CH-NE
6 Finances - 63 Public Contributions - 631 Direct Taxes of the State and Municipalities - PART ONE INTRODUCTION (DBG)
Table of Provisions (342)
Statutory Text (342 Articles)
[1] 1 The canton levies, in accordance with this law
a) an income tax and a wealth tax on individuals;
b) a profit tax and a capital tax on legal entities;
c) a withholding tax, applicable to certain individuals and legal entities;
d) a property tax on investment real estate of legal entities, real estate funds as defined in Article 58 of the Federal Law on Collective Investment Schemes (CISA) of June 23, 2006 [2], and individuals, as well as on properties of pension institutions;
e) a tax on real estate gains.
2. The municipalities may levy, in accordance with this law
a) an income tax and a wealth tax on individuals;
b) a profit tax and a capital tax on legal entities;
c) a property tax on investment real estate of legal entities, real estate funds as defined in Article 58 CISA, and individuals, as well as on properties of pension institutions;
d) a property tax on real estate belonging to the state, other municipalities, inter-municipal associations, or dependent establishments.
3. Federal law and international treaties remain reserved in inter-cantonal and international relations.
The State Council is authorized to take reciprocity measures with other cantons concerning exemptions or other reciprocal limitations of fiscal sovereignty.
[3] 1 Cantonal and communal direct taxes on the income and wealth of individuals are determined according to a single reference scale (Art. 40 et seq. and 53).
2. The tax thus determined is the basic tax.
3. The tax coefficient is a multiplying factor of the basic tax.
4. The Grand Council sets the coefficient of the cantonal direct tax owed by individuals through a decree.
5. The General Council sets the coefficient of the communal direct tax owed by individuals through regulations.
6. The basic tax and the tax coefficient do not apply to the following taxes
a) withholding tax;
b) tax on real estate gains;
c) property taxes.
[4] 1 Cantonal and communal direct taxes on the profit and capital of legal entities are determined according to a single reference scale (Art. 94, 94d, 94e, 94f, and 108).
2. The tax thus determined is the basic tax.
3. The tax coefficient is a multiplier of the basic tax.
4. The Grand Council sets the coefficient of the cantonal tax on the profit and capital of legal entities and the coefficient of the communal tax on the profit and capital of legal entities by way of decree.
5. The basic tax and the tax coefficient do not apply to the following taxes
a) withholding tax;
b) property taxes.
**1. Individuals are subject to tax based on their personal attachment when, under tax law, they are domiciled or reside in the canton.**
2. A person has their domicile in the canton, under tax law, when they reside there with the intention of establishing a permanent place of abode, or when they have a special legal domicile there pursuant to federal law.
3. A person resides in the canton, under tax law, when, without significant interruption
a) They reside there for at least thirty days while engaging in gainful employment;
b) They reside there for at least ninety days without engaging in gainful employment.
4. A person who retains their domicile outside the canton or abroad and resides in the canton solely to attend an educational institution or to receive treatment in an institution is neither domiciled nor residing there under tax law.
[5] 1 Natural persons who, pursuant to tax law, neither reside nor stay in the canton are subject to tax on the basis of economic attachment when
a) they are owners or usufructuaries of a business in the canton or have an interest as partners;
b) they operate a permanent establishment in the canton;
c) they own a property situated in the canton or hold real enjoyment rights or personal rights economically akin to real enjoyment rights over a property situated in the canton, or engage in real estate trading.
2. A permanent establishment is defined as any fixed place in which the business activity of an enterprise or a person exercising a liberal profession is carried out, in whole or in part. Branches, factories, workshops, sales counters, permanent representations, mines, and other places for the exploitation of natural resources, as well as construction or assembly sites open for at least twelve months, are notably considered as permanent establishments.
[6] 1 Natural persons who, under tax law, are neither domiciled nor staying in Switzerland are subject to tax due to their economic ties when
a) they engage in gainful activity in the canton;
b) in their capacity as members of the administration or management of a legal entity that has its seat or a permanent establishment in the canton, they receive bonuses, attendance fees, fixed compensation, employee participation, or other remunerations;
c) they hold or benefit from claims secured by a mortgage or pledge on real estate located in the canton;
d) as a result of activities on behalf of others governed by public law, they receive pensions, retirements, or other benefits from an employer or a pension fund that has its seat in the canton;
e) they receive income from occupational pension plans or from other recognized forms of tied individual pension plans from private law institutions with their seat or permanent establishment in the canton;
f) due to their activity in international transport aboard a ship, aircraft, or road vehicle, they receive a salary or other remuneration from an employer with its seat or permanent establishment in the canton;
g) they act as intermediaries in commercial transactions involving real estate located in the canton.
2. When, in place of one of the aforementioned persons, the payment is made to a third party, it is the latter who is subject to tax.
[7] 1 Liability based on personal connection is unlimited; however, it does not extend to enterprises, permanent establishments, and real estate situated outside the canton.
2. Liability based on economic connection is limited to the portions of income and wealth, as well as property gains, that are taxable in the canton, according to Articles 5 and 6. At a minimum, income earned within the canton and wealth located there must be taxed.
3. The extent of liability for an enterprise, a permanent establishment, or real estate is defined, in intercantonal and international relations, in accordance with the rules of federal law concerning the prohibition of intercantonal double taxation. If a company having its seat or effective management in the canton offsets, based on domestic law, losses incurred abroad by a permanent establishment with income obtained in Switzerland, and if that permanent establishment records profits within the seven following years, a revision of the initial taxation must be carried out up to the amount of profits offset at the permanent establishment; in this case, the loss suffered by the permanent establishment abroad should be taken into account afterward only for the purpose of determining the tax rate in the canton. Losses originating from another canton charged against taxable income in the canton may be deducted from income acquired in that other canton during the seven subsequent years; in this case, the amount of the loss carried forward is taxable in the canton, either at the global income rate or at least at the rate corresponding to the amount carried forward. In all other cases, losses suffered abroad should only be considered in the canton when determining the tax rate.
4. The provisions laid down in treaties aimed at avoiding double taxation are reserved.
1. Individuals who are only partially subject to income and wealth taxes in the canton shall be taxed at the rates applicable if their entire income and wealth were taxable within the canton.
2. However, taxpayers domiciled abroad who are taxable due to a business, a permanent establishment, or real estate located in the canton shall be taxed at rates corresponding at least to the income earned in the canton and the wealth situated therein.
1. The liability begins on the day when conditions justifying a tax liability due to personal or economic ties arise in the canton.
2. The liability ends on the day of the taxpayer's death, their departure from the canton, or the day when the criteria for limited attachment justifying the liability cease to exist.
3. In inter-cantonal relations, the effects of the beginning, modification, or termination of liability based on personal or economic ties are defined by the federal law on the harmonization of direct taxes of the cantons and municipalities, as well as by federal legal rules concerning the prohibition of inter-cantonal double taxation.
4. In the event of a transfer of domicile abroad, the tax liability in the canton ceases from the day the taxpayer establishes having created a tax domicile abroad based on personal ties.
5. The liability does not end in the event of a temporary transfer of the principal place of business abroad or in the case of the application of any other measures under the federal legislation on the country's economic supply.
1. The income and wealth of spouses living in a common household are combined, regardless of the matrimonial regime.
2. In the event of marriage, spouses are jointly taxed for the entire fiscal period during which their marriage took place.
3. In the event of the death of one of the spouses, the couple is jointly taxed until the date of death; the death results in the termination of the tax liability for both spouses and the start of the tax liability for the surviving spouse.
4. In the event of divorce or legal or de facto separation, each spouse is taxed separately for the entire current fiscal period.
5. The income and wealth of children under parental authority are added to those of the holder of parental authority until the end of the year preceding the year in which these children reach majority; however, income from gainful employment on which the minor child is taxed separately is reserved.
[8] 1 In this law, registered partners within the meaning of the federal partnership law have the same status as spouses.
2. This also applies to maintenance contributions received or paid during the period of federal registered partnership, as well as maintenance contributions and the liquidation of assets in the event of separation or judicial dissolution of the partnership.
3. Paragraphs 2 to 4 of Article 10 apply mutatis mutandis in the event of a federal registered partnership.
[9] 1 Each of the heirs or partners adds to their personal taxable elements their share of the income and the assets of the estate, the simple partnership, the general partnership, or the limited partnership.
2. However, the estate is regarded as a taxpayer and is subject to the regime applicable to natural persons when all the beneficiaries are domiciled or have their headquarters in the canton and their rights are not sufficiently known; the domicile of the estate is determined by the last domicile of the deceased.
3. Each of the investors adds to their personal taxable elements their share of income and assets related to collective investments, as defined by the Federal Law on Collective Investment Schemes (CISA), with the exception of collective investments that own real estate directly.
Foreign commercial companies and other foreign groups of persons without legal personality, which are subject to tax due to economic connection, are taxable according to the provisions applicable to legal entities.
Property subject to usufruct and the income derived from it are added to those of the usufructuary.
[10] 1. The heirs of a deceased taxpayer succeed to his or her rights and obligations. They are jointly liable for the taxes owed by the deceased up to the extent of their hereditary share, including any advancements of inheritance.
2. The surviving spouse is liable up to the extent of his or her hereditary share and, if he or she receives, due to the matrimonial property regime, a portion of the estate or community exceeding his or her legal share according to Swiss law, up to the extent of that additional amount.
3. The surviving registered partner is liable up to the extent of his or her hereditary share and the amount he or she has received pursuant to a property agreement under Article 25, paragraph 1, of the Federal Act on Registered Partnerships Between Persons of the Same Sex (LPart), dated June 18, 2004.
4. The State may require securities. Article 244, paragraphs 2 to 4, shall apply by analogy.
1. Spouses living in a common household are jointly and severally liable for the total amount of tax. However, each spouse is responsible for the amount corresponding to their share of the total tax when the insolvency of one of them has been established. They are also jointly and severally liable for the portion of the total tax that pertains to the income and assets of the children.
2. Jointly and severally liable with the taxpayer are
a) The children under their parental authority, up to their share of the total tax;
b) Partners in a simple partnership, general partnership, or limited partnership domiciled in Switzerland, up to their share, for the payment of taxes owed by partners domiciled abroad;
c) The seller of a property located in the canton, up to 3% of the sale price, for the payment of taxes owed by the merchant or intermediary they engaged, if the latter is not domiciled in Switzerland for tax purposes;
d) Persons responsible for the liquidation of businesses or permanent establishments located in the canton, the alienation or realization of properties located in the canton, or claims secured by such properties, up to the net proceeds, when the taxpayer is not domiciled in Switzerland for tax purposes;
e) The bare owner, for the tax relating to the properties subject to usufruct.
3. The administrator of an estate and the executor of the will are jointly and severally liable with the deceased's legal successors for the taxes owed by the deceased, up to the amount that must be allocated to the payment of the tax according to the status of the estate on the date of death. They are released from all liability if they prove that they have taken all the care required by the circumstances.
[11] 1 Natural persons have the right to be taxed based on expenditure instead of paying taxes on income and wealth if they meet the following conditions
a) not having Swiss nationality;
b) being subject to unlimited tax liability (Art. 4) for the first time or after an absence of at least ten years;
c) not engaging in gainful activity in Switzerland.
2. Spouses living in a common household must both meet the conditions of paragraph 1.
[12] 1. Income tax is calculated based on the annual expenses of the taxpayer and the persons for whom they are responsible, incurred during the tax period both in Switzerland and abroad to maintain their standard of living, but at least according to the highest of the following amounts
a) 400,000 francs;
b) for taxpayers who are heads of household: seven times the annual rent or the rental value as per Article 24, paragraph 1, letter b;
c) for other taxpayers: three times the annual cost of room and board at the residence location as per Article 4.
2. Income tax is levied according to the ordinary rate. The tax discount does not apply.
3. Wealth tax is calculated on the value of movable and immovable properties located in Switzerland, but at a minimum based on the taxable base used to determine the income tax multiplied by five.
4. Wealth tax is levied according to the ordinary rate.
5. The amount of tax based on expenses must be at least equal to the sum of the income and wealth taxes calculated according to the ordinary scale on the total amount of the following gross elements
1. immovable property located in Switzerland and the income derived therefrom;
2. movable objects located in Switzerland and the income derived therefrom;
3. movable capital invested in Switzerland, including claims secured by real estate mortgages, and the income derived therefrom;
4. copyrights, patents, and similar rights exploited in Switzerland and the income derived therefrom;
5. pensions, annuities, and pensions from Swiss sources;
6. incomes for which the taxpayer requests a partial or total relief from foreign taxes under a convention concluded by Switzerland to avoid double taxation.
6. If incomes originating from a foreign State are exempted there on the condition that Switzerland imposes them, either alone or with other incomes, at the total income rate, the tax is calculated not only on the basis of the incomes mentioned in paragraph 5, but also on all elements of the income originating from the source State that are allocated to Switzerland under the corresponding convention to avoid double taxation.
7. The Council of State enacts the necessary provisions for the assessment and collection of tax based on expenses.
[13] The Council of State reports once per legislative period in its management report the number of taxpayers benefiting from expenditure-based taxation.
[14] 1 Beneficiaries of tax exemptions mentioned in Article 2, paragraph 2, of the Federal Act on Privileges, Immunities, and Facilities, along with financial assistance granted as a host state (Host State Act, HSA), dated June 22, 2007 [15], are exempt from taxes to the extent provided by federal law.
2. In the event of partial tax liability, Article 8, paragraph 1, is applicable.
3. The provisions governing the tax on real estate gains are reserved.
1. The income tax encompasses all income of the taxpayer, whether one-time or periodic, in cash or in kind, regardless of its source.
2. Benefits in kind, notably pensions and housing, as well as products and goods that the taxpayer withdraws from their business for personal consumption, are assessed at their market value.
3. Capital gains realized upon the disposal of private property elements are not taxable; the separate taxation of real estate gains remains reserved.
[16] 1 All income derived from activities performed under an employment relationship, whether governed by private law or public law, is taxable, including incidental income such as allowances for special services, commissions, bonuses, length-of-service awards, gratuities, tips, profit shares, benefits in kind derived from employee participation, and other monetary benefits.
1bis Regardless of their amount, expenses for professional training and development, including retraining costs, borne by the employer do not constitute taxable monetary benefits in the sense of paragraph 1.
[17] 1 The following are considered as employee participation rights proper
a) shares, participation certificates, profit-sharing certificates, membership shares, and any other participation offered to the employee by the employer, the parent company, or another group company;
b) options granting the right to acquire the participations mentioned in letter a.
2. Considered as improper employee participation rights are expectations on mere cash compensation.
[18] 1 The monetary benefits derived from employee participation, except for non-negotiable or unlisted options, are taxable as income from employment at the time of their acquisition. The taxable benefit corresponds to the market value of the participation, reduced, if applicable, by its acquisition price.
2. When calculating the taxable benefit of employee shares, account is taken of lock-in periods by applying a discount of 6% on the market value of the shares for each year of the lock-in period. The discount is limited to ten years.
3. The monetary benefits derived from non-negotiable or unlisted employee options are taxed at the time the options are exercised. The taxable benefit is equal to the market value of the share minus the exercise price.
[19] Appreciable monetary benefits deriving from improperly referred to employee participations are taxable at the time of receipt of the compensation.
[20] If the taxpayer was neither domiciled nor resident in Switzerland for tax purposes during the entire period between the acquisition and the vesting of the right to exercise the non-transferable employee stock option (Art. 20b, para. 3), the pecuniary benefits derived from this option are taxed proportionally to the ratio between the entire period and the time spent in Switzerland.
[21] 1 All income derived from the operation of a commercial, industrial, craft, agricultural, or forestry enterprise, from the practice of a liberal profession, or from any other independent gainful activity is taxable.
2. All capital gains resulting from the disposal, realization, or accounting revaluation of elements of business assets are part of the proceeds of the independent gainful activity. The transfer of business assets to private assets or to a business or permanent establishment located abroad is considered a disposal.
3. Business assets include all assets that are used entirely or predominantly in the exercise of the independent gainful activity; this is similarly applicable to holdings of at least 20% in the share capital or equity capital of a capital company or cooperative, insofar as the holder declares them as business assets at the time of acquisition. Article 21b is reserved.
4. Article 84 applies by analogy to taxpayers who maintain proper accounting records.
5. Profits from the disposal of agricultural or forestry real estate are subject to income tax for the portion of the gain represented by the difference between the total value of the goods before depreciation and their book value at the time of disposal; the profit constituted by the difference between the disposal value and the total value of the investments is subject to real estate gains tax.
[22] 1 When a property from the fixed assets is transferred from business assets to private assets, the taxpayer may request that only the difference between the investment expenses and the value determined for income tax purposes be taxed at the time of the transfer. In this case, the investment expenses serve as the new value for income tax purposes, and the taxation of the remaining hidden reserves as income from independent gainful activity is deferred until the disposal of the property.
2. The lease of a commercial enterprise is considered a transfer to private assets only at the request of the taxpayer.
3. When, in the case of an inheritance division, only some of the heirs continue the commercial operation, they may request that the taxation of the hidden reserves be deferred until subsequent realization, provided that values determined for income tax purposes are assumed.
[23] 1 Dividends, profit shares, liquidation surpluses, and appreciable monetary advantages derived from shares, interests in limited liability companies, interests in cooperative societies, and participation certificates, as well as profits from the disposal of such participation rights, are taxable, after deduction of attributable charges, at a rate of 60% when these participation rights represent at least 10% of the share capital or the equity capital of a corporation or a cooperative society.
2. Partial taxation on disposal profits is granted only if the participation rights have been owned by the taxpayer or the partnership business for a minimum of one year.
[24] Articles 87a and 87b apply correspondingly to income derived from patents and comparable rights in cases of self-employed activity.
[25] 1 The latent reserves of a partnership (sole proprietorship, partnership) are not taxed during restructurings, especially during a merger, division, or transformation, provided that the enterprise remains subject to tax in Switzerland and that the business elements are transferred at their last value decisive for income tax
a) in the event of the transfer of assets to another partnership;
b) in the event of the transfer of a business or a distinct part of a business to a legal entity;
c) in the event of an exchange of participation rights or membership rights following restructurings as defined in Article 87, paragraph 1, as well as following concentrations economically equivalent to mergers.
2. During a restructuring as defined in paragraph 1, letter b, the transferred latent reserves are subject to a tax recall according to the procedure provided in Articles 221 to 223, to the extent that, within five years following the restructuring, participation rights or membership rights are alienated at a price exceeding the fiscally decisive value of the transferred equity; in this case, the legal entity can assert the corresponding latent reserves taxed as profit.
3. The taxation of accounting revaluations and additional contributions remains reserved.
4. Paragraphs 1 and 2 apply by analogy to enterprises operated under joint control.
[26] 1 The income from movable capital is taxable, in particular
a) interest from assets, including yields paid, in the case of life or redemption of capital insurances that can be redeemed and are paid with a single premium, except if these insurances serve as a pension. It is considered serving as a pension if the insurance payment occurs from the time the insured has reached their 60th year, under a contractual agreement that lasted at least five years and provided it was established before the insured reached their 66th year. In this case, the payment is exempt;
b) income resulting from the alienation or redemption of predominantly single-interest bonds (global interest bonds, zero-coupon bonds) that fall to the holder;
c) dividends, profit shares, liquidation surplus, and all other monetary benefits from all kinds of participations (including free shares, free increases in nominal value, etc.), which do not constitute a repayment of existing capital shares; when participation rights are sold in the sense of Article 4a of the Federal Act of 13 October 1965 on Withholding Tax, to the capital company or the cooperative that has issued them, the income from capital is considered realized in the year when the tax claim arises (art. 12, para. 1 and 1bis, of the Federal Act of 13 October 1965 [27] on Withholding Tax); paragraph 1bis is reserved.
d) income from the rental, leasing, usufruct, or other enjoyment rights over movable assets or rights;
e) income from shares in collective investments that own real estate in direct ownership, insofar as the total income from the investment exceeds the yield of these properties;
f) income from intangible assets.
1bis Dividends, profit shares, liquidation surpluses, and monetary benefits from shares, interests in limited liability companies, cooperative shares, and participation certificates (including free shares, free increases in nominal value, etc.) are taxable at 60% when these participation rights account for at least 10% of the share capital or the company capital of a capital company or a cooperative.
2. Proceeds from the alienation of subscription rights do not constitute capital income, provided that these rights belong to the taxpayer's private fortune.
3. The repayment of contributions, agios, and additional payments (reserves from capital contributions) made by holders of participation rights after December 31, 1996, is treated in the same manner as the repayment of share capital or corporate capital. Paragraph 4 is reserved.
4. If, during the repayment of reserves from capital contributions according to paragraph 3, a capital company or a cooperative listed on a Swiss stock exchange does not distribute other reserves at least for an equivalent amount, the repayment is taxable up to half of the difference between the repayment and the distribution of other reserves, but at most up to the amount of other reserves that can be distributed under commercial law available within the company.
5. Paragraph 4 does not apply to reserves from capital contributions
a) which have been constituted after February 24, 2008, in the context of mergers equivalent to mergers, by contributing participation rights or membership rights to a foreign capital company or cooperative as per Article 87, para. 1, letter c, or during a cross-border transfer to a Swiss capital company according to Article 87, para. 1, letter d;
b) that already existed within a foreign capital company or cooperative at the time of a cross-border merger or restructuring as per Article 87, para. 1, letter b, and para. 3, or after moving the headquarters or principal administration after February 24, 2008;
c) in the event of liquidation of the capital company or cooperative.
6. Paragraphs 4 and 5 apply analogously in case of using reserves from capital contributions for issuing free shares or free increases of the nominal value.
7. If, during the sale of participation rights in a capital company or a cooperative listed on a Swiss stock exchange and that issued them, the repayment of reserves from capital contributions does not correspond to at least half of the realized liquidation surplus, the taxable part of this liquidation surplus is reduced by an amount corresponding to half the difference between this part and the repayment, but at most by the amount of reserves attributable to these participation rights and available within the company.
