Art. 35 Tax Act (StG)

1. Deductions from Income

a. * Private interest on debt is deductible to the extent of taxable capital income pursuant to Arts. 22, 22a, and 23 of this Act and an additional 50,000 francs. Interest on loans that a corporation grants to a person with a substantial stake in its capital or a closely related natural person, under conditions that significantly deviate from those customary in business dealings among third parties, is not deductible;

b. * Permanent charges and the income portion pursuant to Art. 24 para. 3 of this Act from annuities and pension contracts;

c. * Maintenance payments to a divorced, judicially or in fact separated spouse, as well as maintenance payments to a parent for children under their parental care, but not payments fulfilling other family law maintenance or support obligations;

d. * Contributions, premiums, and payments made in accordance with law, charter, or regulation to old-age, survivors, and disability insurance and professional pension schemes;

e. * Contributions, premiums, and payments to acquire contractual claims from recognized forms of tied personal pension plans pursuant to Art. 82 BVG[10];

f. * Premiums and contributions for the income compensation scheme, unemployment insurance, and mandatory accident insurance;

g. * Contributions, premiums, and payments for life, health, and accident insurance not covered by item f, as well as interest from savings capital of the taxpayers and persons supported by them up to a total amount of Fr. 3,300 for married couples living in a legally and factually unseparated marriage and Fr. 1,700 for other taxpayers. The deductions increase

1. * by half for taxpayers without contributions pursuant to letters d and e;

2. * by Fr. 700 for each child or dependent person for whom a deduction under Art. 37 para. 1 sub. b and d of this Act can be claimed;

h. * Medical and accident costs of the taxpayers and persons maintained by them, insofar as the taxpayers cover the costs themselves and these exceed 5% of the taxable income reduced by the expenses pursuant to Arts. 28 to 35 of this Act;

i. * Disability-related expenses of the taxpayer or the persons maintained by them with disabilities under the Federal Act on the Elimination of Disadvantages for People with Disabilities[11], provided the taxpayer bears the costs themselves;

k. * ...

l. * Documented third-party care costs, up to a maximum of Fr. 10,000, for each child who has not yet reached the age of 14 and lives in the same household as the taxpayer responsible for their maintenance, as long as these costs are directly causally related to the taxpayer's employment, education, or inability to work;

m. * Membership fees and donations up to a total of Fr. 10,000 to political parties that

1. are registered in the party register in accordance with Article 76a of the Federal Act on Political Rights of December 17, 1976[12],

2. are represented in the Cantonal Council of the Canton of Obwalden, or

3. * obtained at least three per cent of the votes in the last general elections of the Cantonal Council in Canton Obwalden;

n. * Of individual winnings from participation in money games, which are not tax-exempt under Art. 26 para. 1 sub. i to l of this Act, five percent, but not more than Fr. 5,000, will be deducted as operating costs. For individual winnings from online participation in casino games under Art. 26 para. 1 sub. j of this Act, the stakes debited from the online player account during the tax year, but not more than Fr. 25,000, will be deducted;

o. * Costs of job-oriented education and training, including retraining costs, up to a total amount of Fr. 12,000, provided

1. there is a first degree at the secondary level II, or

2. the person has reached the age of 20 and it does not concern the education costs up to the first degree at the secondary level II.

2. If spouses live in a legally and factually unseparated marriage, an amount of Fr. 3,400 is deducted from the earned income of a spouse which is independent of the profession, business, or trade of the other spouse; a similar deduction is permissible for substantial involvement of a spouse in the profession, business, or trade of the other spouse. The secondary income deduction is subtracted from the lower of the two earned incomes.

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