Legislator · Canton of Appenzell Ausserrhoden — Cantonal Legislation
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Tax Act - Types of Taxes

320 Articles / Provisions · Canton of Appenzell Ausserrhoden — Cantonal Legislation
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Table of Provisions (320)

Art. 1 Tax Law Art. 2 Tax Law - Tax Unit Art. 3 Tax Law Art. 3a Tax Law Art. 4 Tax Law - I. Personal Affiliation Art. 5 Tax Law - II. Economic Affiliation Art. 6 Tax Law Art. 7 Tax Law - IV. Apportionment of Tax Art. 8 Tax Law Art. 9 Tax Act - VI. Commencement and Termination of Tax Liability Art. 10 Tax Law - VII. Family Taxation Art. 11 Tax Law Art. 12 Tax Law - 2. Inheritance Communities Art. 13 Tax Law - 3. Indeterminate Claim Relationships Art. 14 Tax Law - IX. Tax Succession Art. 15 Tax Law - X. Liability Art. 17 Tax Law Art. 18 Tax Law - XIII. Tax Exemption Art. 19 Tax Law - I. Taxable Income Art. 20 Tax Law - 2. Dependent Employment Art. 20a Tax Law Art. 20b Tax Law - Income from Genuine Employee Participation Art. 20c Tax Law Art. 20d Tax Law - Proportional Taxation Art. 21 Tax Law Art. 21a Tax Law Art. 21b Tax Law Art. 21c Tax Law - Income from Patents and Similar Rights Art. 22 Tax Law - b) Restructurings Art. 23 Tax Act - 4. Movable Property Art. 23a Tax Law - Special Cases Art. 23b Tax Law Art. 24 Tax Law - 5. Immovable Property Art. 25 Tax Law - 6. Income from Provident Schemes Art. 26 Tax Law - 7. Other Income Art. 27 Tax Act - II. Tax-Exempt Income Art. 28 Tax Law Art. 29 Tax Code - 2. Dependent Employment Art. 30 Tax Law Art. 30a Tax Law Art. 31 Tax Law Art. 32 Tax Law - c) Replacement Acquisitions Art. 33 Tax Law Art. 34 Tax Law - 4. Private Assets Art. 35 Tax Law Art. 36 Tax Law - 6. Deductions Depending on Income Art. 37 Tax Law - 7. Non-deductible Costs and Expenses Art. 38 Tax Law - IV. Social Deductions Art. 39 Tax Law Art. 39a Tax Law - 1a. Compensation for the Effects of Bracket Creep Art. 39b Tax Law Art. 40 Tax Law - 2. Lump Sum Payments for Recurring Services Art. 41 Tax Law Art. 41a Tax Law Art. 42 Tax Law Art. 43 Tax Law - II. Valuation Art. 44 Tax Law - 2. Intangible Assets and Movable Property in Business Assets Art. 45 Tax Law - 3. Life and Annuity Insurances Art. 46 Tax Law - 4. Securities and Claims Art. 46a Tax Law Art. 47 Tax Law Art. 48 Tax Law - b) Agricultural Properties Art. 49 Tax Law - III. Deduction of Debts Art. 50 Tax Law - IV. Tax-Exempt Assets Art. 51 Tax Law Art. 52 Tax Law - 2. Tax Rate Art. 53 Tax Law - Tax Period Art. 54 Tax Act - Assessment Period Art. 55 Tax Law - Assessment of Assets Art. 56 Tax Law Art. 57 Tax Law Art. 58 Tax Code - I. Concept of a Legal Entity Art. 59 Tax Law Art. 60 Tax Law - 2. Economic Affiliation Art. 61 Tax Law Art. 62 Tax Law - IV. Tax Apportionment Art. 64 Tax Law Art. 65 Tax Law - VII. Liability Art. 66 Tax Law - VIII. Exceptions to Tax Liability Art. 67 Tax Law - IX. Tax Relief Art. 68 Tax Law - I. Tax Object Art. 69 Tax Law - II. Calculation of Net Profit Art. 69a Tax Law Art. 70 Tax Law - 2. Business-Related Justified Expenses Art. 70a Tax Law Art. 70b Tax Law Art. 71 Tax Law Art. 72 Tax Law - 4. Restructurings Art. 72a Tax Act Art. 72b Tax Law - Taxation of Hidden Reserves at the End of Tax Liability Art. 73 Tax Law Art. 74 Tax Law Art. 75 Tax Law - 7. Losses Art. 76 Tax Act - 8. Profits of Associations, Foundations, and Collective Capital Investments Art. 77 Tax Law - III. Tax Calculation Art. 78 Tax Law Art. 79 Tax Law Art. 83 Tax Law - 6. Associations, Foundations, and Other Legal Entities Art. 83a Tax Law Art. 84 Tax Law - 7. Collective Investment Schemes Art. 85 Tax Law Art. 86 Tax Law - I. Tax Object Art. 87 Tax Law Art. 88 Tax Law - b) Hidden Equity Art. 89 Tax Law - 3. Associations, Foundations, Other Legal Entities, and Collective Investment Schemes Art. 90 Tax Law Art. 91 Tax Law - III. Distribution Art. 92 Tax Law Art. 93 Tax Law - Assessment of Net Profit Art. 94 Tax Law - Assessment of Equity Capital Art. 95 Tax Law - Tax Rates Art. 96 Tax Law - Minimum Tax Art. 97 Tax Law Art. 98 Tax Law Art. 99 Tax Law Art. 100 Tax Law - 2. Formulation Art. 101 Tax Law - IV. Tax Rate on Substitute Income Art. 103 Tax Law Art. 104 Tax Law Art. 105 Tax Law Art. 106 Tax Law Art. 107 Tax Law - Employee Art. 108 Tax Law - Artists, Athletes, Lecturers Art. 109 Tax Law - Bodies of Legal Entities Art. 110 Tax Law - Mortgage Creditor Art. 111 Tax Law - Recipients of Pension Benefits Art. 111a Tax Law Art. 112 Tax Law - Minor Income Art. 114 Tax Law Art. 114a Tax Law - Subsequent Ordinary Assessment Upon Request Art. 114b Tax Act Art. 115 Tax Law - I. Due Date Art. 116 Tax Law - II. Commission Fee Art. 117 Tax Law - III. Liability Art. 118 Tax Law - IV. Intercantonal Relations Art. 120 Tax Law - V. International Relations Art. 121 Tax Law - VI. Municipal Shares Art. 122 Tax Law Art. 123 Tax Law Art. 124 Tax Code - 2. Tax-Deferred Dispositions Art. 125 Tax Law - III. Taxpayer, Tax Claim, and Due Date Art. 126 Tax Act Art. 127 Tax Law - 2. Proceeds Art. 128 Tax Law Art. 129 Tax Law Art. 130 Tax Law Art. 131 Tax Law - d) Special Cases Art. 132 Tax Law - e) Partial Disposals Art. 133 Tax Law - V. Tax Rate Art. 134 Tax Law - VI. Distribution Art. 135 Tax Law Art. 136 Tax Law - 2. Gift Tax Art. 137 Tax Law - 3. Insurance Claims Art. 138 Tax Law - II. Tax-Exempt Transfers of Assets Art. 139 Tax Law - III. Spouses, Descendants, Parents; Occasional Gifts Art. 140 Tax Law Art. 141 Tax Law Art. 142 Tax Act - c) Tax Claim Art. 143 Tax Law Art. 144 Tax Law Art. 145 Tax Law Art. 146 Tax Law Art. 147 Tax Law Art. 147a Tax Law Art. 147b Tax Law - 4. Elimination of the Discount Art. 148 Tax Act - VII. Liability Art. 149 Tax Law Art. 150 Tax Law Art. 152 Tax Law - Property Assessment Authority Art. 153 Tax Law - Official Secrecy Art. 154 Tax Law Art. 155 Tax Law - Administrative Assistance Art. 155a Tax Law - AHV Insurance Number Art. 156 Tax Act Art. 157 Tax Law - Inspection of Records Art. 158 Tax Law - Collection of Evidence Art. 159 Tax Law - Contractual Representation Art. 160 Tax Law - Mandatory Representation Art. 160a Tax Law - Electronic Procedure Art. 161 Tax Law Art. 162 Tax Law - 2. Attachments to the Tax Return Art. 163 Tax Law - 3. Additional Duties to Cooperate Art. 164 Tax Act - 4. Obligation to Retain Records Art. 165 Tax Law - II. Obligations of Third Parties Art. 166 Tax Law Art. 167 Tax Law Art. 168 Tax Law - III. Assessment Art. 169 Tax Law - 2. Assessment at Discretion Art. 170 Tax Law - 3. Initiation of Assessment Art. 171 Tax Law Art. 172 Tax Law - 2. Objection Procedure Art. 173 Tax Law Art. 174 Tax Law - V. Statute of Limitations for Tax Assessment Art. 175 Tax Law Art. 176 Tax Law Art. 176a Tax Law - 2a. Necessary Representation Art. 177 Tax Law - 3. Disposition Art. 178 Tax Law - 4. Delivery Art. 179 Tax Law Art. 180 Tax Law Art. 181 Tax Law Art. 182 Tax Law Art. 183 Tax Law - 2. Assessment Bases Art. 184 Tax Law - 3. Procedural Obligations Regarding Gifts Art. 184a Tax Law Art. 185 Tax Law - 4. Supervision by the Cantonal Tax Administration Art. 186 Tax Law - 5. Commencement Art. 187 Tax Law Art. 188 Tax Law Art. 188a Tax Law - Federal Court Art. 189 Tax Law - I. Revision Art. 190 Tax Law - 2. Forfeiture and Limitation Art. 191 Tax Law Art. 192 Tax Law - II. Accounting Errors and Clerical Mistakes Art. 193 Tax Law Art. 193a Tax Law Art. 194 Tax Law Art. 195 Tax Law - 3. Costs and Liability Art. 196 Tax Law Art. 197 Tax Law - I. Inventory Obligation Art. 198 Tax Law Art. 199 Tax Law Art. 200 Tax Law - 2. Cooperation Duties Art. 201 Tax Law - 3. Duty to Provide Information and Certification Art. 202 Tax Law - IV. Authorities Art. 203 Tax Law - I. Authority Art. 204 Tax Law - II. Provisional Tax Assessment Art. 205 Tax Law - III. Final Accounting Art. 206 Tax Act Art. 207 Tax Law - V. Special Rule for Inheritance Taxes Art. 208 Tax Law - VI. Payment Deadline and Default Interest Art. 208a Tax Act Art. 209 Tax Law - VII. Waiver Due to Insignificance Art. 210 Tax Law Art. 211 Tax Act - IX. Limitation Period for Collection Art. 212 Tax Code - X. Tax Refunds Art. 213 Tax Law Art. 214 Tax Law Art. 215 Tax Law Art. 216 Tax Law Art. 217 Taxation Act - XIII. Objection and Appeal Art. 218 Tax Law - XIV. Delivery Art. 219 Tax Law - Securing of Claims Art. 220 Tax Law - Arrest Art. 221 Tax Law Art. 222 Tax Law - I. Conditions Art. 222a Tax Law - Grounds for Rejection Art. 223 Tax Law - II. Procedure Art. 223a Tax Law Art. 223b Tax Law Art. 223c Tax Law - 4. Decision Art. 224 Tax Law Art. 225 Tax Law - I. Tax Sovereignty and Types of Taxes Art. 226 Tax Law Art. 227 Tax Act - III. Tax Liability, Procedure, Tax Collection, and Organization Art. 228 Tax Law Art. 229 Tax Law Art. 230 Tax Law - II. Allocation Among Multiple Municipalities Art. 231 Tax Law Art. 232 Tax Law Art. 233 Tax Law - 4. Objection and Appeal Art. 234 Tax Act Art. 235 Tax Law - Tax Subject and Liability Art. 236 Tax Act - Tax Assessment Art. 237 Tax Law Art. 238 Tax Law - Tax Calculation Art. 239 Tax Law - Tax Lien Art. 240 Tax Law Art. 241 Tax Law Art. 242 Tax Law - I. Breach of Procedural Obligations Art. 243 Tax Law Art. 244 Tax Law - 2. Attempted Offense Art. 245 Tax Law - 3. Cooperation and Participation Art. 246 Tax Law Art. 248 Tax Law - 6. Tax Evasion by Spouses Art. 249 Tax Law Art. 249a Tax Law - 2. Voluntary Disclosure by Legal Entities Art. 250 Tax Law Art. 251 Tax Law Art. 252 Tax Act Art. 253 Tax Law Art. 254 Tax Law Art. 255 Tax Law - d) Record Keeping Art. 256 Tax Law - e) Investigation Art. 257 Tax Law Art. 258 Tax Law - g) Conclusion of the Investigation Art. 259 Tax Law - h) Penal Order Art. 260 Tax Act - 4. Statute of Limitations for Criminal Prosecution Art. 261 Tax Law Art. 262 Tax Law Art. 263 Tax Law - c) Prosecution Art. 264 Tax Law - d) Preparation of the Main Hearing Art. 265 Tax Law - e) Main Trial Art. 266 Tax Law - f) Obligation to Appear of the Accused Person Art. 267 Tax Law - g) Allocation and Distribution Art. 268 Tax Law - h) Supplementary Provisions Art. 269 Tax Law - Tax Fraud Art. 270 Tax Law Art. 271 Tax Law Art. 272 Tax Law - Limitation of Prosecution Art. 273 Tax Law Art. 274 Tax Law - II. Repeal of Previous Legislation Art. 275 Tax Law Art. 276 Tax Law - 2. Purchase of Contribution Years Art. 277 Tax Law - 3. Life Insurance Art. 278 Tax Law Art. 279 Tax Law - b) Extraordinary Income Art. 280 Tax Law Art. 281 Tax Law - d) Extraordinary Expenses Art. 282 Tax Law Art. 283 Tax Law - 6. Capital Gains in Mixed Holding Companies Art. 284 Tax Law Art. 285 Tax Law Art. 285a Tax Law Art. 285b Tax Law - 10. Simplification of Additional Taxation in Inheritance Cases Art. 285c Tax Act Art. 285d Tax Law Art. 285e Tax Act Art. 286 Tax Law Art. 287 Tax Law - V. Entry into Force

Statutory Text (250 of 320 Provisions)

1. Part: State Taxes - 1. General Provisions
Art. 1 Tax Act - Types of Taxes Official ↗

1. The State levies the following taxes to cover its expenditures

a) Income and wealth taxes from natural persons;

b) Profit and capital taxes, or in their place, minimum taxes on real estate of legal entities;

c) Withholding taxes from certain natural and legal persons;

d) Real estate capital gains taxes from natural and certain legal persons;

e) Inheritance and gift taxes from natural and certain legal persons.

1. Part: State Taxes - 1. General Provisions
Art. 2 Tax Act - Tax Unit Official ↗

1. The tax calculated according to the tax rates of this law is the simple tax, provided that the amount of the tax is determined by the tax rate.

1. Part: State Taxes - 1. General Provisions
Art. 3 Tax Act - Tax Rate Official ↗

1. The rate of income and wealth taxes, capital taxes, and withholding taxes is determined by the tax rate.

2. A fixed surcharge amounting to four times the simple state tax is levied on the capital taxes. No surcharge is levied on the profit tax.

3. The Cantonal Council decides the tax rate for each calendar year.

1. Part: State Taxes - 1. General Provisions
Art. 3a Tax Act - Registered Partnerships Official ↗

1. The status of registered partners corresponds to that of spouses in this enactment.

Part 1: State Taxes - 2. Taxation of Natural Persons - A. Tax Liability
Art. 4 Tax Act - I. Personal Affiliation Official ↗

1. Natural persons are liable to taxation based on personal affiliation if they have their tax residence or habitual abode in the canton.

2. A person has a tax residence in the canton if they reside there with the intention of permanent stay or if federal law assigns them a special statutory residence there.

3. A person has a tax abode in the canton if they stay there, notwithstanding temporary interruptions, for at least 30 days while exercising an occupation, or for at least 90 days without exercising an occupation.

4. ...

Part 1: State Taxes - 2. Taxation of Natural Persons - A. Tax Liability
Art. 5 Tax Act - II. Economic Affiliation Official ↗

**1. Natural persons without a tax residence or habitual abode in the canton are subject to tax liability due to economic affiliation if they:**

a) maintain business operations or permanent establishments in the canton;

b) hold ownership, real rights, or personally exercisable economic rights equivalent to real rights in real estate located in the canton;

c) engage in transactions involving real estate located in the canton.

**2. Natural persons without a tax residence or habitual abode in Switzerland are also subject to tax liability due to economic affiliation if they:**

a) engage in gainful employment in the canton;

b) receive royalties, directors' fees, fixed compensation, employee participation, or similar remuneration as members of the administration or management of legal entities with a registered office or permanent establishment in the canton;

c) are creditors or beneficiaries of claims secured by real estate mortgages or pledges on real estate in the canton;

d) mediate real estate transactions in the canton;

e) receive pensions, retirement benefits, or other payments based on a previous public employment relationship from an employer or pension institution with a registered office in the canton;

f) receive payments from Swiss private-law occupational pension institutions or recognized forms of tied private pension plans with a registered office or permanent establishment in the canton;

g) receive wages or other compensations for international transport work aboard a ship or an aircraft, or for transport on the road, from an employer with a registered office or permanent establishment in the canton; excluding the taxation of seafarers for work aboard a high-sea vessel.

