CH-LU
§ 21 Tax Act (StG) - Taxation Based on Expenditure
§ 21 StG · Taxation Based on Expenditure
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.