8. Paragraph 3 applies only to contributions and agios paid during the duration of a capital fluctuation margin as per Articles 653 and following of the Swiss Code of Obligations (CO), to the extent that they exceed the repayments of reserves within the framework of said capital fluctuation margin.
[28] 1 Also considered as income from movable property within the meaning of Article 23, paragraph 1, letter c are
a) the proceeds from the sale of a participation of at least 20% in the share capital or in the equity capital of a corporation or a cooperative society representing a transfer of private assets into the commercial assets of another natural person or a legal entity, provided that existing non-operational substance, which can be distributed in accordance with commercial law at the time of sale, is distributed within five years with the participation of the seller; the same applies when several participants jointly proceed with the sale of such a participation or when several participations representing together at least 20% are sold within five years; if substance is distributed, the seller is, if necessary, taxed subsequently in a tax recall procedure pursuant to Articles 221, paragraph 1, 222, and 223;
b) the proceeds from the transfer of a participation in the share capital or in the equity capital of a corporation or a cooperative society representing a transfer of private assets into the commercial assets of a partnership or a legal entity in which the seller or the person making the contribution holds a participation of at least 50% in the capital after the transfer, to the extent that the total consideration received exceeds the sum of the nominal value of the transferred participation and the reserves resulting from capital contribution referred to in Article 23, paragraphs 3 to 7; the same applies when several participants carry out the transfer jointly.
2. There is participation within the meaning of paragraph 1, letter a, when the seller knows or should have known that funds would be withdrawn from the company to finance the purchase price and that they would not be returned to him.
1. The income from real estate assets is taxable, in particular
a) all income derived from leasing, tenancy, usufruct, or other rights of use;
b) the rental value of buildings or parts of buildings which the taxpayer reserves for their own use due to ownership rights or a right of use obtained gratuitously;
c) income derived from surface rights;
d) income derived from the exploitation of gravel pits, sand pits, or other ground resources.
2. The State Council establishes the standards for calculating the rental value so that, as a general rule, it corresponds to 70% of the payments the taxpayer would have to make as rent or lease for premises of a similar nature and in the same condition, particularly in regard to their location, size, fittings, and state of maintenance.
1. All income from old-age and survivors' insurance, disability insurance, as well as all income from occupational pension institutions or provided in recognized forms of linked individual pension plans, including lump-sum benefits and the reimbursement of payments, premiums, and contributions, is taxable.
2. Income considered as deriving from occupational pension institutions notably includes benefits from pension funds, savings and group insurance, as well as vested benefits policies.
3. Income from life annuities and life care contracts is taxable at a rate of 40%.
4. Article 27, letter b, is reserved.
[29] The following are also taxable
a) any income received in place of income from gainful employment;
b) lump sum or periodic payments received as a result of death, permanent bodily injury, or lasting health impairment;
c) compensation received upon the termination of an activity or the relinquishment thereof;
d) compensation received for the waiver of exercising a right;
e) repealed;
f) alimony received by a divorced or legally or factually separated taxpayer for themselves, as well as maintenance contributions received by one parent for children over whom they have parental authority.
**[30] The following are exempt from tax**
a) the transfer of wealth following a succession, legacy, donation, or the liquidation of the matrimonial regime;
b) payments from privately redeemable capital insurance, excluding vested benefits policies. Article 23, paragraph 1, letter a, remains reserved;
c) lump-sum payments made by the employer or a professional pension institution upon a change of employment, provided the beneficiary reinvests them within one year in a professional pension institution or uses them to acquire a vested benefits policy;
d) assistance subsidies from public or private funds;
e) payments made in fulfillment of a family law obligation, except for alimony received by a divorced, legally separated, or de facto separated spouse for themselves and maintenance contributions obtained by one parent for the children over whom they have parental authority;
f) military service pay and the service allowance for civil protection service, as well as pocket money for individuals obligated to perform civil service;
f bis) the pay for militia firefighters, up to an annual amount of 8,200 francs, for activities related to the fulfillment of their essential duties (exercises, on-call duty, courses, inspections, and interventions, especially for rescue, firefighting, disaster management in general, and dealing with natural disasters); lump-sum additional allowances for officers, special function allowances, administrative task allowances, and allowances for voluntary services are not exempted;
g) payments as compensation for moral damages;
h) income received under federal legislation on supplementary benefits to retirement, survivors, and disability insurance;
i) winnings from casino games operated in gaming establishments and authorized by the Federal Act on Money Games (LJAr) dated September 29, 2017, provided these winnings do not result from independent revenue-generating activities;
i bis) unitary winnings up to 1,030,000 francs from participation in large-scale games authorized by the LJAr and online participation in casino games authorized by the LJAr;
i ter) winnings from a small-scale game authorized by the LJAr;
j) unitary winnings up to 1,000 francs from a game of skill or lottery intended to promote sales that are not subject to the LJAr according to Article 1, paragraph 2, letters d and e of this law;
k) income received under the Federal Act on Transitional Benefits for Older Unemployed Persons, dated June 19, 2020.
Net income is calculated by deducting from the total gross income the general deductions and expenses mentioned in Articles 29 to 36, to the extent that they are actually incurred during the calculation period.
[33] 1 The acquisition costs of income that may be deducted are
a) necessary travel expenses between home and the place of work;
b) additional expenses resulting from meals consumed away from home and shift work;
c) other essential expenses for the practice of the profession; Article 36, paragraph 1, letter k, is reserved;
d) repealed.
2. The expenses mentioned in paragraph 1, letters a to c, are estimated on a flat-rate basis; in the cases of paragraph 1, letters a and c, the taxpayer may substantiate higher expenses.
[34] 1 Taxpayers engaged in an independent lucrative activity may deduct expenses that are justified by commercial or professional use.
2. These expenses particularly include
a) depreciations and provisions as per Articles 31 and 32;
b) actual losses on elements of the business assets, provided they have been recorded;
c) payments to provident institutions for the benefit of the company's personnel, provided that any use contrary to their purpose is excluded;
d) interest on commercial debts as well as interest paid on participations referred to in Article 21, paragraph 3;
e) costs of professional training and development of the company's personnel, including retraining costs;
f) sanctions aimed at reducing profit, insofar as they do not have a penal nature.
3. Notably non-deductible are
a) payments of secret commissions within the meaning of Swiss criminal law;
b) expenses that allow the commission of offenses or constitute consideration for the commission of offenses;
c) fines and monetary penalties;
d) financial administrative sanctions, insofar as they have a penal nature.
4. If sanctions as mentioned in paragraph 3, letters c and d, have been imposed by a foreign criminal or administrative authority, they are deductible if
a) the sanction is contrary to Swiss public order, or if
b) the taxpayer can credibly demonstrate that they have undertaken all reasonably required measures to behave in accordance with the law.
[35] 1 Depreciation of assets justified by commercial use is permitted, provided that they are recorded in the accounts or, in the case of simplified accounting in accordance with Article 957, paragraph 2, of the CO, that they appear in a special depreciation schedule.
2. Generally, depreciation is calculated based on the actual value of the various assets or must be allocated according to the probable duration of use of each of these assets.
3. Depreciation performed on assets that have been revalued to offset losses is only permitted if the revaluations were authorized under commercial law and the losses could be deducted in accordance with Article 34, paragraph 1, at the time of the depreciation.
1. Provisions may be constituted against the income statement for
a) commitments of the financial year whose amount is still undetermined;
b) risks of losses on current assets, notably on goods and debtors;
c) other risks of imminent losses in the financial year;
d) future research and development mandates entrusted to third parties, up to a maximum of 10% of the taxable net profit, but in total up to a maximum of one million francs.
2. Provisions that are no longer justified shall be added to the taxable profit.
[36] 1 When fixed assets necessary for business operations are replaced, the latent reserves of these assets may be transferred to the newly acquired replacement fixed assets, provided that these assets are also necessary for operations and are located in Switzerland. Taxation in cases of replacing real estate with movable assets is reserved.
2 If the replacement does not occur during the same fiscal year, a provision corresponding to the latent reserves may be established. This provision must be dissolved and used for the depreciation of the asset acquired as a replacement or credited to the income statement within a reasonable time.
3 Only fixed assets that directly serve business operations are considered necessary for such operations; not included are assets that are valuable to the business solely for their investment value or yield.
1. Losses from the seven fiscal years preceding the tax period may be deducted from the income of this period, provided that they have not been taken into account when calculating the taxable income of previous years.
2. Losses from previous fiscal years that have not yet been deducted from income may be subtracted from third-party benefits intended to balance a deficient balance sheet as part of a restructuring.
[37] Article 85a applies by analogy to the deduction of research and development expenses in the case of self-employment.
[38] 1. A taxpayer who holds private movable assets may deduct the necessary administration costs incurred by third parties and foreign withholding taxes that cannot be refunded or credited.
2. A taxpayer who owns private real estate may deduct necessary maintenance expenses, costs for repairs of recently acquired properties, insurance premiums relating to these properties, and administration costs incurred by third parties; for rented properties, other current expenses that are not covered by the tenant are also deductible.
3. Instead of the actual amount of expenses and premiums related to private real estate, the taxpayer may claim a standard deduction, the rates and conditions of which are determined by the Council of State.
4. Additionally, a taxpayer who owns private real estate may deduct investment expenses aimed at saving energy and protecting the environment, within the limits and conditions set by the Council of State in collaboration with the Federal Department of Finance. Demolition costs for the purpose of a replacement construction are considered equivalent to maintenance costs.
4bis. The investment costs and demolition expenses for a replacement construction mentioned in paragraph 4 are deductible over the course of the two subsequent tax periods if they cannot be entirely taken into account during the current tax period in which the expenses were incurred.
5. Also deductible are the costs incurred from restoration work on historical monuments that the taxpayer undertakes pursuant to legal provisions, in agreement with authorities or upon their order, provided that these costs are not subsidized.
[39] 1 The following are deducted from income
a) private passive interest up to the amount of taxable income from property as defined in Articles 23, 23a and 24, increased by an amount of 50,000 francs; interest on loans granted by a capital company to an individual with whom it has close ties or who holds a significant share of its capital, and whose terms differ significantly from those customarily agreed upon in business dealings between independent parties, is not deductible;
b) permanent expenses and 40% of annuities paid by the debtor;
c) alimony paid to a divorced or legally or de facto separated spouse, as well as maintenance contributions paid to a parent for children over whom they have parental authority, excluding, however, other payments made in fulfillment of a maintenance or support obligation founded on family law;
d) contributions paid by the taxpayer to compensation funds under federal legislation on old-age and survivors, disability, loss of earnings insurance, and to unemployment insurance funds, as well as compulsory accident insurance premiums;
e) payments made by the taxpayer to acquire rights in a professional pension institution;
f) payments made by the taxpayer to acquire contractual rights in a recognized tied individual pension institution as per and within the limits of federal law;
g) life insurance premiums, health insurance premiums, as well as interest on savings capital for the benefit of the taxpayer, if applicable, their spouse and dependents as defined in Article 39d, up to a total of 4,900 francs for married taxpayers living together and an amount of 2,500 francs for other taxpayers; these amounts are increased by 25% for taxpayers who do not make contributions according to letters e and f. They are increased by 800 francs for each person for whom the taxpayer can claim a deduction as defined in Article 39d, paragraphs 1 and 2;
h) expenses incurred due to illness and accidents of the taxpayer, if applicable, their spouse, or a dependent as defined in Article 39, when the taxpayer bears these costs themselves, and for the part exceeding 5% of their net income, calculated according to Article 28, but without the deductions mentioned in this article, letters h and i;
h bis) expenses related to the disability of the taxpayer, their spouse, or a dependent as defined in Article 39, when the taxpayer or this person is disabled as defined by the law on equality for persons with disabilities, dated December 13, 2002, and the taxpayer bears these costs themselves;
i) donations in cash and other assets to legal entities headquartered in Switzerland that are exempt from tax due to their public service or public utility purposes (Art. 81, para. 1, let. f), or to the Confederation, cantons, municipalities, and their establishments (Art. 81, para. 1, let. a to c), up to 5% of the net income calculated according to Article 28, excluding the deduction mentioned in this paragraph, provided these donations total at least 100 francs per fiscal year;
j) contributions and payments up to an amount of 5,200 francs in favor of a political party, under one of the following conditions
1. being registered in the parties' register according to Article 76a of the Federal Law on Political Rights (LDP), dated December 17, 1976 [40];
2. being represented in a cantonal parliament;
3. obtaining at least 3% of the votes in the last elections to a cantonal parliament.
k) expenses for professional training and development, including retraining expenses, up to 12,400 francs provided the taxpayer meets one of the following conditions
1. they hold a secondary level II diploma;
2. they are aged 20 or over and are undergoing training aimed at obtaining a diploma other than a first secondary level II diploma.
2. When spouses live together, an amount equivalent to 25% but not more than 1,200 francs, is deducted from the lower of the earnings obtained by one of the spouses from an independent activity in the profession, business, or enterprise of the other; a similar deduction is granted when one of the spouses performs significant work to assist the other in their profession, business, or enterprise.
3. An amount for each child cared for by a third party, up to the amount of the legal representatives' contributions to the costs of out-of-family care, as defined by the Childcare Act (LAE), dated September 28, 2010 [41], and its implementing provisions, is deducted from income, if the child is under 14 years of age and lives in the same household as the taxpayer providing for their maintenance and if the documented childcare expenses have a direct causal link with the taxpayer's gainful activity, education, or incapacity to earn.
[42] The following costs and expenses cannot be deducted, in particular
a) the maintenance expenses of the taxpayer and their family, as well as those of persons living with them or whose living expenses they voluntarily assume, including rent for housing and private expenses resulting from their professional situation;
b) repealed;
c) expenses devoted to the repayment of debts;
d) interest on equity capital engaged in a trade, industry, or business;
e) costs for the acquisition, production, or enhancement of assets;
f) salaries in cash and in kind paid to domestic staff, including insurance premiums and other ancillary benefits paid for this staff;
g) direct taxes of the Confederation, cantons, and municipalities, as well as analogous foreign taxes;
h) inheritance and gift taxes, as well as transfer fees paid upon the acquisition of real estate for non-professional purposes;
i) repealed.
[43] 1 Spouses living in a common household, as well as widowed, separated, divorced, or single taxpayers who live in a common household with children or needy persons, for whom they primarily provide support, may deduct an amount of 3,800 francs from their net income. This deduction is reduced by 200 francs for each increment of 1,000 francs of net income exceeding 48,000 francs.
2. Other taxpayers may deduct an amount of 2,100 francs from their net income. This deduction is reduced by 100 francs for each increment of 1,000 francs of net income exceeding 26,000 francs.
[44] 1 For his or her minor children, or adult children pursuing an apprenticeship or studies, for whom he or she is primarily responsible for supporting, the taxpayer may deduct
c) 6,500 francs for the third child and each subsequent child.
However, the deduction is reduced by 100 francs for each 1,000 francs of net income exceeding the determining limit; it cannot, however, be less than 4,500 francs for the first child, 5,000 francs for the second child, and 5,500 francs for the third child and each subsequent child.
2. The determining limit for net income is 70,000 francs for the first child; it is increased by 10,000 francs for each additional child.
3. Spouses living in a common household, who both engage primarily in a gainful activity and have the right to a deduction as per paragraph 1, may deduct childcare expenses for each child under 12 years old, when they bear these expenses themselves and for the portion exceeding 5% of their net income, calculated according to Article 28, but without the deductions mentioned in Article 36, paragraph 1, letters h and i; however, the deduction cannot exceed 3,000 francs per child. The same deduction is granted to individuals living alone who engage in a gainful activity and live with children. The granting of an AI pension is equated to engaging in a gainful activity for the purpose of obtaining the deduction. Childcare expenses provided by family members or close persons are not deductible.
4. Additionally, an amount of 3,000 francs is deducted for each person who is without assets and unable to earn a living due to illness, disability or old age, for whose support the taxpayer provides, provided that their assistance reaches at least the amount of the deduction.
5. When an amount paid to a third party is deductible from the taxpayer's income, the taxpayer cannot claim to additionally benefit from a social deduction as referred to in this article.
6. The amount of the deduction for children and dependents is allocated proportionally when the burden is borne by several taxpayers.
[45] 1 For his minor children or his adult children pursuing an apprenticeship or studies, whose maintenance he primarily provides, the taxpayer may deduct
c) 6,500 francs for the third child and each subsequent child.
However, the deduction is reduced by 100 francs for each 1,000 francs of net income exceeding the determining limit; it cannot, however, be less than 4,500 francs for the first child, 5,000 francs for the second child, and 5,500 francs for the third child and each subsequent child.
2. The determining limit of net income is 70,000 francs for the first child; it is increased by 10,000 francs for each additional child.
3. Additionally, an amount of 3,000 francs is deducted for each person without assets who is unable to earn a living due to illness, disability, or old age, for whom the taxpayer provides maintenance, provided that his aid reaches at least the amount of the deduction.
4. When a payment made to a third party is deductible from the taxpayer's income, the taxpayer cannot additionally claim a social deduction as provided in this article.
5. The amount of the deduction for children and dependents is proportionally distributed when the burden is borne by multiple taxpayers.
[46] 1 The following are deducted from the net income for each minor or adult child pursuing an apprenticeship or studies, for whom the taxpayer primarily provides
c) an amount of 6,500 francs for each child over the age of 14.
2. Additionally, an amount of 3,000 francs is deducted for each person who is without fortune and unable to support themselves due to illness, disability, or old age, whom the taxpayer maintains, provided that the aid reaches at least the amount of the deduction.
3. When a payment made to a third party is deductible from the taxpayer's income, the taxpayer cannot also claim a social deduction within the meaning of this article.
4. The amount of the deduction for children and dependents is shared proportionally when the responsibility is borne by multiple taxpayers.
[47] 1 Deductions from net income are made for each minor or adult child pursuing an apprenticeship or studies, for whom the taxpayer primarily provides maintenance
c) an amount of 8,000 francs for each child over the age of 14.
2. Additionally, an amount of 3,000 francs is deducted for each person who is without means and unable to earn a living due to illness, disability, or old age, for whose maintenance the taxpayer is responsible, provided that their assistance equates to at least the amount of the deduction.
3. When a payment made to a third party is deductible from the taxpayer's income, the taxpayer cannot additionally claim a social deduction under the meaning of this article.
4. The amount of the deduction for children and dependents is distributed proportionally when the responsibility is shared by multiple taxpayers.
[48] 1 Deductions from the net income are made for each minor child or adult child pursuing an apprenticeship or studies, for whom the taxpayer primarily provides support
c) an amount of 8,200 francs for each child over the age of 14.
2. Additionally, an amount of 3,100 francs is deducted for each person who is without wealth and unable to earn a living due to illness, disability, or old age, whom the taxpayer supports, provided that the taxpayer's assistance amounts to at least the deduction amount.
3. When a payment made to a third party is deductible from the taxpayer's income, the taxpayer cannot claim an additional social deduction as per this article.
4. The amount of the deduction for children and dependents is apportioned proportionally when the support is provided by multiple taxpayers.
[49] 1 The basic income tax is determined according to the progressive system by categories, following the schedule below
| Categories | Rate for Each Category | Tax Due for Maximum Income of the Category | Actual Rate at Maximum for Each Category |
|-------------|------------------------|--------------------------------------------|-----------------------------------------|
| | | | |
| Fr. | Fr. | % | Fr. | % |
| 0.– | to | 5,000.– | 0.00 | 0.– | 0.000 |
| 5,001.– | to | 10,000.– | 2.00 | 100.– | 1.000 |
| 10,001.– | to | 15,000.– | 4.00 | 300.– | 2.000 |
| 15,001.– | to | 20,000.– | 8.00 | 700.– | 3.500 |
| 20,001.– | to | 30,000.– | 12.00 | 1,900.– | 6.333 |
| 30,001.– | to | 40,000.– | 13.00 | 3,200.– | 8.000 |
| 40,001.– | to | 55,000.– | 14.00 | 5,300.– | 9.636 |
| 55,001.– | to | 75,000.– | 15.00 | 8,300.– | 11.067 |
| 75,001.– | to | 110,000.– | 16.00 | 13,900.– | 12.636 |
| 110,001.– | to | 150,000.– | 17.00 | 20,700.– | 13.800 |
| 150,001.– | to | 180,000.– | 18.00 | 26,100.– | 14.500 |
2. Income exceeding 180,000 francs is taxed at 14.5%.
3. For spouses living in a common household, as well as for widowed, separated, divorced, or single taxpayers who live in a common household with children or dependent individuals whom they primarily support, the income is taxed at the rate corresponding to 55% of its amount.
4. The net taxable income is rounded down to the nearest hundred francs.
[50] 1 Income tax is determined based on the progressive system by category, according to the following scale
Categories
Rate of each category
Tax due for the maximum income of the category
Actual rate of the maximum of each category
Fr.
Fr.
%
Fr.
%
2. Income exceeding 195,000 francs is taxed at 14.5%.
3. For spouses living in a common household, as well as for widowed, separated, divorced, and single taxpayers who live in a common household with children, whom they primarily support, the income is subject to a rate corresponding to 55% of its amount.
4. The net taxable income is rounded down to the nearest hundred francs.
[51] 1 The basic income tax is determined according to the progressive system by category, following the schedule below
2. Income exceeding 200,000 francs is taxed at 14%.
3. For spouses living in a common household, as well as widowed, separated, divorced, and single taxpayers living in a common household with children whom they primarily support, the income is subject to the rate corresponding to 55% of its amount.
4. The net taxable income is rounded down to the nearest hundred francs.
bis [52] 1 The basic income tax is determined according to a progressive category system, following the schedule below
2. Income exceeding 400,000 francs is taxed at 14%.
3. For spouses living in a common household, as well as for widowed, separated, divorced, and single taxpayers who live in a common household with children whose maintenance they primarily provide, the income is taxed at a rate corresponding to 52% of its amount.