Part 1: State Taxes - 2. Taxation of Natural Persons - A. Tax Liability
Art. 6 Tax Act - III. Scope of Tax Liability Official ↗

1. In the case of personal affiliation, the tax liability is unlimited; however, it does not extend to businesses, permanent establishments, and real estate outside the canton.

2. In the case of economic affiliation, the tax liability is limited to the portions of income and assets for which tax liability exists in the canton according to Article 5.

Part 1: State Taxes - 2. Taxation of Natural Persons - A. Tax Liability
Art. 7 Tax Act - IV. Apportionment of Tax Official ↗

**1. Tax Allocation for Business Enterprises, Permanent Establishments, and Real Estate**

The allocation of taxes for business enterprises, permanent establishments, and real estate in relation to other cantons and abroad follows the principles of federal law concerning the prohibition of intercantonal double taxation. Paragraph 2 is reserved.

**2. Tax Obligation for Persons Without Residence or Domicile in Switzerland**

Taxable persons without a legal residence or domicile in Switzerland are required to pay taxes on income earned within the canton and on assets located within the canton.

**3. Loss Offsetting for Foreign Permanent Establishments**

In cases of personal affiliation, losses from foreign permanent establishments, except those from real estate, can be offset against domestic profits. If the foreign permanent establishment generates profits in subsequent years, an addition to the profit of the Swiss enterprise is made in the fiscal year and to the extent that the foreign permanent establishment applies the loss offsetting. The same applies to the conversion of a permanent establishment into a legal entity followed by loss offsetting. In all other cases, foreign losses are only considered for determining the tax rate.

Part 1: State Taxes - 2. Taxation of Natural Persons - A. Tax Liability
Art. 8 Tax Act - V. Tax Calculation in Case of Partial Tax Liability Official ↗

1. Taxable persons who are subject to taxation in the canton for only part of their income and assets shall pay taxes on the values taxable in the canton at the tax rate corresponding to their entire income and assets; tax-free amounts shall be granted to them on a proportional basis. Paragraph 2 remains reserved.

2. Taxable persons without a tax domicile or residence in Switzerland shall pay taxes for businesses, permanent establishments, and real estate in the canton at least at the tax rate corresponding to the income earned in Switzerland and the assets located in Switzerland. Social deductions and tax exemptions are not granted.

Part 1: State Taxes - 2. Taxation of Natural Persons - A. Tax Liability
Art. 9 Tax Act - VI. Commencement and Termination of Tax Liability Official ↗

1. Tax liability begins at the point in time when a taxable person establishes a tax domicile or residence in the canton or acquires taxable assets within the canton.

2. Tax liability ends upon the death or departure of the taxable person from the canton or upon the cessation of taxable assets within the canton.

3. The consequences of the commencement, modification, and termination of tax liability based on personal and economic affiliation are determined in the inter-cantonal context by federal law.

Part 1: State Taxes - 2. Taxation of Natural Persons - A. Tax Liability
Art. 10 Tax Act - VII. Family Taxation Official ↗

1. Income and assets of spouses who are living in a legally and factually unseparated marriage shall be aggregated without regard to the matrimonial property regime.

2. Income and assets of children under parental care shall be attributed to the person who holds parental authority until the beginning of the year in which they reach majority. For children under joint parental care of parents who are not jointly taxed, the attribution is made to the parent entitled to the child deduction according to Art. 38 para. 1. Earnings from employment of the children as well as capital gains from real estate are taxed independently.

Part 1: State Taxes - 2. Taxation of Natural Persons - A. Tax Liability
Art. 11 Tax Act - VIII. Taxation of Partnerships 1. Partnerships, foreign commercial companies, and other foreign groups of persons Official ↗

1. Simple partnerships, general partnerships, and limited partnerships are not subject to taxation as such; their income and assets are attributed to the partners.

2. Foreign commercial partnerships and other foreign entities without legal personality that are taxable due to economic affiliation shall pay their taxes according to the provisions applicable to legal entities.

Part 1: State Taxes - 2. Taxation of Natural Persons - A. Tax Liability
Art. 12 Tax Act - 2. Inheritance Communities Official ↗

1. Heir Communities are not taxable entities; their income and assets are attributed to the individual heirs or beneficiaries.

2. In cases of uncertainty regarding the entitled heirs or beneficiaries or the shares allocated to each individual, the heir community as a whole will be taxed in accordance with the regulations applicable to natural persons, at the last residence of the deceased person and according to their last personal circumstances.

Part 1: State Taxes - 2. Taxation of Natural Persons - A. Tax Liability
Art. 13 Tax Act - 3. Indeterminate Claim Relationships Official ↗

1. If an estate does not belong to a specific person and lacks its own legal personality, the estate and its income are subject to taxation if, according to its purpose, it belongs to the canton or is managed here.

2. Similarly liable to taxation are the estates of missing persons or persons who have died abroad, which are managed in the canton and are not demonstrably taxed elsewhere by superior right. Taxation generally occurs at the place of affiliation, otherwise at the place of management.

Part 1: State Taxes - 2. Taxation of Natural Persons - A. Tax Liability
Art. 14 Tax Act - IX. Tax Succession Official ↗

1. In the event of the death of the taxpayer, the heirs assume the decedent's rights and obligations. They are jointly and severally liable for the taxes owed by the deceased up to the extent of their shares of the inheritance, including any pre-distributions.

2. The surviving spouse is liable with the inherited portion they receive and with the amount that exceeds their statutory share under Swiss law, resulting from marital property law entitlements.

3. The surviving registered partner is liable as a spouse and with the amount received based on a property arrangement pursuant to Article 25, Paragraph 1 of the Partnership Act.

Part 1: State Taxes - 2. Taxation of Natural Persons - A. Tax Liability
Art. 15 Tax Act - X. Liability Official ↗

1. Spouses living in a legally and factually undivided marriage are jointly liable for the total tax. The joint liability for taxes accrued during a legally and factually undivided marriage remains in place even after separation or divorce. Furthermore, they are jointly liable for that portion of the total tax which pertains to the child's income.

2. Joint liability with the taxable person applies to

a) children under their parental authority up to the amount of their share of the total tax;

b) partners residing in Switzerland in a simple partnership, general partnership, or limited partnership up to the amount of their partnership shares, for taxes of partners residing abroad;

c) buyers and sellers of real estate located in Switzerland up to 3 percent of the purchase price for taxes owed by dealers or intermediaries from this activity if they do not have a tax residence in Switzerland;

d) persons who dissolve business operations or branches in Switzerland, or sell or utilize properties located in Switzerland or claims secured by such properties, up to the amount of the net proceeds if the taxable person does not have a tax residence in Switzerland.

3. The estate administrators and executors are jointly liable with the tax successors for the taxes of the deceased person. The liability is waived if the liable person proves that they exercised all due care required by the circumstances.

Part 1: State Taxes - 2. Taxation of Natural Persons - A. Tax Liability
Art. 17 Tax Act - XII. Tax Relief Official ↗

1. The government council may, after consulting the affected municipality, grant tax relief to sole proprietorships that are newly established or significantly expanded for the founding year and the following nine years, provided they serve the economic interest of the canton. A significant change in business activity is considered equivalent to a new establishment.

2. The tax relief can be revoked retroactively at any time back to the date of granting, if the assurances given by the enterprise or the conditions set by the government council are not met.

Part 1: State Taxes - 2. Taxation of Natural Persons - A. Tax Liability
Art. 18 Tax Act - XIII. Tax Exemption Official ↗

1. Persons entitled under Article 2, paragraph 2 of the Host State Act are not taxed to the extent that federal law provides for a tax exemption.

2. In the case of partial tax liability, Article 8 shall apply.

**Part 1: State Taxes - 2. Taxation of Natural Persons - B. Income Tax**
Art. 19 Tax Act Official ↗

1. Income tax applies to all recurring and one-time earnings.

2. Income also includes benefits in kind of any kind, in particular free board and lodging as well as the value of products and goods consumed by one's own enterprise.

3. Capital gains from the sale of movable private assets are tax-free.

**Part 1: State Taxes - 2. Taxation of Natural Persons - B. Income Tax**
Art. 20 Tax Act - 2. Dependent Employment Official ↗

1. All income from private law or public law employment relationships is taxable, including ancillary income such as compensation for special services, commissions, allowances, long service and jubilee gifts, bonuses, tips, royalties, pecuniary advantages from employee participation, and other pecuniary advantages.

2. The costs borne by the employer for vocational education and training, including retraining costs, do not constitute any other pecuniary advantage within the meaning of paragraph 1, regardless of their amount.

3. Capital settlements from a pension institution associated with the employment relationship or similar capital settlements by the employer are taxed according to Art. 41.

**Part 1: State Taxes - 2. Taxation of Natural Persons - B. Income Tax**
Art. 20a Tax Act - Employee Participation Official ↗

1. Genuine Employee Participation Includes

a) Shares, profit participation certificates, participation certificates, cooperative shares, or other types of participations that the employer, its parent company, or another group company issues to employees;

b) Options to acquire participations as mentioned in subsection a.

2. Non-Genuine Employee Participation Includes Entitlements to Pure Cash Settlements.

**Part 1: State Taxes - 2. Taxation of Natural Persons - B. Income Tax**
Art. 20b Tax Act - Income from Genuine Employee Participation Official ↗

**1. Cash Benefits from Genuine Employee Participation**

Cash benefits derived from genuine employee participations, except from restricted or non-publicly listed options, are taxable as income from employment at the time of acquisition. The taxable benefit corresponds to its market value, reduced by any acquisition price.

**2. Employee Shares**

For the calculation of taxable benefits from employee shares, holding periods must be considered with a discount of 6 percent per holding year on their market value. This discount is applicable for a maximum of ten years.

**3. Cash Benefits from Restricted or Non-Publicly Listed Employee Options**

Cash benefits from restricted or non-publicly listed employee options are taxed at the time of exercise. The taxable benefit corresponds to the market value of the share at the time of exercise, reduced by the exercise price.

**Part 1: State Taxes - 2. Taxation of Natural Persons - B. Income Tax**
Art. 20c Tax Act - Income from Quasi-Employee Shareholdings Official ↗

1. Monetary benefits from non-genuine employee participations are taxable at the time they are received.

**Part 1: State Taxes - 2. Taxation of Natural Persons - B. Income Tax**
Art. 20d Tax Act - Proportional Taxation Official ↗

1. If the taxpayer did not have tax residency or presence in Switzerland during the entire period between the acquisition and the vesting of the restricted employee options as per Art. 20b para. 3, the monetary benefits derived therefrom shall be taxed proportionally based on the ratio between the total period and the time spent in Switzerland.

**Part 1: State Taxes - 2. Taxation of Natural Persons - B. Income Tax**
Art. 21 Tax Act - 3. Self-Employment a) Principle Official ↗

1. Taxable are all incomes arising from commercial, industrial, or business activities, agricultural and forestry operations, from a liberal profession, as well as from any other independent professional activities.

2. Income from independent professional activities also includes all capital gains from the sale, utilization, or book revaluation of business assets. Equated with a sale is the transfer of business assets into private assets or into foreign businesses or permanent establishments. Business assets are considered to include all assets that serve wholly or predominantly the independent professional activity, as well as holdings of at least 20 percent of the equity or share capital of a corporation or cooperative, provided that the owner declares the latter as business assets at the time of acquisition or upon the commencement of unlimited tax liability upon relocation from abroad. Article 21b remains reserved.

3. For taxable persons who maintain proper accounting, Article 69 applies mutatis mutandis.

4. Capital gains from the sale of agricultural and forestry properties within business assets are allocated to the income from independent professional activities, insofar as the sale proceeds do not exceed the acquisition costs. Article 130 applies mutatis mutandis.

**Part 1: State Taxes - 2. Taxation of Natural Persons - B. Income Tax**
Art. 21a Tax Act - Events Deferring Taxation Official ↗

1. If a property that is a part of fixed assets is transferred from business assets to private assets, the taxable person may request that, at the time of the transfer, only the difference between the acquisition cost and the relevant income tax value is taxed. In this case, the acquisition cost shall be considered the new relevant income tax value, and the taxation of the remaining hidden reserves as income from self-employment shall be deferred until the disposal of the property.

2. The lease of a business operation is considered a transfer to private assets only upon the request of the taxable person.

3. If, during an inheritance distribution, the business is not continued by all heirs, the taxation of the hidden reserves shall, upon application by the heirs who take over the business, be deferred until a later realization, provided that these heirs adopt the income tax-relevant values previously applicable.

**Part 1: State Taxes - 2. Taxation of Natural Persons - B. Income Tax**
Art. 21b Tax Act - Partial Taxation of Income from Business Assets Participation Official ↗

1. Dividends, shares of profits, liquidation surpluses, and pecuniary advantages from stocks, shares in limited liability companies, cooperative shares, and participation certificates, as well as profits from the sale of such equity rights, are taxable up to 60 percent after deducting attributable expenses, provided that these equity rights constitute at least 10 percent of the share or nominal capital of a corporation or cooperative.

2. The partial taxation on capital gains from sales is only granted if the sold equity rights were owned by the taxable entity or business entity for at least one year.

**Part 1: State Taxes - 2. Taxation of Natural Persons - B. Income Tax**
Art. 21c Tax Act - Income from Patents and Similar Rights Official ↗

1. Article 69a shall apply mutatis mutandis to income from patents and similar rights in the case of self-employment.

**Part 1: State Taxes - 2. Taxation of Natural Persons - B. Income Tax**
Art. 22 Tax Act - b) Restructurings Official ↗

1. Hidden Reserves of a Sole Proprietorship (Individual Enterprise, Partnership) are not taxed during restructurings, especially in the case of mergers, demergers, or conversions, provided that the tax liability continues to exist in Switzerland and the values previously relevant for income tax purposes are adopted

a) in the transfer of assets to another sole proprietorship;

b) in the transfer of a business or part of a business to a legal entity;

c) in the exchange of participation or membership rights during restructurings within the meaning of Art. 72 para. 1 or mergers similar in nature.

2. In a restructuring pursuant to para. 1 lit. b, the transferred hidden reserves are subject to taxation retroactively under the procedure in accordance with Art. 193 et seq., to the extent that participation or membership rights are sold within five years following the restructuring at a price exceeding the transferred taxable equity; in such cases, the legal entity may claim corresponding hidden reserves as profit-taxed.

**Part 1: State Taxes - 2. Taxation of Natural Persons - B. Income Tax**
Art. 23 Tax Act - 4. Movable Property Official ↗

1. Taxable are the income derived from movable assets, particularly

a) Interest from savings, including proceeds from redeemable life insurance policies with a single premium upon survival or on redemption, except when these life insurance policies serve the purpose of pension provision. It is deemed to serve the purpose of pension provision if the insurance payout is made from the age of 60 onwards, based on a contract that was entered into at least five years prior and before reaching the age of 66;

b) Income from the sale or redemption of bonds with predominantly one-time interest (globally interest-bearing bonds, discount bonds), accrued to holders;

c) * Dividends, profit shares, liquidation surpluses, and monetary benefits from participations of all kinds (including bonus shares, gratuitous nominal value increases, and the like), insofar as they do not constitute a repayment of existing capital shares. Income from assets realized upon the return of participation rights as per Art. 4a of the Federal Law on Withholding Tax to the corporation or cooperative is regarded as realized in the year in which the withholding tax claim arises (Art. 12 para. 1 and 1bis VStG); para. 1bis remains reserved;

d) Income from renting, leasing, usufruct, or other use of movable items or exploitable rights;

e) * Income from shares in collective investment schemes, insofar as the total proceeds exceed the income from direct real estate holdings; income from shares in collective investment schemes is attributed proportionally to investors;

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 bonus shares, gratuitous nominal value increases, and the like) are taxable to the extent of 60 percent if these participation rights represent at least 10 percent of the equity or share capital of a corporation or cooperative.

2. The proceeds from subscription rights are not considered income from assets, provided they belong to the private assets of the taxable person.

**Part 1: State Taxes - 2. Taxation of Natural Persons - B. Income Tax**
Art. 23a Tax Act - Special Cases Official ↗

1. Income from Property as defined in Art. 23, para. 1 also includes

a) the proceeds from the sale of a share of at least 20 percent in the share capital or ordinary capital of a corporation or cooperative from private assets to the business assets of another natural or legal person, provided that within five years after the sale, with the seller's involvement, non-essential assets are distributed, which were already present at the time of sale and distributable under commercial law. This also applies analogously if, within five years, several participants jointly sell such a share or shares of a total of at least 20 percent are sold. Distributed assets are taxed to the seller, if applicable, in the procedure according to Art. 193 et seq.;

b) the proceeds from the transfer of a share in the share capital or ordinary capital of a corporation or cooperative from private assets to the business assets of a partnership or a legal entity, in which the seller or transferor, after the transfer, holds at least a 50 percent interest in the capital, insofar as the total consideration received exceeds the sum of the nominal value of the transferred share and the reserves from capital contributions according to Art. 23b. This also applies analogously if several participants jointly undertake the transfer.

2. Involvement as defined in para. 1, lit. a occurs when the seller knows or must know that funds are withdrawn from the company for the purpose of financing the purchase price and are not reimbursed.

