tax on Real Estate of October 31, 1961[49],

f. Law on Tax-Favored Employment Creation Reserves of September 13, 1988[50],

g. Law on Direct Financial Equalization of June 22, 1987[51],

h. Law on Contributions and Levies in Tourism (Tourism Law) of January 30, 1996[52],

i. Law on Fire Protection of November 5, 1957[53],

k. Energy Law of March 7, 1989[54],

l. Law on the Subsidization of Health Insurance Premiums (Premium Subsidization Law) of January 24, 1995[55],

m. Law on Family Allowances of March 10, 1981[56],

n. Law on the Official Assessment of Immovable Property (Assessment Law) of June 27, 1961[57].

1. The new law shall first apply to the tax period ending in the calendar year 2001. The assessment and collection of tax claims for the calendar years up to and including 2000 shall be conducted according to the old law. The following provisions are reserved.

1. On pensions and lump-sum settlements from occupational pension plans, which commence or become due before January 1, 2002, and are based on a pension relationship that already existed on December 31, 1986, the following are taxable

1. 60 percent of the income, if the contributions (such as deposits, contributions, premium payments) on which the taxable person's claim is based have been made exclusively by the taxable person,

2. 80 percent of the income, if the contributions on which the taxable person's claim is based have only been partially, but at least 20 percent, made by the taxable person,

3. the entire amount in all other cases.

2. The contributions made by the taxable person as mentioned in section 1, numbers 1 and 2, shall be treated equivalent to the contributions made by relatives; the same applies to contributions from third parties if the taxable person has acquired the insurance claim through inheritance, legacy, or gift.

1. Section 27 Paragraph 1a is applicable to capital insurances with a single premium that were concluded after December 31, 1998.

1. For pensions that are provided as a result of a business transfer to a family member conducted before January 1, 2001, without taxation of the liquidation profit, the old law applies.

1. Tax Adjustments for tax periods ending before January 1, 2001, shall be assessed according to the old law. The new law applies to the procedure, as well as to the statute of limitations if it had not yet occurred under the old law by January 1, 2001.

2. Fines for violations of procedural obligations and tax evasion for tax periods ending before January 1, 2001, shall be assessed according to the old law, provided the new law is not more lenient for the affected person. The new law applies to the procedure, as well as to the statute of limitations if it had not yet occurred under the old law by January 1, 2001.

3. Fines imposed on heirs under § 215 are no longer enforceable and can no longer be claimed by the tax authorities through setoff. Corresponding entries in the enforcement register shall be deleted upon the request of the affected person.

1. For inheritances opened before the entry into force of the Federal Act on the Simplification of Additional Taxation in Cases of Inheritance and the Introduction of Voluntary Self-Disclosure without Penalty of March 20, 2008, the provisions on additional taxation according to previous law shall apply.

1. For the assessment of offenses committed in tax periods prior to the entry into force of the Federal Act on the Adjustment of the DBG and the StHG to the General Provisions of the StGB dated September 26, 2014, the new law shall apply, provided it is more lenient than the law applicable during those tax periods.

1. Capital gains from shareholdings and the proceeds from the sale of related subscription rights are not considered in the calculation of net income pursuant to § 82 paragraph 2, provided that the respective shareholdings were already owned by the corporation or cooperative before January 1, 1997, and the mentioned gains are realized before January 1, 2007.

2. For shareholdings owned by the corporation or cooperative before January 1, 1997, the tax values on the first day of the fiscal year ending in the calendar year 1997 are considered as acquisition costs (§ 76 para. 4 and § 83).

3. If a corporation or cooperative transfers a shareholding of at least 20 percent in the capital stock or common stock of other companies, which was owned before January 1, 1997, to a foreign group company, the difference between the tax value and the market value of the shareholding is added to the taxable net profit. In this case, the concerned shareholdings continue to be considered as part of the shareholdings held before January 1, 1997. Furthermore, the corporation or cooperative is entitled to establish a tax-exempt reserve equal to this difference. This reserve must be dissolved with tax effect if the transferred shareholding is sold to a third party outside the group, if the company whose participatory rights were transferred sells its assets and liabilities to a significant extent, or if it is liquidated. The corporation or cooperative must attach to each tax return a list of shareholdings for which a tax-exempt reserve exists according to this provision. On December 31, 2006, the tax-exempt reserve will be dissolved without tax effect.