4. The net taxable income is rounded down to the nearest hundred francs.
Article [53]
1. The basic income tax is determined according to a progressive categorical system, based on the following scale
2. Income exceeding 412,000 francs is taxed at 14%.
3. For married couples living together, as well as for widowed, separated, divorced, and single taxpayers who live with children they principally support, the income is taxed at a rate corresponding to 52% of its amount.
4. The net taxable income is rounded down to the nearest hundred francs.
quater [54] 1 Base Income Tax is determined according to a progressive category system, according to the following scale
2. Income exceeding 412,000 francs is taxed at 13.86%.
3. For married couples living in a common household, as well as for widowed, separated, divorced, and single taxpayers living in a common household with children whose maintenance they predominantly provide, income is subject to a rate corresponding to 52% of its amount.
4. The net taxable income is rounded down to the nearest hundred francs.
[55] 1 For each minor or adult child pursuing an apprenticeship or studies, for whom the taxpayer primarily assumes responsibility for maintenance, an amount of 200 francs is deducted from the cantonal income tax. This amount is deducted from the direct cantonal tax due, determined in accordance with Articles 3 and 40 (basic tax multiplied by the cantonal tax coefficient).
2. This amount is allocated proportionally when the child's maintenance is provided by multiple taxpayers.
3. If the cantonal tax were to be less than this amount, the difference does not give rise to any carry forward or refund.
4. This amount is not applied to the cantonal tax calculated according to Articles 42 and 42a.
When income includes capital payments replacing periodic benefits or lump-sum payments at the end of service relationships, the tax is calculated taking into account other income and authorized deductions, at the rate that would be applicable if an annual benefit were paid instead of the single benefit.
[56] 1 For small remunerations arising from gainful employment, the tax is levied at a rate of 4.5% without considering other income, potential professional expenses, or social deductions, provided that the employer pays the tax within the framework of the simplified procedure provided for in Articles 2 and 3 of the Federal Act on Unlawful Employment (LTN), dated June 17, 2005. The cantonal and communal direct tax on income is thus settled.
2. Article 142, paragraph 1, letter b, applies by analogy.
3. The debtor of the taxable benefit is obligated to periodically remit the taxes to the competent compensation office.
4. The AVS Compensation Office shall issue to the taxpayer a statement or certificate indicating the amount of tax withheld. It shall pay the collected taxes to the competent tax authority.
5. The right to a collection commission according to Article 143, paragraph 2, is transferred to the competent AVS Compensation Office.
6. The Council of State shall regulate the modalities taking into account Articles 142 and 214.
[58] 1 The total of the hidden reserves realized during the last two business years is taxed separately from other income if the taxpayer, who has reached the age of 55, permanently ceases to exercise their self-employed activity, or if they are unable to continue this activity due to disability. The buy-ins as per Article 36, paragraph 1, letter e, are deductible. If such a buy-in is not made, the tax is levied in the same manner as for capital benefits from occupational pension plans under Article 42, on the portion of the realized hidden reserves corresponding to the amount for which the taxpayer proves admissibility as a buy-in as per Article 36, paragraph 1, letter e. The balance of the realized hidden reserves is taxed according to the scale in Article 40, paragraph 1; Article 40, paragraph 3, applies analogously; general and social deductions are not granted.
2. Paragraph 1 also applies to the surviving spouse, other heirs, and legatees, provided that they do not continue the operation of the business they have inherited; the tax assessment takes place no later than five calendar years after the end of the calendar year in which the taxpayer passed away.
[59] Lump sum benefits from insurance coverage according to Article 25, as well as amounts paid on account of death, permanent bodily harm, or long-term health impairment, are taxed separately and subject to a full annual tax calculated based on a rate representing one-quarter of the scale used to determine income tax, subject to the following three reserves
c) no further reduction of the rate is granted.
[60] 1 Winnings from gambling within the meaning of the Gambling Act (LJAr) as well as from lotteries or skill-based games intended to promote sales that are not subject to the Gambling Act shall be taxed separately from other income and collectively subjected to a base tax rate of 10%, provided they are not exempt from tax under Article 27, letters i to j.
2. General deductions and social deductions are not granted.
3. A loss from other income elements can be offset against the taxable winnings from gambling during the same fiscal period as that income.
1. If a taxpayer's income is only partially taxable in the canton, the tax is calculated at the rate applicable to the total income.
2. When an estate community is considered as a taxpayer, its income is taxed at the average rate applicable to the income, or if applicable, the profits of its members.
If only a part of the income is taxable in the canton, the general deductions and social deductions are allocated in accordance with the rules of federal law regarding the prohibition of intercantonal double taxation.
[61] 1 The effects of fiscal drag on the income tax levied on individuals are, in principle, offset by equivalent adjustments to the tax scales and deductions in francs applied to income. The amounts must be rounded to the nearest 100 francs, either up or down.
2. The Council of State submits a draft adaptation to the Grand Council during the year preceding the fiscal period, when the Swiss Consumer Price Index (CPI) has increased by at least 5% since the entry into force of this law or since the last adjustment. The level of the index one year before the start of the fiscal period is decisive.
The wealth tax covers all assets and rights belonging to the taxpayer, regardless of their nature.
[62] The following are notably considered as assets
a) real estate;
b) rights, shares, bonds, securities, options, and financial instruments of all kinds;
c) mortgage claims and all other claims;
d) cash, current account deposits, deposits, and any securities representing a sum of money;
e) shares of collective investments that own real estate directly, for the difference between the total value of the investment's assets and that of its real estate;
f) capital invested in a business, industry, operation, or enterprise;
g) equipment, machinery, tools, merchandise, supplies, livestock, and herds;
h) art objects, jewelry, silverware, collections, and vehicles of all kinds;
i) life insurance, for their surrender value;
j) limited real rights and concessions with a market value.
The assets are generally assessed at their market value.
[63] 1 Intangible assets and movable property that are part of the taxpayer's business assets are assessed at the book value relevant for income tax purposes. However, for assets related to the rights referred to in Article 21c, a reduction of 75% is granted.
2. Goods are evaluated at their cost price or at their market value if the latter is lower than the cost price.
3. Repealed.
4. Shares, cooperative company shares, and other non-listed participation rights are assessed based on the company's yield value and intrinsic value; when these participations concern Swiss companies, a deduction of 60% is granted on the tax value. In any case, the tax value determined before granting the deduction is decisive for the calculation of the tax rate.
5. Non-listed claims, including those incorporated in securities such as notes, bonds, and cash certificates, are assessed at their nominal value. However, in the assessment of these claims, if they are contentious or doubtful, the probability of their recovery is taken into account.
6. Life insurance policies are taxable only if they have a surrender value determined according to an approximation method.
[64] 1 Employee participations as defined in Article 20b, paragraph 1, are assessed at their fair market value. Blocking periods are considered by applying a discount of 6% on the market value of the shares for each year they are blocked. The discount is limited to ten years.
2. Employee participations as defined in Articles 20b, paragraph 3, and 20c, are declared with no tax value at the time they are granted.
1. The value of real estate corresponds to the cadastral assessment.
2. Real estate intended for the operation of a business is valued at its book value increased by the hidden reserves considered in the calculation of income.
Are not subject to wealth tax
a) household furniture and personal items in current use;
b) capital paid as savings to a professional provident institution or in a recognized form of tied individual provident savings in the sense of federal legislation, for as long as the taxpayer cannot access it.
1. Debts are deducted from the gross assets.
2. Only debts that are actually due for which the taxpayer is the principal debtor can be deducted; other debts, arising notably from joint liability and suretyship, can only be deducted to the extent that the taxpayer is responsible for them.
[65] 1 The basic wealth tax is determined according to a progressive category system, using the following schedule
Categories
Rate for each category
Tax due for maximum wealth in the category
Effective rate at maximum of each category
CHF
CHF
‰
CHF
‰
0.–
to
50,000.–
0.00
0.–
0.000
50,001.–
to
200,000.–
3.00
450.–
2.250
200,001.–
to
350,000.–
4.00
1,050.–
3.000
350,001.–
to
500,000.–
5.00
1,800.–
3.600
2 Wealth exceeding 500,000 francs is taxed at 3.6‰.
3 The wealth of spouses living in a joint household, as well as taxpayers who are widowed, separated, divorced, or single living in a joint household with children whom they chiefly support, is taxed at the rate corresponding to 52% of its amount.
4 The net taxable wealth is rounded down to the nearest thousand francs.
1. If a taxpayer's assets are only partially taxable in the canton, the tax is calculated at the rate applicable to the total assets.
2. When an inheritance community is considered as a taxpayer, its assets are taxed at the average rate affecting the assets, or where applicable, the capital of its members.
If only a portion of the estate is taxable in the canton, the debts and social deductions are allocated in accordance with the rules of federal law concerning the prohibition of intercantonal double taxation.
1 The tax is applicable to gains realized
a) upon the alienation of all or part of a property, including its accessories, that is part of the taxpayer’s private wealth;
b) upon the alienation of all or part of an agricultural or forestry property, provided that the gain exceeds the total value of the investments;
c) upon the alienation of all or part of a property belonging to a legal entity exempted in accordance with Article 81, paragraph 1, letters d to h.
2. Gains not subject to real estate gains tax are included in taxable income or profit.
1. Any transfer that results in the transfer of legal or economic ownership of real estate is subject to taxation.
2. The following are regarded as equivalent to the transfer of real estate
a) Legal acts that have the same economic effects as a transfer on the power to dispose of real estate, notably the assignment of the right to acquire real estate;
b) The transfer of all or part of a property from a taxpayer’s private assets to their commercial assets;
c) The establishment of private law servitudes on real estate or public law restrictions on land ownership, where such servitudes or restrictions limit exploitation or significantly and permanently reduce the market value of the property and give rise to compensation;
d) The transfer of one or more shares or participation interests in the capital of a real estate company.
3. In the event of simultaneous or successive transfers of several properties forming an economic unit, the total gain from these transfers is considered for tax calculation purposes.
[66] 1 Tax Deferral
a) in the case of transfer of ownership by inheritance (succession devolution, estate distribution, whether the real estate is allocated in kind or in exchange for a cash settlement, bequests), advancement of inheritance or donation;
b) in the case of transfer of ownership between spouses related to the matrimonial regime or in the case of compensation for extraordinary contributions by one spouse to the maintenance of the family (Art. 165 CC) or claims arising from divorce law, provided both spouses agree;
c) in the case of land consolidation (land exchange) carried out either for a parcel restructuring, establishment of a neighborhood plan, boundary adjustment, or rounding off an agricultural area, or within an expropriation procedure or due to impending expropriation;
d) in the case of total or partial disposal of agricultural or forestry property, provided the proceeds from the disposal are used within a reasonable period for acquiring replacement property or improving agricultural or forestry properties located in Switzerland belonging to and operated by the taxpayer;
e) in the case of disposal of the dwelling (house or apartment) that has been permanently and exclusively used by the disposer, to the extent that the proceeds obtained are allocated, within an appropriate period, to the acquisition or construction in Switzerland of a dwelling serving the same purpose.
2. In the case of an exchange of properties located within the canton, the tax is levied only on the cash settlement, to the extent that it constitutes taxable income under the terms of this law.
3. Tax deferral is also applicable in cases of advancement of inheritance or donation when the transferee's consideration consists solely of assuming a charge made up of third-party mortgage debts or constituting a right of habitation or usufruct in favor of the transferor.
4. The tax deferral ceases when the transferee's considerations exceed those stated in paragraph 3.
1. The tax is owed by the transferor, regardless of their domicile or registered office location.
2. The spouse and children are taxed separately on their real estate gains. However, when they live in a common household, they are jointly liable for the payment of the tax.
3. A person who, by virtue of law or contract, shares in the gain realized from a transaction subject to real estate gains tax is deemed equivalent to the transferor.
4. When there are multiple transferors, they are jointly liable for the payment of the tax.
1. The gain realized upon alienation is constituted by the difference between the alienation price and the acquisition price, increased by the expenses.
2. The gain is increased by compensations received for the establishment of easements, property charges, or public law restrictions encumbering the property, on one hand, as well as compensations received for the waiver of such easements, charges, or public law restrictions created in favor of the property, on the other hand, insofar as they have not been subjected to real estate gain tax.
1. Upon the disposal of shares in real estate companies, the taxable gain is equal to the difference between the sale price and the acquisition price, minus the costs related to the acquisition or disposal of the securities which have been borne by the seller.
2. However, the gain is reduced to the extent that the gross assets of the issuing real estate company of the security consist, according to the latest balance sheet prepared for the calculation of cantonal direct tax, of real estate located outside the canton.
3. The tax is not levied if the gross assets constituted by all real estate properties located in Neuchâtel territory and owned by the issuing real estate company represent less than 25% of the total gross assets.
4. For taxpayers domiciled in another canton, the tax is only due if the disposal results in the transfer of actual and economic control of a real estate property.
The acquisition price and the disposal price include all the obligations to which the purchaser commits towards the transferor (or third parties) for the transferred property, including accessories.
In the event of the transfer of all or part of the property from private assets to commercial assets, the alienation price corresponds to the value at which this asset is recorded in the company's balance sheet, provided that it does not exceed the market value.
In the event of the alienation of all or part of a property that previously formed part of the commercial assets, the acquisition price corresponds to the transfer value used for income tax purposes.
1. In the event of the alienation of real estate previously acquired through transfers justifying a deferred taxation, the acquisition price is that of the last taxable transfer.
2. During the alienation without reinvestment leading to a deferred taxation of a real estate located in another canton and acquired with deferred taxation according to Article 58, letters d or e, only the real estate gain that was previously subject to a tax deferral in the canton is taxable.
1. In the case of an exchange of real properties, the market value of each property, estimated on the day of the transaction, is considered as the sale price.
2. If the alienated property was acquired as a result of one or more successive exchanges against properties located within the canton, the determining acquisition price is that of the property disposed of last by a means other than such an exchange, taking into account, if applicable, any additional payments made or received.
When the alienation concerns only a part of the property, the corresponding portion of the total acquisition price serves as the basis for taxing the partial alienation.
1. If the acquisition price cannot be established with certainty, it is deemed to correspond to the cadastral value of the property at the date of acquisition.
2. When the acquisition of the property occurred more than twenty-five years before its alienation, the taxpayer may invoke the cadastral valuation of the property as the acquisition price twenty-five years before the alienation.
3. If the value of an expense, the value of compensation received for the establishment of an easement, a land charge, or a public law restriction encumbering the property, or the value of compensation received for the renunciation of such an easement, charge, or public law restriction previously created in favor of the property cannot be established, it is deemed to correspond to the extent to which the cadastral value of the property was increased at the time.
4. If the acquisition price of interests in real estate companies within the meaning of Article 61 cannot be established with certainty, it is deemed to correspond to the market value of the share at the time of acquisition, or failing that, to its estimated value according to the tax legislation of the State of the issuer's registered office, or failing that, to its nominal value.
1. Are considered expenses the costs closely related to the acquisition or alienation of real property, as well as the expenditures that have the effect of increasing its value.
2. Expenses notably include
a) the lods;
b) acquisition and alienation costs such as broker fees, notarial and land registry fees, administrative fees;
c) expenditures for the improvement or appreciation of the property;
d) the value of the taxpayer's personal work that increased the property's value, provided it was subject to income tax;
e) costs for the establishment of easements or land charges in favor of the property;
f) costs for the redemption of easements or land charges encumbering the property;
g) the added-value contribution paid, if applicable, pursuant to the Land Use Planning Act of October 2, 1991 [67].
3. Insurance benefits, compensations paid by the Confederation, the canton or the municipalities, as well as third-party benefits that the seller does not reinvest or repay, are deducted from the acquisition price.
4. In any case, the following are not considered expenses
b) expenditures that were deductible for income tax purposes.
The tax on taxable gain is progressive with an additional charge or reduction depending on the duration of ownership.
[68] 1 The base tax is determined according to the progressive system by categories, according to the following scale
Categories
Rate for each category
Tax due for the maximum gain of the category
Real rate of the maximum of the category
Fr.
Fr.
%
Fr.
%
0.–
to
5,000.–
10
500.–
10,000
5,001.–
to
10,000.–
15
1,250.–
12,500
10,001.–
to
30,000.–
20
5,250.–
17,500
30,001.–
to
50,000.–
25
10,250.–
20,500
50,001.–
to
75,000.–
30
17,750.–
23,667
75,001.–
to
100,000.–
35
26,500.–
26,500
100,001.–
to
135,000.–
40
40,500.–
30,000
2. Gain above 135,000 francs is taxed at 33%.
3. The taxable gain is rounded down to the nearest hundred francs.
4. Tax is not collected if the amount is less than 100 francs.
**The tax calculated according to Article 71 is increased for a duration of ownership:**
- by 60% for less than four years
- by 45%
- by 30%
- by 15%
1 The tax calculated in accordance with Article 71 is reduced for a duration of ownership of
by 6%
by 12%
by 18%
by 24%
by 30%
by 36%
by 42%
by 48%
by 54%
– more than 14 years ..........................................................................
by 60%
2. The maximum reduction rate cannot exceed 60%.
1. For the calculation of the duration of ownership, the determining factor is
a) in general, the date of the execution of the legal act pursuant to which the property is transferred during its acquisition or alienation;
b) if the property was acquired or alienated in execution of a promise of sale, a right of first refusal, a preemptive agreement setting the price for alienation, or a similar act, the date of such act;
c) if, upon acquisition of the property, taxation was deferred, the date of the previous taxable alienation;
d) if the alienated property originates from multiple acquisitions, the date of each acquisition act proportionally to their respective contribution to the formation of the alienated property.
2. If the property was acquired as a result of one or several successive exchanges for properties located within the canton, these acts, and if applicable, any preliminary acts pursuant to which they were concluded, are taken into consideration to determine the duration of ownership if and to the extent they resulted in the payment of a balance.
3. The assignment of the right to acquire a property or the real rights mentioned in Article One, as well as the transfer of the economic ownership of a property, do not affect the duration of the legal ownership of the property.
[69] 1. Legal entities subject to cantonal direct tax are
a) corporations (public limited companies, partnerships limited by shares, limited liability companies) and cooperatives;
b) associations, foundations, and other legal entities.
2. Collective investment schemes that own real estate directly, according to Article 58 of the Federal Act on Collective Investment Schemes (CISA), dated June 23, 2006, are treated as other legal entities. Fixed capital investment companies, as defined in Article 110 of CISA, are taxed as corporations.
3. Foreign legal entities, as well as foreign business entities and communities without legal personality, which are subject to tax due to an economic connection, are treated as Swiss legal entities to which they most closely resemble by their legal form or actual structure.
Legal entities are subjected to taxation based on their personal attachment when they have their seat or effective management in the canton.
[71] 1 Legal entities that neither have their headquarters nor their effective management in the canton are subject to tax due to their economic connection, when
a) they are affiliated with an enterprise established in the canton;
b) they operate a permanent establishment in the canton;
c) they own real estate located in the canton or have real rights of enjoyment or personal rights economically equivalent to real rights of enjoyment over such real estate, or engage in the trade of real estate located in the canton.
2. Legal entities that have their headquarters or effective management abroad are, moreover, subject to tax when
a) they are holders or usufructuaries of claims secured by a mortgage or pledge on real estate located in the canton;
b) they act as intermediaries in commercial transactions involving real estate located in the canton.
3. A permanent establishment is understood to mean any fixed installation where all or part of the business activity is carried out. Permanent establishments include, in particular, branches, factories, workshops, sales outlets, permanent representations, mines, and other extraction sites for natural resources, as well as construction or installation sites with a duration of at least twelve months.
1. Liability based on personal connection is unlimited; however, it does not extend to enterprises, permanent establishments, and real estate located outside of the canton.
2. Liability based on economic connection is limited to the part of the profit and capital that is taxable within the canton according to Article 77.
3. The extent of liability for an enterprise, permanent establishment, or real estate is defined, in inter-cantonal and international relations, in accordance with the rules of federal law concerning the prohibition of inter-cantonal double taxation. If a company with its registered office or effective management in the canton offsets losses incurred abroad by a permanent establishment with income obtained in Switzerland, and this permanent establishment achieves profits within the following seven years, the tax will be recovered during these fiscal years to the extent that loss carryforwards are compensated in the state where it is located. Losses related to real estate abroad will only be considered if a permanent establishment is operated in the concerned country. Losses from another canton supported in the canton can be deducted, over the following seven years, from income obtained in that other canton; in this case, the amount of the carried forward loss is taxable in the canton, at the rate of global income or, at least, at the rate corresponding to the amount carried forward. The provisions in agreements aimed at avoiding double taxation are reserved.
4. Taxpayers who have their registered office and effective management abroad are liable for tax at least on the profit made in Switzerland and on the capital invested there.
1. Liability to taxation begins on the day of the foundation of the legal entity, the establishment of its registered office or its effective administration in the canton, or the day it acquires a taxable element therein.
2. Liability to taxation ends on the day of the completion of the liquidation of the legal entity, the day its registered office or its effective administration is relocated outside the canton, or the day the taxable element disappears in the canton.
3. In inter-cantonal relations, the effects of the beginning, modification, or end of the liability to taxation based on personal or economic connection are defined by the federal law on the harmonization of direct taxes of the cantons and municipalities as well as by federal law rules concerning the prohibition of double inter-cantonal taxation.
4. In the event of the transfer of assets and liabilities from one legal entity to another, the taxes owed by the transferred entity must be settled by the acquiring entity.
5. The temporary transfer of the registered office abroad, as well as all other measures within the meaning of federal legislation on the country's economic supply, are not considered as the end of the liability to taxation.
1. Termination of Liability of a Legal Entity
When the liability of a legal entity comes to an end, the persons responsible for its administration and liquidation are jointly liable for the taxes it owes, up to the amount of the proceeds from the liquidation or, if the legal entity transfers its registered office or place of effective management abroad, up to the net assets of the legal entity. They are relieved of all responsibility if they can prove that they exercised all due diligence required by the circumstances.
2. Those who are jointly liable for taxes owed by a legal entity subject to tax due to economic connections, up to the amount of the net proceeds realized, are the persons in charge of
a) the liquidation of a business or a permanent establishment within the canton;
b) the transfer or realization of real estate located in the canton or claims secured by such real estate.