**Part 1: State Taxes - 2. Taxation of Natural Persons - B. Income Tax**
Art. 23b Tax Act - Capital Contribution Principle Official ↗

1. The repayment of contributions, premiums, and grants made by the holders of equity rights after December 31, 1996, shall be treated in the same way as the repayment of basic or share capital. Paragraph 2 remains reserved.

2. If a corporation or cooperative listed on a Swiss stock exchange does not distribute at least an equivalent amount of other reserves when repaying reserves from capital contributions pursuant to Paragraph 1, the repayment is taxable to the extent of half the difference between the repayment and the distribution of the other reserves, but no more than to the extent of the other reserves available in the company that can be distributed under commercial law.

3. Paragraph 2 does not apply to reserves from capital contributions

a) which have arisen in merger-like reorganizations by contributing equity and membership rights in a foreign corporation or cooperative according to Art. 72 Para. 1 lit. c or by a cross-border transfer to a domestic subsidiary according to Art. 72 Para. 1 lit. d after February 24, 2008;

b) which were already present in a foreign corporation or cooperative at the time of a cross-border merger or restructuring according to Art. 72 Para. 1 lit. b and Para. 3 or the relocation of the registered office or the effective management after February 24, 2008;

c) in the event of liquidation of the corporation or cooperative.

4. Paragraphs 2 and 3 apply mutatis mutandis to reserves from capital contributions that are used for the issuance of bonus shares or for gratuitous nominal value increases.

5. If, upon the return of equity rights to a corporation or cooperative listed on a Swiss stock exchange, the repayment of reserves from capital contributions does not at least match half of the received liquidation surplus, the taxable portion of this liquidation surplus is reduced by half the difference between this portion and the repayment, but no more than by the extent of the reserves from capital contributions present in the company, which are attributable to these equity rights.

6. Paragraph 1 applies to contributions and premiums made during a capital range as per Art. 653s ff. of the Swiss Code of Obligations, only insofar as they exceed the repayments of reserves within this capital range.

**Part 1: State Taxes - 2. Taxation of Natural Persons - B. Income Tax**
Art. 24 Tax Act - 5. Immovable Property Official ↗

1. All income from immovable property is taxable, particularly

a) all income from leasing, letting, usufruct, or other forms of use;

b) the rental value of properties available for personal use to the taxable person by virtue of ownership or a gratuitous right of use;

c) income from building lease contracts;

d) income from the extraction of gravel, sand, and other components of the soil.

2. The deemed rental value is the amount the taxable person could obtain by renting out their property. It is fully taxable even if the property is rented or leased at a lower rate to a related person.

3. The government council shall issue the regulations necessary for the uniform assessment of the deemed rental value of self-occupied properties.

**Part 1: State Taxes - 2. Taxation of Natural Persons - B. Income Tax**
Art. 25 Tax Act - 6. Income from Provident Schemes Official ↗

1. Taxable are all incomes from old-age, survivors, and disability insurance, from occupational pension schemes, and from recognized forms of tied personal pension plans, including lump-sum payments and reimbursements of deposits, premiums, and contributions.

2. In particular, incomes from occupational pension schemes include benefits from pension funds, savings and group insurance, as well as from vested benefit policies and vested benefit accounts.

3. Annuity insurance policies as well as annuity and lifelong support contracts are taxable to the extent of their yield portion. This is determined according to Art. 7 para. 2 StHG.

**Part 1: State Taxes - 2. Taxation of Natural Persons - B. Income Tax**
Art. 26 Tax Act - 7. Other Income Official ↗

1. The following are also taxable

a) all other income that replaces income from gainful employment;

b) one-time or recurring payments in the event of death and for permanent physical or health disadvantages;

c) compensation for the relinquishment or non-exercise of an activity;

d) compensation for the non-exercise of a right;

e) * ...

f) * Maintenance payments received by a taxable person in the event of divorce, judicial or actual separation, as well as maintenance payments received by a parent for children under their parental care or custody.

**Part 1: State Taxes - 2. Taxation of Natural Persons - B. Income Tax**
Art. 27 Tax Act - II. Tax-Exempt Income Official ↗

1. Exempt from taxes are

a) the acquisition of assets through inheritance, bequest, gift, or matrimonial property settlement;

b) the acquisition of assets from redeemable private capital insurance, except from portability policies. Article 23 paragraph 1 letter a remains reserved;

c) lump-sum payments made during a change of employment by the employer or from professional pension funds, if the recipients use them within one year to buy into a professional pension fund;

d) support from public or private sources;

e) benefits in fulfillment of family law obligations, excluding alimony payments according to Article 26 letter f;

f) the pay for military and protection service as well as the pocket money for civil service;

g) compensation payments;

h) income based on federal legislation on supplementary benefits for old age, survivors, and disability insurance;

i) * ...

j) * the pay for militia firefighters up to a yearly amount of CHF 5,000 for services related to the fulfillment of core firefighting tasks (drills, on-call services, courses, inspections, and emergency operations for rescue, firefighting, general damage defense, management of natural disaster damage, etc.); excluded are flat-rate allowances for cadres, function allowances, as well as compensation for administrative tasks and for services voluntarily provided by the fire department;

k) * the winnings achieved in casinos with casino games that are permitted under the Federal Act on Money Games of September 29, 2017, provided that these winnings do not stem from self-employment;

l) * individual winnings up to an amount of 1 million Swiss francs from participation in large games that are permitted under the BGS, and from online participation in casino games allowed under the BGS;

m) * winnings from small games that are permitted under the BGS;

n) * individual winnings from lotteries and skill-based promotional games that, according to Article 1 paragraph 2 letter d and e BGS, are not subject to it, provided the limit of CHF 1,000 is not exceeded;

o) * income based on the Federal Act on Bridging Benefits for Older Unemployed Persons.

**Part 1: State Taxes - 2. Taxation of Natural Persons - B. Income Tax**
Art. 28 Tax Act - III. Determination of Net Income 1. Principle Official ↗

1. For the determination of the net income, the expenses and general deductions according to Articles 29-36 are subtracted from the total taxable income.

**Part 1: State Taxes - 2. Taxation of Natural Persons - B. Income Tax**
Art. 29 Tax Act - 2. Dependent Employment Official ↗

1. The following are deducted as professional expenses

a) * the necessary costs for travel between home and workplace up to a maximum amount of CHF 6,000.-;

b) the necessary additional costs for meals outside the home and during shift work;

c) * the other costs required for the exercise of the profession; Art. 35 letter l remains reserved.

d)-f) * ...

2. For the professional expenses in accordance with para. 1 letters a-c, the government council establishes flat-rate amounts; in the case of para. 1 letter c, the taxable person is allowed to demonstrate higher costs.

**Part 1: State Taxes - 2. Taxation of Natural Persons - B. Income Tax**
Art. 30 Tax Act - 3. Self-Employment a) General Official ↗

1. In the case of self-employment, business-related or professionally justified and recorded costs shall be deducted.

2. These include, in particular

a) business-related justified depreciations, provisions, and value adjustments;

b) necessary reserves for research and development contracts with third parties up to 10 percent of the taxable business income, but not exceeding 1 million Swiss francs in total;

c) losses incurred on business assets;

d) * contributions and donations to pension schemes for the benefit of one's own staff, provided any misuse of funds is precluded;

e) * costs of job-related education and training, including retraining costs, for one's own staff;

f)-g) * ...

h) interest on business debts and interest attributable to participations according to Art. 21 para. 2;

i) * profit-absorbing sanctions, insofar as they do not have a punitive purpose.

3. Expenses not considered business-related include, in particular

a) * payments of bribes as defined by Swiss criminal law;

b) * expenditures to facilitate crimes or as compensation for the commission of crimes;

c) * fines (including tax fines and penalty taxes) and monetary penalties;

d) * financial administrative sanctions, insofar as they have a punitive purpose.

4. If sanctions under para. 3 lit. c and d have been imposed by a foreign criminal or administrative authority, they are deductible if

a) the sanction violates Swiss public order; or

b) the taxpayer credibly demonstrates that they took all reasonable steps to comply with the law.

**Part 1: State Taxes - 2. Taxation of Natural Persons - B. Income Tax**
Art. 30a Tax Act - Deduction of Research and Development Expenses Official ↗

1. Article 70a shall apply mutatis mutandis to the deduction of research and development expenses in relation to self-employed activities.

**Part 1: State Taxes - 2. Taxation of Natural Persons - B. Income Tax**
Art. 31 Tax Act - b) Depreciations, Provisions, Value Adjustments Official ↗

**1. Justified in Ordinary Commercial Terms are:**

a) Depreciations that correspond to a reasonable compensation for the impairment in value that occurred during the relevant business years, to the extent that they are shown in the books or, in the case of simplified bookkeeping according to Article 957(2) of the Swiss Code of Obligations (OR), in special depreciation tables; the Executive Council may issue guidelines for additional immediate depreciations;

b) Provisions that serve to compensate for impending losses or obligations that are still uncertain in their existence or extent;

c) Write-downs, insofar as they correspond to a reasonable compensation for the temporary impairment in value incurred during the tax period.

**2. Provisions, write-downs, as well as reserves for research and development can be reviewed annually for their justification in ordinary commercial terms.**

**Part 1: State Taxes - 2. Taxation of Natural Persons - B. Income Tax**
Art. 32 Tax Act - c) Replacement Acquisitions Official ↗

1. When replacing essential fixed assets, the hidden reserves can be transferred to a replacement object of the essential fixed assets; however, the transfer of hidden reserves is excluded

a) from real estate to movable assets;

b) to assets outside Switzerland.

2. If the replacement acquisition does not take place in the same fiscal year, a provision can be made to the extent of the hidden reserves. This provision must be used for the depreciation of the replacement object within a reasonable period or resolved in favor of the profit and loss account.

3. Only fixed assets that directly serve the business are considered essential; this excludes, in particular, assets that serve the company only as an investment or solely through their yield.

**Part 1: State Taxes - 2. Taxation of Natural Persons - B. Income Tax**
Art. 33 Tax Act - d) Losses Official ↗

1. Losses from the seven fiscal years preceding the tax period can be deducted, insofar as they could not be taken into account in the calculation of taxable income for those years.

2. Contributions from third parties made to offset a capital shortfall in the context of a restructuring can also be used to offset losses incurred in previous fiscal years that have not yet been offset against income.

**Part 1: State Taxes - 2. Taxation of Natural Persons - B. Income Tax**
Art. 34 Tax Act - 4. Private Assets Official ↗

1. For movable private assets, the costs of administration by third parties and the foreign source taxes that are neither refundable nor creditable can be deducted.

2. For real estate in private ownership, the maintenance costs, the costs of renovating newly acquired properties, insurance premiums, and the costs of administration by third parties can be deducted. Investments for energy saving and environmental protection are equated with maintenance costs, as long as they are deductible for direct federal tax purposes. Under the same conditions, demolition costs in anticipation of a replacement new building can also be deducted. Investments for energy saving and environmental protection, as well as demolition costs in anticipation of a replacement new building, are deductible in the two subsequent tax periods, insofar as they cannot be fully considered for tax purposes in the current tax period in which the expenses were incurred.

3. Ground rent interest opposing the income from rented or leased properties can be deducted.

4. Additionally deductible are the costs of conservation work, which the taxable person has undertaken due to legal requirements, in agreement with the authorities, or at their direction, provided that these works are not subsidized.

5. For private real estate properties that primarily serve residential purposes, the taxable person can claim a flat-rate deduction instead of the actual costs and premiums, provided that the gross rental income does not exceed an amount determined by the government council.

**Part 1: State Taxes - 2. Taxation of Natural Persons - B. Income Tax**
Art. 35 Tax Act - 5. General Deductions Official ↗

**1. Deducted from Income:**

a) * private interest on debt to the extent of taxable investment income according to Articles 23, 23a, and 24, plus an additional CHF 50,000;

b) * perpetual charges and the income portion according to Article 7 Paragraph 2 Letter c of the StHG on benefits from life annuity and endowment contracts;

c) alimony payments to the divorced spouse, or spouse living separately either judicially or in fact, as well as alimony payments to a parent for children under their parental care or supervision, but not including payments in compliance with other legal familial support or maintenance obligations;

d) * contributions, premiums, and amounts paid according to law, statutes, or regulations for acquiring rights from old-age, survivors', and disability insurance and from occupational pension plans;

e) * contributions, premiums, and amounts paid for acquiring contractual claims from recognized forms of tied personal provision in accordance with and within the limits of Article 82 of the Federal Law on Occupational Old Age, Survivors', and Disability Provision;

f) premiums and contributions for earnings compensation schemes, unemployment insurance, and compulsory accident insurance;

g) * contributions, premiums, and amounts paid for life, health, and accident insurance not covered in letter f, as well as interest on savings capital of the taxable person and individuals maintained by them, up to a total of CHF 5,400 for married couples living together and CHF 2,700 for other taxable persons. For each child for whom the taxable person can claim a deduction in accordance with Article 38, these deductions increase by CHF 1,000;

h) * if spouses live in a legally and actually undivided marriage, 10 percent, but at least CHF 2,400 and at most CHF 5,000, is deducted from the lower earned income that a spouse earns independently of the profession, business, or trade of the other spouse. Earned income is considered to be the taxable income from dependent or independent work minus the expenses according to Articles 29-33 and the general deductions according to Article 35 letters d-f. In the case of significant participation of one spouse in the profession, business, or trade of the other spouse or in joint independent gainful activity, each spouse is allocated half of the joint earned income. A different allocation must be proven by the couple.

i) * the verified costs, but no more than CHF 25,000, for third-party care for each child under 14 years of age living in the same household with the taxable person responsible for their support, as long as these costs are in direct causal connection with the taxable person’s employment, training, or inability to work;

j) * membership fees and donations up to a total amount of CHF 10,000 to political parties that

1. are registered in the party register according to Article 76a of the Federal Act on Political Rights,

2. are represented in a cantonal parliament, or

3. have obtained at least 3 percent of the votes in a canton in the last cantonal parliamentary elections.

k) * from individual winnings from participation in gambling which are not tax-exempt under Article 27 Paragraph 1 letters k-n, 5 percent, but no more than CHF 5,000, is deducted as stake costs; from individual winnings from online casino games under Article 27 Paragraph 1 letter l, the stakes debited from the online player account in the tax year, but no more than CHF 25,000, are deducted;

l) * the costs for professional education and training, including retraining costs, up to a total amount of CHF 12,000 per taxable person, provided that

1. a first qualification at secondary level II is present, or

2. the 20th year of age has been completed, and it does not concern education costs up to the first qualification at secondary level II.

**Part 1: State Taxes - 2. Taxation of Natural Persons - B. Income Tax**
Art. 36 Tax Act - 6. Deductions Depending on Income Official ↗

**1. The following shall also be deducted from income:**

a) * the medical and accident expenses of the taxable person and the persons supported by them, insofar as the taxable person bears the costs themselves and these exceed 5 percent of the taxable income reduced by expenditures according to Articles 28-35;

abis) * the disability-related expenses of the taxable persons and the persons with disabilities supported by them, as defined by the Disability Equality Act[14], insofar as the taxable person bears the costs themselves;

b) * the voluntary contributions of money and other assets to legal entities headquartered in Switzerland, which are exempt from tax due to public or exclusively charitable purposes, as well as to the Confederation, cantons, municipalities, and their institutions, provided the donations reach CHF 100 in the tax period and do not exceed 20 percent of the taxable income reduced by expenditures according to Articles 28-35.

**Part 1: State Taxes - 2. Taxation of Natural Persons - B. Income Tax**
Art. 37 Tax Act - 7. Non-deductible Costs and Expenses Official ↗

1. Non-deductible are other costs and expenses, in particular

a) expenses for the maintenance of the taxable person and their family, as well as private expenses incurred due to professional circumstances;

b) * ...

c) expenses for debt repayment;

d) expenses for the acquisition, production, or value enhancement of assets;

e) income, real estate capital gain, inheritance, gift, transfer, and wealth taxes imposed by the federal government, cantons, and municipalities, as well as similar foreign taxes.

**Part 1: State Taxes - 2. Taxation of Natural Persons - B. Income Tax**
Art. 38 Tax Act - IV. Social Deductions Official ↗

1. The following deductions are made from the net income for tax calculation purposes

a) * as child deduction, provided the taxable person primarily bears the maintenance, the child is dependent on the maintenance, and no maintenance contributions according to Art. 35 letter c are deducted for the child

1. * for each child under the parental care or custody of the taxable person up to the completion of the 4th year of age CHF 5,000.-;

2. * for each child under the parental care or custody of the taxable person after the completion of the 4th year of age up to the completion of the 15th year of age CHF 7,000.-;

3. * for each child under the parental care or custody of the taxable person after the completion of the 15th year of age up to adulthood and for each adult child in vocational or educational training up to the completion of the 26th year of age CHF 11,000.-.

b) * ...

1bis. If the parents are taxed separately, the child deduction can be divided equally if the child is under joint parental custody and no maintenance contributions according to Art. 35 letter c are claimed for the child.

2. Social deductions are determined based on the circumstances at the end of the tax period or tax liability.

3. If the tax liability exists only for part of the tax period, the social deductions are granted proportionally; for rate determination, they are fully credited.

