Tax Ordinance (StV) - Change of Ownership (OF)

1. For the attribution of a property upon transfer, the decisive factor is the actual transfer date of benefits and risks, provided that the entry into the land register (journal) occurs before this date.

2. If the transfer of benefits and risks is agreed upon to be at a date prior to the land register entry (journal), the date of the land register entry (journal) is decisive for attribution.

3. For the attribution of properties in the context of transfers during restructurings (§§ 26 and 75 StG), the implementation provisions of the direct federal tax apply accordingly.

1. The Tax Office of the Canton issues guidelines for the assessment of depreciation on individual items or entire groups of business assets, which take into account the customary decrease in value. The taxpayer is reserved the right to demonstrate further depreciation in an individual case.

2. Price increases of capital assets may be appropriately accounted for through accelerated depreciation.

3. The Tax Office of the Canton issues guidelines on the assessment of tax-deductible provisions.

1. Goods, semi-finished products, and raw materials shall be valued at acquisition and production costs or, if the market value is lower, at market value. Buildings and products manufactured under firm contracts with third parties are not considered goods.

2. Reasonable hidden reserves on the inventory are permissible if the inventory is disclosed in terms of quantity and the hidden reserves are specified in terms of amount.

3. Unreasonable hidden reserves are to be included in taxable income and assets or profit and capital. Furthermore, hidden reserves on inventory are only taxed as income or profit at the time of their realization or when they are dissolved in accounting records.

1. If for taxable persons who are only liable to tax in the Canton of Lucerne for part of their income and assets, the total taxable income and assets cannot be determined due to the lack of a complete tax declaration or other indications, the tax rate is to be determined at discretion.

2. In these cases, the tax per unit amounts to at least 5 percent for the income.

1. Heir communities that constitute an independent tax entity are not entitled to the deductions and tax-exempt amounts under §§ 33, 40 paragraphs 1c-k and paragraph 2, 42, and 52 of the Tax Act, as well as the tariff according to § 57 paragraph 2 of the Tax Act.

2. Each taxable heir community must designate a representative to the assessment authority. If it fails to do so, official communications to the heir community are considered validly served if they are delivered to a capable heir.

1. For the determination of taxable income, the Ordinance on Assessment According to Expenditure for direct federal tax is applied mutatis mutandis.

2. The taxable assets are determined taking into account the taxable income corresponding to the expenditure. It corresponds to at least the total amount resulting from the assets mentioned in § 21 paragraph 5 of the StG.

1. Payments Made by the Employer to a Dependent Employee After Their Death (Salary etc.) are to be Recorded as Taxable Income for the Recipient of These Payments.

1. **The Taxable Rental Value of a Property** continuously occupied by a taxable person at their place of residence is reduced upon request to the extent that it exceeds 25 percent of the gross income (income before deductions according to the tax assessment) without the rental value and falls below 19,400 francs (27,700 francs market rent) for single individuals and below 27,200 francs (38,900 francs market rent) for persons eligible for the rate according to § 57 paragraph 2 StG. The taxable rental value must be at least 60 percent of the average market rent.

2. **The Reduction of the Rental Value** ceases to apply if the taxable assets exceed 55,000 francs for single individuals and 110,000 francs for persons eligible for the rate according to § 57 paragraph 2 StG.

3. **However, the Reduction of the Rental Value** is also granted if the taxable assets exceed the amounts mentioned in paragraph 2, provided that the tax value of the self-used residential property at the place of residence exceeds 75 percent of the tax value of all assets (assets before deduction of liabilities) according to the tax assessment.

4. **The Flat-rate for Property Maintenance Costs** is calculated based on the reduced taxable rental value.

1. Under § 30, subparagraph f and § 40, paragraph 1c of the StG, only periodic payments are considered maintenance contributions.

1. Instead of the actual maintenance and management costs, the taxable person may claim a standard deduction for properties held as private assets.

2. The allowable standard deduction amounts to

a. 10 percent of the gross rental income or the taxable rental value of buildings whose year of construction is not more than ten years before the beginning of the tax period,

b. 20 percent of the gross rental income or the taxable rental value of other buildings.

3. ...

4. The taxable person may choose, for each property in each tax period, between the deduction of the actual costs and the standard deduction.