3. When a legal entity that neither has its registered office nor its effective management in Switzerland acts as an intermediary in a transaction involving real estate located in the canton, the buyers and sellers of the real estate are jointly liable, up to 3% of the purchase price, for the taxes owed by this legal entity due to its intermediary activities.
4. Members of commercial companies and other foreign legal bodies without legal personality are jointly liable for the taxes owed by these companies and bodies.
[72] 1 Only the following are exempt from tax
a) the Confederation and its institutions, within the limits set by federal legislation;
b) the canton and its institutions that do not have their own legal personality or that are exempt within the limits set by cantonal law;
c) the municipalities and other territorial entities of the canton, and their institutions that do not have their own legal personality or that are exempt within the limits set by cantonal law;
d) the occupational pension institutions of companies that have their domicile, headquarters, or a permanent establishment in Switzerland and of companies closely associated with them, provided that the resources of these institutions are assigned permanently and exclusively to pension provision for staff;
e) the Swiss social and compensation funds, notably the unemployment insurance, health insurance, old-age, disability and survivors insurance, and family allowance funds, with the exception of licensed insurance companies;
f) the legal entities pursuing public service or public utility purposes, on the profit and capital exclusively and irrevocably allocated to these purposes. Economic goals cannot, in principle, be considered as public interest. The acquisition and administration of significant equity stakes in enterprises serve a public utility purpose when the interest in maintaining the enterprise is subordinate to the public utility purpose and no managerial activities are exercised;
g) the legal entities aiming at religious purposes in the canton or on a Swiss level, on the profit and capital exclusively and irrevocably allocated to these purposes;
h) the transport and infrastructure companies holding a federal concession that receive compensation for this activity or are required, due to their concession, to maintain a service of national importance throughout the year; profits arising from a concession-related activity that are freely available are also exempt from tax; however, ancillary operations and real estate that do not have a necessary relationship with the concession-related activity are excluded from this exemption;
i) foreign states, on their Swiss properties used exclusively for the direct use of their diplomatic and consular representations, as well as institutional beneficiaries of tax exemptions referred to in Article 2, paragraph 1, of the Federal Act on the Privileges, Immunities and Facilities, as well as the Financial Aid Granted as a Host State (Host State Act, HSA) of June 22, 2007, for properties owned by them and occupied by their services;
j) collective investments that own properties directly, insofar as the investors are exclusively occupational pension institutions as mentioned in letter d or Swiss social and compensation insurance funds as mentioned in letter e, which are exempt from tax.
2. However, the legal entities mentioned in paragraph 1, letters d to h and j, are in all cases subject to tax on real estate gains.
[73] 1 Tax relief may be granted in particular cases to newly established enterprises that serve the economic interests of the canton, for the year of the company's founding and for the following nine years. Significant expansion and diversification of the company's activity are considered equivalent to a new founding.
2. The Municipal Council is informed upon request, for statistical purposes, of the development in the number of tax reliefs granted.
3. The Council of State establishes the implementing provisions.
4. The management committee and the finance committee are regularly informed, for statistical purposes, of the development in the number of tax reliefs granted.
**Tax on Profit**
The object of the tax on profit is the net profit.
[74] 1 The taxable net profit includes
a) the balance of the profit and loss account, taking into account the carried forward balance from the previous fiscal year;
b) all deductions made on the commercial result before calculating the profit and loss account balance, which do not serve to cover expenses justified by commercial use, such as
- the costs of acquisition, production, or improvement of fixed assets;
- depreciations and provisions not justified by commercial use;
- payments to reserve funds;
- the release of equity capital using the entity's funds, provided they come from reserves established by profits that have not been taxed;
- both open and hidden distributions of profit and benefits provided to third parties not justified by commercial use;
c) revenues not recorded in the profit and loss account, including capital gains, revaluation, and liquidation profits, subject to Article 90.
2. The services provided by joint economy enterprises fulfilling a public interest task predominantly to affiliated companies are assessed at the current market price, at their current production cost increased by an appropriate margin, or at their final sale price decreased by a profit margin; the result of each company is adjusted accordingly.
3. The taxable net profit of legal entities that do not prepare a profit and loss account is determined according to paragraph 1, which is applicable by analogy.
[75] 1 Legitimate business expenses also include
a) federal, cantonal, and communal taxes;
b) contributions to employee benefit institutions, provided that any use contrary to their purpose is excluded;
c) donations in cash and other assets, up to a maximum of 10% of the net profit, to legal entities domiciled in Switzerland that are tax-exempt due to their public service or charitable purposes (art. 81, para. 1, let. f) or to the Confederation, cantons, communes, and their establishments (art. 81, para. 1, let. a to c);
d) discounts, rebates, credits, and refunds granted on the equivalent value of deliveries and services, as well as the profit shares of insurance companies intended to be distributed among the insured;
e) training and professional development costs for the company's staff, including retraining costs;
f) penalties aimed at reducing profit, insofar as they do not have a punitive character.
2. The following do not constitute legitimate business expenses
a) bribes as defined under Swiss criminal law;
b) expenditures that enable the commission of offenses or that constitute consideration for the commission of offenses;
c) fines;
d) administrative financial sanctions, insofar as they are punitive in nature.
3. If penalties under paragraph 2, letters c and d, have been imposed by a foreign criminal or administrative authority, they are deductible if
a) the penalty is contrary to Swiss public policy, or if
b) the taxpayer can credibly demonstrate that they have taken all reasonably required measures to comply with the law.
[76] 1. Upon request with justified evidence, the taxpayer may claim the deduction of research and development expenses incurred in Switzerland, either directly or through third parties, in an amount exceeding up to 50% of the research and development expenses justified for commercial use.
2. Research and development are deemed to include scientific research and science-based innovation as defined in Article 2 of the Federal Act of December 14, 2012, on the Promotion of Research and Innovation (RIPA) [77].
3. An increased deduction is permissible for
a) personnel expenses directly attributable to research and development, plus a supplement equivalent to 35% of these expenses, but not exceeding the total expenses of the taxpayer;
b) 80% of the expenses for research and development work invoiced by third parties.
4. If the principal of the research and development work is authorized to make the deduction, the agent is not entitled to any deduction on this basis.
[78] The following do not constitute taxable income
a) contributions from members of capital companies and cooperative societies, including share premium and grants not subject to repayment;
b) undisclosed reserves that have not been previously taxed upon the transfer of the registered office, administration, business, or permanent establishment to another canton which applies the same regulations, provided that there is neither alienation nor accounting revaluation;
c) increases in wealth resulting from an inheritance, bequest, or donation.
**[79] 1 Latent reserves of a legal entity are not taxed during restructurings, such as in a merger, demerger, or transformation, provided that the legal entity remains subject to tax in Switzerland and that the commercial elements are assumed at their last value relevant for tax on profit:**
a) in case of a transformation into a partnership or another legal entity;
b) in case of a division or separation of a legal entity, provided that this transfer concerns one or more distinct operations or components of an operation and insofar as the legal entities existing after the split continue an operation or a distinct part of an operation;
c) in case of an exchange of participation rights or membership rights following a restructuring or a concentration economically equivalent to a merger;
d) in case of a transfer to a subsidiary company in Switzerland of operations or distinct parts of operations, as well as of items that form part of the fixed assets of the operation; a subsidiary is meant to be a corporation or cooperative society of which the corporation or cooperative society transferring holds at least 20% of the share capital or equity.
1bis When a corporation or a cooperative society transfers a participation to a company within the same group located abroad, the taxation of the difference between the value relevant for tax on profit and the fair market value of the participation is deferred. The deferral of taxation ends if the transferred participation is sold to a third party outside the group, or if the company whose participation rights have been transferred sells a significant part of its assets and liabilities, or if it is liquidated.
2. In the event of a transfer to a subsidiary as per subsection 1, letter d, the transferred latent reserves are subsequently taxed according to the procedure provided for in articles 221 to 223, to the extent that, within five years following the restructuring, the transferred values or participation rights or membership rights in the subsidiary are alienated; in this case, the subsidiary may claim the corresponding taxed latent reserves as profit.
3. Direct or indirect participations of at least 20% of the share capital or equity of another corporation or cooperative society, as well as operations or distinct parts of operations, and items that are part of the fixed assets of the operation, may be transferred, at their last value relevant for tax on profit, between Swiss corporations or cooperative societies, which, in light of the circumstances and the specific case, due to holding the majority of votes or otherwise, are under the single leadership of a corporation or cooperative society. The transfer to a Swiss subsidiary as per subsection 1, letter d, is reserved.
a) repealed;
b) repealed.
4. If, within five years following a transfer as per subsection 3, the transferred assets are alienated or if the single leadership is, during this period, abandoned, the transferred latent reserves are subsequently taxed in accordance with the procedure provided for in articles 221 to 223. The beneficiary legal entity may in this case claim the corresponding taxed latent reserves as profit. The Swiss corporations and cooperative societies united under single leadership at the time of the breach of the blocking period are jointly liable for the tax reclaim.
5. In case of the replacement of participations, the latent reserves may be carried over to a new participation if the alienated participation was equal to at least 20% of the share capital or equity of the other company and if the corporation or cooperative society held it for at least one year.
6. The taxation of accounting revaluations and additional contributions remains reserved.
7. The company that, as a result of the assumption of the assets and liabilities of a corporation or cooperative society, incurs an accounting loss on the participation it holds in that company, cannot deduct this loss for tax purposes; the deduction of an actual loss is reserved; any accounting profit on the participation is taxable.
[80] 1 The following are deemed patents
a) patents within the meaning of the Convention on the Grant of European Patents of October 5, 1973, in its revised version of November 29, 2000, designating Switzerland;
b) patents within the meaning of the Patent Act of June 25, 1954;
c) foreign patents corresponding to the patents referred to in items a or b.
2. The following are deemed comparable rights
a) supplementary protection certificates within the meaning of the Patent Act of June 25, 1954, as well as the extension of their term;
b) topographies protected under the Act of October 9, 1992, on the Protection of Topographies;
c) plant varieties protected under the Act of March 20, 1975, on the Protection of Plant Varieties;
d) data protected under the Act of December 15, 2000, on Therapeutic Products;
e) reports protected under an executive provision of the Act of April 29, 1998, on Agriculture;
f) foreign rights corresponding to the rights referred to in items a to e.
[81] 1 Upon request, the net income derived from patents and comparable rights is taken into account in the calculation of taxable net income in proportion to the eligible research and development expenses relative to the total research and development expenses per patent or comparable right (Nexus ratio) with a 20% reduction.
2. The net income derived from patents and comparable rights that are included in the products is determined by subtracting from the net income of each of these products 6% of the costs attributed to these products as well as the brand remuneration.
3. When the net income derived from patents and comparable rights is taxed for the first time at a reduced rate, research and development expenses that have already been accounted for in previous tax periods, as well as any potential deduction within the meaning of Article 85a, are added to the taxable net income. A latent taxed reserve must be constituted to the extent of the amount added.
4. The complementary provisions enacted by the Federal Council are applicable concerning
a) the calculation of the net income derived from patents and comparable rights taxable at a reduced rate, including, in particular, the Nexus ratio;
b) the application of the regulation to products that only have minor differences from each other and are based on the same patents and comparable rights;
c) documentation obligations;
d) the start and end of the reduced taxation, and
e) the treatment of losses derived from patents and comparable rights.
[82] 1 If the taxpayer declares hidden reserves at the beginning of the taxation period, including the added value they have independently created, these reserves are not subject to income tax. Hidden reserves of a capital company or cooperative society deriving from holding at least 10% of the share capital or equity capital of another company, or from a participation of at least 10% in the profits and reserves of another company, cannot be declared.
2. The beginning of taxation is considered to be the transfer of assets, operations, distinct parts of operations, or functions from abroad to a business or permanent establishment located in Switzerland, the termination of an exemption referred to in Article 81, as well as the transfer of the head office or place of effective management to Switzerland.
3. Declared hidden reserves must be amortized annually at the rate applied for tax purposes to the depreciation of the relevant assets.
4. The added value independently created by the taxpayer that is declared must be amortized within a period of ten years.
[83] 1 When the taxpayer's liability ends, any latent reserves that have not yet been taxed, including the self-created capital gains, are subject to taxation.
2. Situations considered as the end of tax liability include the transfer of assets, businesses, distinct parts of businesses, or functions from Switzerland to a company or a permanent establishment located abroad, the transition to an exemption as specified in Article 81, as well as the relocation of the headquarters or the place of effective management to a foreign country.
[84] 1 The tax reduction based on Articles 85a and 87b, paragraphs 1 and 2 shall not exceed 40% of the taxable profit before loss compensation, excluding the net gain from participations as defined in Articles 95 and 96, and before deduction of the applied reductions.
2. Neither the various reductions nor the total tax reduction shall lead to loss carryforwards.
[85] 1 Depreciation of assets justified by commercial use is permitted, provided that it is recorded in the accounts, or, in the case of simplified bookkeeping under Article 957, paragraph 2, CO, that it is included in a special depreciation schedule.
2. In general, depreciation is calculated based on the actual value of the various assets or must be allocated according to the probable useful life of each of these assets.
3. Depreciation applied to assets that have been revalued to offset losses is only permitted if the revaluations were authorized under commercial law and the losses could be deducted in accordance with Article 93, paragraph 1, at the time of depreciation.
4. Value adjustments and depreciation made on the investment cost of participations that meet the conditions set forth in Article 96, paragraph 4, letter b, are added to the taxable profit to the extent that they are no longer justified.
[86] 1 Provisions may be constituted charged to the income statement for
a) commitments of the financial year whose amount is still undetermined;
b) risk of losses on current assets, notably on goods and debtors;
c) other risks of imminent losses of the financial year;
d) research, development, and restructuring expenses.
2. Provisions that are no longer justified are added to the taxable profit.
[87] 1 When fixed assets necessary for operations are replaced, the latent reserves of these assets may be transferred to the newly acquired replacement fixed assets, provided these assets are also necessary for operations and are located in Switzerland. Taxation in cases of replacing real estate with movable property is reserved.
1bis In the case of replacing participations, the latent reserves may be transferred to a new participation if the alienated participation was at least 10% of the share capital or shareholding or at least 10% of the profit and reserves of the other company, and if the corporation or cooperative held this participation for at least one year.
2. When the replacement does not occur during the same fiscal year, a provision corresponding to the latent reserves may be established. This provision must be dissolved and used for the amortization of the newly acquired replacement asset or credited to the income statement within a reasonable period.
3. Only fixed assets that directly serve operations are considered necessary for it; assets that are merely beneficial to the company through their investment value or yield are not included.
[88] The passive interest due on the portion of foreign capital that must be added to the equity capital pursuant to Article 105 is part of the taxable profit of corporations and cooperative societies.
[89] 1 Contributions paid to associations by their members and endowments to the assets of foundations do not form part of the taxable profit.
2. Expenses related to the acquisition of taxable income by associations can be fully deducted from this income; other expenses can only be deducted to the extent that they exceed the members' contributions.
3. Repealed.
4. Collective investment schemes holding real estate in direct ownership are subject to profit tax on the income generated from these properties.
[90] Exempt from tax are the profits of legal entities pursuing ideal purposes, provided that they do not exceed 20,000 francs and are allocated exclusively and irrevocably to these purposes.
[91] 1 Losses from the seven fiscal years preceding the tax period may be deducted from the net profit of this period, provided that they have not been taken into account when calculating the taxable net profit for those years.
2. Losses from previous fiscal years that have not yet been deducted from the profit can also be offset against benefits intended to balance a deficit balance within the context of a restructuring, provided that these do not constitute contributions, according to Article 86, letter a.
[92] 1 The corporate income tax for capital companies and cooperative societies is determined according to a progressive category system, following the scale below
2. The income exceeding 40 million francs is taxed at 4.5%.
3. The taxable income is rounded down to the nearest hundred francs.
Categories
Rate for each category
Tax due for the maximum gain of the category
Actual rate of the maximum of the category
Fr.
Fr.
%
Fr.
%
0.–
to
5,000,000.–
3.60
180,000.–
3.60
5,000,001.–
to
25,000,000.–
3.75
930,000.–
3.72
25,000,001.–
to
40,000,000.–
4.00
1,530,000.–
3.825
[93] 1 The tax on the profits of capital companies and cooperative societies is determined according to the progressive categorical system, as per the following schedule
Categories
Tax Rate for Each Category
Tax Due for the Maximum Gain of the Category
Actual Maximum Rate of the Category
Fr.
Fr.
%
Fr.
%
0.–
to
10,000.–
6.00
600.–
6.00
10,001.–
to
20,000.–
10.00
1,600.–
8.00
20,001.–
to
40,000.–
12.00
4,000.–
10.00
2. Profits exceeding 40,000 francs are taxed at 10%.
3. The taxable profit is rounded down to the nearest hundred francs.
[94] 1 The tax on the profits of capital companies and cooperative societies is determined according to a progressive bracket system, based on the following schedule
Brackets
Rate for each bracket
Tax due for the maximum gain of the bracket
Actual rate for the maximum of the bracket
Fr.
Fr.
%
Fr.
%
0.–
to
10,000.–
6.00
600.–
6.00
10,001.–
to
20,000.–
10.00
1,600.–
8.00
20,001.–
to
40,000.–
10.00
3,600.–
9.00
2 Profits exceeding 40,000 francs are taxed at 9%.
3 The taxable profit is rounded down to the nearest hundred francs.
[95] 1 The corporate and cooperative societies' profit tax is determined according to the progressive category system, based on the following schedule
Categories
Rate of each category
Tax due for the maximum gain of the category
Actual rate of the maximum of the category
Fr.
Fr.
%
Fr.
%
0.–
to
10,000.–
6.00
600.–
6.00
10,001.–
to
40,000.–
8.66
3,200.–
8.00
2. The profit exceeding 40,000 francs is taxed at 8%.
3. The taxable profit is rounded down to the nearest one hundred francs.
[96] 1 The basic tax on the profits of capital companies and cooperative societies is determined according to the progressive category system, using the following scale
Categories
Rate for each category
Tax due for the maximum gain of the category
Actual rate of the maximum of the category
Fr.
Fr.
%
Fr.
%
0.–
to
10,000.–
6.00
600.–
6.00
10,001.–
to
40,000.–
7.33
2,800.–
7.00
2. Profit exceeding 40,000 francs is taxed at 7%.
3. The taxable profit is rounded down to the nearest hundred francs.
[97] 1 The basic tax on the profit of capital companies and cooperative societies is 6% of the taxable profit.
2. The taxable profit is rounded down to the nearest hundred francs.
[98] 1 The basic tax on the profits of capital companies and cooperative societies is calculated at a rate of 5% of the taxable profit.
2. The taxable profit is rounded down to the nearest hundred francs.
[99] 1 The basic tax on the profit of capital companies and cooperative societies is calculated at the rate of 3.6% of the taxable profit.
2. The taxable profit is rounded down to the nearest hundred francs.
[100] In the following cases, the tax on the profits of a corporation or a cooperative company is reduced proportionally to the ratio between the net return on participation rights and the total net profit
a) the company holds at least 10% of the share capital or social capital of another company;
b) it participates with at least 10% in the profits and reserves of another company;
c) it holds participation rights with a market value of at least one million francs.
**[101] 1. The net yield from participations as defined in Article 95 corresponds to the income from these participations, reduced by the related financing costs and a contribution of 5% intended to cover administration costs, subject to proof of actual administration costs that are lower or higher than this rate. Financing costs are deemed to include passive interests as well as other expenses that are economically equivalent to passive interests. The income from participations also includes capital gains from participations and the proceeds from the sale of related subscription rights. Article 288 is reserved.**
2. The following are not considered part of the yield from participations
a) income that represents justified charges according to commercial use for the capital company or cooperative that pays them;
b) revaluation gains from participations.
3. The yield from a participation is only included in the calculation of the reduction to the extent that this participation is not subject to depreciation related to this yield and accounted for as a reduction of taxable net profit (Art. 84 et seq.).
4. Capital gains are only included in the calculation of the reduction if
a) the proceeds from the disposal exceed the investment cost;
b) the disposed participation was equal to at least 10% of the share capital or equity capital of another company, or if it had a right based on at least 10% of the profit and reserves of another company, and that the capital company or cooperative held it for at least one year; if the participation falls below 10% following a partial disposal, the reduction can only be granted on each subsequent disposal gain if the market value of the participation rights at the end of the fiscal year preceding the disposal amounted to at least one million francs.
5. Transactions resulting in an unjustified tax saving within the group lead to a rectification of the taxable profit or a reduction in the reduction. A tax saving is unjustified when capital gains and capital losses or depreciations related to participations as defined in Articles 88, 95, and 96 are causally connected.
6. Regarding parent companies of systemically important banks as defined in Article 7, paragraph 1, of the Federal Law of November 8, 1934, on Banks (Banking Act) [102], financing costs related to the following borrowings and the claim entered in the balance sheet following the transfer of funds from the following borrowings within the group are not taken into account for the calculation of net yield as per paragraph 1
a) mandatory convertible loans and loans with a waiver of rights referred to in Article 11, paragraph 4, of the Banking Act, and
b) debt instruments intended to absorb losses in the presence of insolvency measures as defined in Articles 28 to 32 of the Banking Act.
[103]
[104] The Tax on Profits of Associations, Foundations, and Other Legal Entities is Calculated in Accordance with Article 94 et seq.
[105] The tax on the income of collective investment schemes that own real estate directly is 4% of the net income.
Capital Taxation is based on Equity Capital.
The taxable equity of joint-stock companies and cooperative societies includes the paid-in share capital or paid-in cooperative capital, open reserves, and hidden reserves formed by means of taxed profits, after deduction of recorded losses.
[106]
The taxable equity capital of corporations and cooperative societies is increased by the portion of their foreign funds that is economically equivalent to equity capital.
1. The taxable equity of corporations and cooperative societies that are in liquidation at the end of a fiscal period corresponds to their net assets.
