§ 36 Tax Act (StG) - Provisions and Value Adjustments

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.

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