1. The provisions of the Ordinance on the Deduction of Professional Expenses for Dependent Gainful Employment in Relation to Direct Federal Tax and the Expatriates Ordinance shall apply mutatis mutandis to the deduction of professional expenses.

2. The Finance Department shall take into consideration the flat-rate amounts of the direct federal tax when establishing the flat-rate amounts.

1. Expenses for illness and accident costs, subject to § 12a, include

a. Medical care (fees, medications, etc.),

b. Special healing measures (radiation, massages, baths, etc.),

c. Special care (nursing staff, hospital, home, clinic stays, doctor-prescribed spa or convalescence stays, etc.),

d. Acquisition and maintenance of aids,

e. Additional food expenses incurred due to a doctor-prescribed diet,

f. Additional housing, clothing, and mobility costs due to illness and accident,

g. Dental treatment costs, insofar as they are not purely cosmetic.

2. Contributions to illness and accident costs shall particularly include payments from third parties in the form of insurance and liability as well as disability allowances. Supplementary benefits to AHV and IV, other public and private welfare-oriented benefits, scholarships, and family support must be credited, insofar as they serve to cover illness and accident costs.

3. To calculate the deduction, the costs for stays in sanatoriums, spas, and nursing institutions must be reduced by the amount that would have been required for living expenses in one's own household. The rate applicable for the reduction is determined based on the standards for assessing in-kind benefits.

1. Costs related to disabilities shall be considered as expenses for additional expenditures incurred by taxpayers or persons supported by them due to disabilities, as defined in the Equal Opportunities for Disabled Persons Act, insofar as they are not covered by third parties.

2. The Department of Finance shall issue guidelines on disability-related costs, taking into account the applicable enforcement provisions of federal law.

1. As income from gainful employment within the meaning of § 40 paragraph 2 StG, in the case of dependent employment, the net income after deduction of contributions to the old-age and survivors', disability, unemployment, non-occupational accident insurance, and income compensation scheme, as well as contributions to occupational pension provision (2nd pillar), is considered. In the case of self-employment, income from gainful employment is considered to be the balance of the profit and loss account after making any necessary tax adjustments.

2. In calculating the deduction, substitute incomes such as daily allowances from the income compensation scheme, disability, health, accident, and unemployment insurance are equated with income from gainful employment.

3. If the smaller of the two incomes of the spouses or registered partners, after deduction of professional expenses and any contributions to occupational pension provision (2nd pillar) and recognized forms of tied private pension provision (pillar 3a), is below the amount specified in § 40 paragraph 2 StG, only the remaining amount can be deducted.

1. Deductions pursuant to § 40 paragraphs 1g and k of the Tax Act are determined based on the circumstances at the end of the tax period or the tax liability.

1. If, under separate taxation, both parents meet the conditions for deducting childcare costs, each parent may deduct 1,000 Swiss Francs for personal care expenses. The deduction for each parent increases to a maximum of 10,100 Swiss Francs for the unreimbursed costs of third-party care for each child, provided these costs are directly related to the parent's gainful employment or education. Any other division of third-party care costs must be substantiated by the parents. If the total claimed third-party care costs of both parents exceed 18,200 Swiss Francs, the deductions for each parent are reduced in proportion to the verified costs to this maximum amount.

1. The fiscal year for self-employed individuals typically comprises 12 months.

2. The financial closing can be postponed on an exceptional basis for objectively justified, economically reasonable reasons.

1. Household items include objects that are part of the typical furnishing of a dwelling and are actually used for residential purposes, specifically furniture, carpets, pictures, kitchen and garden appliances, crockery, books, as well as entertainment electronics.

2. Personal use items are considered everyday items, specifically clothing, jewelry, sports equipment, cameras, and camcorders.

3. Not considered household items or personal use items are, notably, motor vehicles, boats, airplanes, riding horses, and valuable collections.

1. To prove a debt, it is necessary to disclose the identity of the creditor and, if the debt is interest-bearing, to present the interest receipt.

2. The deduction shall be refused if a collection agency does not disclose the actual creditor.

3. The deduction of debts is permissible regardless of their maturity.

1. Upon the commencement of a self-employed business activity in the last quarter of the tax period, the movable business assets for the tax period in which the business activity is initiated are assessed based on the opening balance sheet.