2. The net assets are determined in accordance with the provisions applicable to natural persons.
[107] 1. The taxable equity of associations, foundations, and other legal entities corresponds to their net assets, determined in accordance with the provisions applicable to the commercial assets of natural persons.
2. Legal entities pursuing a non-profit purpose may deduct an amount of 100,000 francs from their capital.
3. The taxable equity of collective investment schemes that directly own real estate corresponds to the net assets determined in accordance with the provisions applicable to natural persons.
[108] 1. The basic capital tax on the capital of joint-stock companies and cooperative societies is 2.5‰ of the taxable net capital.
2. The basic tax is 0.005‰ for the net capital related to participation rights as mentioned in Article 95, the rights specified in Article 87a, as well as loans granted to group companies.
3. The profit tax is credited against the capital tax.
4. The taxable capital is rounded down to the nearest thousand francs.
[109] The Capital Tax of Associations, Foundations, and Other Legal Entities is calculated in accordance with Article 108, with the exception of paragraph 3.
[110] The capital tax on collective investment schemes that own real estate directly is 1‰ of the taxable equity capital.
[114] 1 Legal entities of any type, as well as real estate investment funds within the meaning of Article 58 LPCC, are subject to a property tax calculated on the cadastral value of investment properties they own, without any deduction for debts.
2. The tax is payable by the legal entities owning the property at the beginning of the year, for the entire calendar year.
3. Changes in the allocation of the property during the year are not taken into account.
4. The tax is calculated at a rate of 2.4 ‰ of the cadastral valuation of the investment properties.
[115] 1. The State levies an annual tax on real property or shares of real property situated in the canton, valued at their cadastral value, without any deduction of debts, and which belong to the provident institutions mentioned in Article 81, paragraph 1, letter d.
2. The tax is owed by the provident institutions owning the property at the beginning of the year, for the entire calendar year.
3. A transfer of the property during the year is not considered.
4. The tax is calculated at a rate of 2.4 ‰ of the cadastral valuation of the real property or shares of real property.
[117] 1 Natural persons are subject to a property tax calculated on the cadastral value of investment properties of which they are owners or usufructuaries, without any deduction of debts.
2. The tax is due by natural persons who are owners or usufructuaries of the property at the beginning of the year, for the entire calendar year.
3. Any change in the use of the property during the year is not taken into account.
4. For owners and usufructuaries using part of the property for their own use, only the portion of the cadastral valuation not determining the calculation of the rental value is subject to property tax.
5. The tax is calculated at a rate of 2.4‰ of the cadastral valuation of investment properties.
1. All real properties are subject to an official assessment (cadastral valuation).
2. The cadastral valuation generally corresponds to
a) the income value, if it concerns properties primarily used for agricultural, viticultural, or forestry exploitation;
b) the intrinsic value, if it concerns building land;
c) an amount situated between the income value and the intrinsic value, if it concerns properties of another nature.
3. Things and rights, particularly hydraulic powers permanently attached to a property, are considered as integral parts of the property.
4. The Council of State establishes the additional provisions for the application of this article.
1. Income and wealth taxes are determined and levied for each tax period.
2. The tax period corresponds to the calendar year.
3. In the case of liability for less than twelve months, the tax is levied on the income obtained during that period. In order to determine the tax rate, periodic income is converted into an income calculated over twelve months; this conversion of income is based on the duration of the liability. Non-periodic income is not converted for the purpose of computing the rate and is added to the income calculated over twelve months. Article 42 is reserved.
4. Paragraph 3 applies by analogy to deductions.
The taxable income is determined based on the income earned during the fiscal period.
1. The income from self-employment activity is determined based on the result of the financial statements closed during the fiscal period. The same applies in the event of the commencement or cessation of the self-employment activity, or when the closing date of the financial year has been altered, resulting in the year comprising more or fewer than twelve months.
2. The result obtained at the close of accounts is not subject to conversion for the purpose of calculating the income relevant for the fiscal period.
3. To determine the tax rate, the result obtained at the close of accounts is not converted in the case of annual taxation.
4. When the period of taxation and the length of the financial year are less than twelve months, ordinary profits are converted into annual profit for the calculation of the rate according to the duration of the taxation period or according to the length of the financial year if the latter is longer than the taxation period.
5. When the financial year comprises twelve months or more, ordinary profits are not converted for calculating the tax rate, even if the taxation period is less than twelve months.
1. The taxpayer conducting a self-employed business activity must close their accounts at the end of each tax period, when they cease to conduct a self-employed business activity, and at the end of the tax liability period.
2. The closure of accounts is not mandatory if the activity begins only during the last quarter of the tax period.
3. In the event of a complete or partial cessation of the tax liability or when the taxpayer abandons their self-employed business activity, all latent reserves affected by this situation, which have not previously been subjected to tax, must be taxed together with the net profit obtained during the corresponding business fiscal year.
1 Social Deductions and Scales are Determined According to the Situation Existing at the End of the Fiscal Period or the Liability Period.
2. In the Case of Liability Less Than Twelve Months, Social Deductions are Granted Proportionally. They are Fully Considered for the Calculation of the Rate.
1. The taxable wealth is determined according to its status at the end of the fiscal period or of the liability period.
2. For taxpayers who engage in an independent activity and whose fiscal years do not coincide with the calendar year, the taxable commercial wealth is determined according to the equity existing at the end of the fiscal year concluded during the fiscal period.
3. If the conditions of liability are met only for part of the fiscal period, only the amount of tax corresponding to that duration is levied.
4. In the event of a transfer by inheritance during the fiscal period or in the event of a change of an economic connection to another canton or to another state during the fiscal period, paragraph 3 applies by analogy.
The applicable tax rates are those in effect at the end of the fiscal period.
The tax on real estate gains is determined and collected following the occurrence of the taxable event.
1. Property Tax is Assessed and Collected for Each Fiscal Period.
2. The Fiscal Period Corresponds to the Calendar Year.
3. The Taxable Cadastral Valuation is Determined Based on Its Value at the Beginning of the Fiscal Period or Tax Liability.
4. The Tax Rate Applicable is the One in Effect at the Start of the Fiscal Period.
1. Taxes on net profit and equity capital are determined and collected for each fiscal period.
2. The fiscal period corresponds to the financial year.
3. Each calendar year, except for the year of incorporation, accounts must be closed and a balance sheet and income statement prepared. Accounts must also be closed in the event of the transfer of the headquarters, administration, a business, or a permanent establishment abroad, as well as at the end of liquidation.
[120] 1 The net profit tax is calculated based on the net profit earned during the fiscal period.
1a If the annual accounts are prepared in a foreign currency, the taxable net profit must be converted into Swiss francs. The average exchange rate (sale) for the fiscal period is decisive.
2. When the fiscal year is longer or shorter than twelve months, the tax rate is set based on a net profit calculated over twelve months.
3. Upon the liquidation of a legal entity or the transfer of its headquarters, administration, enterprise, or permanent establishment abroad, latent reserves constituted from untaxed profits are taxed along with the net profit of the final fiscal year.
[121] 1 The tax on equity capital is calculated based on the equity capital existing at the end of the fiscal period.
1bis If the annual accounts are prepared in a foreign currency, the taxable equity capital must be converted into Swiss francs. The exchange rate (sell) at the end of the fiscal period is decisive.
2 If the commercial fiscal year is longer or shorter than twelve months, the tax on capital is calculated taking into account the duration of said fiscal year.
The applicable tax rates are those in effect at the end of the fiscal period.
[122] 1 Employees without a residency permit, who are domiciled or residing in the canton for tax purposes, are subject to withholding tax on the income from their dependent gainful employment. Income subject to taxation according to the simplified procedure of Article 41a is excluded from this.
2. Spouses living in a common household are not subject to withholding tax if one of them is a Swiss national or holds a residency permit.
[123] 1. Tax at source is calculated on gross income.
2. The following are taxable
a) income from gainful employment as defined in Article 127, paragraph 1, additional income such as cash-equivalent benefits from employee participation, as well as benefits in kind, with the exception of costs for professional training and continuing education assumed by the employer as defined in Article 20, paragraph 1 bis;
b) income received as compensation.
3. Benefits in kind and tips are generally assessed according to the standards of the Federal Old-Age and Survivors Insurance.
[124] 1 Withholding tax is determined based on the income tax scales for individuals. It includes federal, cantonal, and communal taxes.
2. The cantonal coefficient, as well as the coefficients for communal taxes weighted by the number of taxpayers, are taken into account. The same scale applies throughout the canton.
3. The amount of the withholding takes into account professional expenses and insurance premiums in the form of flat rates, as well as deductions for the taxpayer's family burdens. The tax authority publishes the amounts of the different flat rates.
4. The withholding on the income of spouses living in a common household, both of whom are gainfully employed, is calculated according to scales that take into account the combined income of the spouses, the flat rates and deductions provided for in paragraph 3, and the deduction granted in case of gainful employment by both spouses.
5. The State Council defines the different scales. The competent authority designated by the State Council establishes them in collaboration with the Federal Tax Administration (FTA).
6. The FTA and the cantons jointly standardize the elements determining the tax rate and methods to consider, notably, the 13th salary, bonuses, variable hours, hourly-paid work, part-time work, and ancillary gainful activities. The FTA also sets, together with the cantons, the procedures to follow in the event of a change of scale, adjustment, or retroactive correction of salaries, as well as benefits provided before or after employment or after its termination.
[125]
[126] 1 Individuals subject to withholding tax pursuant to Article 127, paragraph 1, are subject to subsequent ordinary assessment
a) if their gross income reaches or exceeds a certain amount during a fiscal year, or
b) if they have income and wealth not subject to withholding tax.
2. The amount referred to in paragraph 1, letter a, is set by the Federal Department of Finance (FDF) in cooperation with the cantons and is adopted by the State Council.
3. Also subject to subsequent ordinary assessment are the spouses of the individuals defined in paragraph 1, insofar as the spouses live in a common household.
4. Individuals with income referred to in paragraph 1, letter b, have until March 31 of the year following the relevant fiscal year to request the tax declaration form from the tax authority.
5. The subsequent ordinary assessment applies until the end of the withholding tax liability.
6. The amount of tax collected at the source is credited without interest.
[127] 1 Persons taxed at source under Article 127, paragraph 1, who do not meet any of the conditions set out in Article 138, paragraph 1, may, upon request, be subjected to subsequent taxation according to the ordinary procedure.
2. The request also extends to the spouse living in a common household with the person who requested subsequent ordinary taxation.
3. The request must be submitted no later than March 31 of the year following the fiscal year in question. Persons leaving Switzerland must have requested subsequent ordinary taxation at the time of filing their departure declaration.
4. In the absence of a subsequent ordinary taxation upon request, the tax at source replaces federal, cantonal, and communal income taxes derived from gainful activity assessed by the ordinary procedure. No additional subsequent deduction is granted.
5. Article 138, paragraphs 5 and 6, is applicable.
[128]
[129] 1 The debtor of the taxable benefit has the obligation to take all necessary measures for the correct collection of the tax, including
a) to determine the liability for withholding tax and the applicable rate before the payment of the taxable benefit;
b) to withhold, at maturity, the tax due on cash benefits and to collect it on other benefits (notably benefits in kind and tips) from the taxpayer;
c) to withhold withholding tax when the worker is domiciled or residing in another canton;
d) to carry out a periodic reconciliation with the tax authority and to pay the withholding tax; the State Council sets the payment deadlines;
e) to issue the taxpayer a certificate or a statement on the amount of tax withheld at source;
f) repealed.
2. To control the collection of the tax, the debtor of the taxable benefit must allow the competent authority to consult all necessary documents and provide orally or in writing any information it may request.
[130] 1 The debtor of the taxable service is responsible for the payment of the withholding tax.
2. The debtor receives a collection commission, the rate and modalities of which are set by the Council of State within the limits of Article 37, paragraph 3, of the Federal Tax Harmonization Act (FTHA). For lump sum payments, the collection commission amounts to 1% of the total withholding tax amount, but not more than 50 francs per lump sum payment regarding the withholding tax of the Confederation, cantons, and municipalities.
3. If the debtor of the taxable service fails to fulfill their obligations, the competent authority may reduce the amount of the collection commission. If, due to the absence of a report, the competent authority has to proceed with an estimated assessment, the collection commission is eliminated.
[131]
[132] The Council of State shall establish the necessary implementing provisions for this chapter, based in particular on the FDF Ordinance on Withholding Tax in the context of Federal Direct Taxation (Ordinance on Withholding Tax, OWT), dated April 11, 2018 [133].
[135] 1 Cross-border commuters, weekly residents, and short-term residents domiciled abroad who engage in dependent gainful employment in the canton are subject to withholding tax on income from their employment in accordance with Articles 128 and 129. Excluded from this are incomes subject to taxation under the simplified procedure of Article 41a.
2. Also subject to withholding tax according to Articles 128 and 129 are individuals domiciled abroad who work in international traffic, on board a ship, aircraft, or road transport vehicle, and receive a salary or other compensation from an employer with its headquarters or a permanent establishment in the canton; seafarers working on board deep-sea vessels are exempt from this tax.
[136]
[137] 1 If they are domiciled abroad, artists such as theater, film, radio, television, variety show artists, and musicians, as well as athletes and speakers, are subject to withholding tax on income from their personal activities in the canton. The same applies to income and fees that are not paid to the artist, athlete, or speaker themselves but to the third party that organized their activities.
2. The overall rate of cantonal and municipal taxes amounts to
3. Daily revenues include gross receipts, including all ancillary income and allowances, after deducting acquisition expenses. These are set at
b) 20% of gross income for athletes and speakers.
4. The event organizer is jointly liable for the payment of the tax.
5. If the taxable income does not reach an amount set by the Council of State, the tax is not levied.
[138]
[139] 1. Individuals domiciled abroad who are members of the administration or management of legal entities with their headquarters or effective administration in the canton are liable for tax on directors’ fees, attendance fees, fixed compensations, employee participations, and other remunerations paid to them. The same applies if these remunerations are paid to a third party.
2. Individuals domiciled abroad who are members of the administration or management of foreign enterprises with a permanent establishment in the canton are liable for tax on directors’ fees, attendance fees, fixed compensations, employee participations, and other remunerations paid to them through the permanent establishment.
3. The overall rate of cantonal and communal taxes amounts to 18%.
4. The tax is not levied when the taxable income acquired during the calendar year is below an amount set by the Council of State.
1. If they are domiciled abroad, individuals holding or benefiting from claims secured by a mortgage or a pledge on a property located in the canton are subject to withholding tax on the interest paid to them.
2. Taxable income is the gross income. Interest that is not paid directly to the taxpayer but to a third party is also subject to withholding tax.
3. The combined rate of cantonal and communal taxes is 17%.
4. The tax is not levied if the taxable income acquired during the calendar year is below an amount set by the Council of State.
[140] 1 Persons domiciled abroad, who
a) receive annuities, pensions, retirement benefits, a lump sum, or other payments from an employer or a pension fund that has its registered office or a permanent establishment within the canton, resulting from employment on behalf of others governed by public law;
b) receive annuities, pensions, retirement benefits, a lump sum, or other payments from a Swiss institution of private law occupational benefits, or any other recognized form of tied individual pension provision, which has its registered office or a permanent establishment within the canton;
are subject to withholding tax on these payments.
2. Taxable income shall be the gross income.
3. The overall rate of cantonal and municipal taxes is 10% of the taxable income. For lump sum payments, the rate of cantonal and municipal taxes is set in accordance with the rule expressed in Article 42.
4. The tax is not levied if the taxable income does not reach an amount set by the Council of State.
5. The Council of State establishes the provisions for the reimbursement of the tax when a double taxation agreement assigns the taxing rights to the state of residence of the persons referred to in paragraph 1.
[141] 1 Individuals who are domiciled abroad and receive significant financial benefits from non-tradable employee stock options (Art. 20b, para. 3) are taxed proportionately on this benefit in accordance with Article 20d.
2. The overall rate of cantonal and communal taxes amounts to 20% of the significant financial benefit.
[142]
[143] 1 Withholding tax replaces federal, cantonal, and communal income taxes on earned income collected according to the ordinary procedure. No additional subsequent deductions are granted.
2 For married couples with two incomes, a correction of the determining income for the spouse's tax rate may be considered.
[144] 1 Individuals taxed at source pursuant to Article 147 may request, no later than March 31 of the year following the relevant fiscal year, an ordinary subsequent taxation for each fiscal period in the following cases
a) a predominant portion of their worldwide income, including the income of their spouse, is taxable in Switzerland;
b) their situation is comparable to that of a taxpayer domiciled in Switzerland; or
c) an ordinary subsequent taxation is necessary to assert their right to deductions provided by a double taxation treaty.
2. The amount withheld at the source is credited without interest.
3. The Council of State enacts the implementing provisions based on the conditions set forth in paragraph 1 and on the procedure, as specified and regulated by the Federal Department of Finance (FDF) in collaboration with the cantons.
[145] 1 In the event of a clear problematic situation, particularly regarding the flat-rate deductions calculated in the source tax rate, the tax authority may, ex officio, request an ordinary subsequent taxation in favor or against the taxpayer.
2. The Council of State shall issue the implementing provisions based on the conditions as defined by the Federal Department of Finance (FDF) in collaboration with the cantons.
[146]
[147] 1 The debtor of taxable benefits has the obligations set forth in Article 142, paragraph 1, and receives a collection fee, the rate and terms of which are determined by the Council of State. Article 143, paragraph 3, applies by analogy.
2. Furthermore, the debtor is obligated to pay the proportional share of the tax on employee options exercised abroad. The employer is liable for the proportional share of the tax, even if the benefit assessable in monetary terms is paid by a group company abroad.
[148]
[149] The State Council enacts any further necessary implementing provisions for this chapter, based in particular on the FDF Ordinance on Withholding Tax in the context of federal direct taxation (Withholding Tax Ordinance, WTO), dated April 11, 2018.
[150]
[151] 1 The debtor of the taxable service calculates and withholds the tax at source as follows
a) for workers as defined in Article 127: according to the law of the canton in which the worker is domiciled or residing with regard to tax law at the time of the taxable service;
b) for persons defined in Articles 147 and 152 to 154a: according to the law of the canton in which the debtor of the taxable service is domiciled or residing with regard to tax law or according to the law of the canton in which it has its seat or administration at the time of the taxable service; when the taxable service is paid by a permanent establishment located in another canton or by a permanent establishment belonging to a company whose seat or effective administration is not in Switzerland, the calculation and withholding are governed by the law of the canton in which the permanent establishment is located;
c) for persons defined in Article 149: according to the law of the canton in which the artists, athletes, or speakers perform their activity.
2. If the worker under Article 147 is a weekly resident, paragraph 1, letter a, applies by analogy.
3. The debtor of the taxable service pays the withheld tax to the competent canton mentioned in paragraph 1.
4. Competence for subsequent ordinary taxation is determined as follows
a) for workers as mentioned in paragraph 1, letter a: the canton in which the taxpayer was domiciled or residing with regard to tax law at the end of the tax period or of the subjection;
b) for persons as mentioned in paragraph 1, letter b: the canton in which the taxpayer performed their activity at the end of the tax period or of the subjection;
c) for workers as mentioned in paragraph 2: the canton in which the taxpayer was residing weekly at the end of the tax period or of the subjection.
[152] 1 The canton responsible for taxation according to Article 164, paragraph 4, is entitled to the withholding tax amounts retained by other cantons during the calendar year. If the amount of tax collected is too high, the difference is refunded to the worker; if it is insufficient, the difference is claimed retroactively.
2. The cantons provide administrative assistance and legal assistance free of charge for the collection of withholding tax.
3. Repealed.
[153]
1 The Council of State exercises high supervision in tax matters.
2. It adopts the implementing provisions necessary to ensure the application of this law.
1. The State Council appoints the department responsible for taking the necessary measures to ensure correct and uniform taxation and collection of the taxes provided for by this law throughout the cantonal territory.
2. It appoints the subordinate authorities responsible for applying the law, provides for their organization, and defines their respective tasks.
3. The designated department determines the form and content of the forms to be used.
1. The Municipal Council may request to attend the operations of taxation and revisions of cadastral valuations relating to individuals and legal entities taxable in its territory.
2. The Council of State may assign the collection of direct taxes on income and wealth, as well as on profit and capital, to a municipality, subject to the payment of compensation.
3. The municipality to which tax collection has been entrusted is liable to the State for any act or omission by its services or officials.
The competent authority to address a complaint is the authority whose decision is being contested.
[154] The competent authority to hear an appeal is the Cantonal Court.
[155] 1 Fines related to tax evasion and violations of procedural obligations are imposed by the tax authority.
2 The prosecution of offenses falls under the responsibility of the criminal authorities.
[156] The Council of State designates the department responsible for granting the remission of taxes provided for by this law. It may delegate this authority to the tax authority for certain categories of cases.
Subject to the following provisions, the Administrative Procedure and Jurisdiction Act, dated June 27, 1979 [157], is applicable.
[158] 1 Any person who is called upon to make a decision or to participate decisively in the development of a decision or ruling under this law must recuse themselves
a) if they have a personal interest in the matter;
b) if they are related or connected to a party in a direct line, or up to the third degree in a collateral line, or if they are united by marriage, engagement, or adoption;
c) if they are the registered partner of a party under federal or cantonal partnership law;
d) if they are, in fact, living as a couple with a party;
e) if they represent a party or have acted for a party in the same matter;
f) if, for other reasons, they might have a preconceived opinion on the matter.
2. Recusal can be requested by any person participating in the procedure. The request must be submitted without delay to the decision-making authority.
1. All individuals responsible for the enforcement of this law or who collaborate in its implementation, as well as any experts called upon as needed, must maintain the secrecy of any facts they become aware of in the exercise of their duties, as well as the deliberations of authorities, and deny third parties access to tax records.
2. Information may be disclosed to the extent that a federal or cantonal legal basis expressly provides for it.
3. Furthermore, Articles 20 to 23 of the Public Service Status Act, dated June 28, 1995 [159], apply, particularly concerning the lifting of confidentiality imposed on the persons mentioned in paragraph 1.
