§ 70 Tax Act (StG)

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.

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