1. A claim for tax exemption exists only under the condition that the profit and capital, dedicated to the purposes described in § 70 paragraphs 1e-i of the Tax Act, are actually provided and used according to their intended purpose.

1. For the valuation of participations pursuant to § 82 paragraph 1 StG, § 47 StG shall apply mutatis mutandis.

2. ...

1. The closing of transactions by legal entities may be postponed on an exceptional basis for objectively justifiable, economically reasonable reasons.

2. The capital tax is proportionately owed in the event of the postponement of the closing.

1. For the assessment of the equity capital, the equity capital as of the balance sheet date of the financial statement, after the appropriation of profits, is decisive.

2. ...

1. The deduction exceeding the commercially justified research and development expenses amounts to 0.0 percent.

1. The municipal communities ensure the proper assessment and collection of state and municipal taxes as well as direct federal tax. They are responsible for implementing directives and orders issued by the cantonal supervisory authorities for the assessment and collection authorities. They ensure, in terms of personnel and organization, that these tasks are permanently and adequately fulfilled. In particular, the following requirements must be met

a. Those who perform assessments must have a qualified education, in-depth knowledge of tax law, as well as several years of experience and proven competence in tax assessment.

b. At least one person must be employed full-time in the tax office. If a tax office cannot employ a person full-time in tax matters, a smaller workload is sufficient, provided that the person to be appointed as the assessment authority meets heightened professional requirements. The Canton's Tax Department must be consulted before hiring.

c. Substitution is ensured.

d. The requirements defined by the Canton's Tax Department for data exchange and data processing are met.

2. The Canton's Tax Department authorizes at least one person per municipal community to act as an assessment authority. It determines the extent to which certain categories of persons are not assessed by the municipal community.

3. The municipal communities undertake the preparatory work in objection procedures and work out a resolution proposal. They provide suitable premises with infrastructure for objection hearings free of charge.

4. If several municipal communities jointly operate a regional tax office, the provisions of paragraphs 1-3 apply accordingly.

1. A minimum of two members of the Tax Commission is required to pass a resolution. Subject to an objection hearing pursuant to § 156 StG, the resolution of objections is handled via circulation procedure.

2. The Tax Commission makes its decision by a simple majority vote. If there is no majority in the vote, the chairperson's vote counts double.

3. ...

1. Evidence examinations, in which taxpayers and persons obligated to provide information must participate (book examination, inspection), must be notified at least 10 days in advance. Exceptions are evidence examinations pursuant to § 220 paragraph 3 StG.

2. For requests to taxpayers and persons obligated to provide information in the evidence procedure (submission of evidence, etc.), a period of at least 20 days must be set.

3. If taxpayers or persons obligated to provide information fail to comply with a procedural duty, they must be reminded with a grace period of at least 10 days.

1. Any written objection to the assessment made within the appeal period shall be treated as an appeal. Oral appeals shall not be entertained. If such appeals are made to a tax authority, the appellant must be expressly informed of the formal requirement for written submissions.

2. Appeals without a specific request shall be returned for correction, with a deadline set for at least 10 days, under the threat of dismissal in case of non-compliance.

3. If the requests made in the appeal can be granted based solely on the appeal document, no oral appeal hearing shall take place.

1. If an agreement is reached between the taxable person and the tax authority during the assessment or objection procedure, a record of this agreement must be prepared.

2. The record must include the tax factors and the applicable tax rate and must be signed by both the tax authority and the taxable person.

3. The assessment becomes legally binding upon signing. The right to object according to § 161 paragraph 2 of the Tax Act remains reserved.

1. Tax Value Reports to Out-of-Canton Tax Authorities must be Submitted to the Cantonal Tax Office for Forwarding.

1. For the preparation of the inventory pursuant to Sections 182-188 of the Tax Act, the Ordinance on the Establishment of the Estate Inventory for Direct Federal Tax applies mutatis mutandis.

1. Advance payments shall accrue interest according to the date of receipt, but not before January 1 of the tax period, up to the due date of the tax liability.

2. The provisional or definitive withholding tax credit shall be credited to the tax period in which the taxable benefit becomes due and shall accrue interest from the receipt of the complete tax return. It may be carried forward to a subsequent period.

3. ...

1. Amounts paid that exceed the final invoice amount are to bear interest from the due date or later receipt of payment until repayment.