4. The amounts of taxable wealth and income resulting from a taxation with enforceable authority are not covered by tax secrecy; their disclosure is permitted under conditions set by the Council of State.
5. Additionally, the department designated by the Council of State is competent to establish under what conditions computerized access to tax data may be authorized.
1 The authorities responsible for enforcing this law shall render mutual assistance in the fulfillment of their duties; they shall provide the tax authorities of other cantons with all useful information free of charge. The facts established by the authorities or brought to their attention under this provision are protected by fiscal secrecy, in accordance with Article 176.
2. When it appears from the tax return of a taxpayer domiciled or headquartered in the canton that they are also subject to taxation in another canton, the tax authority shall inform the tax authorities of the other canton of the contents of their return and their assessment.
[160] 1 The authorities of the canton and the municipalities shall provide, free of charge upon request, all information necessary for the application of this law to the authorities responsible for its enforcement. They may also voluntarily report cases to these authorities where there might have been incomplete taxation.
2. The bodies of corporations and institutions to which public administration tasks have been delegated are, with regard to the duty to cooperate, assimilated to the authorities mentioned in paragraph 1.
3. The bodies of the postal, telephone, and telegraph administration, as well as public credit institutions, are exempt from the obligation to provide information and details concerning facts that they are required to keep confidential under special legal provisions.
4. Any authority that refuses to cooperate must issue a formal decision that can be appealed in accordance with Articles 26 and following of the Administrative Procedure Act (APA), dated March 18, 2025 [161].
[162] 1 The tax authority shall automatically transmit any useful information to the authorities, administrations and other entities, public or private, responsible for applying cantonal or federal legislation concerning social insurance and other social benefits, to assist in the examination of the rights of their beneficiaries.
2. However, the tax authority shall only transmit this information under the following conditions
a) the taxpayer concerned is a recipient of benefits as referred to in paragraph 1, or has previously received such benefits;
b) the information is likely to affect the entitlement to the benefits.
3. In all cases, the tax authority shall only transmit the information to the competent bodies to, alternatively
a) gather the necessary information for the examination of the entitlement to benefits;
b) rule on the entitlement to benefits;
c) disburse benefits;
d) rule on the reimbursement of benefits;
e) carry out the recovery of refundable benefits.
4. The transmission shall simultaneously be addressed to the cantonal supervisory authority of the concerned body.
[163] 1. The authorities responsible for enforcing this law and the entity within the cantonal administration responsible for the recovery of State claims are authorized to transmit to a third party entity, whether public or private, any document subject to fiscal confidentiality or any other obligation of secrecy, for the purposes of recovery, printing, or data entry.
2. Any person collaborating, in any capacity, with or within the mandated third party entity and who may become aware of the contents of the documents mentioned in paragraph 1 is subject to the same obligations as the collaborators of the authorities and entity mentioned in paragraph 1, particularly with regard to fiscal secrecy.
1. Spouses who live together in a common household exercise the rights and discharge the obligations they have under this law jointly.
2. The tax declaration must bear the signatures of both spouses. If the declaration is signed by only one spouse, a deadline is granted to the non-signing spouse. If this deadline expires without being used, it is assumed that contractual representation between the spouses is established.
3. For appeals and other writings to be considered timely filed, it suffices that one of the spouses has acted within the deadlines.
4. Any communication that the tax authority sends to married taxpayers living in a common household is addressed to the spouses jointly.
1. The taxpayer is authorized to review the documents in the file that they have produced or signed. Spouses who are to be taxed jointly have a reciprocal right to review each other's files.
2. The taxpayer may examine other documents once the facts are established, provided that no public or private interest prevents it.
3. When an authority denies the taxpayer the right to review a document in the file, it may rely on that document to decide against the taxpayer only if it has informed them, orally or in writing, of the essential content of the document and has additionally allowed them to express their views and present their own evidence.
4. The authority that denies the taxpayer the right to review their file must confirm, upon the taxpayer's request, its refusal with a decision that is subject to appeal.
The taxpayer's evidence must be accepted, provided that it is suitable for establishing facts relevant to taxation.
1. Taxation decisions are notified to the taxpayer in writing and indicate the legal remedies available. Other decisions and rulings must, additionally, be justified.
2. When the taxpayer does not have a known domicile or is located abroad without a representative in Switzerland, the decisions and rulings can be validly notified to them through publication in the Official Gazette.
1. The taxpayer may be represented contractually before the authorities responsible for the enforcement of this law, insofar as their personal collaboration is not necessary.
2. Any person who has the exercise of civil rights and enjoys their civic rights may validly represent the taxpayer. The authority may require the representative to provide proof of their power of representation by producing a written power of attorney.
3. When spouses living in a common household have not appointed a common representative or have not jointly designated an authorized person to receive correspondence, any notification must be addressed to both spouses jointly.
4. Notifications must be addressed to each spouse when they are living separately either in fact or by law.
[164]
1. The time limits set forth in this law cannot be extended.
2. The deadlines imposed by the authority may be extended if there are serious reasons and the request for extension is submitted before the expiration of the deadline.
1. The right to perform taxation is subject to a statute of limitations of five years from the end of the fiscal period. Articles 222 and 259 are reserved.
2. The limitation period does not commence or is suspended
a) during claim and appeal procedures;
b) as long as the tax claim is secured by guarantees or the collection is deferred;
c) as long as the taxpayer or a person jointly liable with the taxpayer for the payment of the tax does not have a domicile in Switzerland or is not residing there.
3. A new limitation period begins to run
a) when the authority takes a measure to establish or enforce the tax claim and informs the taxpayer or a person jointly liable with the taxpayer for the payment of the tax;
b) when the taxpayer or a person jointly liable with the taxpayer expressly acknowledges the tax debt;
c) when a request for tax remission is filed.
4. In all cases, the statute of limitations for the right to perform taxation is complete fifteen years after the end of the fiscal period.
1. Tax claims are subject to a statute of limitations of five years from the date when the assessment becomes final.
2. For the suspension and interruption of the statute of limitations, Article 186, paragraphs 2 and 3, applies analogously. Furthermore, the statute of limitations does not begin to run or is suspended during the revision procedure. A new statute of limitations begins to run when a criminal prosecution is initiated due to tax evasion or fiscal offense.
3. In any case, the statute of limitations is acquired ten years from the end of the year in which the assessment becomes final.
1. The tax authority establishes and maintains the register of taxpayers obliged to pay the taxes provided for under this law.
2. Cantonal and municipal administrations shall notify the tax authority of the arrivals, departures, changes in circumstances of taxpayers, and any events triggering the taxes provided for under this law.
1. The tax authority establishes the factual and legal elements necessary for a complete and accurate taxation, in collaboration with the taxpayer.
2. All or part of the costs incurred by investigative measures may be charged to the taxpayer or any other person required to provide information, when they have made them necessary by a culpable failure to fulfill their procedural obligations.
1. Taxpayers are invited, either through official publication or by sending a form, to complete and submit a tax return. Taxpayers who have not received a form must request one from the tax authority.
2. The taxpayer must fill out the tax return truthfully and completely, specifically indicating all income, profit, assets, or capital items, whether taxable or not. The taxpayer must personally sign the declaration and submit it to the tax authority with the required annexes within the deadline given.
3. The tax authority may grant an extension of the deadline upon written and justified request.
4. A taxpayer who fails to submit the tax return or submits it incompletely within the allotted time is required to correct the omission within eight days.
5. A taxpayer who exceeds the deadline for submitting their tax return, or returns it when it was sent back for completion, is excused if they can prove that military service, civil service, absence from the country, illness, or other serious reasons prevented timely compliance and that they completed the obligation within thirty days following the cessation of impediment.
6. Liquidators of a legal entity, as well as the legal entity that takes over the assets and liabilities of another legal entity during a restructuring as defined in Article 88, are also required to submit a tax return.
[165] 1 Natural persons must attach to their declaration, in particular
a) the salary certificates signed by the employer regarding all income from dependent gainful activities;
b) statements concerning benefits obtained as a member of the administration or another body of a legal entity;
c) a complete list of securities and claims, as well as debts;
d) necessary attestations to justify a deduction.
2. Natural persons whose income derives from independent gainful activities and legal entities must attach to their declaration
a) the signed annual accounts (balance sheet, income statement) concerning the fiscal period; or
b) in the case of maintaining simplified accounting under Article 957, paragraph 2, CO, a statement of receipts and expenditures, the statement of assets, as well as private withdrawals and contributions concerning the fiscal period.
3. The method of keeping, storing, and producing documents according to paragraph 2 is governed by the Code of Obligations (art. 957 to 958f CO).
1. The taxpayer must do everything necessary to ensure complete and accurate taxation.
2. Upon request from the tax authority, they must notably provide oral or written information, present their accounting books, supporting documents, and other certificates, as well as documents concerning their business relations.
3. Natural persons engaged in independent gainful activities and legal entities must retain documents and supporting documents related to their activity for ten years.
[166] 1. The tax authority may require a taxpayer, who has their domicile or registered office abroad, as well as a taxpayer who is absent from their Swiss domicile for an extended period, to appoint a representative in Switzerland.
2. An estate considered as a taxpayer must appoint a representative in Switzerland.
1. Must provide written attestations to the taxpayer
a) the employer, regarding their remuneration to the worker;
b) creditors and debtors, concerning the status, amount, and interest of debts and claims, as well as the securities associated with them;
c) insurers, regarding the cash value of insurance policies and on the benefits paid or due under insurance contracts;
d) trustees, asset managers, pledgees, agents, and other persons who have or had possession or administration of the taxpayer's assets, concerning these assets and their income;
e) persons who are or were in a business relationship with the taxpayer, concerning the entirety of their contractual relationships and their reciprocal claims and benefits;
f) compensation funds for old-age, disability, survivors, and loss of earnings insurance, concerning benefits provided to their affiliate.
2. If, despite a summons, the taxpayer does not produce the required attestations, the tax authority may demand them directly from the third party. Legally protected professional secrecy is reserved.
Associates, co-owners, and common property owners must provide information about their legal relationships with the taxpayer, including details about the taxpayer’s share, rights, and income, free of charge upon request from tax authorities.
[167] 1 For each tax period, a certificate must be provided free of charge to the tax authority by
a) legal entities, regarding the benefits paid to members of the administration or other bodies; foundations must also report on the benefits provided to their beneficiaries;
b) occupational pension institutions and tied individual pension plans, regarding the benefits provided to their policyholders or beneficiaries (Art. 25, para. 2) no later than thirty days before the payment;
c) simple partnerships and partnerships, on all elements that are significant for the taxation of their partners, particularly on those partners' shares of the income and assets of the partnership;
d) employers, regarding the salary and other allowances paid to a taxpayer, as well as the list of salaries and other benefits paid to all members of their staff during the assessment year; they must indicate on these documents the contributions paid for their workers to occupational pension institutions governed by the Federal Law on Occupational Retirement, Survivors', and Disability Pension Plans, of June 25, 1982, or according to forms of pension provision assimilated by the Federal Council to this occupational pension provision, insofar as they have been deducted from the salary;
e) employers granting employee participations to their employees, on all data necessary for taxation;
f) bodies responsible for implementing, monitoring, or supervising the application of the Federal Law on Compulsory Unemployment Insurance and Insolvency Compensation (Unemployment Insurance Act, LACI), of June 25, 1982, on the benefits paid, in accordance with Article 97a, para. 1, letter c bis LACI.
2. A copy of the certificate must be sent to the taxpayer.
3. Collective investment schemes that own real estate in direct possession must provide to the tax authority, for each tax period, a certificate concerning the key elements for the taxation of these real estates.
1. The tax authority may invite the taxpayer to appear before it.
2. The result of the hearing is recorded in writing.
3. Unless decided otherwise and with justification, any document produced is proof of its content.
[170] 1. The tax authority may order assessments, conduct inspections, and examine accounts and supporting documents on-site.
2. Repealed.
3. The taxpayer and entities lacking legal personality, in which they have an interest, are obliged to submit the necessary documents to the tax authority and the experts it appoints, to provide extracts if needed, and generally to provide any information that may substantiate the financial situation of the interested party or parties.
4. All or part of the costs incurred by these assessment and inspection measures may be charged to the taxpayer or any other person required to provide information, when they have made these measures necessary due to a culpable breach of their procedural obligations.
5. Experts who may be called upon during the implementation of this Act are entitled to compensation set by the department responsible for the enforcement of this Act.
6. Articles 249 to 265 are reserved.
The tax authority ensures that the electronic exchange of data between taxpayers and itself is conducted in a manner that guarantees the correct application of this law.
1. After reviewing the tax return and conducting the necessary investigations, the tax authority determines, in the tax assessment decision, the taxable elements (taxable income and wealth, taxable net profit, and taxable equity), the tax rate, and the tax amount.
2. It communicates the changes made to the taxpayer's return no later than at the time of notification of the tax assessment decision.
1. Taxation is carried out ex officio based on a careful assessment if, despite a summons, the taxpayer has not fulfilled their procedural obligations or if the taxable elements cannot be determined with the required accuracy due to insufficient data.
2. The tax authority may take into account experimental coefficients, the evolution of wealth, and the taxpayer's lifestyle.
3. The further prosecution of offenses punishable under this law is reserved.
[171] 1 The taxpayer may submit a written appeal to the tax authority against the final tax assessment decision within thirty days following its notification.
2. The taxpayer who has been assessed ex officio may file an appeal against this assessment solely on the grounds that it is manifestly inaccurate. The appeal must include conclusions, be substantiated, and, if applicable, indicate the means of evidence.
1. The period begins to run the day after notification. It is considered as respected if the claim is submitted to the tax authority, a Swiss post office, or a Swiss diplomatic or consular representation abroad by no later than the last working day of the period. If the last day of the period falls on a Saturday, Sunday, or an official public holiday, the period expires on the next working day.
2. A claim submitted to an incompetent authority must be forwarded without delay to the competent tax authority. The appeal period is considered respected when the claim has been submitted to an incompetent authority or a Swiss post office by no later than the last working day of the period.
3. After the thirty-day period, a late claim is admissible only if the taxpayer demonstrates that due to military service, civil service, illness, absence from the country, or other serious reasons, they were prevented from filing their claim in a timely manner, and they submitted it within thirty days after the impediment ceased.
1. The tax authority possesses the same powers in the claims procedure as in the taxation procedure.
2. No further action is taken on the withdrawal of the claim if it appears, based on the circumstances, that the taxation was incorrect.
1. The tax authority makes a decision on the claim after conducting an investigation. It may reassess all elements of the tax and, after hearing the taxpayer, also amend the assessment to the taxpayer's detriment.
2. The decision must be reasoned and notified in writing to the taxpayer.
3. The claim procedure is free of charge. However, all or part of the costs incurred by investigative measures may be charged to the taxpayer or to any other person obliged to provide information, when they have rendered such measures necessary by a culpable breach of their procedural obligations.
**1. Notaries and Land Registry Offices**
When the services of a notary are not required, notaries and land registry offices must report to the appropriate tax authority any transfer that may be subject to taxation.
**2. Taxpayer's Obligation**
When a transfer that may be subject to taxation does not require the services of a notary or is not followed by a registration in the land register, the taxpayer must inform the appropriate tax authority within thirty days from the transaction date.
For each taxable transaction, the tax authority invites the taxpayer, by sending a form, to submit a duly completed and signed tax declaration within thirty days, accompanied by the necessary supporting documents.
Provisions relating to ordinary taxation, with the exception of Article 179, shall apply by analogy.
1. The Council of State decides on the general revision of the cadastral valuations of properties and sets the date of their enforcement.
2. It establishes the organizational and procedural provisions specific to this operation; it may, in particular, send a questionnaire to the owner and require the services of one or more experts.
3. If a local inspection is deemed necessary, the owner shall be notified at least ten days in advance of the date on which this inspection will take place.
[174] 1. Each year, the tax authority reviews the cadastral valuation of properties that have changed in value due to new construction, transformation, renovation, demolition, or achievement of a value that deviates by more than 20% from the cadastral valuation, in accordance with Article 208.
2. This article applies by analogy
a) in the event of the conventional creation or dissolution of a common property or co-ownership;
b) in the case of the alienation of a co-ownership share or an undivided share;
c) in the event of the creation, alienation, or elimination of a right of superficies, a right of usufruct, or conventional habitation rights;
d) in the case of the establishment, modification, or extinction of an easement, a land charge, or a public law restriction encumbering the property or created in its favor, when this action results in the payment of compensation equal to or greater than 20% of the cadastral valuation;
e) in the event of a change in the public law status of the property resulting from its transition from a zone where construction is absolutely prohibited or where buildings and other structures unrelated to rural economy are not permitted, to a zone where greater construction possibilities are allowed, or vice versa;
f) in the event of a modification in the surface area or volume of the property.
3. This article is inapplicable in the case of the transfer of a property by inheritance, legacy, donation, or any other similar title.
4. In the case of realization of the property at a value that deviates by at least 10% from the cadastral valuation, the tax authority also initiates a review procedure when requested by the owner; in this case, the owner bears the costs. The Council of State sets the application modalities in a decree.
5. The new valuation takes effect on the date of the value change of the property.
The provisions relating to ordinary taxation apply by analogy.
1. The tax authority maintains a real estate register established based on the land register, indicating for each taxpayer the summary designation and the cadastral valuation of the properties.
2. The real estate register is public; the provision of information and the issuance of extracts are subject to a fee set by the Council of State.
[177] The taxpayer and the liable party for taxable benefits must, upon request from the tax authority, provide all oral and written information on the elements relevant for the collection of withholding tax. Articles 190 to 198 apply by analogy.
[178] 1. A taxpayer who has their domicile or registered office abroad must appoint a representative in Switzerland.
2. Persons requesting subsequent ordinary taxation pursuant to Article 138a must provide the required documents and indicate a service address in Switzerland. In the absence of such an address, or if the indicated address becomes invalid during the taxation procedure, the tax authority shall grant the taxpayer a reasonable period to provide a new service address. If this period lapses without compliance, the withholding tax shall replace the cantonal and municipal income tax on income generated from gainful activity that is ordinarily levied. Article 202, paragraph 3 shall apply by analogy.
[179] 1 The taxpayer may, until March 31 of the fiscal year following the maturity of the benefit, demand that the tax authority issue a decision regarding the existence and extent of the tax liability
a) if they challenge the withholding tax indicated on the certificate mentioned in Article 142 and 158 by reference; or
b) if the employer has not provided them with the certificate mentioned in Article 142 and 158 by reference.
2. The debtor of the taxable benefit may, until March 31 of the fiscal year following the maturity of the benefit, demand that the tax authority issue a decision regarding the existence and extent of the tax liability.
3. The withholding must be made until the decision comes into force.
[180] 1 When the debtor of the taxable service makes an insufficient withholding or fails to make any withholding, the tax authority requires the debtor to pay the tax that was not withheld. The debtor's right to claim against the taxpayer is reserved.
2. When the debtor of the taxable service makes an excessive tax withholding, the debtor must refund the difference to the taxpayer. Upon the tax authority's request, the debtor must provide proof of the refund to the taxpayer.
3. When the debtor of the taxable service makes an insufficient withholding or fails to make any withholding and the tax authority is unable to subsequently recover this tax from the debtor, it may require the taxpayer to pay the withholding tax due.
[181] 1 The tax authority periodically distributes the proceeds from the withholding tax among the Confederation, the cantons, and the concerned municipalities.
2. The State Council sets the distribution key for the tax collected at source, taking into account the applicable coefficients for the cantonal tax and municipal taxes.
[182] 1. The individual concerned may contest a decision regarding withholding tax by way of an objection.
2. In all other respects, the provisions relating to ordinary taxation apply by analogy.
3. These provisions also apply by analogy when the withholding of tax at source is based on both federal and cantonal law.
[184] 1 Subject to Article 242a, the taxpayer may appeal against decisions on claims and other decisions made by the tax authority to the Cantonal Court.
2. The period for appeal is thirty days from the notification of the decision.
[185] 1. In any event, either ex officio or upon request, the judge responsible for instructing the case may summon the taxpayer and the tax authority whose decision is contested, as well as their representatives, in an attempt to reach an agreement between the parties.
2. In the event of an agreement, the hearing record serves as a judgment.
[186] 1 The Cantonal Court issues a reasoned judgment and notifies it to both the taxpayer and the tax authority whose decision is being challenged.
2. If it annuls the contested decision, it may either make a ruling on the merits or remand the case back to the tax authority whose decision is being contested.
3. The tax authority whose decision has been annulled is bound by the reasoning and the operative provisions of the judgment.
[187]
[188] Furthermore, the appeal procedure is governed by the Administrative Procedure Act (APA), dated March 18, 2025 [189].
[191]
[192] 1 Within the limits of federal law, the taxpayer and the tax authority whose decision is being challenged may appeal to the Federal Court against the judgment of the Cantonal Court.
1 A decision or judgment that has become final may be revised in favor of the taxpayer, either upon request or ex officio
a) when important facts or conclusive evidence are discovered;
b) when the authority that issued the decision failed to consider important facts or conclusive evidence that it knew or should have known, or otherwise violated one of the essential rules of the procedure;
c) when a crime or offense has influenced the decision or judgment.
2. Revision is excluded when the applicant invokes grounds that could have already been asserted during the ordinary procedure if they had exercised all due diligence that could reasonably be required of them.
The request for revision must be filed with supporting evidence within ninety days of the discovery of the reason for revision, but no later than ten years from the notification of the decision or judgment.
1. The review of a decision or a judgment falls under the jurisdiction of the authority that rendered said decision or judgment.
2. If there is a ground for review, the authority shall annul the previous decision or judgment and rule anew.
3. The rejection of the review request and the new decision or judgment may be contested through the same legal channels as the previous decision or judgment.
4. Furthermore, the provisions related to the procedure followed during the previous decision or judgment are applicable.
1. Errors in calculation and transcription contained in a decision or ruling that has become final may, upon request or ex officio, be corrected within five years following the notification by the authority that committed them.