4. In an international context, social deductions are granted only to persons with unlimited tax liability.

**Part 1: State Taxes - 2. Taxation of Natural Persons - B. Income Tax**
Art. 39 Tax Act - V. Tax Calculation 1. Tax Rates Official ↗

1. Income Tax Rates (Base Rate)

a) * For spouses living in a legally and factually undivided marriage, as well as for widowed, legally or factually separated, divorced, and single taxable persons living with children or persons in need of support in the same household and primarily bearing their support (Married Rate)

1. 0.00 percent for the first CHF 16,000

2. 0.50 percent for the next CHF 2,000

3. 0.90 percent for the next CHF 3,000

4. 1.40 percent for the next CHF 5,000

5. 1.70 percent for the next CHF 9,000

6. 1.90 percent for the next CHF 15,000

7. 2.20 percent for the next CHF 15,000

8. 2.50 percent for the next CHF 20,000

9. 2.70 percent for the next CHF 25,000

10. 2.80 percent for the next CHF 60,000

11. 2.90 percent for the next CHF 230,000

12. over CHF 400,000: 2.60 percent of the taxable income

b) * for other taxable persons (Single Rate)

1. 0.00 percent for the first CHF 8,000

2. 0.60 percent for the next CHF 1,500

3. 1.00 percent for the next CHF 1,500

4. 1.50 percent for the next CHF 4,000

5. 1.80 percent for the next CHF 11,000

6. 2.20 percent for the next CHF 14,000

7. 2.40 percent for the next CHF 12,000

8. 2.60 percent for the next CHF 19,000

9. 2.70 percent for the next CHF 14,000

10. 2.80 percent for the next CHF 35,000

11. 2.90 percent for the next CHF 130,000

12. over CHF 250,000: 2.60 percent of the taxable income

2. Remainders of less than CHF 100 are disregarded when determining the taxable income.

3. The rate is determined based on the circumstances at the end of the tax period or tax liability.

4-5 ...

**Part 1: State Taxes - 2. Taxation of Natural Persons - B. Income Tax**
Art. 39a Tax Act - 1a. Compensation for the Effects of Bracket Creep Official ↗

1. In the taxation of income for natural persons, the effects of fiscal drag are balanced by a uniform adjustment of the tax rate brackets and the deductions from income mentioned in Art. 35 lit. g-l and Art. 38 para. 1. The amounts shall be rounded up or down to the nearest CHF 100.

2. The government council shall adjust the tax rate brackets and deductions when the national consumer price index has increased by at least 3.0 percent since the last adjustment.

3. The relevant index figure is the one on June 30 prior to the start of the tax period, based on the index figure on December 31, 2010.

4-6

...

**Part 1: State Taxes - 2. Taxation of Natural Persons - B. Income Tax**
Art. 39b Tax Act - 1b. Simplified Accounting Procedure Official ↗

1. For small employment income from dependent work, the tax shall be levied at a rate of 4.5 percent without consideration of other income, possible professional expenses, and social deductions. The precondition is that the employer pays the tax within the simplified accounting procedure pursuant to Articles 2 and 3 of the Federal Act against Illegal Employment.

2. Art. 175 lit. a applies mutatis mutandis.

3. The debtor of the taxable service is obliged to periodically deliver the taxes to the competent AHV compensation fund.

4. The AHV compensation fund issues the taxable person a statement or confirmation of the tax deduction. It transfers the collected tax payments to the competent tax authority.

5. The right to a collection commission according to Art. 116 is transferred to the competent AHV compensation fund.

6. The regulation provides further details.

**Part 1: State Taxes - 2. Taxation of Natural Persons - B. Income Tax**
Art. 40 Tax Act - 2. Lump Sum Payments for Recurring Services Official ↗

1. If capital settlements for recurring services are included in the income, the income tax is calculated by considering the other income at the tax rate that would apply if, instead of the one-time payment, a corresponding annual payment were made.

**Part 1: State Taxes - 2. Taxation of Natural Persons - B. Income Tax**
Art. 41 Tax Act - 3. Capital Benefits with a Pension Character Official ↗

1. Capital benefits according to Art. 25, as well as payments upon death and for permanent physical or health detriments, are taxed separately. They are always subject to a full annual tax. The rate of the simple tax is calculated as follows

a) For jointly taxable spouses, as well as for widowed, legally or factually separated, divorced, and single taxpayers who live in the same household with children or dependent persons and primarily provide for their support (Married Rate)

1. 0.7500 percent up to CHF 400,000.- and

2. 1.0000 percent for the amount exceeding

b) For other taxable persons (Single Rate)

1. 1.0000 percent up to CHF 400,000.- and

2. 1.3333 percent for the amount exceeding

2. Social deductions are not granted.

3. The tax claim arises at the time the benefit is received.

**Part 1: State Taxes - 2. Taxation of Natural Persons - B. Income Tax**
Art. 41a Tax Act - Liquidation Gains with Pension Characteristics Official ↗

1. If self-employment is definitively terminated after the age of 55 or due to inability to continue because of disability, the sum of the hidden reserves realized in the last two business years is taxed separately. Contributions for purchases according to Art. 35 lit. d are deductible.

2. If no contributions for purchases according to Art. 35 lit. d are deducted, the simple tax on the amount of realized hidden reserves for which the taxable person proves the admissibility of a purchase is determined according to Art. 41 para. 1. The simple tax on the remaining amount of realized hidden reserves is also determined according to Art. 41 para. 1.

3. Paragraphs 1 and 2 also apply to the surviving spouse, other heirs, and the legatees, provided they do not continue the business they have inherited. The tax settlement occurs at the latest five calendar years after the end of the calendar year of the deceased's death.

Part 1: State Taxes - 2. Taxation of Natural Persons - C. Wealth Tax
Art. 42 Tax Act - I. Tax Object Official ↗

1. The wealth tax is applicable to the entire net wealth.

2. Usufruct property is attributed to the entitled person.

3. For shares in collective investment schemes with direct real estate ownership, the difference in value between the total assets of the collective investment scheme and its direct real estate is taxable.

**Part 1: State Taxes - 2. Taxation of Natural Persons - C. Wealth Tax**
Art. 43 Tax Act Official ↗

1. The assets are to be valued at the market value.

**Part 1: State Taxes - 2. Taxation of Natural Persons - C. Wealth Tax**
Art. 44 Tax Act - 2. Intangible Assets and Movable Property in Business Assets Official ↗

1. Intangible Assets and Movable Property that belong to the taxable person's business assets are assessed at their income tax value.

**Part 1: State Taxes - 2. Taxation of Natural Persons - C. Wealth Tax**
Art. 45 Tax Act - 3. Life and Annuity Insurances Official ↗

1. Life insurance policies are subject to wealth tax based on their surrender value. Equivalent to them are surrenderable annuity policies.

**Part 1: State Taxes - 2. Taxation of Natural Persons - C. Wealth Tax**
Art. 46 Tax Act - 4. Securities and Claims Official ↗

1. Securities shall be valued at their market value.

2. If such a value is unavailable, the assessment shall be based on the intrinsic value.

3. When valuing disputed or demonstrably uncertain claims, the probability of loss must be taken into account.

**Part 1: State Taxes - 2. Taxation of Natural Persons - C. Wealth Tax**
Art. 46a Tax Act - Valuation of Employee Shareholdings Official ↗

1. Employee participations pursuant to Art. 20b para. 1 must be recorded at fair market value. Any applicable lock-up periods must be reasonably taken into account. The regulation provides further details.

2. Employee participations pursuant to Art. 20b para. 3 and Art. 20c are to be declared at the time of allocation without a tax value.

**Part 1: State Taxes - 2. Taxation of Natural Persons - C. Wealth Tax**
Art. 47 Tax Act - 5. Immovable Property a) Principle Official ↗

1. The official market value is determinative for real estate.

2. For new constructions, extensions, or other value-enhancing investments in a property that have not yet been recorded in an official market value assessment, there shall be a surcharge of 80 percent of the expenses to the applicable official market value.

**Part 1: State Taxes - 2. Taxation of Natural Persons - C. Wealth Tax**
Art. 48 Tax Act - b) Agricultural Properties Official ↗

1. Properties falling within the scope of federal legislation concerning agricultural land rights, which are predominantly used for agricultural or forestry purposes, shall be assessed at their income value.

2. For new constructions, extensions, or other value-enhancing investments in an agricultural property that have not yet been included in an official income value estimation, a surcharge of 20 percent of the costs shall be applied to the current official income value.

**Part 1: State Taxes - 2. Taxation of Natural Persons - C. Wealth Tax**
Art. 49 Tax Act - III. Deduction of Debts Official ↗

1. Debts for which a taxable person is solely liable are fully deducted, while other debts, such as joint and several liabilities and surety debts, are only deducted to the extent that they must be borne by that person.

**Part 1: State Taxes - 2. Taxation of Natural Persons - C. Wealth Tax**
Art. 50 Tax Act - IV. Tax-Exempt Assets Official ↗

1. Household Goods and Personal Effects are Not Subject to Wealth Tax.

**Part 1: State Taxes - 2. Taxation of Natural Persons - C. Wealth Tax**
Art. 51 Tax Act - V. Tax Calculation 1. Tax-Exempt Amounts Official ↗

**1. From the net wealth, the following amounts are deducted for the calculation of taxable assets:**

a) for spouses who live in a legally and factually undivided marriage, CHF 150,000;

b) for all other taxable persons, CHF 75,000;

c) additionally, for each minor child under the parental care or custody of the taxable person and for whom a child deduction according to Art. 38 Para. 1 can be claimed, CHF 25,000.

**2. The tax-exempt amounts are determined according to the circumstances at the end of the tax period or the tax liability. Paragraph 3 remains reserved.**

**3. In international contexts, the tax-exempt amounts are granted only to persons subject to unlimited tax liability.**

**Part 1: State Taxes - 2. Taxation of Natural Persons - C. Wealth Tax**
Art. 52 Tax Act - 2. Tax Rate Official ↗

1. For assets up to CHF 250,000, the basic tax is 0.50 per mille.

2. For assets over CHF 250,000, the basic tax is 0.55 per mille.

3. Remaining amounts of less than CHF 1,000 are disregarded for tax calculation purposes.

1. Part: State Taxes - 2. Taxation of Natural Persons - D. Temporal Assessment
Art. 53 Tax Act - Tax Period Official ↗

1. Taxes on income and wealth are determined and levied for each tax period. The tax claim arises at the beginning of the tax period.

2. The calendar year is considered the tax period.

3. If the tax liability exists only during part of the tax period, the tax is levied on the income earned during that period. The tax rate for regularly accruing income is determined based on income calculated over twelve months; non-regularly accruing income is not recalculated for rate determination. Article 41 remains reserved.

4. Paragraph 3 applies mutatis mutandis to deductions.

1. Part: State Taxes - 2. Taxation of Natural Persons - D. Temporal Assessment
Art. 54 Tax Act - Assessment Period Official ↗

1. The taxable income is determined based on the earnings within the tax period.

2. For the determination of income from self-employment, the result of the business financial statements falling within the tax period is decisive.

3. Taxable persons with self-employment must prepare a financial statement in each tax period and at the end of the tax obligation. No financial statement is required if the employment activity commences only in the last quarter of the tax period.

1. Part: State Taxes - 2. Taxation of Natural Persons - D. Temporal Assessment
Art. 55 Tax Act - Assessment of Assets Official ↗

1. The taxable assets are measured based on the status at the end of the tax period or the tax liability.

2. For taxable persons engaged in self-employment whose financial year does not coincide with the calendar year, the taxable business assets are determined by the equity at the end of the financial year concluded within the tax period.

3. If tax liability exists only during part of the tax period, the tax corresponding to this period will be levied.

4. If the taxable person inherits assets during the tax period or if the economic affiliation to another canton ceases during the tax period, paragraph 3 applies mutatis mutandis.

1. Part: State Taxes - 2. Taxation of Natural Persons - D. Temporal Assessment
Art. 56 Tax Act - Establishment and Dissolution of Marriage Official ↗

1. Upon marriage, spouses are jointly taxed for the entire current tax period.

2. In the event of divorce and legal or factual separation, each spouse is taxed separately for the entire tax period.

3. Upon the death of a spouse, both spouses are jointly taxed until the day of death. The death is considered the termination of the tax liability for both spouses and the commencement of the tax liability for the surviving spouse.

1. Part: State Taxes - 2. Taxation of Natural Persons - D. Temporal Assessment
Art. 57 Tax Act - Tax Rates Official ↗

1. The tax rates applicable are those in effect at the end of the tax period.

Part 1: State Taxes - 3. Taxation of Legal Entities - A. Tax Liability
Art. 58 Tax Act - I. Concept of a Legal Entity Official ↗

1. The following legal entities are subject to taxation

a) Corporations (public limited companies, limited partnerships with shares, limited liability companies, investment companies with fixed capital according to Art. 110 of the Collective Investment Schemes Act, and cooperatives);

b) Associations, foundations, and other legal entities.

2. Collective investment schemes with direct real estate ownership pursuant to Art. 58 or Art. 118a of the Collective Investment Schemes Act are equated with other legal entities.

3. Foreign legal entities, as well as foreign commercial companies and other foreign entities without legal personality that are taxable due to economic affiliation, are equated with domestic legal entities to which they are legally or factually most similar.

Part 1: State Taxes - 3. Taxation of Legal Entities - A. Tax Liability
Art. 59 Tax Act - II. Fiscal Affiliation 1. Personal Affiliation Official ↗

1. Legal entities are subject to taxation based on personal affiliation if their registered office or their actual administration is located within the canton.

Part 1: State Taxes - 3. Taxation of Legal Entities - A. Tax Liability
Art. 60 Tax Act - 2. Economic Affiliation Official ↗

**1. Legal Entities with a Seat or Effective Management Outside the Canton are Liable to Taxation if They:**

a) are partners in businesses within the canton;

b) maintain establishments in the canton;

c) own real estate, have rights in rem, or possess personal usage rights economically equivalent to in rem rights in the canton;

d) engage in transactions involving real estate located in the canton.

**2. Legal Entities with a Seat and Effective Management Abroad are Additionally Liable to Taxation if They:**

a) are creditors or beneficiaries of claims secured by a real estate mortgage or chattel mortgage on properties within the canton;

b) mediate transactions involving real estate located in the canton.

Part 1: State Taxes - 3. Taxation of Legal Entities - A. Tax Liability
Art. 61 Tax Act - III. Scope of Tax Liability Official ↗

1. In the case of personal affiliation, the tax liability is unlimited; however, it does not extend to businesses, permanent establishments, and real estate located outside the canton.

2. In the case of economic affiliation, the tax liability is limited to the portions of the profit and capital for which, according to Art. 60, there is a tax liability in the canton.

3. If there is usufruct regarding an asset, then the entitled legal person is liable for tax on the asset and the income derived therefrom.

Part 1: State Taxes - 3. Taxation of Legal Entities - A. Tax Liability
Art. 62 Tax Act - IV. Tax Apportionment Official ↗

1. The allocation of taxes for business enterprises, permanent establishments, and real estate in relation to other cantons and foreign countries shall be conducted according to the principles of federal law concerning the prohibition of inter-cantonal double taxation. Subject to paragraph 2.

2. Legal entities without a registered office or actual management in Switzerland must tax the profit earned in the canton and the capital located in the canton for business enterprises, permanent establishments, and real estate.

3. Legal entities with a registered office or actual management in Switzerland may offset losses from foreign permanent establishments with domestic profits, except for those from real properties. If the foreign permanent establishment generates profits in subsequent years, an addition to the profit of the Swiss company shall be made in the fiscal year and to the extent that the foreign permanent establishment applies the loss offset. The same applies when a permanent establishment is converted into a legal entity and subsequently offsets losses.

Part 1: State Taxes - 3. Taxation of Legal Entities - A. Tax Liability
Art. 64 Tax Act - VI. Commencement and Termination of Tax Liability Official ↗

1. Tax liability begins with the establishment of the legal entity, with the transfer of its registered office or actual management to the canton, or with the acquisition of values taxable in the canton.

2. Tax liability ends with the completion of liquidation, with the transfer of the registered office or actual management out of the canton, or with the cessation of values taxable in the canton.

3. The consequences of the beginning, modification, and end of tax liability based on personal and economic affiliation are determined by federal law in the inter-cantonal context.

4. In the case of a legal entity dissolved by merger, consolidation, transformation, or acquisition, the legal successors assume its rights and obligations.

Part 1: State Taxes - 3. Taxation of Legal Entities - A. Tax Liability
Art. 65 Tax Act - VII. Liability Official ↗

1. Termination of Tax Liability for a Legal Entity: The individuals responsible for the administration and liquidation of a legal entity are jointly liable for the taxes owed by the entity up to the amount of the liquidation proceeds or, if the legal entity relocates its registered office or actual management abroad, up to the amount of its net assets. The liability is waived if the liable person proves that they exercised all due diligence required under the circumstances.

2. For taxes owed by a legal entity subject to tax due to economic affiliation, individuals are jointly liable up to the amount of the net proceeds if they

a) Dissolve business operations or permanent establishments within the canton;

b) Sell or realize real estate in the canton or claims secured by such real estate.

3. Anyone who buys or sells property located in the canton is jointly liable for the tax owed from brokerage activity up to 3 percent of the purchase price if the legal entity brokering the property does not have its registered office or actual management in Switzerland.

4. For taxes on foreign commercial companies and other foreign associations without legal personality, the partners are jointly liable.