1. Insofar as the final invoiced amount is not paid by the due date of the tax claim or within 30 days after the delivery of the invoice in cases referred to in § 191 paragraph 2 StG, it shall bear interest from that date until the outstanding payment is received or until the earlier issuance of the final invoice.

1. Preliminary tax assessments are prepared based on the tax units reported to the Cantonal Tax Office by April 30th of the tax year. If no report has been submitted by this date, the billing will be based on the tax units from the previous tax year.

1. The tax authority may refund advance payments that exceed the amounts of tax calculated based on the tax return, the last assessment, or the estimated amount owed, as well as overpaid amounts, without a request from the taxpayer. Advance payments shall be refunded upon the taxpayer's request to the extent that a tax invoice exists which is lower than the advance payments made.

2. If the taxpayer relocates during the tax period to another Lucerne municipality or a canton with current taxation, the advance payments made to the municipality from which they are moving and credited to the current tax period will be refunded along with interest. The tax authority may alternatively transfer these directly to the receiving municipality.

3. If a final account, prepared due to the death of a spouse or a registered partner, results in a balance in favor of the spouses or registered partners, the tax authority may transfer this balance to the current account of the surviving spouse or surviving registered partner.

1. The designated authority may offset payments received for a specific tax period against outstanding claims from other tax periods.

1. The reminder fee pursuant to Sections 145 paragraph 4 and 192 paragraph 4 of the Tax Code (StG) amounts to 40 francs. No fee is charged for the first reminder.

2. Reminder fees are invoiced and collected together with the state and municipal taxes. They accrue to the authority responsible for collection.

1. Partially paid tax amounts are to be distributed between the state and the entitled municipalities in proportion to the tax units received.

1. The jurisdiction of the issuing authority is determined by the amount of the requested waiver, which is the sum of the direct federal tax, state and municipal taxes, fines, reminder fees, and procedural costs, excluding interest, of all affected municipalities. The decision on waiver requests is made by

a. the municipality of the assessment location for amounts up to 10,000 Swiss francs,

b. the Cantonal Tax Office for amounts exceeding 10,000 Swiss francs.

2. If a waiver request of up to 10,000 Swiss francs is submitted for multiple tax periods and involves various municipalities, the Cantonal Tax Office determines jurisdiction.

3. The Cantonal Tax Office decides differently from paragraph 1a on waiver requests from legal entities and self-employed individuals, as well as requests for waiver of withholding tax, except for withholding tax according to § 110 StG.

4. In the event of a disagreement over the jurisdiction of the issuing authority, the Cantonal Tax Office makes a final decision on jurisdiction.

5. ...

1. In the processing of waiver requests, the Federal Act on Direct Federal Taxation (DBG) and the Ordinance of the Federal Department of Finance on the Treatment of Requests for Waiver of Direct Federal Tax (Tax Waiver Ordinance) are to be applied mutatis mutandis.

2. A waiver shall be granted in the same proportion for all involved communities.

3. The decision on the waiver may be subject to conditions (such as installment payments, security deposits, etc.).

1. If a natural person owns real estate, businesses, or business establishments outside the municipality where their residence is situated on December 31 of the calendar year or at the end of their tax liability, the municipality where these are located is entitled to a corresponding share of the tax amount.

2. Income from real estate trading is, in any case, to be allocated to the municipality where the real estate is located for taxation purposes.

3. ...

4. Otherwise, the allocation of municipal tax shares is governed by the inter-cantonal double taxation law, insofar as this ordinance does not specify otherwise.

1. If a legal entity has real estate, enterprises, or establishments outside the municipality where its domicile is located at the end of the tax period or tax obligation, the municipality in whose territory these are located is entitled to a corresponding share of the tax amount.

2. Otherwise, the provisions of § 43 apply mutatis mutandis.

1. Income from agricultural or forestry land located in multiple municipalities must be distributed in proportion to the assessed tax values, provided these are based on yield value assessments.

1. If a natural person operates a business outside their municipality of residence, 25 percent of the income from the business operation shall be allocated to the municipality of residence.

2. If the share of a permanent establishment located at the residence of the taxable person, determined according to the principles of inter-cantonal double taxation law, exceeds 25 percent of the total income from the business operation, the municipality of residence shall be allocated the higher share instead of the flat rate portion of 25 percent.