2. The correction of the error or the refusal to proceed with it may be challenged through the same legal channels as the decision or ruling.
[193] 1 When evidence or facts previously unknown to the tax authority allow it to establish that a taxation was not carried out when it should have been, or that a taxation that has become final is incomplete, or that a non-imposed or incomplete taxation is due to a crime or offense committed against the tax authority, the latter shall recover the tax that was not collected, including interest.
2. When the taxpayer has submitted a complete and accurate declaration concerning their taxable elements and the tax authority has accepted its evaluation, a tax recovery is excluded, even if this evaluation was insufficient.
1. The right to initiate a tax reassessment procedure expires ten years after the end of the fiscal period for which the taxation was not carried out, although it should have been, or for which the enforcement taxation was incomplete.
2. The initiation of a criminal prosecution procedure following tax evasion or fiscal offense also results in the commencement of the tax reassessment procedure.
3. The right to carry out the tax reassessment expires fifteen years after the end of the fiscal period to which it relates.
[194] 1 The taxpayer must be notified in writing of the initiation of a tax recall procedure.
1. bis If, at the time of the initiation of the tax recall procedure, no criminal proceedings for tax evasion have been opened, are pending, or can be immediately ruled out, the taxpayer shall be notified that a criminal proceeding for tax evasion may subsequently be initiated against them.
2. If, upon the death of the taxpayer, the procedure has not yet begun or has not been completed, it may be initiated or continued against the heirs.
3. Furthermore, the provisions regarding general principles of procedure, assessment procedures, and appeals procedures apply mutatis mutandis.
[195] 1 Each heir is entitled, independently of the others, to a simplified tax recall on the assets and income concealed by the deceased, provided that
a) no tax authority is aware of the tax evasion;
b) the heir fully cooperates with the administration to determine the concealed assets and income;
c) the heir endeavors to pay the due tax recall.
2. The tax recall is calculated based on the three fiscal periods preceding the year of death according to the provisions on ordinary taxation and is collected with interest on arrears.
3. The simplified tax recall is excluded in the event of an official liquidation of the estate or the liquidation of the estate following bankruptcy rules.
4. The executor of the will or the estate administrator may also request the simplified tax recall.
[196] 1. The regular periodic taxes for individuals are due during the fiscal period; those for legal entities are due in the year during which the fiscal period ends.
2. The Council of State determines the general due date for regular periodic taxes, as well as the due dates for installments.
3. For taxes owed by legal entities whose fiscal year does not coincide with the calendar year, the tax authority may bring forward the due date to up to two months after the end of the fiscal year.
4. Taxes are due upon notification of the decision
a) on capital benefits from pension schemes;
b) on real estate gains;
c) on property taxes;
d) on tax reassessments;
e) on fines.
5. Taxes are also due in all cases
a) on the day the taxpayer who intends to permanently leave the country makes arrangements for departure;
b) upon the request for deregistration from the commercial register of a legal entity subject to tax;
c) as soon as a foreign taxpayer ceases to have a business or a stake in a business with its seat or effective management in the canton, a permanent establishment located in the canton, a property situated in the canton, or a debt secured by a property in the canton;
d) upon the opening of bankruptcy of the taxpayer;
e) upon the death of the taxpayer;
f) in the event of termination of tax liability.
6. The due date is maintained even if by that date the taxpayer has received only a provisional tax calculation or has filed an objection or appeal against the assessment. In these latter cases, the taxpayer is nevertheless obliged, within the deadline set for collection, to pay the uncontested amount; Article 235 applies by analogy.
1. Taxes, including interest, fees, and fines, are collected based on tax assessment decisions. Tax is collected provisionally when the assessment has not yet been completed by the general due date.
2. The tax collected provisionally is credited against the tax owed according to the final assessment.
1. During the fiscal period, or during the calendar year in which the fiscal period ends if the business year does not coincide with the calendar year, installments must be paid on income and wealth taxes, profit, and capital.
2. The State Council may add other contributions calculated as a percentage of the taxes mentioned in the preceding paragraph to these installments.
3. Cantonal and communal direct taxes are collected through a single invoice, generally payable in several installments.
4. With the agreement of the State Council, the municipality may take charge of the collection of the single invoice.
The most recent tax assessment or the probable tax amount for the current fiscal period serves as the basis for calculating the tax brackets.
The amount of installments may be increased, reduced, or eliminated when the taxpayer demonstrates that their final annual tax will be significantly higher or lower than that of the previous year.
1. The Council of State determines the number of installments, on a monthly basis, their minimum amount, the due date for their maturity, and their payment.
2. Unpaid or late-paid installments are subject to default interest.
1. An interim statement may be established for regular periodic taxes for each fiscal period.
2. The procedures for claims and appeals are not available against the interim statement.
1. A final assessment is established for each fiscal period based on the definitive taxation. It may be attached to the notice of assessment.
2. Payments made up to that point are credited against the tax due as per the taxation decision.
3. The final assessment takes into account the payments made and the interest.
4. The taxpayer must settle the outstanding amount within thirty days from the dispatch of the final assessment.
5. If the amounts provisionally collected are insufficient, the difference is demanded; this difference is subject to compensatory interest.
6. Any overpaid amount is refunded with compensatory interest.
Periodic taxes on income and wealth, as well as on profit and capital, must be paid by the general due date.
2. The tax amounts specified in the final assessment must be paid within thirty days.
3. Other taxes, as well as fines and fees, must be paid within thirty days following the due date.
The taxpayer may make voluntary payments until the final assessment.
The final account includes a statement of compensatory interest
a) in favor of the taxpayer on over-collected tax amounts from the time of payment until the final account;
b) payable by the taxpayer on tax amounts owed based on the final assessment from the general maturity date.
1. Ordinary periodic taxes due based on the final assessment shall bear interest if they are not paid within a period of thirty days.
2. Other taxes due, fines, and fees that have not been settled within the payment deadline shall bear interest from the expiration of that deadline.
Voluntary payments whose amount exceeds the tax actually owed are granted remunerative interest starting from the day of payment.
1. In the event of a refund of income and wealth taxes to spouses living in a common household, each spouse is authorized to validly receive these amounts, insofar as they concern taxes levied on the basis of joint taxation. The refunded amounts may be offset with interim or final statements.
2. When tax amounts collected from married taxpayers living in a common household need to be refunded after their divorce or legal or de facto separation, the refund is made equally to each of them. The refunded amounts may be offset either with interim or final statements for both spouses, or with interim or final statements for each of the ex-spouses. However, the spouses may submit to the tax office an agreement signed by each of them providing for a different allocation key.
1. The Council of State establishes the procedures for withholding taxes at the source and the deadlines for payment.
2. Late interest is payable in the event of late or insufficient payment of the tax.
3. Overpaid amounts are refunded with remunerative interest.
[197] 1 The Council of State sets the rates for compensatory and remunerative interest for each year.
1bis It also sets the rate for default interest, which cannot exceed 10%.
2. The Council of State further determines the amounts of interest of minor importance, either in favor of or against the taxpayer, which do not warrant adjustment or collection.
1. If the payment of the tax, interest, and costs, as well as the fine imposed following a violation, within the prescribed period, would have very harsh consequences for the debtor, the competent tax authority may extend the payment deadline or authorize payment in installments; it may waive the interest due on the amounts whose payment is deferred.
2. Payment facilities may be subject to the provision of appropriate guarantees.
3. Payment facilities that have been granted are revoked when the circumstances justifying their grant no longer exist or when the conditions to which they are subject are not fulfilled.
1. If the amount of the tax is not paid within the specified time limits, the debtor is summoned to comply.
2. If the summons has no effect, proceedings are initiated against the debtor.
3. If the tax debtor does not have a domicile in Switzerland or if an attachment has been ordered on assets belonging to them, enforcement proceedings may be initiated without prior summons.
4. In enforcement proceedings, the taxation decisions and rulings issued by the authorities responsible for the implementation of this law, which have become final, are treated as enforceable judgments within the meaning of Article 80 of the Federal Act on Debt Collection and Bankruptcy, dated April 11, 1889.
5. The collection costs are borne by the debtor.
[199] 1 If, for the taxpayer who has fallen into destitution, the payment of the tax, interest, or a fine imposed as a result of an infraction leads to very harsh consequences, the amounts due may, upon request, be subject to total or partial remission.
2. The remission of the tax aims to sustainably stabilize the economic situation of the taxpayer. It must benefit the taxpayer themselves and not their creditors.
3. Fines and tax reassessments may be subject to remission only in particularly well-founded exceptional cases.
4. The remission authority will only consider applications for remission submitted before the notification of the order to pay (art. 38, para. 2, of the Federal Act on Debt Enforcement and Bankruptcy, LP, of April 11, 1889).
5. In cases of withholding taxation, only the taxpayer or a contractual representative designated by them may submit an application for remission.
6. Stricter conditions may be imposed for the remission of inheritance and gift taxes, as well as for taxes on real estate gains. The remission of property tax and transfer duties is excluded.
[200] 1. The request for a waiver, written and substantiated with the necessary evidence, must be submitted to the department.
2. The applicant is required to fully inform the waiver authority about their financial situation.
3. If the applicant neglects to provide the necessary cooperation despite reminders and warnings, the waiver authority will not consider the request.
4. The waiver procedure is free of charge. However, costs may be imposed on the applicant, in whole or in part, if the request is clearly unfounded.
5. Articles 188 et seq. are applicable by analogy in matters of procedural obligations.
6. The decision of the department may be appealed to the Cantonal Court in accordance with the APA (Administrative Procedure Act).
[201] 1 The waiver of tax may be refused in part or in full, particularly when the taxpayer
a) has seriously or repeatedly failed in their duties in the tax assessment procedure, to the extent that evaluating their financial situation for the relevant period is no longer possible;
b) did not create reserves despite having available means from the fiscal period to which the waiver request pertains;
c) did not make payments despite having available means at the due date of the tax debt;
d) owes their inability to contribute to the voluntary renunciation of income or assets without significant reason, to an extravagant lifestyle, or to any other imprudent or grossly negligent behavior;
e) favored other creditors during the evaluated period.
[202] 1 The Council of State shall issue the additional implementing provisions for the present chapter. It shall specifically outline the conditions for granting, the grounds for refusal, as well as the procedure for remittance.
1. The taxpayer may request the refund of an erroneously paid tax amount if the tax was not owed or was only partially owed.
2. Refunded tax amounts shall accrue interest from the date of payment, at the rate determined by the Council of State.
3. The request for a refund must be submitted to the competent tax authority within five years from the end of the calendar year in which the payment occurred. The rejection of the refund request grants the same legal remedies as a tax assessment decision. The right to a refund expires ten years after the end of the year in which the payment took place.
[203] 1. If the taxpayer does not have a domicile in Switzerland or if the tax authorities' rights appear threatened, the tax authority may require securities at any time and even before the tax amount has been determined by a final decision: the demand for securities specifies the amount to be secured; it is immediately enforceable; in enforcement proceedings, it is equivalent to an enforceable judgment under Article 80 of the Federal Act on Debt Enforcement and Bankruptcy.
2. The securities must be provided in cash, in secure and negotiable securities, or in the form of a guarantee from a bank or two jointly liable persons domiciled in Switzerland and solvent for the entire amount to be secured.
3. The demand for securities is notified to the taxpayer by registered mail.
4. The demand for securities may be appealed to the Cantonal Court, in accordance with the APA, but such an appeal does not suspend the execution of the demand for securities.
**1. The Demand for Security is Considered Equivalent to a Seizure Order**
The demand for security is deemed equivalent to a seizure order, within the meaning of Article 274 of the Federal Act on Debt Collection and Bankruptcy. The seizure is executed by the competent debt collection office.
**2. Inadmissibility of Opposition to the Seizure Order**
Opposition to the seizure order provided for in Article 278 of the Federal Act on Debt Collection and Bankruptcy is inadmissible.
1. A legal entity can only be deleted from the commercial register when the tax authority communicates to the commercial register that the taxes are paid or are secured.
2. Any request for the deletion of a legal entity or a branch of a foreign company must be communicated by the registrar of the commercial register, at the latest the day after its submission, to the competent cantonal tax authority, which is invited to declare if it objects.
3. If no objection is made within ten days from the invitation, the request for deletion is processed.
4. In the case of an objection, the deletion cannot be carried out. The objection must be withdrawn as soon as the tax is paid, securities are provided, or a final and enforceable decision of the competent authority establishes that the disputed tax claim is unfounded. An appeal may be filed against the cantonal tax authority's refusal to withdraw its objection.
[204] 1 The portion of income and wealth taxes, as well as profit and capital taxes, related to real estate, together with property tax and real estate capital gains tax, can be secured by a legal mortgage registered in the land register in accordance with Article 836 of the Swiss Civil Code and Article 99 of the Law on the Introduction of the Swiss Civil Code (LI-CC), dated March 22, 1910 [205].
2. In the event of the sale of real estate, the parties to the transaction may deposit with a recognized institution for this purpose, at least 10%, or a lower percentage with the agreement of the tax authority, of the transaction value, into an account opened in the name of the State.
3. The deposit has the effect of extinguishing the right to register the legal mortgage in the land register as provided in paragraph 1.
4. As soon as the taxes related to the real estate and owed by the seller become due, the depositary disburses their amounts upon request of the competent tax authority. Any remaining balance is returned to the seller.
When a property located in the canton is bought or sold through an individual or legal entity that has neither their domicile, headquarters, nor effective administration in Switzerland, the tax authority may require sellers or buyers to deposit 3% of the purchase price as security to guarantee the payment of taxes owed due to the intermediary's activity.
1. Whoever, despite a warning, intentionally or negligently breaches an obligation imposed on them under this law or any measure implemented in application of it, particularly by
a) failing to submit a tax return or accompanying schedules;
b) failing to provide the certificates, information, or details they are required to furnish;
c) failing to appear before the tax authority for a hearing;
shall be subject to a fine.
2. The fine shall be up to 1000 francs; it may be up to 10,000 francs in serious cases or in case of a repeat offense.
3. Fines imposed under this article cannot be supplemented by a municipal fine.
[206] 1 The taxpayer who, intentionally or through negligence, ensures that a tax is not levied when it should be, or that a tax assessment that has become enforceable is incomplete,
the person who, obligated to collect a tax at the source, does not withhold it or withholds only an insufficient amount, whether intentionally or through negligence,
the person who, intentionally or through negligence, obtains an illegal tax refund or an unjustified tax remission,
shall be punished with a fine.
2. Generally, the fine is set at an amount equivalent to the tax evaded. If the fault is minor, the fine may be reduced to one-third of this amount; if the fault is severe, it may be increased up to triple the amount.
3. When the taxpayer voluntarily and for the first time reports a tax evasion, criminal prosecution is waived (non-punishable voluntary disclosure), provided that
a) no tax authority is aware of it;
b) the taxpayer collaborates unreservedly with the administration to determine the omitted assets and income;
c) the taxpayer endeavors to settle the owed back taxes.
4. For any subsequent voluntary disclosure, the fine is reduced to one-fifth of the tax evaded if the conditions outlined in paragraph 3 are met.
1. Anyone who attempts to evade tax shall be punished with a fine.
2. The fine is set at two-thirds of the penalty that would be imposed if the evasion had been committed intentionally and completed.
[207] 1 Whoever intentionally incites tax evasion, assists in it, commits it as the taxpayer's representative, or participates in it shall be punished with a fine set independently of the penalty incurred by the taxpayer. Furthermore, they shall be jointly liable for the evaded tax.
2. The fine shall not exceed 10,000 francs; it shall not exceed 50,000 francs in serious cases or in the case of repeat offenses.
3. When a person as defined in paragraph 1 voluntarily and for the first time reports themselves and the conditions outlined in Article 250, paragraph 3, letters a and b, are fulfilled, criminal prosecution shall be waived and joint liability shall be removed.
[208]
[209] 1 The married taxpayer who lives in a common household with their spouse is only responsible for the omission of taxable elements that are their own. Article 252 is reserved. The mere act of countersigning the joint tax return does not constitute an offense within the meaning of Article 252.
2. Repealed.
[210]
1. When procedural obligations have been violated, and a tax evasion or attempted tax evasion has been committed for the benefit of a legal entity, that entity shall be liable to a fine.
2. The criminal prosecution of the bodies or representatives of the legal entity pursuant to Article 252 is reserved.
3. When a legal entity has incited, assisted, or participated, in the course of its activities, in the evasion committed by a third party, Article 252 applies to it by analogy.
4. Paragraphs 1 to 3 apply by analogy to foreign corporations and establishments and foreign associations of individuals without legal personality.
[211] 1 When a legal entity subject to tax voluntarily discloses for the first time a tax evasion committed within its commercial operations, criminal prosecution is waived (non-punishable voluntary disclosure), provided that
a) no tax authority is aware of it;
b) the concerned party cooperates unreservedly with the administration to determine the amount of the tax reassessment;
c) it endeavors to pay the due tax reassessment.
2. Non-punishable voluntary disclosure can also be filed
a) after a change of company name or relocation of the seat within Swiss territory;
b) after a transformation as defined in Articles 53 to 68 of the Federal Act on Merger, Demerger, Transformation and Transfer of Assets (Merger Act, LFus), of October 3, 2003, by the new legal entity, regarding tax evasions committed before the transformation;
c) after an absorption (Art. 3, para. 1, let. a, LFus) or a division (Art. 29, let. b, LFus), by the subsisting legal entity, regarding tax evasions committed before the absorption or division.
3. Non-punishable voluntary disclosure must be filed by the organs or representatives of the legal entity. The joint and several liability of these organs or representatives is eliminated, and criminal prosecution is waived.
4. When former members of the organs or former representatives of the legal entity disclose for the first time a tax evasion of which no tax authority is aware, the criminal prosecution of the legal entity, as well as all former or current members and representatives, is waived. Their joint and several liability is eliminated.
5. For any subsequent voluntary disclosure, the fine is reduced to one-fifth of the evaded tax when the conditions stipulated in paragraph 1 are met.
6. When a legal entity ceases to be subject to tax in Switzerland, it can no longer file a voluntary disclosure.
[212] 1. Once the investigation is concluded, the tax authority shall issue a decision, which is communicated in writing to the interested party.
2. Decisions of the tax authority in cases of tax evasion may be appealed to the Cantonal Court. As a last resort, they may be appealed to the Federal Court. Criminal proceedings are excluded.
3. The provisions on the general principles of procedure, taxation processes, and appeals procedures apply by analogy.
Fines Imposed for Violations of Procedural Obligations May Be Communicated with the Taxation Decision Without Prior Hearing of the Taxpayer
[213] 1 The initiation of a criminal procedure for tax evasion is communicated in writing to the concerned person. This individual is invited to express themselves regarding the accusations against them and informed of their right to refuse to testify and to cooperate.
1a Evidence gathered within the framework of the procedure for tax recall can only be used in the criminal procedure for tax evasion if it was not collected under the threat of an official assessment (art. 200) with a reversal of the burden of proof in the sense of Article 201, paragraph 2, nor under the threat of a fine in case of violation of a procedural obligation.
2. When the procedure is not completed at the taxpayer’s death, the heirs succeed the deceased in their procedural obligations.
3. The costs incurred by special investigatory measures (accounting expertise, expert reports, etc.) are, in principle, borne by the person found guilty of tax evasion; they may also be charged to the person who obtained a dismissal when due to their faulty behavior, they led the tax authority to initiate the criminal prosecution or significantly complicated or slowed down the investigation.
**[214] 1. Criminal prosecution is subject to the following statutes of limitations:**
a) In the case of procedural obligations violations, after three years, and in the case of attempted tax evasion, after six years from the final closure of the procedure during which the violation of procedural obligations or the attempt at evasion was committed;
b) In the case of completed tax evasion, after ten years
1) From the end of the fiscal period for which taxation was not carried out or was carried out incompletely, or for which withholding tax was not collected in accordance with the law (art. 250, para. 1);
2) From the end of the calendar year during which an illegal tax refund or an unjustified tax remission was obtained (art. 250, para. 1).
2. The statute of limitations ceases to run if a decision has been rendered by the tax authority (art. 256, para. 1) before the expiration of the limitation period.
[215] 1 Fines and fees arising from criminal proceedings are collected in accordance with Articles 232, paragraph 3, 235, and 240 to 246.
2. Regarding fines, Article 242 remains reserved.
3. The collection of fines and fees is subject to a limitation period of five years from the date the taxation becomes final.
4. Suspension and interruption of the limitation period are governed by Article 186, paragraphs 2 and 3.
5. In all cases, the statute of limitations is ten years after the end of the year in which the taxes were definitively established.
[216] 1. Whoever, with the purpose of committing tax evasion as defined by articles 250 to 252, uses false, falsified, or inaccurate documents, such as accounting books, balance sheets, profit and loss accounts, or salary certificates and other statements from third parties with the intent to deceive the tax authority, shall be punished with a custodial sentence of up to three years or with a monetary penalty. A suspended sentence may be accompanied by a fine of up to 10,000 francs.
2. The prosecution of tax evasion remains reserved.
3. In the event of voluntary disclosure of tax evasion as referred to in articles 250, paragraph 3, or 255a, paragraph 1, legal proceedings for all offenses committed with the intent to evade taxes are waived. This provision also applies to cases referred to in articles 252, paragraph 3, and 255a, paragraphs 3 and 4.
**[217] Article 1 Liability for Misappropriation of Withholding Tax**
1. Any person required to collect withholding tax who misappropriates the amounts received for their own benefit or that of a third party shall be punished by a custodial sentence not exceeding three years or by a monetary penalty. A suspended sentence may be accompanied by a fine of up to 10,000 francs.
2. When withholding taxes are misappropriated within the scope of activities conducted by a legal entity, an unincorporated partnership, a public authority, or a public law institution, paragraph 1 applies to the natural persons who acted or should have acted.
3. In the event of voluntary disclosure as defined in Articles 250, paragraph 3, or 255a, paragraph 1, criminal prosecution for misappropriation of withholding tax and for other offenses committed for the purpose of misappropriating withholding tax is waived. This provision also applies to cases covered under Articles 252, paragraph 3, and 255a, paragraphs 3 and 4.