Part 1: State Taxes - 3. Taxation of Legal Entities - A. Tax Liability
Art. 66 Tax Act - VIII. Exceptions to Tax Liability Official ↗

1. Exempted from taxation are

a) The Confederation and its institutions according to federal law;

b) The canton and its institutions;

c) Municipalities and their institutions, provided they do not earn their net income in competition with private enterprises;

d) Occupational pension schemes of companies with domicile, headquarters, or permanent establishment in Switzerland and their affiliated companies, provided that the funds of the institutions are permanently and exclusively dedicated to employee benefits;

e) Domestic social insurance and compensation funds, in particular unemployment, health insurance, old age, disability, and survivors' insurance funds, according to federal law;

f) Legal entities pursuing public or charitable purposes, for the profit and capital that are exclusively and irrevocably dedicated to these purposes. Entrepreneurial purposes are generally not charitable. The acquisition and management of significant capital interests in enterprises are considered charitable if the interest in maintaining the enterprise is subordinate to the charitable purpose and no managerial activities are carried out;

g) Churches recognized as public-law corporations;

h) Legal entities pursuing cultural purposes either cantonally or throughout Switzerland, for the profit and capital that are exclusively and irrevocably dedicated to these purposes;

i) Foreign states for their domestic properties intended exclusively for the immediate use of diplomatic and consular representations, as well as the institutional beneficiaries exempted from tax liability according to Art. 2 para. 1 of the Host State Act, for properties owned by the institutional beneficiaries and used by their offices;

j) Collective investment schemes with direct real estate ownership, provided their investors are exclusively tax-exempt occupational pension schemes according to letter d or tax-exempt domestic social insurance and compensation funds according to letter e;

k) Transport and infrastructure enterprises licensed by the Confederation, which receive compensation for this activity or must maintain year-round operations of national importance due to their concession; the tax exemption also extends to profits from the licensed activity that are freely disposable; however, auxiliary enterprises and properties that have no necessary relationship to the licensed activity are excluded from the tax exemption.

2. ...

3. The legal entities mentioned in para. 1 letters d to h and j are, however, subject to the real estate capital gains tax in any case.

Part 1: State Taxes - 3. Taxation of Legal Entities - A. Tax Liability
Art. 67 Tax Act - IX. Tax Relief Official ↗

1. The Government Council may, after hearing the affected municipality, grant tax relief to enterprises of legal entities that are newly established or significantly expanded for the founding year and the following nine years, provided that they serve the economic interests of the canton. A significant change in business activity is considered equivalent to a new establishment.

2. The tax relief may be revoked retroactively at any time to the date of grant if the enterprise's assurances or the Government Council's conditions are not met.

1. Part: State Taxes - 3. Taxation of Legal Entities - B. Profit Tax
Art. 68 Tax Act - I. Tax Object Official ↗

1. Subject of the Profit Tax is the Net Profit.

1. Part: State Taxes - 3. Taxation of Legal Entities - B. Profit Tax
Art. 69 Tax Act Official ↗

1. The taxable net profit comprises

1. the balance of the profit and loss account;

2. all parts of the business result excluded before calculating the balance of the profit and loss account that are not used to cover justifiable business expenses, in particular

a) costs for the acquisition, production, or enhancement of fixed assets;

b) non-business related write-offs, value adjustments, reserves for research and development, and provisions;

c) contributions to reserves;

d) contributions to equity from own funds, provided these are not taken from taxable reserves;

e) open and hidden profit distributions and non-business related grants to third parties;

3. * the income not credited to the profit and loss account, including capital gains, revaluation profits, and liquidation gains;

4. the interest on hidden equity according to Art. 88.

2. The taxable net profit of legal entities that do not prepare a profit and loss account shall be determined by analogy to paragraph 1.

1. Part: State Taxes - 3. Taxation of Legal Entities - B. Profit Tax
Art. 69a Tax Act - Patents and Comparable Rights Official ↗

1. The net profit from patents and similar rights (Art. 24a StHG) shall, upon application by the taxable person, be included in the calculation of taxable net profit with a reduction of 50 percent, in proportion to the qualifying research and development expenses relative to the total research and development expenses per patent or similar right (nexus ratio).

2. The net profit from patents and similar rights contained in products is determined by reducing the net profit from these products by 6 percent of the costs allocated to these products and by the brand royalty.

3. If the net profit from patents and similar rights is subject to reduced taxation for the first time, the research and development expenses already considered in previous tax periods, as well as any deduction pursuant to Art. 70a, shall be added back to the taxable net profit. To the extent of the added-back amount, a taxed hidden reserve must be created. Paragraph 4 remains reserved.

4. Upon request, the addition under Paragraph 3 can be distributed over the first five years after entry into the patent box and offset against the net profits from patents and similar rights. The ordinance regulates further details.

1. Part: State Taxes - 3. Taxation of Legal Entities - B. Profit Tax
Art. 70 Tax Act - 2. Business-Related Justified Expenses Official ↗

1. Business-justified expenses also include

a) federal, cantonal, and municipal taxes;

b) contributions and donations to pension schemes in favor of the entity's own personnel, provided that any misuse is excluded;

c) voluntary contributions of money and other assets up to 20 percent of the net profit to legal entities domiciled in Switzerland, which are exempt from tax with a view to public or exclusively charitable purposes, as well as to the Confederation, cantons, municipalities, and their institutions;

d) discounts, rebates, sales bonuses, and refunds on compensation for deliveries and services, as well as surpluses intended for distribution to the insured by insurance companies;

e) necessary reserves for research and development contracts to third parties up to 10 percent of the taxable profit, but in total no more than 1 million francs;

f) the costs of vocational training and further education, including retraining costs, of its own personnel;

g) profit-reducing sanctions, provided they do not serve a penal purpose.

2. The following do not constitute business-justified expenses, in particular

a) payments of bribes as defined under Swiss criminal law;

b) expenditures to facilitate criminal offenses or as compensation for the commission of criminal offenses;

c) fines (including tax fines and penalty taxes);

d) financial administrative sanctions insofar as they serve a penal purpose.

3. Sanctions under Section 2, lit. c and d, imposed by a foreign criminal or administrative authority, are deductible if

a) the sanction violates the Swiss ordre public; or

b) the taxable person credibly demonstrates that they have done everything reasonable to comply with the law.

1. Part: State Taxes - 3. Taxation of Legal Entities - B. Profit Tax
Art. 70a Tax Act - Additional Deduction for Research and Development Expenditure Official ↗

1. The research and development expenditure incurred directly by the taxable person or indirectly through third parties within the country is eligible for a deduction of 50 percent over the justifiable business research and development expenditure, upon request.

2. Research and development are considered to be scientific research and science-based innovation according to Article 2 of the Federal Act of December 14, 2012, on the Promotion of Research and Innovation.

3. An increased deduction is permissible on

a) the directly attributable personnel expenses for research and development, plus an additional 35 percent of these personnel expenses, but not exceeding the total expenditure of the taxable person;

b) 80 percent of the expenses for research and development invoiced by third parties.

4. If the principal of the research and development is entitled to the deduction, the contractor is not entitled to a deduction.

1. Part: State Taxes - 3. Taxation of Legal Entities - B. Profit Tax
Art. 70b Tax Act - Relief Limitation Official ↗

1. The total tax reduction pursuant to Article 69a paragraphs 1 and 2 and Article 70a may not exceed 50 percent of the taxable profit before loss offsetting, excluding the net participation income pursuant to Articles 78 and 79 paragraphs 1 and 2, and before deduction of the granted reductions.

2. No loss carryforwards may result either from the individual reductions or from the total tax reduction.

1. Part: State Taxes - 3. Taxation of Legal Entities - B. Profit Tax
Art. 71 Tax Act - 3. Neutral Transactions Official ↗

1. No taxable gain arises from

a) Capital contributions from members of corporations and cooperatives, including premiums and gratuitous payments;

b) The relocation of the headquarters, management, a business operation, or a permanent establishment within Switzerland, provided no disposals or book revaluations are made;

c) Capital gains from inheritance, bequest, or gift.

1. Part: State Taxes - 3. Taxation of Legal Entities - B. Profit Tax
Art. 72 Tax Act - 4. Restructurings Official ↗

1. Hidden Reserves of a Legal Entity are not Taxed during Restructurings, particularly in the Case of Mergers, Splits, or Conversions, as long as the Tax Obligation continues in Switzerland and the values previously relevant for income tax are adopted

a) in the conversion to a sole proprietorship or another legal entity;

b) in the demerger or spin-off of a legal entity, provided that one or more businesses or parts of businesses are transferred and as long as the legal entities existing after the split continue to operate a business or part of a business;

c) in the exchange of participation or membership rights during restructurings or merger-like consolidations;

d) in the transfer of businesses or parts of businesses as well as objects of the fixed assets to a domestic subsidiary. A subsidiary is considered to be a corporation or cooperative in which the transferring corporation or cooperative holds at least 20 percent of the share or stock capital.

2. In the case of a transfer to a subsidiary pursuant to Para. 1 lit. d, the transferred hidden reserves are subsequently taxed according to the procedure in Art. 193 ff., to the extent that within the five years following the restructuring, the transferred assets or participation or membership rights in the subsidiary are sold; the subsidiary can, in this case, claim corresponding hidden reserves taxed as profit.

3. Among domestic corporations and cooperatives, which, according to the overall picture of actual circumstances, are consolidated under unified management of a corporation or cooperative by majority vote or in another way, participations held directly or indirectly of at least 20 percent in the share or stock capital of another corporation or cooperative, businesses or parts of businesses, and objects of the fixed assets can be transferred at the values previously relevant for income tax. Reserved are

a) the transfer to a subsidiary under Para. 1 lit. d;

b) ...

4. If, in the case of a transfer according to Para. 3, the transferred assets are sold within the following five years or if the unified management is relinquished within this period, the transferred hidden reserves are subsequently taxed according to the procedure in Art. 193 ff. The favored legal entity can, in this case, claim corresponding hidden reserves taxed as profit. The domestic corporations and cooperatives consolidated under unified management at the time of the breach of the blocking period are jointly liable for the additional tax.

5. If the acquisition of the assets and liabilities of a corporation or a cooperative, whose participation rights belong to the acquiring corporation or cooperative, results in a book loss on the participation, this cannot be deducted for tax purposes; any book gain on the participation will be taxed.

1. Part: State Taxes - 3. Taxation of Legal Entities - B. Profit Tax
Art. 72a Tax Act - Disclosure of Hidden Reserves at the Beginning of Tax Liability Official ↗

1. If the taxable person reveals hidden reserves, including self-generated goodwill, at the commencement of tax liability, these are not subject to profit tax. Hidden reserves of a corporation or cooperative stemming from participations of at least 10 percent in the share or equity capital, or in the profits and reserves of another company, may not be revealed.

2. The commencement of tax liability is deemed to occur with the transfer of assets, businesses, parts of businesses, or functions from abroad to a domestic business operation or to a domestic permanent establishment, the termination of a tax exemption according to Art. 66 para. 1, as well as the relocation of either the registered office or the actual administration to Switzerland.

3. The revealed hidden reserves must be depreciated annually at the rate applicable for tax purposes to depreciations on the respective assets.

4. The revealed self-generated goodwill must be depreciated over a period of ten years.

1. Part: State Taxes - 3. Taxation of Legal Entities - B. Profit Tax
Art. 72b Tax Act - Taxation of Hidden Reserves at the End of Tax Liability Official ↗

1. Upon the termination of tax liability, any existing untaxed hidden reserves, including self-generated added value, shall be taxed at that time.

2. The end of tax liability is deemed to occur upon the transfer of assets, businesses, segments of businesses, or functions from the domestic territory to a foreign business operation or branch, the conclusion of a liquidation, the transition to a tax exemption pursuant to Article 66 paragraph 1, as well as the relocation of the seat or the actual management abroad.

1. Part: State Taxes - 3. Taxation of Legal Entities - B. Profit Tax
Art. 73 Tax Act - 5. Depreciations, Provisions, and Value Adjustments Official ↗

1. Business-justified are

a) Depreciations that correspond to a reasonable adjustment for the reduction in value that occurred during the relevant financial years, insofar as they are recorded in the accounts or, in the case of simplified accounting according to Art. 957 para. 2 of the Swiss Code of Obligations (OR), listed in special depreciation schedules; the Governing Council may issue guidelines for additional immediate depreciations;

b) Provisions that serve to offset impending losses or obligations that are still uncertain in existence or amount;

c) Value adjustments to the extent that they correspond to a reasonable adjustment for the temporary reduction in value incurred during the tax period.

2. Provisions, value adjustments, and reserves for research and development can be annually reviewed for their business justification.

3. Value adjustments and depreciations on the acquisition costs of participations, which meet the requirements of Art. 79 para. 2 lit. b and para. 3, are added back to the taxable profit insofar as they are no longer justified.

1. Part: State Taxes - 3. Taxation of Legal Entities - B. Profit Tax
Art. 74 Tax Act - 6. Replacement Acquisition Official ↗

1. When replacing operationally necessary fixed assets, hidden reserves can be transferred to a replacement asset of the operationally necessary fixed assets; the transfer of hidden reserves is excluded

a) from real estate to movable assets;

b) to assets outside Switzerland.

2. If the replacement procurement does not occur in the same fiscal year, a provision can be created to the extent of the hidden reserves. This provision must be used for depreciation on the replacement asset within a reasonable period or be dissolved in favor of the income statement.

3. Only fixed assets that directly serve the operation are considered operationally necessary; excluded are, in particular, assets that serve the company merely as an investment or only through their yield.

4. When replacing participations, hidden reserves can be transferred to a new participation, provided the sold participation constitutes at least 10 percent of the equity or share capital or at least 10 percent of the profit and reserves of the other company and was held as such for at least one year by the capital company or cooperative.

1. Part: State Taxes - 3. Taxation of Legal Entities - B. Profit Tax
Art. 75 Tax Act - 7. Losses Official ↗

1. Losses from the seven business years preceding the tax period may be deducted from the net profit of the tax period, provided they could not be taken into account in the calculation of the taxable net profit for those years. Losses are also considered as taken into account if the minimum tax according to Article 96 was paid for a tax period.

2. In the context of a restructuring, balance sheet deficits that do not constitute capital contributions can be offset with losses incurred in previous business years which could not yet be offset with profits.

3. Upon the transition from a preferentially taxed company to a regularly taxed company and upon the discontinuation of a tax exemption according to Article 66, there is an entitlement to offset losses from previous years only to the extent of the prior taxation of profits.

1. Part: State Taxes - 3. Taxation of Legal Entities - B. Profit Tax
Art. 76 Tax Act - 8. Profits of Associations, Foundations, and Collective Capital Investments Official ↗

1. Membership fees to associations and contributions to the assets of foundations are not considered part of taxable income.

2. From the taxable income of associations, the expenses necessary for generating that income can be fully deducted, while other expenses can only be deducted to the extent that they exceed the membership fees.

3. Collective investment schemes are subject to income tax on the earnings derived from direct real estate holdings.

1. Part: State Taxes - 3. Taxation of Legal Entities - B. Profit Tax
Art. 77 Tax Act Official ↗

1. The taxable profit of corporations and cooperatives is taxed at a total rate of 6.5 percent.

2. For corporations and cooperatives that are part of an international group relationship, the tax rate is increased, taking into account the direct federal tax, to the minimum tax burden accepted by the foreign state.

1. Part: State Taxes - 3. Taxation of Legal Entities - B. Profit Tax
Art. 78 Tax Act - 2. Holding Companies a) Principle Official ↗

1. For corporations and cooperatives, the corporate profit tax is reduced in proportion to the net income from participation rights to the total net profit, if the corporation or cooperative

a) holds at least 10 percent of the share capital or capital stock of another company;

b) is entitled to at least 10 percent of the profits and reserves of another company; or

c) holds participation rights with a fair market value of at least CHF 1,000,000.

2. The net income from participations corresponds to the income from participations, minus the associated financing costs and an amount of 5 percent to cover administrative expenses; evidence of the actual administrative costs is reserved. Financing costs are deemed to include interest on debt as well as other expenses economically equivalent to interest on debt.

3. The income from a participation is not considered for the calculation of the reduction insofar as a write-down is made on the same participation that is related to the distribution of profits.

4. For top-tier parent companies of systemically important banks as per Article 7, paragraph 1 of the Banking Act of November 8, 1934, the calculation of net income according to paragraph 2 shall disregard the financing costs and the receivable in the balance sheet from internally passed-on funds of the following bonds

a) Mandatory convertible bonds and bonds with a waiver of claims according to Article 11, paragraph 4 of the Banking Act; and

b) Debt instruments for loss absorption in insolvency measures as defined in Articles 28-32 of the Banking Act.

1. Part: State Taxes - 3. Taxation of Legal Entities - B. Profit Tax
Art. 79 Tax Act - b) Capital Gains on Participations Official ↗

1. Income from participations includes, subject to paragraphs 2-4, the capital gains on these participations, the proceeds from the associated subscription rights, and the book profits resulting from revaluation pursuant to Art. 670 of the Swiss Code of Obligations (OR).

2. Capital gains and book profits resulting from revaluation pursuant to Art. 670 OR are only considered in the calculation of the reduction

a) insofar as the proceeds or the revaluation exceed the acquisition costs;

b) provided that the disposed of or revalued participation constituted at least 10 percent of the share capital or equity capital of another company or represented an entitlement to at least 10 percent of the profits and reserves of another company and was held as such by the corporation or cooperative for a minimum of one year.