1. The income of partners from a general or limited partnership is to be allocated one-quarter to the municipality of residence and three-quarters to the municipality where the business operation is located.

2. The income from a general or limited partnership includes salary and benefits in kind, interest on capital contributions, and the share of profits.

3. If the business operation is situated in the territory of multiple municipalities, the income attributable to these municipalities (75 percent) is to be distributed according to the inter-cantonal double taxation law.

4. The regulation according to § 46, paragraph 2, also applies to partners in general or limited partnerships.

1. If a municipality claims a share of the tax, it must notify the municipality of the assessment location by the end of the tax period, or in cases of inheritance, within six months from the knowledge of the conditions for apportionment.

2. If the notification is not made within the deadline, the apportionment does not take place unless the assessment municipality is otherwise aware of the apportionment claim.

1. The allocation of tax shares to the entitled municipalities is the responsibility of the resident municipality at the domicile of the taxable person.

2. For legal entities and self-employed individuals, the allocation is carried out by the assessment authority.

1. The decision regarding tax allocation must be communicated to the taxable person in writing, with an indication of the right to object, and to the entitled municipalities electronically.

2. An objection must be delivered to the other parties entitled to object, with a deadline of 30 days for their response.

1. The Department Secretariat of the Finance Department is responsible as an office for the distribution of the municipal share in accordance with § 259h StG.

2. Lustat Statistics Lucerne calculates, using data from the Tax Office, the distribution of the municipal share among the municipalities on behalf of the Department Secretariat of the Finance Department.

3. The costs of Lustat Statistics Lucerne for its services according to paragraph 2 are borne by the canton.

1. The basis for calculating revenue losses according to § 259h paragraph 3 StG (Tax Act) is the difference in the individual tax amounts per unit, multiplied by the tax rate of the year preceding the distribution year.

2. Amendments to the Tax Act that occurred between the sixth and fourth years before the distribution year and the amendment of the Tax Act dated March 18, 2024, are taken into account when calculating the revenue losses.

3. The distribution of the municipal share is calculated based on the latest official statistical foundations and tax data available at Lustat Statistics Lucerne on the reference date. This reference date falls

a. on June 30 of the year preceding the distribution year, insofar as the distribution is based on revenue losses and population,

b. on February 28 of the year preceding the distribution year, insofar as the distribution is based on population.

1. The Government Council annually decides on the calculated amounts to the municipal communities. The competent authority informs the municipal communities of this decision via a credit note notification.

1. The following enactments are repealed

a. Decision on the Mitigation of Cold Progression in the Tax Act of September 23, 1986,

b. Decision on the Mitigation of Cold Progression in the Tax Act of August 28, 1990,

c. Decision on the Mitigation of Cold Progression in the Tax Act of September 22, 1992,

d. Enforcement Ordinance to the Tax Act of April 7, 1975,

e. Ordinance on the Granting of Special Tax Reliefs pursuant to § 95 of the Tax Act of February 13, 1961,

f. Ordinance on the Property Gain Tax and the Subsequent Wealth Tax on the Sale of Agricultural Land in Border Areas of September 9, 1986,

g. Ordinance on the Additional Tax Withholding for the USA of October 5, 1953.

1. The following enactments are amended according to the annex[17]

a. Ordinance on the Procedure in Inheritance Cases of September 6, 1965[18],

b. Ordinance on the Scholarship Act of September 4, 1992[19],

c. Implementing Ordinance to the Act on the Official Assessment of Immovable Property (Assessment Ordinance) of July 24, 1967[20],

d. Ordinance on the Implementation of the Law concerning Inheritance Taxes of May 27, 1908, of July 22, 1908[21],

e. Ordinance on the Federal Act on Direct Federal Tax of December 6, 1994[22],

f. Ordinance on Compensation in Tax Matters of December 5, 1995[23],

g. Ordinance on the Act concerning the Reduction of Health Insurance Premiums (Premium Reduction Ordinance) of December 12, 1995[24],

h. Ordinance on Occupational Retirement Provision of June 11, 1996[25],

i. Social Assistance Ordinance of July 13, 1990[26].

1. The regulation shall enter into force on January 1, 2001. It is to be published.