[218] 1. The tax authority reports the tax offense to the public prosecutor's office.
2. Furthermore, the provisions of the Swiss Code of Criminal Procedure (SCCP) of October 5, 2007 [219], are applicable.
[220] 1 Criminal prosecution for tax offenses is subject to a statute of limitations of fifteen years from the day the offender committed their last infraction.
2. The statute of limitations ceases to run if a judgment at first instance has been rendered before the expiration of the limitation period.
The General Provisions of the Neuchâtel Penal Code [221] are applicable, subject to any conflicting provisions of this law.
1. Subject to the following provisions, the rules concerning cantonal taxes also apply to the taxes that municipalities can levy on taxpayers under their fiscal sovereignty.
2. Furthermore, municipalities establish their taxes through regulatory means.
[222] 1 Municipal taxes on income and wealth, as well as on profit and capital, are levied on the same bases as cantonal taxes.
2. Municipalities may neither modify the taxation bases established for cantonal taxes, nor deviate from the strict application of their tax rates with the aim of enticing taxpayers to settle in their territory.
The municipal tax on the income and wealth of individuals is calculated in accordance with the standard reference scale provided for the cantonal tax on income and wealth, multiplied by the municipal tax coefficient.
[223]
[224] 1. When a taxpayer simultaneously meets the conditions for tax liability in multiple municipalities, their elements of income and fortune or profit and capital are allocated according to federal law rules aimed at avoiding double inter-cantonal taxation.
2. The income and fortune of persons under general curatorship dependent on the Neuchâtel Child and Adult Protection Authority and residing in the canton are, however, taxable
a) at their last domicile, if they are placed in an educational establishment, a hospice, a hospital, or a detention facility;
b) at their place of residence, in other cases.
3. The Council of State may establish special rules for the allocation of movable income for individuals who work in a location other than their domicile or who stay for a certain period in a municipality other than that of their domicile.
When the conditions for the unlimited tax liability of an individual or a legal entity cease in one municipality and arise in another municipality, the tax is owed in the first municipality until the day on which this event occurred.
1. The competent cantonal authority allocates the taxable elements among the municipalities.
2. Its decision is equated with a taxation decision subject to the ordinary legal remedies.
[225] 1 Municipalities may levy an annual tax on real estate or shares of real estate estimated at cadastral value, without any deduction of debts, and which belong to
a) provident institutions mentioned in Article 81, paragraph 1, letter d, legal entities, real estate funds within the meaning of Article 58 LPCC, as well as individuals if these properties are investment properties within the meaning of Articles 111 and 112a;
b) the State, other municipalities, inter-municipal associations or dependent establishments that do not have their own legal personality, if these properties and real estate shares are not directly used for achieving their purpose.
2. The tax rate may not exceed 1.6 ‰ for the properties and property shares referred to in paragraph 1.
[226] 1 The taxation procedure falls under the authority of the competent cantonal authority.
1bis The taxation procedure for property tax of legal entities falls under the jurisdiction of the municipalities.
2 In general, the taxation is notified simultaneously with the cantonal taxes in the same taxation decision.
[227] 1. The regular municipal direct taxes referred to in this law are collected by means of a single tax assessment, generally payable in several installments.
1bis. The municipal real estate tax for individuals is collected by means of a single tax assessment payable in one installment.
2. Collection is the responsibility of the cantonal tax authority.
3. However, the municipality collects its taxes according to the procedures outlined in paragraph 1, insofar as the State Council has entrusted it with the collection of cantonal taxes.
The Council of State regulates the details and sets the compensations for covering the expenses owed by one community to another for the collection of its taxes.
The cantonal tax authority is competent to examine claims concerning municipal taxes as specified by this law.
The cantonal tax authority is competent to pronounce the revision of communal taxes.
[228] The remission of municipal taxes is pronounced, after consultation with the municipality, by the authority designated by the Council of State pursuant to Article 173.
[229] 1. The cantonal tax authority is competent to impose fines concerning the evasion of municipal taxes.
2. Repealed.
3. The report of offenses related to municipal taxes falls under the responsibility of the competent cantonal tax authority.
1. For the fiscal year 2001, the taxation related to income tax and wealth tax for individuals is governed by the new law.
2. During the calendar year 2001, the taxpayer must file a tax return completed in full, in compliance with the provisions of the former tax law governing taxation under the system of annual taxation based on presumed income as of the end of 2000. This return may serve as a basis for determining the likely amount of tax due and adjusting the tax brackets.
3. Extraordinary income earned during the calendar year 2000 or in a fiscal year ending during that year is subject to a full annual tax at the rate applicable to such income alone, but at least at the rate determining the last regular taxation of the 2000 period; Article 46 of the Direct Contributions Act of June 9, 1964, [230] is reserved. Expenses that are directly related to the acquisition of extraordinary income may be deducted; the same applies to losses that can still be carried forward, provided they exceed other income earned in 2000. Social deductions under Articles 29 and 29a of the Direct Contributions Act of June 9, 1964, [231] are not granted.
4. Extraordinary income includes, in particular
a) Lump-sum payments;
b) Non-recurring income from wealth;
c) Lottery winnings and similar institution prizes;
d) Unusually high income compared to previous years;
e) Capital gains and accounting revaluations of wealth elements;
f) Dissolutions of provisions and reserves;
g) Amortizations and provisions justified by commercial use that were omitted;
h) Substantive dividends.
5. Extraordinary expenses incurred during the fiscal year 2000 are also deductible from the taxable income serving as the basis for the tax due for the year 2000, provided that the taxpayer is subject to taxation in the canton as of January 1, 2001. Taxations already enforceable are revised in favor of the taxpayer; the revision only affects the tax factors impacted by the extraordinary expenses.
6. The following are considered extraordinary expenses
a) Maintenance costs of buildings that are part of private wealth, insofar as they exceed the flat-rate deduction amount;
b) Contributions paid by the insured to professional pension institutions for the buy-back of contribution years;
c) Medical, accident, disability, advanced training, and retraining costs, insofar as they exceed the costs already considered.
7. The tax authority determines the equity capital committed in the business of the self-employed and the wealth of persons without lucrative activity before the transition to the system of annual taxation based on acquired income and communicates them to the compensation funds.
**1. Pensions and Capital Benefits from Occupational Pension Plans**
Pensions and capital benefits from occupational pension plans, which began to be paid or became due before January 1, 1987, or which were based on a provisional arrangement already in existence on December 31, 1986, and began to be paid or became due before January 1, 2002, are taxable as follows
a) Three-fifths, if the benefits (such as deposits, contributions, premiums) on which the taxpayer’s entitlement is based have been made exclusively by the taxpayer;
b) Four-fifths, if the benefits on which the taxpayer's entitlement is based were made only partially by the taxpayer, but this part constitutes at least 20% of the total benefits;
c) Fully, in other cases.
2. Are assimilated to the taxpayer's benefits within the meaning of paragraph 1, letters a and b, the benefits made by their relatives; the same applies to benefits from third parties, if the taxpayer acquired the right to the insurance by devolution, legacy, or donation.
1. The proceeds from redeemable capital insurances paid by a single premium that were concluded before January 1, 1994, remain exempt from income tax, provided that, at the time the insured receives the benefit, the contractual relationship has lasted at least five years or the insured has reached the age of 60.
2. The proceeds from redeemable capital insurances paid by a single premium that were concluded after January 1, 1994, and before December 31, 1998, remain exempt from income tax, provided that, at the time the insured receives the benefit, the contractual relationship has lasted at least five years and the insured has reached the age of 60.
The contributions of the insured allocated for the purchase of years of insurance with professional provident institutions are deductible, provided that the ordinary retirement age according to the law, the statutes, or the regulations of the professional provident institutions, is reached after December 31, 2001.
**For the year 2001, the coefficient of the direct cantonal tax owed by natural persons shall be the coefficient 1.00.**
The gain subject to real estate gains tax is increased by compensation received for the establishment of easements, land charges, or public law restrictions prior to January 1, 2001, as well as compensation received for the renunciation of such easements, charges, or public law restrictions created before January 1, 2001, insofar as this compensation has not been subject to real estate gains tax at the time of payment.
1. The cantonal and communal taxes on the capital gains realized during the transfer of real estate to the shareholder by a real estate company established before January 1, 1995, are reduced by 75% if the company is dissolved.
2. The cantonal and communal taxes on the liquidation surplus obtained by the shareholder are reduced in the same proportion.
3. The liquidation and deregistration of the real estate company must occur no later than December 31, 2003.
1. Capital gains from shareholdings and the proceeds from the sale of related subscription rights are not included in the calculation of net yield within the meaning of Article 96, paragraph 1, if the company or cooperative possessed the relevant shareholdings before January 1, 2000, and realizes its gains before January 1, 2007.
2. For shareholdings held before January 1, 2000, the values relevant for profit tax, at the beginning of the financial year ending in the calendar year 2000, are considered as the cost of investment.
3. If a company or cooperative transfers a shareholding it held before January 1, 2000, to a foreign company within the same group, and this shareholding is at least 20% of the share capital or the equity of another company, the difference between the value relevant for profit tax and the market value of this shareholding is added to the taxable net income. In this case, the concerned shareholdings are considered as having been acquired before January 1, 2000. Simultaneously, the company or cooperative may constitute a non-taxable reserve equal to this difference. This reserve will be dissolved and taxed if the shareholding is sold to a third party outside the group, or if the company whose share rights have been transferred disposes of a significant part of its assets and liabilities or is liquidated. The company or cooperative shall attach to the tax return a list of shareholdings subject to a non-taxable reserve under this article. The non-taxable reserve is dissolved without tax impact on December 31, 2006.
4. If the financial year ends after the entry into force of this law, the profit tax is determined for that financial year according to the new law.
**Penal Sanctions for Offenses Committed Before the Enactment of this Law**
Penal sanctions related to offenses committed before the entry into force of this law are imposed in accordance with the former law, insofar as the new law is not more favorable.
[232] 1. During the years 2001, 2002, 2003, and 2004, municipalities may levy an annual property tax upon natural persons and legal entities.
2. The tax can only be levied if the municipal tax coefficient is equal to or greater than the cantonal tax coefficient owed by natural persons.
3. The property tax cannot be levied on the investment properties of legal entities referred to in Article 111 if a municipal property tax is already imposed on said properties.
4. Otherwise, the tax bases, calculation, and methods of collection are those set out in Articles 166 to 169 of the Direct Contributions Law, dated June 9, 1964, and 57 and 107 of the Law on Direct Contributions owed by Legal Entities and Instituting a Withholding Tax, dated October 3, 1994.
Pending cases at the time of the entry into force of this law shall be adjudicated by the competent authorities according to the former law.
The rules of procedure apply to all proceedings still pending as of the effective date of this law.
[233]
[234] Repealed are
a) The Law on Direct Contributions, of June 9, 1964, except for Articles 46, 166, 167, 168, and 169, which shall be repealed effective January 1, 2005;
b) The Law Establishing a Tax on Real Estate Gains, of November 20, 1991 [235];
c) The Law on Direct Contributions Owed by Legal Entities and Establishing a Withholding Tax, of October 3, 1994, except for Articles 57 and 107, which are repealed effective January 1, 2005;
d) Article 20 of the Law on Assistance to Health Institutions, of March 25, 1996 [236];
e) The Decree on Non-Compensation of Cold Progression, of June 23, 1999 [237];
f) The Law Introducing a Unique Reference Scale for Income and Wealth Tax on Individuals, of June 23, 1999 [238].
The articles of the following laws are amended
a) Law concerning the collection of transfer duties on real estate transactions, dated November 20, 1991 [239]
b) Law concerning the introduction of the Swiss Civil Code, dated March 22, 1910 [241]
c) Law for the introduction of the Federal Act on the creation of crisis reserves benefiting from tax relief, dated January 25, 1988 [243]
1. The present law is subject to an optional referendum.
2. It shall enter into force on January 1st, 2001.
3. The State Council shall ensure its promulgation and execution.
Law promulgated by the State Council on May 15th, 2000.
The entry into force is set for January 1st, 2001.
Transitional provision to the amendment of June 26, 2007 [246]
The level of the Swiss Consumer Price Index (CPI) as of June 30, 2007, determines the necessity to adapt the scales and deductions, pursuant to Article 45, for the 2008 fiscal period.
Transitional provision to the amendment of September 5, 2007 [247]
The next adjustment of scales and deductions on income shall occur as soon as the Swiss Consumer Price Index (CPI) has increased by at least 5% since the entry into force of the amendment of September 5, 2007. The index level as defined in Article 45, paragraph 2 of the present law, is decisive.
I. Transitional provision to the amendment of September 1, 2010 [248]
Simultaneously with the submission of its report on accounts for the fiscal year 2013, the State Council shall present to the Grand Council a preliminary assessment of the effects of this reform on the revenue of the canton and the municipalities, and if necessary, it shall accompany this assessment with new proposals.
II. Transitional provisions to the amendment of September 1, 2010 [249]
1. During each of the fiscal years 2011, 2012, and 2013, municipalities whose tax revenues from legal entities increase by a proportion higher than the progression recorded by the State compared to the average of the fiscal years 2005 to 2009 shall remit the excess share into a distribution fund.
2. Using the fund, the State guarantees the nominal average tax revenues from legal entities for the fiscal years 2005 to 2009, adjusted for inflation, to all municipalities.
3. If, after this initial distribution, the fund shows a positive balance, a second distribution shall be carried out among all municipalities, in proportion to the number of inhabitants in each.
4. The amount of net tax receipts from legal entities, after contribution to the fund, or after payment by the fund, shall then be taken into account for the calculation of intercommunal financial equalization.
Transitional provision regarding the amendment of February 23, 2016 [250]
For individuals taxed according to expenditure as of January 1, 2016, Articles 16 and 17 as in force until then shall remain applicable until December 31, 2020.
Transitional provision to the amendment of February 20, 2018 [251]
1. The amendments introduced by the law of February 20, 2018, enter into force retroactively on January 1, 2018.
2. The amendments introduced by the law of February 20, 2018, repeal and replace the law amending the Direct Contributions Law (LCDir) (rate modification and scale) adopted by the Grand Council on December 19, 2017.
Transitional provision to the amendment of March 27, 2019 [252]
1. If legal entities were taxed based on Articles 97 and 98 of the old law, the latent reserves existing at the end of this taxation, including any capital gain created by the taxpayer themselves, must, upon realization, be taxed separately within five years following, to the extent they have not been taxable until then. The basic profit tax is calculated at a rate of 2.5%. Article 3a, paragraphs 2 to 4, shall apply by analogy.
2. The amount of latent reserves claimed by the taxpayer, including the capital gain they created themselves, is determined by a decision of the taxation authority.
Transitional provision regarding the amendment of June 24, 2020 [253]
New Articles 259 and 264 apply to the adjudication of offenses committed during fiscal periods preceding January 1, 2017, if they are more favorable than the current law during those fiscal periods.
PART ONE – INTRODUCTION
Object of the law ......................................................................................
1
Reciprocity measures ...........................................................................
2
Basic tax and tax coefficient for individuals ..........................................
3
Basic tax and tax coefficient for legal entities ......................................
3a
PART TWO – TAXATION OF INDIVIDUALS
CHAPTER ONE – Conditions of Tax Liability
Personal attachment ............................................................................
4
Economic attachment ............................................................................
5
Extent of tax liability ...............................................................................
7
Tax calculation in case of partial attachment ........................................
8
CHAPTER 2 – Commencement, Modification, and Termination of Tax ...
9
CHAPTER 3 – Special Rules Concerning Income and Wealth Taxes
Spouses; children under parental authority ..........................................
10
Registered partners under LPart ...........................................................
10a
Heirships, partnerships, and collective capital investments ..................
11
Foreign commercial companies and other non-legal entities ................
12
Fiscal substitution ...................................................................................
13
Usufruct ..................................................................................................
13
Fiscal succession ...................................................................................
14
Liability of spouses and joint liability ....................................................
15
Expenditure-based taxation ...............................................................
16
Publication .............................................................................................
17a
Exemption ..............................................................................................
18
CHAPTER ONE – Taxable Income
In general ..............................................................................................
19
Income from dependent work ...............................................................
20
Employee participation .........................................................................
20a
Income from true employee participation .............................................
20b
Income from improper employee participation .....................................
20c
Proportional taxation ............................................................................
20d
Income from independent work ...........................................................
21
Return on movable assets ...................................................................
23
Special cases .........................................................................................
23a
Return on immovable property .............................................................
24
Income from pensions ..........................................................................
25
Other income .........................................................................................
26
CHAPTER 2 – Exempted Incomes ......................................................
27
CHAPTER 3 – Determining Net Income
Rule .......................................................................................................
28
Dependent work ...................................................................................
29
Independent work .................................................................................
30
34a
Deductions related to income from assets ...........................................
35
General deductions ..............................................................................
36
Non-deductible expenses ...................................................................
37
CHAPTER 4 – Social Deductions
Deduction for couples and single individuals ......................................
38
Family charges – Fiscal periods 2008 – 2012 .....................................
39
Family charges – Fiscal periods 2013 – 2014 .....................................
39a
CHAPTER 5 – Tax Calculation
Categories and rates – Fiscal periods 2008 - 2012 ..............................
40
41
42a
Totalization of income ..........................................................................
43
Taxable income in case of inter-cantonal or international distribution .
44
CHAPTER 6 – Compensation for Bracket Creep .................................
45
CHAPTER ONE – Taxable Wealth
Definition .................................................................................................
46
CHAPTER 2 – Assets
In general .................................................................................................
47
CHAPTER 3 – Exempted Wealth .........................................................
51
Debts ......................................................................................................
52
CHAPTER 5 – Tax Calculation
Categories and rates ..............................................................................
53
CHAPTER ONE – Object of the Tax ...................................................
56
CHAPTER 2 – Disposal
Taxable disposals ...................................................................................
57
CHAPTER 3 – Tax Subject .............................................................
CHAPTER 4 – Taxable Matter
Gains realized upon disposal ...............................................................
60
CHAPTER 5 – Tax Calculation
Rule ........................................................................................................
70
PART THREE – TAXATION OF LEGAL ENTITIES
CHAPTER ONE – Definition of Legal Entity .....................................
75
CHAPTER 2 – Conditions of Tax Liability
Personal attachment ..............................................................................
76
CHAPTER 4 – Solidary Liability .........................................................
80
CHAPTER ONE – Tax Object
Principle ..................................................................................................
83
Determination of net income ..................................................................
84
q) deduction of losses .........................................................................
93
CHAPTER 2 – Tax Calculation
94a
7. Fiscal periods 2016 to 2019 ...........................................................
94f
CHAPTER ONE – Object of the Tax
Principle ..................................................................................................
102
QUATRIEME PARTIE – IMMOVABLE PROPERTY TAX AND REAL PROPERTY ASSESSMENT ...................................................................
111
TITRE II – Assessment of Immovable Property
FIFTH PART – TAXATION OVER TIME ...........................................
CHAPTER ONE – Income and Fortune Tax .....................................
Fiscal period ..........................................................................................
114
CHAPTER FOUR – Benefit and Capital Tax
Fiscal period ..........................................................................................
123
PART SIX – WITHHOLDING TAX ON INDIVIDUALS AND LEGAL ...
CHAPTER ONE – Individuals domiciled or residing in the canton, ...
Workers subject to withholding tax .......................................................
127
Taxable benefits .....................................................................................
128
CHAPTER 2 – Individuals not domiciled or residing in Switzerland and legal entities with neither their head office nor their effective administration in Switzerland
Workers subject to withholding tax .......................................................
147
CHAPTER 3 – Withholding Tax in Inter-cantonal Relations
Territorial competence ...........................................................................
164
PART SEVEN – ORGANIZATION AND PROCEDURE
Supervisory and execution authorities ................................................
167
CHAPTER 2 – Duties of Authorities
Recusal .................................................................................................
175
Fiscal secret ..........................................................................................
176
CHAPTER 4 – Rights of the Taxpayer
Dossier consultation ..............................................................................
180
Evidence offer .......................................................................................
181
CHAPTER 5 – Deadlines .....................................................................
185
CHAPTER 6 – Prescription
Taxation rights' prescription .................................................................
186
Tax collection rights' prescription .........................................................
187
CHAPTER 2 – Taxation
Ordinary taxation ...................................................................................
199
CHAPTER PREMIER – Recourse before the Cantonal Court
Principle ..................................................................................................
216
CHAPTER 3 – Recourse to the Federal Court ...................................
216f
CHAPTER ONE – Revision
Reasons .................................................................................................
217
CHAPTER PREMIER – Due Dates
Terms .....................................................................................................
224
CHAPTER 2 – Tax Collection
Principle .................................................................................................
CHAPTER 3 – Tax Remission ...........................................................
242
CHAPTER 5 – Guarantees
Securities ..............................................................................................
244
PART EIGHT – PENAL PROVISIONS
CHAPTER PREMIER – Procedural Obligation ............................
249
CHAPTER 2 – Tax Evasion
Completed evasion ..............................................................................
250
CHAPTER 4 – Penal Pursuit Prescription ......................................
259
PART NINE – COMMUNAL TAXES
CHAPTER PREMIER – Referral ......................................................
266
CHAPTER 2 – Ordinary Taxes
Taxation bases ......................................................................................
267
CHAPTER 3 – Extraordinary Taxes
Property tax ..........................................................................................
CHAPTER 5 – Procedure
CHAPTER FIVE – TAXES AND FINAL PROVISIONS
CHAPTER PREMIER – Individuals
Amendments to Taxation Over Time for Individuals ...........................
281
Rents and capital payments from professional pensions ...................
282
CHAPTER FOUR – Penal Provisions
Penal sanctions ......................................................................................
289
CHAPITRE 5 – Execution
Competencies .......................................................................................
291
(Note: Depending on the specific legal reference system or jurisdiction, further adjustments may be necessary to align with local requirements.)