3. If the participation quota falls below 10 percent due to partial disposal, the reduction can only be granted for each subsequent disposal gain if the participation rights had a market value of at least CHF 1,000,000 at the end of the tax year prior to the sale.

4. The acquisition costs are reduced by the depreciation carried out, insofar as this resulted in a reduction of the relief according to Art. 78 para. 3. After a revaluation pursuant to Art. 670 OR, the acquisition costs are correspondingly increased. In the case of participations that have been transferred at book values during a tax-neutral restructuring, the original acquisition costs are referred to.

1. Part: State Taxes - 3. Taxation of Legal Entities - B. Profit Tax
Art. 83 Tax Act - 6. Associations, Foundations, and Other Legal Entities Official ↗

1. The taxable profit of associations, foundations, and other legal entities is taxed at a rate of 6.5 percent.

2. Profits under CHF 20,000 are not taxed.

1. Part: State Taxes - 3. Taxation of Legal Entities - B. Profit Tax
Art. 83a Tax Act - 6a. Profits of Legal Entities with Ideal Purposes Official ↗

1. Profits of legal entities with ideal purposes are not taxed, provided they do not exceed CHF 20,000 and are exclusively and irrevocably dedicated to these purposes.

1. Part: State Taxes - 3. Taxation of Legal Entities - B. Profit Tax
Art. 84 Tax Act - 7. Collective Investment Schemes Official ↗

1. The taxable profit of collective investment schemes is taxed at an overall rate of 6.5 percent.

1. Part: State Taxes - 3. Taxation of Legal Entities - B. Profit Tax
Art. 85 Tax Act - IV. Distribution Official ↗

1. Fifty percent of the revenue from the corporate income tax is allocated to the municipality.

2. ...

1. Part: State Taxes - 3. Taxation of Legal Entities - C. Capital Tax
Art. 86 Tax Act Official ↗

1. Subject of the Capital Tax is the Equity.

1. Part: State Taxes - 3. Taxation of Legal Entities - C. Capital Tax
Art. 87 Tax Act - 2. Corporations and Cooperatives a) General Provisions Official ↗

1. The taxable equity capital for corporations and cooperatives consists of the paid-in share capital, basic or common capital, participation capital, the contributions, agios, and grants shown in the commercial balance sheet as defined in Art. 23b, as well as the open reserves and hidden reserves formed from taxed profits.

2. The taxable equity capital is reduced in proportion to the participations according to Art. 78 para. 1, patents and similar rights according to Art. 69a, and loans to group companies relative to the total assets.

3. In the case of usufruct, the taxable equity capital is increased by the net assets from the usufruct and is evaluated according to the principles applicable to the wealth tax of natural persons.

1. Part: State Taxes - 3. Taxation of Legal Entities - C. Capital Tax
Art. 88 Tax Act - b) Hidden Equity Official ↗

1. The taxable equity of corporations and cooperatives is increased by that portion of the debt capital that economically equates to equity.

1. Part: State Taxes - 3. Taxation of Legal Entities - C. Capital Tax
Art. 89 Tax Act - 3. Associations, Foundations, Other Legal Entities, and Collective Investment Schemes Official ↗

1. Considered taxable equity capital for

a) associations, foundations, and other legal entities is net assets;

b) collective investment schemes is the portion of net assets attributable to real estate.

1bis. In the case of usufruct, the taxable net assets are increased by the net assets from the usufruct.

2. Assets are valued according to the principles applicable to the wealth tax of natural persons.

1. Part: State Taxes - 3. Taxation of Legal Entities - C. Capital Tax
Art. 90 Tax Act - II. Tax Calculation Official ↗

1. The basic tax amounts to 0.065 per mille of the taxable equity capital. The rate starts at CHF 120 for legal entities with personal affiliation to the Canton under Art. 59. For legal entities with economic affiliation to the Canton under Art. 60, the rate starts at CHF 70.

2. ...

3. Equity capital of associations, foundations, and other legal entities, including collective investment schemes, under CHF 50,000 is not taxed.

1. Part: State Taxes - 3. Taxation of Legal Entities - C. Capital Tax
Art. 91 Tax Act - III. Distribution Official ↗

1. The revenue from the capital tax shall be distributed between the canton and the municipality in accordance with Article 85.

1. Part: State Taxes - 3. Taxation of Legal Entities - D. Temporal Assessment
Art. 92 Tax Act - Tax Period Official ↗

1. Taxes on net profit and equity capital are assessed and levied for each tax period. The tax claim arises at the beginning of the tax period.

2. The fiscal year is considered the tax period.

3. In each calendar year, except in the year of establishment, financial statements with a balance sheet and income statement must be prepared. Additionally, financial statements are required when relocating the headquarters, administration, a business operation, or a branch office abroad, as well as upon the completion of liquidation.

1. Part: State Taxes - 3. Taxation of Legal Entities - D. Temporal Assessment
Art. 93 Tax Act - Assessment of Net Profit Official ↗

1. The taxable net profit is determined based on the result of the tax period.

1bis. If the financial statements are presented in a foreign currency, the taxable net profit must be converted into Swiss francs. The applicable conversion rate is the average foreign exchange rate (selling rate) of the tax period.

2. If a legal entity is dissolved or relocates its seat, management, a business operation, or an establishment abroad, any hidden reserves formed from untaxed profits are taxed together with the net profit of the last fiscal year.

1. Part: State Taxes - 3. Taxation of Legal Entities - D. Temporal Assessment
Art. 94 Tax Act - Assessment of Equity Capital Official ↗

1. The taxable equity is determined based on its status at the end of the tax period.

2. For financial statements covering more or less than a full year, the amount of the capital tax is determined according to the duration of the fiscal year.

3. If the financial statement is in a foreign currency, the taxable equity must be converted into Swiss Francs. The applicable exchange rate is the foreign currency rate (selling) at the end of the tax period.

1. Part: State Taxes - 3. Taxation of Legal Entities - D. Temporal Assessment
Art. 95 Tax Act - Tax Rates Official ↗

1. Applicable are the rates and tax coefficients in effect at the end of the tax period.

1. Part: State Taxes - 3. Taxation of Legal Entities - D. Temporal Assessment
Art. 96 Tax Act - Minimum Tax Official ↗

1. Legal entities shall pay a minimum tax of 2 per mille of the official market value on their real properties located in the canton. For new constructions, extensions, or other value-enhancing investments in a property that are not yet reflected in an official market value appraisal, an additional charge of 80 percent of the expenditures shall apply.

2. The minimum tax shall be levied if it exceeds the taxes on net profit and capital.

3. Exemptions from the minimum tax include

a) newly established legal entities for the first 2 tax years, provided they have not resulted from restructuring;

b) legal entities for properties mainly used for operating their own business;

c) legal entities for properties to the extent they fulfill tasks in social housing construction.

4. ...

5. The tax amount shall be divided between the canton and the municipality according to Article 85.

Part 1: State Taxes - 4. Withholding Taxes for Natural and Legal Persons - A. Natural Persons with Tax Residence or Domicile in the Canton
Art. 97 Tax Act - I. Individuals Subject to Withholding Tax Official ↗

1. Employees without a residence permit who have their tax domicile or habitual residence in the canton are subject to withholding tax for income from dependent employment and substitute income taking its place. Exempt from this are incomes subject to taxation pursuant to Art. 39b.

2. Spouses living in an undivided legal and actual marriage are not subject to withholding tax if one of the spouses holds Swiss citizenship or a residence permit.

Part 1: State Taxes - 4. Withholding Taxes for Natural and Legal Persons - A. Natural Persons with Tax Residence or Domicile in the Canton
Art. 98 Tax Act - II. Taxable Services Official ↗

1. Withholding tax is calculated from gross income.

2. Taxable are

a) * all income from dependent employment, including ancillary income such as compensation for special services, commissions, allowances, long-service and anniversary gifts, bonuses, tips, royalties, benefits in kind, monetary benefits from employee participations and other monetary benefits; however, not the costs of vocation-related education and training borne by the employer;

b) * all substitute income from dependent employment that replaces earned income, as well as from health, accident, liability, disability, and unemployment insurance; this particularly includes daily allowances, compensation, partial pensions, and capital benefits replacing them;

c) * the benefits according to Article 18 Paragraph 3 of the Federal Law on Old-Age and Survivors' Insurance[33].

Part 1: State Taxes - 4. Withholding Taxes for Natural and Legal Persons - A. Natural Persons with Tax Residence or Domicile in the Canton
Art. 99 Tax Act - III. Tax Rate on Earned Income 1. Basis Official ↗

1. The government council determines the tax rates according to the tax rates applicable to income tax. The taxation of minor secondary incomes at a proportional rate remains reserved.

2. The tax deduction includes the cantonal and municipal taxes as well as the direct federal tax. The government council may provide for the collection of additional levies by regulation.

3. The share for municipal taxes is calculated according to the weighted average of the municipal income taxes.

1. Part: State Taxes - 4. Withholding Taxes for Natural and Legal Persons - A. Natural Persons with Tax Residence or Stay in the Canton
Art. 100 Tax Act - 2. Formulation Official ↗

1. In the determination of tax rates, flat-rate allowances for deductions related to dependent employment and insurance premiums, with the exception of contributions to restricted self-provision, as well as deductions for family burdens, are taken into account.

2. The tax deduction for spouses living in a legally and factually unseparated marriage, both of whom are employed, is based on rates that take into account their combined income and consider the flat-rate allowances and deductions mentioned in paragraph 1, as well as the deduction for the employment of both spouses.

3. ...

1. Part: State Taxes - 4. Withholding Taxes for Natural and Legal Persons - A. Natural Persons with Tax Residence or Domicile in the Canton
Art. 101 Tax Act - IV. Tax Rate on Substitute Income Official ↗

1. The withholding tax on lump-sum settlements for recurring benefits and upon termination of employment, as well as on compensation for refraining from or abandoning an activity, is calculated according to the applicable schedule for earned income at the rate that would apply if, instead of a one-time payment, a corresponding annual payment were made, but at least at the rate for annual gross income of CHF 40,000.-.

2. Daily allowances and other replacement income provided by the employers are subject to withholding tax along with the earned income according to the applicable schedule for earned income.

3. Daily allowances and other replacement income paid directly by the insurance institution to employees are subject to withholding tax according to the applicable schedule for earned income. Exempted are benefits that the insurance institution does not pay based on the insured salary or that can be paid in addition to any earned income. For these, the governing council may stipulate a proportional rate.

Part 1: State Taxes - 4. Withholding Taxes for Natural and Legal Persons - A. Natural Persons with Tax Residence or Domicile in the Canton
Art. 103 Tax Act - VI. Subsequent Ordinary Assessment 1. Mandatory Official ↗

1. Individuals subject to withholding tax under Art. 97 para. 1 are subsequently assessed through the ordinary procedure if

a) * their gross income in a tax year reaches or exceeds an amount determined by the government council; or

b) * they have assets and income that are not subject to withholding tax.

2. The subsequent ordinary assessment also applies to anyone who lives in a legally and factually undivided marriage with a person under para. 1.

3. Persons with assets and income according to para. 1 lit. b must request the form for the tax return by March 31 of the year following the tax year from the Cantonal Tax Administration.

4. The subsequent ordinary assessment applies until the end of the withholding tax obligation.

5. The tax withheld at the source is credited without interest.

1. Part: State Taxes - 4. Withholding Taxes for Natural and Legal Persons - A. Natural Persons with Tax Residency or Domicile in the Canton
Art. 104 Tax Act - 2. Upon Request Official ↗

1. Individuals subject to withholding tax under Art. 97 para. 1 who do not fulfill the conditions under Art. 103 para. 1 shall, upon request, be assessed retrospectively under the ordinary procedure.

2. The request also applies to the spouse who lives in a legally and actually undivided marriage with the applicant.

3. The request must be submitted by March 31 of the year following the tax year. For individuals leaving Switzerland, the deadline for submitting the request ends at the time of deregistration.

4. If no retrospective ordinary assessment is made upon request, the withholding tax replaces the taxes of the Confederation, the canton, and the municipality assessable under the ordinary procedure on income from employment. No additional deductions are granted retrospectively.

5. The retrospective ordinary assessment applies until the end of the withholding tax obligation.

6. The tax deducted at source is credited without interest.

Part 1: State Taxes - 4. Withholding Taxes for Natural and Legal Persons - A. Natural Persons with Tax Residence or Domicile in the Canton
Art. 105 Tax Act - VII. Transition Between Withholding Tax Deduction and Ordinary Assessment Official ↗

1. The government council regulates the transition from withholding tax deduction to the ordinary assessment procedure and vice versa, from the ordinary assessment procedure to withholding tax deduction.

2. ...

1. Part: State Taxes - 4. Withholding Taxes for Natural and Legal Persons - A. Natural Persons with Tax Residency or Domicile in the Canton
Art. 106 Tax Act - VIII. Remuneration from Abroad Official ↗

**1. Foreign Employees Receiving Income from Employers Based Abroad**

Foreign employees who receive income from employers with residence or registered office abroad, and which are not attributed to a permanent establishment in Switzerland, are assessed under the ordinary procedure.

2. In these cases, the taxable persons are obliged to submit a tax return.

1. Part: State Taxes - 4. Withholding Taxes for Natural and Juridical Persons - B. Natural Persons Without Tax Residence or Domicile in Switzerland and Juridical Persons Without Headquarters or Actual Management in Switzerland
Art. 107 Tax Act - Employee Official ↗

1. Individuals residing abroad are subject to a withholding tax at source for income from dependent employment and substitute income replacing such employment income if the person

a) is employed for a short duration, as a cross-border commuter, a weekly resident, or as an executive employee, for an employer domiciled, headquartered, or with a place of business in the canton;

b) receives wages or other remuneration for work in international transport on board a ship or aircraft or for road transport services from employers domiciled, headquartered, or with a place of business in the canton; this does not include the taxation of seafarers for work on board an ocean-going ship;

c) receives benefits under Article 18 paragraph 3 of the AHVG for such services.

1bis. Excluded from this are incomes subject to taxation under Article 39b.

2. The withholding tax is calculated according to the tariffs pursuant to Article 99 et seq.

1. Part: State Taxes - 4. Withholding Taxes for Natural and Legal Persons - B. Natural Persons without Tax Residence or Domicile in Switzerland as well as Legal Persons without Registered Office or Actual Management in Switzerland
Art. 108 Tax Act - Artists, Athletes, Lecturers Official ↗

1. Artists residing abroad, such as stage, film, radio, or television performers, musicians and entertainers, as well as athletes and speakers, are subject to a withholding tax on income derived from their personal activities performed in the canton.

2. Taxable income comprises their gross income, including all allowances and additional compensation, after deduction of production costs. This also includes income and compensation that are not paid directly to the artists, athletes, or speakers themselves, but to a third party who organized their activities.

3. The production costs amount to

a) 50 percent of the gross income for artists;

b) 20 percent of the gross income for athletes and speakers.

4. The tax amounts to

a) 8 percent on daily income up to CHF 200;

b) 12 percent on daily income from CHF 201 to CHF 1,000;

c) 16 percent on daily income from CHF 1,001 to CHF 3,000;

d) 20 percent on daily income exceeding CHF 3,000.

5. Daily income is defined as the income according to paragraph 2 after deduction of production costs.

1. Part: State Taxes - 4. Withholding Taxes for Natural and Juridical Persons - B. Natural Persons Without Tax Residence or Domicile in Switzerland and Juridical Persons Without Headquarters or Actual Management in Switzerland
Art. 109 Tax Act - Bodies of Legal Entities Official ↗

1. Members of the management or administration of legal entities that have their domicile or actual administration in the canton, as well as foreign enterprises that maintain permanent establishments in the canton, and who reside abroad, are subject to a withholding tax on the royalties, attendance fees, fixed compensation, employee participation, and similar remunerations paid to them.

2. Taxable income is considered to be the gross income, including all allowances and fringe benefits. This also includes compensations that do not directly accrue to the taxable person but to a third party.

3. The tax amounts to 18 percent of the gross income.

1. Part: State Taxes - 4. Withholding Taxes for Natural and Juridical Persons - B. Natural Persons Without Tax Residence or Domicile in Switzerland and Juridical Persons Without Headquarters or Actual Management in Switzerland
Art. 110 Tax Act - Mortgage Creditor Official ↗

1. Creditors or beneficiaries residing abroad with claims secured by real estate or chattel mortgages on properties within the canton are subject to a withholding tax on the interest paid to them.

2. Taxable income is considered to be the gross income. This includes interest that is paid not to the taxpayer themselves but to a third party.

3. The tax amounts to 18 percent of the gross income.

1. Part: State Taxes - 4. Withholding Taxes for Natural and Juridical Persons - B. Natural Persons Without Tax Residence or Domicile in Switzerland and Juridical Persons Without Headquarters or Actual Management in Switzerland
Art. 111 Tax Act - Recipients of Pension Benefits Official ↗

1. Anyone residing abroad who receives pensions, annuities, retirement salaries, lump-sum payments, or other remunerations due to a previous public-law employment relationship from employers or a provident institution based or operating within the canton, or from private-law occupational pension institutions or recognized forms of tied individual provident schemes with a base or operation in the canton, is subject to withholding tax on these payments.