4. If the fiscal year ends after the enactment of this law, the tax for this fiscal year will be determined according to the new law.

1. For natural persons who were taxed based on expenditure at the time when the Federal Act on Taxation Based on Expenditure of September 28, 2012, came into effect, § 21 paragraphs 1, 2, and 6 of the previous law shall continue to apply for a period of five years.

1. If legal entities were taxed under §§ 85 and 86 of the previous law, the latent reserves existing at the end of this taxation period, including self-created added value that would not have been taxable so far, shall be taxed separately upon realization within the next five years. The tax per unit amounts to 0.4 percent of the corresponding net profit.

2. The amount of latent reserves claimed by the legal entity, including self-created added value, shall be determined by the assessment authority through an official decree.

3. Depreciations on latent reserves, including self-created added value, that were disclosed at the end of taxation under §§ 85 and 86 of the previous law shall be included in the calculation of the relief limitation according to § 72c.

1. In deviation from Section 60, paragraph 1, the wealth tax rate for the tax years 2020-2023 is 0.875 per mille per unit.

2. In deviation from Section 62, paragraph 2, the total amount of the wealth tax for the state, municipalities, and church parishes may not exceed 3.5 per mille of the taxable wealth in the canton of Lucerne in the tax years 2020-2023.

1. The rental and cadastral values under previous law shall remain in effect until an assessment is conducted under the new law.

1. The Government Council shall submit an impact report on this legislative amendment to the Cantonal Council no later than four years after the amendment of September 9, 2019, comes into effect.

**1. Deviation from § 58 Paragraph 2**

In deviation from § 58 paragraph 2, the tax per unit in the three tax years following the entry into force of the amendment of March 18, 2024, amounts to 0.5 percent on the first 40,000 francs and 1.4 percent from 40,000 francs.

1. Deviation from § 93 paragraph 1, the tax per unit in the three fiscal years following the enactment of the amendment on March 18, 2024, amounts to 0.25 per mille of the taxable equity capital. Reserved is § 93 paragraph 4 in the version valid until the amendment of March 18, 2024.

1. The Canton of Lucerne will distribute to the municipalities, from the commencement of the amendment on March 18, 2024, the revenue from the minimum taxation of large corporate groups annually up to the year 2029 in the amount of 26.6 million Swiss francs (municipal share), and from the year 2030 in the amount of 23.5 million Swiss francs. The municipal share is granted to the municipalities regardless of the actual revenue that the Canton of Lucerne receives from the minimum taxation of large corporate groups.

2. In the first two years, the municipal share will be distributed to the municipalities half according to their revenue shortfalls in taxes due to the amendment of March 18, 2024, and half according to their population numbers, and from the third year onwards according to their population numbers.

3. For the distribution of the municipal share based on revenue shortfalls, the revenue shortfall of each municipality in relation to the revenue shortfall of all municipalities is decisive. The revenue shortfalls are calculated from the difference between the average tax revenues in the sixth to fourth year prior to the distribution year with and without the amendment of the Tax Law from March 18, 2024. For the calculation of revenue shortfalls, the following are considered

a. for natural persons

1. shortfalls from the deduction for the costs of third-party childcare according to § 40 paragraph 1l StG,

2. shortfalls from social deductions according to § 42 paragraphs 1 and 2 StG,

3. shortfalls from the taxation of capital benefits from insurance and pensions according to §§ 58 paragraph 2 and 259f StG,

b. for legal entities

1. shortfalls from capital tax according to §§ 93 paragraphs 1 and 4 and 259g StG.

4. For the distribution of the municipal share relative to the population number, the population numbers of the permanent resident population according to the Ordinance on Population Statistics of November 22, 2011, are decisive.

5. The municipalities will receive their share by April 30 of the distribution year, starting the year the amendment enters into force on March 18, 2024.

6. The government council will review within five years after the commencement of the amendment on March 18, 2024, the participation of the municipalities in the revenue from the minimum taxation of large corporate groups and may propose to the Cantonal Council a re-determination of the municipal share and its distribution among the municipalities.

1. The direct federal tax of natural persons shall be assessed annually starting from the calendar year 2001.

2. The deduction of extraordinary expenses incurred in the years 1999 and 2000 shall be made from the taxable income underlying the tax period 1999/2000. Assessments that have already become legally binding shall be revised in favor of the taxable person.

1. The law enters into force on January 1, 2001. It is subject to an optional referendum.