2. The taxable income is considered to be the gross income.

3. The tax amounts to 6 percent of the taxable income.

1. Part: State Taxes - 4. Withholding Taxes for Natural and Juridical Persons - B. Natural Persons Without Tax Residence or Domicile in Switzerland and Juridical Persons Without Headquarters or Actual Management in Switzerland
Art. 111a Tax Act - Recipients of Employee Participation Official ↗

1. Individuals who, at the time of receipt of pecuniary benefits from blocked employee options according to Art. 20b para. 3, are residing abroad, are subject to partial taxation on the pecuniary benefit according to Art. 20d.

2. The tax amounts to 18 percent of the pecuniary benefit.

1. Part: State Taxes - 4. Withholding Taxes for Natural and Legal Persons - B. Natural Persons without Tax Residence or Domicile in Switzerland as well as Legal Persons without Registered Office or Actual Management in Switzerland
Art. 112 Tax Act - Minor Income Official ↗

1. The Executive Council determines up to which income a tax deduction for minor amounts can be waived.

1. Part: State Taxes - 4. Withholding Taxes for Natural and Juridical Persons - B. Natural Persons Without Tax Residence or Domicile in Switzerland and Juridical Persons Without Headquarters or Actual Management in Switzerland
Art. 114 Tax Act - Settled Tax Official ↗

1. The tax deduction replaces the taxes to be assessed on earned income in the ordinary procedure. The subsequent granting of deductions that are not accounted for in the rates is excluded.

1. Part: State Taxes - 4. Withholding Taxes for Natural and Juridical Persons - B. Natural Persons Without Tax Residence or Domicile in Switzerland and Juridical Persons Without Headquarters or Actual Management in Switzerland
Art. 114a Tax Act - Subsequent Ordinary Assessment Upon Request Official ↗

**1. Individuals Subject to Withholding Tax under Article 107**

Individuals who are subject to withholding tax under Article 107 may apply for a subsequent ordinary assessment for each tax period by March 31 of the year following the tax year, if

a) the majority of their worldwide income, including the income of the spouse, is taxable in Switzerland;

b) their situation is comparable to that of a taxpayer residing in Switzerland; or

c) such an assessment is necessary to claim deductions provided for in a double taxation agreement.

2. The tax deducted at source shall be credited without interest.

1. Part: State Taxes - 4. Withholding Taxes for Natural and Juridical Persons - B. Natural Persons Without Tax Residence or Domicile in Switzerland and Juridical Persons Without Headquarters or Actual Management in Switzerland
Art. 114b Tax Act - Subsequent Ordinary Assessment Ex Officio Official ↗

1. In cases of inequitable circumstances, particularly concerning the lump-sum deductions included in the withholding tax rate, the Cantonal Tax Administration may, ex officio, request a subsequent ordinary assessment in favor of or against the taxable person.

1. Part: State Taxes - 4. Withholding Taxes for Natural and Legal Persons - C. Common Provisions
Art. 115 Tax Act - I. Due Date Official ↗

1. The tax to be withheld at the source becomes due at the time of payment, transfer, credit, or offsetting of the taxable service, and is deducted from the taxable service notwithstanding any objections.

1. Part: State Taxes - 4. Withholding Taxes for Natural and Legal Persons - C. Common Provisions
Art. 116 Tax Act - II. Commission Fee Official ↗

1. The debtor of the taxable performance receives a commission for their participation. The amount of the commission is determined by the Government Council.

2. If the debtor of the taxable performance fails to fulfill their participation obligations adequately or at all, the Cantonal Tax Administration may reduce or exclude the commission.

1. Part: State Taxes - 4. Withholding Taxes for Natural and Legal Persons - C. Common Provisions
Art. 117 Tax Act - III. Liability Official ↗

1. The debtor of the taxable performance is liable for the payment of the withholding tax.

2. The organizers tasked with arranging performances by artists, athletes, or speakers in Switzerland are jointly liable for the payment of the withholding tax.

1. Part: State Taxes - 4. Withholding Taxes for Natural and Legal Persons - C. Common Provisions
Art. 118 Tax Act - IV. Intercantonal Relations Official ↗

1. Local Jurisdiction and the Claim to Withheld Tax Amounts are Governed by Federal Law.

2. Excessively Withheld Taxes are Reimbursed to the Taxable Persons Without Interest, While Insufficiently Withheld Taxes are Reclaimed from Them. The Government Council Decides Up to Which Amounts the Reclaiming or Reimbursement Can Be Waived.

1. Part: State Taxes - 4. Withholding Taxes for Natural and Legal Persons - C. Common Provisions
Art. 120 Tax Act - V. International Relations Official ↗

1. In international relations, divergent provisions of treaties shall be reserved.

1. Part: State Taxes - 4. Withholding Taxes for Natural and Legal Persons - C. Common Provisions
Art. 121 Tax Act - VI. Municipal Shares Official ↗

1. The municipal shares included in the tax deduction are allocated to the municipality where

a) * at the time the service is due, the foreign employees with unlimited tax liability in the canton have their tax residence or domicile, or those foreign employees who are subject to ordinary assessment after the fact in the canton have their tax residence or domicile at the end of the tax period or tax liability;

b) * at the time the service is due, the employers of foreign employees residing abroad have their residence, headquarters, or place of business;

c) foreign artists, athletes, or speakers residing abroad carry out their activities;

d) * at the time the service is due, the legal entity or foreign company, in which tax-liable individuals residing abroad are active in the management or administration, has its headquarters or place of business;

e) the property is located on which a claim by creditors or beneficiaries residing abroad is secured by a pledge.

1bis For weekly and short-term residents, section 1, letter a applies accordingly.

2. The municipal shares of the taxes on pension benefits are distributed among the municipalities according to the number of inhabitants at the end of the previous year based on the statistics of the annual population status.

1. Part: State Taxes - 5. Real Estate Capital Gains Tax
Art. 122 Tax Act - I. Subject Matter Official ↗

1. Capital gains tax is levied on profits derived from the sale of privately held real estate or from shares in such property.

2. Furthermore, the capital gains tax applies to

a) Profits from the sale of agricultural and forestry property by natural persons;

b) * ...

c) * Profits from the sale of real estate by legal entities that are exempt from tax liability according to Article 66 paragraph 1 letters d-h and j;

d) * Profits from the sale of real estate by associations, foundations, private law corporations, as well as public law entities, provided that the profits are not subject to income or profit taxation; the canton and its municipalities are excluded.

1. Part: State Taxes - 5. Real Estate Capital Gains Tax
Art. 123 Tax Act - II. Transfers 1. Taxable Transfers Official ↗

1. Tax liability is established by any disposition through which ownership of real property is transferred.

2. The following are also considered dispositions

a) Legal transactions that, with respect to control over real property, economically function like a disposition;

b) The transfer of real property and shares thereof from the private assets to the business assets of the taxable person;

c) The encumbrance of real property with private legal easements or public law ownership restrictions, if these permanently and significantly impair the unrestricted utilization or sale value of the real property, and compensation is paid for it;

d) The transfer of private assets’ participation rights in real estate companies, if these participation rights embody a special usage right to a residential unit.

1. Part: State Taxes - 5. Real Estate Capital Gains Tax
Art. 124 Tax Act - 2. Tax-Deferred Dispositions Official ↗

1. The capital gains tax on real estate is deferred in the following cases

a) Transfer of ownership through inheritance (succession, division of an estate, legacy), advance inheritance, or gift;

b) Transfer of ownership between spouses to settle claims under marital property law and divorce law, as well as extraordinary contributions according to Article 165 of the Swiss Civil Code, if requested by both spouses;

c) Land consolidations for the purposes of plot merging, neighborhood planning, boundary adjustments, rounding off agricultural homesteads, as well as in land consolidations during expropriation procedures or in the face of impending expropriation;

d) Complete or partial sale of a self-operated agricultural or forestry property, provided that the proceeds are used within a reasonable period to acquire a substitute self-operated agricultural or forestry property located in Switzerland, or to improve one's own self-operated agricultural or forestry properties;

e) * Sale of a property essential for operations, owned by a legal entity exempt from tax liability according to Article 66, Paragraph 1, points d-h and j, provided that the proceeds are used within a reasonable period to acquire a replacement property located in Switzerland;

f) Sale of a permanently and exclusively self-used residential property (single-family house or condominium), provided that the proceeds are used within a reasonable period for the acquisition or construction of a similarly used replacement property in Switzerland;

g) * Restructurings as per Articles 22 and 72; subject to subsequent assessment in a procedure according to Articles 193 ff., if the conditions of Article 22, Paragraph 2, and Article 72, Paragraphs 2 and 4 are met.

2. ...

1. Part: State Taxes - 5. Real Estate Capital Gains Tax
Art. 125 Tax Act - III. Taxpayer, Tax Claim, and Due Date Official ↗

1. The taxpayer is the person who disposes of the property. If there are multiple sellers, they are jointly liable for paying the tax in proportion to their shares.

2. The tax claim arises upon the disposal and becomes due upon the issuance of the assessment notice.

1. Part: State Taxes - 5. Real Estate Capital Gains Tax
Art. 126 Tax Act - IV. Tax Object 1. Capital Gain on Real Estate Official ↗

1. Capital Gain is the amount by which the proceeds exceed the investment costs (purchase price and expenses).

1. Part: State Taxes - 5. Real Estate Capital Gains Tax
Art. 127 Tax Act - 2. Proceeds Official ↗

1. The proceeds shall be deemed to be the purchase price, including all additional benefits provided by the acquiring person.

2. If no purchase price is determined, the official market value at the time of disposition shall be decisive. The tax authority and the taxpayer may request a revaluation.

1. Part: State Taxes - 5. Real Estate Capital Gains Tax
Art. 128 Tax Act - 3. Capital Costs a) Acquisition Price Official ↗

1. The purchase price is deemed to be the acquisition price, inclusive of all additional considerations of the acquiring person.

2. In the absence of a purchase price, the official market value at the time of acquisition is decisive. In the case of acquisition from a transfer of ownership with tax deferral, the acquisition price is determined by the last disposal that did not, or would not have, resulted in a tax deferral.

3. Considerations undertaken to circumvent tax liability are not taken into account.

1. Part: State Taxes - 5. Real Estate Capital Gains Tax
Art. 129 Tax Act - b) Expenditures Official ↗

1. The following expenditures are deductible

a) verified expenditures for constructions, conversions, improvements, developments, and other permanent enhancements of real estate;

b) contributions by property owners, such as street, infrastructure, or perimeter contributions;

c) transfer taxes, brokerage commissions at standard rates, and advertising costs;

d) the value of personal labor, provided it has been taxed as income in Switzerland;

e) * value-added levies pursuant to Art. 56a et seq. of the Law on Spatial Planning and Building Law[36].

2. Non-deductible are expenses for maintenance and administration, as well as expenditures that have already been considered as deductions in the regular income assessment.

1. Part: State Taxes - 5. Real Estate Capital Gains Tax
Art. 130 Tax Act - c) Services from Third Parties Official ↗

1. Contributions from third parties, particularly insurance benefits, subsidies, and contributions, for which the transferring person is not liable to replace or reimburse, are deducted from the investment costs.

1. Part: State Taxes - 5. Real Estate Capital Gains Tax
Art. 131 Tax Act - d) Special Cases Official ↗

1. In the case of acquisition from a change of ownership with tax deferral, the purchase price at the last sale, which did not result in a tax deferral, is decisive.

2. In replacement acquisitions in accordance with Art. 124 lit. d-f, the reinvested, untaxed gain is deducted from the investment costs.

3. If the relevant transfer of ownership occurred more than 20 years ago, the taxable person may choose to credit either the verifiable investment costs or the official market value from 20 years ago, plus any value-enhancing expenditures made since then.

1. Part: State Taxes - 5. Real Estate Capital Gains Tax
Art. 132 Tax Act - e) Partial Disposals Official ↗

1. In the case of a partial sale, including the sale of merely a part of a plot, the total purchase price is to be proportionally allocated according to the value ratio at the time of acquisition.

2. Expenses are allocable to the extent that they pertain to the sold parcel; non-apportionable expenses are to be allocated proportionally.

1. Part: State Taxes - 5. Real Estate Capital Gains Tax
Art. 133 Tax Act - V. Tax Rate Official ↗

1. The property capital gains tax is 30 percent.

2. The property capital gains tax calculated according to paragraph 1 is reduced by 2.5 percent for each subsequent full year, with a minimum ownership period of 10 years, but not exceeding 50 percent.

3. In the case of acquiring the property through a tax-deferral transaction, the calculation of the ownership period is based on the most recent transaction that did not trigger a tax deferral.

4. The property capital gains tax calculated pursuant to paragraph 1 increases, if the reckonable ownership period is less than

a) ½ year by 50 percent

b) 1 year by 35 percent

c) 2 years by 20 percent

d) 3 years by 10 percent

e) 4 years by 5 percent

5. Property gains under CHF 3,000 shall not be taxed. The taxable gain is to be rounded down to the nearest CHF 500.

6. The government council may stipulate in the regulation, in which cases involving the acquisition of properties for the improvement of the state or municipal road network or their associated facilities, a maximum of CHF 10,000 can be deducted for the calculation of the taxable gain.

1. Part: State Taxes - 5. Real Estate Capital Gains Tax
Art. 134 Tax Act - VI. Distribution Official ↗

1. Two-thirds of the revenue from the real estate gains tax is allocated to the municipality.

Part 1: State Taxes - 6. Inheritance and Gift Tax
Art. 135 Tax Act - I. Subject Matter 1. Inheritance Tax Official ↗

1. All transfers by reason of inheritance are subject to inheritance tax.

2. Taxable transfers particularly include those based on statutory succession, inheritance agreement, testamentary disposition, gift upon death, or the establishment of a foundation upon death or the appointment of a substitute heir.

Part 1: State Taxes - 6. Inheritance and Gift Tax
Art. 136 Tax Act - 2. Gift Tax Official ↗

1. Donations Tax is applicable to the transfers between living persons by which the receiving person is enriched from the assets of another person without equivalent consideration.

2. Taxable transfers particularly include advances on inheritance, donations between living persons, and the establishment of a foundation during one's lifetime or contributions to an existing foundation.

Part 1: State Taxes - 6. Inheritance and Gift Tax
Art. 137 Tax Act - 3. Insurance Claims Official ↗

1. Insurance claims that are transferred due to death or become due during the lifetime of the donor are taxable, insofar as they are not taxed as income or profit.

Part 1: State Taxes - 6. Inheritance and Gift Tax
Art. 138 Tax Act - II. Tax-Exempt Transfers of Assets Official ↗

1. The following are exempt from tax

a) Contributions to the Confederation and its institutions in accordance with federal law;

b) Contributions to the Canton and its institutions, provided that the latter do not achieve net profit in competition with private enterprises;

c) Contributions to the municipalities and their institutions, provided that the latter do not achieve net profit in competition with private enterprises;

d) Other legal entities domiciled in the Canton, to the extent that cantonal law exempts them from direct taxation pursuant to Art. 66.

2. Contributions to extra-cantonal legal entities pursuant to para. 1 are tax-exempt, provided that the other Canton reciprocates.

3. The Government Council may conclude reciprocity agreements.

Part 1: State Taxes - 6. Inheritance and Gift Tax
Art. 139 Tax Act - III. Spouses, Descendants, Parents; Occasional Gifts Official ↗

1. Donations to descendants, as well as stepchildren and foster children, the spouse, and the parents are exempt from tax. Additionally, customary occasional gifts up to CHF 2,000 are not taxed.

Part 1: State Taxes - 6. Inheritance and Gift Tax
Art. 140 Tax Act - IV. Tax Liability a) Fiscal Affiliation Official ↗

1. The tax liability exists if

a) the deceased person had their last domicile in the canton or the estate was opened in the canton;

b) the donor had their domicile in the canton at the time of the gift;

c) real estate located in the canton or rights to such property are transferred.

2. In an international context, the tax liability also exists if taxable movable assets are transferred within the canton.

Part 1: State Taxes - 6. Inheritance and Gift Tax
Art. 141 Tax Act - b) Tax Subject Official ↗

1. The taxpayer is the one who receives benefits (inheritance, legacy, gift, entitled person, beneficiary).

2. In the case of benefits from usufructs and other periodic payments, the usufructuaries or the recipients of the payments are liable for taxes.

3. In the case of a substitution of heirs, both the initial heirs and the subsequent heirs are liable for taxes.

Part 1: State Taxes - 6. Inheritance and Gift Tax
Art. 142 Tax Act - c) Tax Claim Official ↗

1. The tax claim arises

a) in the case of donations upon death, at the time the inheritance succession is opened;

b) in the case of donations from a remainder estate, at the time the prior estate is concluded;

c) in the case of gifts, at the time the gift is executed;

d) in the case of donations with a suspensive condition, at the time the condition is met.

Part 1: State Taxes - 6. Inheritance and Gift Tax
Art. 143 Tax Act - V. Tax Assessment 1. Valuation a) Principle Official ↗

1. The transferred assets are valued at the fair market value at the time the tax claim arises, unless the following provisions stipulate otherwise.

2. The valuation rules pursuant to Articles 43-48 shall be applied mutatis mutandis.

Part 1: State Taxes - 6. Inheritance and Gift Tax
Art. 144 Tax Act - b) Special Cases Official ↗

1. For real estate, both the tax authority and the taxpayer can request a reassessment.

2. Items that are sold to third parties up to the date of division are to be valued according to the sales revenue.

3. Usufructs, annuities, or other periodic services are valued according to their capital value.

4. In the case of a substitutionary heir appointment that is not limited to the remainder, the inheritance received by the prior heirs is valued at the capital value of the prior estate.

5. For asset transfers from insurance contracts, the valuation is based on the surrender value or the paid insurance benefit.

6. If the inheritance tax is charged to the estate or if the gift tax is borne by the donor, the taxable benefit is increased by the corresponding tax amount.

Part 1: State Taxes - 6. Inheritance and Gift Tax
Art. 145 Tax Act - 2. Deductions Official ↗

**1. The following shall be deducted for the purpose of tax assessment:**

a) the debts of the deceased person and the debts transferred to the receiving person with a lifetime gift;

b) the costs related to the death as well as the costs of division of the estate, execution of the will, and official estate administration;

c) the claims of the household members according to Art. 606 of the Swiss Civil Code (ZGB);

d) advancements for not yet educated and infirm descendants according to Art. 631 para. 2 ZGB;

e) compensations according to Art. 334 and Art. 334bis ZGB.

**2. If a transfer of assets is encumbered with a usufruct or an obligation for a recurring performance, the capital value of the encumbrance shall be deducted. This deduction shall not apply if the person entitled to the usufruct or the recurring performance is exempt from taxes.**

Part 1: State Taxes - 6. Inheritance and Gift Tax
Art. 146 Tax Act - VI. Tax Calculation 1. Tax-Exempt Amounts Official ↗

1. Deductions from Taxable Transfers of Assets for Tax Calculation

a) For the unmarried partner CHF 10,000;

b) For other receiving individuals CHF 5,000.

2. In the case of multiple transfers of assets between the same individuals, the tax exemption can only be granted once in total.

Part 1: State Taxes - 6. Inheritance and Gift Tax
Art. 147 Tax Act - 2. Tax Rate Official ↗

**1. The Tax is:**

a) for the unmarried life partner, 12 percent;

b) for siblings, step-parents, parents-in-law, son-in-law, daughter-in-law, and grandparents, 22 percent;

c) for all other recipients, 32 percent.

**2. Definition of Life Partner:**

A person qualifies as a life partner if they have lived in an uninterrupted household community with the deceased person for five or more years prior to the death, provided that the deceased person significantly contributed to their support or there was a joint usage of funds.

**3. Subsequent Heirs:**

Subsequent heirs pay the tax based on their relationship to the first deceased person.

Part 1: State Taxes - 6. Inheritance and Gift Tax
Art. 147a Tax Act - 3. Reduction in Corporate Succession Official ↗

1. The tax calculated according to the foregoing provisions is reduced by 90 percent, insofar as the recipient is allocated business assets or granted such assets during the distribution of inheritance, which entirely or predominantly serves the recipient's self-employment activities.

2. The same reduction is granted insofar as a recipient is allocated or granted during inheritance distribution a significant participation in a corporation or cooperative, which operates a business or holds a corresponding substantial participation, and the recipient is employed in a managerial position within the business operation.

3. A significant participation within the meaning of paragraph 2 exists if it constitutes at least 20 percent of the paid-up capital, stock, or contribution capital, or if the participant possesses at least 20 percent of the voting rights.

Part 1: State Taxes - 6. Inheritance and Gift Tax
Art. 147b Tax Act - 4. Elimination of the Discount Official ↗

1. The reduction of the tax under Article 147a is retrospectively revoked if and to the extent that within a period of five years

a) business assets that caused the reduction, which were transferred or assigned, are sold or transferred inter vivos to a person who cannot claim the tax reduction for themselves, are transferred into private assets, or if the independent activity is abandoned;

b) the participation that caused the reduction, which was transferred or assigned, is sold or transferred inter vivos to a person who cannot claim the tax reduction for themselves, or if the dependent employment in the business sector of the corporation or cooperative is abandoned.

2. The retrospective taxation of the granted reduction is carried out in accordance with the procedure outlined in Article 193 et seq.

Part 1: State Taxes - 6. Inheritance and Gift Tax
Art. 148 Tax Act - VII. Liability Official ↗

1. Heirs are jointly and severally liable for the tax on property acquisitions and donations up to the amount of their own inheritance share.

2. The donor is jointly and severally liable for the gift tax.

3. Heirs, executors, and other persons involved in the division of the estate are jointly and severally liable with their entire assets if they distribute inheritance shares or legacies before paying the inheritance tax.

Part 1: State Taxes - 6. Inheritance and Gift Tax
Art. 149 Tax Act - VIII. Distribution of Inheritance and Gift Tax Official ↗

1. The revenue is allocated half to the municipality.

1. Part: State Taxes - 7. Procedural Law - A. Tax Administration Authorities: Organization
Art. 150 Tax Act - Cantonal Tax Administration Official ↗

1. The Cantonal Tax Administration enforces this law, insofar as the following provisions do not stipulate otherwise.

2. For the fulfillment of tasks assigned to the municipalities, the Cantonal Tax Administration may issue directives. In particular, the Cantonal Tax Administration regulates the electronic collection, processing, and transmission of data, as far as necessary for the enforcement of this law.

3. The Cantonal Tax Administration may undertake collection tasks for third parties in return for compensation.

1. Part: State Taxes - 7. Procedural Law - A. Tax Administration Authorities: Organization
Art. 152 Tax Act - Property Assessment Authority Official ↗

1. The appraisal of properties is conducted by the Assessment Authority.

2. The Government Council determines the organization of the Assessment Authority and issues regulations concerning property appraisals.

1. Part: State Taxes - 7. Procedural Law - B. General Procedural Principles
Art. 153 Tax Act - Official Secrecy Official ↗

1. Persons entrusted with the enforcement of this law are obligated to maintain confidentiality.

2. ...

3. Public administration bodies and judicial authorities may request information from tax records, provided they demonstrate a justified interest.

4. Insofar as the tax authority operates automatic registries and documentation, it may make such data available to other authorities entitled to access tax data and to churches constituted as independent public corporations, in retrieval procedures, in lists, or in other forms.

5. The Cantonal Tax Administration may access tax data through retrieval procedures when it performs collection tasks for third parties or manages certificates of loss for third parties.

1. Part: State Taxes - 7. Procedural Law - B. General Procedural Principles
Art. 154 Tax Act - Duty of Administrative Authorities and Courts to Provide Information Official ↗

1. Administrative authorities and courts must provide information from their files to the tax authorities free of charge upon request, irrespective of any confidentiality obligations. They may also, at any time, on their own initiative, provide the assessment authority with information if they suspect that an assessment is incomplete or has unjustly not been conducted.

2. The government council decrees in which cases administrative authorities and courts are required, on their own initiative, to notify the tax authorities free of charge of facts that are relevant for assessment.

3. The data necessary for the execution of this law can be made accessible to the Cantonal Tax Administration through a retrieval process.

1. Part: State Taxes - 7. Procedural Law - B. General Procedural Principles
Art. 155 Tax Act - Administrative Assistance Official ↗

1. The tax authorities shall at all times provide information and access to tax records free of charge to the federal tax authorities or those of other cantons. The government council decides on the exchange of electronic data with other tax authorities.

1. Part: State Taxes - 7. Procedural Law - B. General Procedural Principles
Art. 155a Tax Act - AHV Insurance Number Official ↗

1. Authorities pursuant to Articles 154(1) and 155 are entitled to systematically use the social security number of the Old-Age and Survivors' Insurance in accordance with the provisions of the Federal Act on Old-Age and Survivors' Insurance for the fulfillment of their statutory duties.

1. Part: State Taxes - 7. Procedural Law - B. General Procedural Principles
Art. 156 Tax Act - Procedural Status of Spouses Official ↗

1. Spouses living in a legally and factually undivided marriage collectively exercise the procedural rights and obligations of the taxable person under this law.

2. They shall sign the tax return jointly. If the tax return is signed by only one of the spouses, the other spouse shall be granted a period to provide their signature. If this period expires unused, the contractual representation between spouses is presumed.

3. Appeals and other submissions are considered timely filed if one spouse acts within the prescribed period.

1. Part: State Taxes - 7. Procedural Law - B. General Procedural Principles
Art. 157 Tax Act - Inspection of Records Official ↗

1. Taxpayers are entitled to inspect the files of the ongoing assessment procedure that they have submitted or signed.

2. The remaining files are accessible to the taxpayer after the determination of the facts, provided that the legitimate interest in inspection is not outweighed by overriding public or private interests.

3. If a taxpayer is denied access to a document, it may only be used to their disadvantage if they have been informed of the essential content orally or in writing, and have also been given the opportunity to express themselves and to present counter-evidence.

4. ...

5. Upon request by the taxpayer, the Cantonal Tax Administration shall confirm the denial of file inspection by issuing a decision, which can be appealed.

1. Part: State Taxes - 7. Procedural Law - B. General Procedural Principles
Art. 158 Tax Act - Collection of Evidence Official ↗

1. Evidence presented by the taxable person shall be accepted insofar as it is suitable for establishing the facts relevant to the assessment.

2. Testimonial evidence is not admissible.

3. Records on visual or data media have the same probative value as records that are readable without aids. They must be presented to the Cantonal Tax Administration in a form that is readable without aids. The Cantonal Tax Administration may provide for exceptions.

4. Where the law requires a personal signature, the Cantonal Tax Administration may allow another form of signature instead.

1. Part: State Taxes - 7. Procedural Law - B. General Procedural Principles
Art. 159 Tax Act - Contractual Representation Official ↗

1. The taxable person may be represented before the authorities responsible for the enforcement of this law, insofar as their personal participation is not necessary.

2. If the taxable person is represented, decisions and rulings are generally to be delivered to the representative; however, direct delivery to the taxable person is also valid.

3. The tax return, the preliminary tax assessment, the provisional payment order, and the final account may be delivered directly to the taxable person, even if they have appointed a representative.

1. Part: State Taxes - 7. Procedural Law - B. General Procedural Principles
Art. 160 Tax Act - Mandatory Representation Official ↗

1. Authorities may require a taxable person residing or established abroad, or in the case of prolonged absence from the country, to designate a representative in Switzerland.

2. If the person does not comply with such a request within the set deadline, the orders and decisions are notified to them through a chargeable publication in the official gazette.

1. Part: State Taxes - 7. Procedural Law - B. General Procedural Principles
Art. 160a Tax Act - Electronic Procedure Official ↗

1. The procedure may be conducted electronically. In doing so, the authenticity and integrity of the data transmission must be ensured.

2. The tax return, along with its attachments, can be submitted electronically. Instead of a personal signature, the taxpayer must confirm electronically that their information is complete and truthful.

3. Orders and documents may be delivered to the taxpayer in electronic form with their consent.

4. The details are regulated by the government council.

1. Part: State Taxes - 7. Procedural Law - C. Assessment in Ordinary Proceedings
Art. 161 Tax Act - I. Procedural Obligations of Taxable Persons 1. Tax Declaration Official ↗

**1. Taxpayers are required to submit their tax returns following a public announcement or receipt of the official form. Those who do not receive a form must request it from the competent authority.**

**2. The taxpayer must complete the tax return truthfully and fully, sign it personally, and submit it along with the required attachments to the competent authority within the specified deadline.**

**3. The tax declaration and any additional notes must be entered exclusively in the designated fields on the form. Notes and information provided outside these form fields are considered as not having been made and not part of the record.**

1. Part: State Taxes - 7. Procedural Law - C. Assessment in Ordinary Proceedings
Art. 162 Tax Act - 2. Attachments to the Tax Return Official ↗

1. Natural persons must attach the following to the tax return for the assessment of income and wealth tax

a) Salary statements for all earnings from dependent employment;

b) Certificates for remuneration as a member of the management or another body of a legal entity;

c) Lists of all securities, claims, and debts.

2. Natural persons with income from self-employment and legal entities must attach to the tax return

a) * The signed annual financial statements (balance sheets, profit and loss statements with appendices) for the tax period; or

b) * In the case of simplified bookkeeping according to Art. 957 para. 2 CO: Statements of income and expenses, asset situation, as well as private withdrawals and deposits for the tax period.

1. Part: State Taxes - 7. Procedural Law - C. Assessment in Ordinary Proceedings
Art. 163 Tax Act - 3. Additional Duties to Cooperate Official ↗

1. The taxable person must do everything necessary to enable a complete and accurate assessment.

2. Upon request of the tax authority, they must provide information verbally or in writing, and submit business books, receipts, additional certificates, as well as documents related to business transactions.

1. Part: State Taxes - 7. Procedural Law - C. Assessment in Ordinary Proceedings
Art. 164 Tax Act - 4. Obligation to Retain Records Official ↗

1. Natural persons with income from self-employment and legal persons must retain documents and other records related to their activities for ten years. The manner of maintaining and preserving these documents is governed by Art. 957 et seq. of the Swiss Code of Obligations (OR).

1. Part: State Taxes - 7. Procedural Law - C. Assessment in Ordinary Proceedings
Art. 165 Tax Act Official ↗

**1. The following are obligated to issue written certificates to the taxable person:**

a) Employers regarding their services to employees;

b) Creditors and debtors concerning the existence, amount, interest, and security of claims;

c) * Insurers regarding the surrender value of insurance policies and the benefits paid or owed under the insurance relationship; for annuity insurances subject to the Insurance Contract Act, they must also provide a certificate pursuant to Art. 127 para. 1 lit. c of the Federal Act on Direct Federal Taxation;

d) Trustees, asset managers, pledgees, agents, and other persons who have or have had possessions or management of the assets of the taxable person, regarding those assets and their income;

e) Persons who conduct or have conducted business with the taxable person concerning mutual claims and services.

**2.** If the taxable person does not submit the necessary certificates, the tax authority may request them from third parties. The legally protected professional confidentiality is reserved.

1. Part: State Taxes - 7. Procedural Law - C. Assessment in Ordinary Proceedings
Art. 166 Tax Act - 2. Duty to Provide Information Official ↗

1. Shareholders, co-owners, and joint owners are required to provide information to the tax authorities upon request regarding their legal relationship with the taxable person, particularly concerning their shares, claims, and entitlements.

1. Part: State Taxes - 7. Procedural Law - C. Assessment in Ordinary Proceedings
Art. 167 Tax Act - 3. Reporting Obligations Official ↗

1. Tax assessment authorities must submit a certificate for each tax period

a) Legal entities regarding the benefits provided to members of the management and other bodies; foundations must additionally submit a certificate regarding the benefits provided to their beneficiaries;

b) Occupational pension schemes and tied self-provision institutions regarding the benefits provided to the insured persons or beneficiaries;

c) Simple partnerships and partnerships regarding all circumstances that are relevant for the assessment of the participants, especially about their share in the income and assets of the partnership.

d) * Employers regarding the monetary benefits from genuine employee participation as well as the allocation and exercise of employee options.

e) * Unemployment funds regarding provided benefits.

2. Collective investment schemes must submit a certificate to the tax assessment authorities for each tax period regarding all circumstances that are relevant for the taxation of the direct real estate and its income.

1. Part: State Taxes - 7. Procedural Law - C. Assessment in Ordinary Proceedings
Art. 168 Tax Act Official ↗

1. The tax assessment authority reviews the tax return and conducts the necessary investigations. Together with the taxable person, it determines the factual and legal circumstances relevant to a complete and accurate assessment of taxation.

2. It may, in particular, involve experts, conduct on-site inspections, and examine business books and records. The costs arising therefrom may be imposed in whole or in part on the taxable person or any other person obligated to provide information, who has made these costs necessary through a culpable violation of procedural duties.

1. Part: State Taxes - 7. Procedural Law - C. Assessment in Ordinary Proceedings
Art. 169 Tax Act - 2. Assessment at Discretion Official ↗

1. If the taxable person fails to fulfill their procedural obligations despite a reminder, or if the tax factors cannot be accurately determined due to a lack of reliable documentation, the assessment authority shall make the assessment according to its duly exercised discretion. In doing so, it may take into account empirical data, asset development, and the living expenses of the taxable person.

1. Part: State Taxes - 7. Procedural Law - C. Assessment in Ordinary Proceedings
Art. 170 Tax Act - 3. Initiation of Assessment Official ↗

1. The assessment authority determines the tax calculation basis, the tax rate, and the tax amounts in the assessment notice.

2. Deviations from the tax return are communicated to the taxable person no later than at the issuance of the assessment notice.

3. ...

1. Part: State Taxes - 7. Procedural Law - C. Assessment in Ordinary Proceedings
Art. 171 Tax Act - IV. Objection 1. Prerequisite Official ↗

1. The taxpayer may file a written objection against the assessment notice within 30 days of its issuance.

2. Late objections will only be considered if the taxpayer proves that they were prevented from filing the objection in a timely manner due to military or civil service, illness, absence from the country, or other significant reasons, and that the objection was filed within 30 days after the hindrance ceased.

3. An assessment based on due discretion can only be contested by the taxpayer on the grounds of obvious inaccuracy. The objection must be substantiated and must indicate any available evidence.

1. Part: State Taxes - 7. Procedural Law - C. Assessment in Ordinary Proceedings
Art. 172 Tax Act - 2. Objection Procedure Official ↗

1. In the objection procedure, the assessment authority has the same powers as in the assessment procedure.

2. The taxable person is entitled to verbally represent their objection before the assessment authority.

3. A withdrawal of the objection will not be acknowledged if, based on the circumstances, it can be assumed that the assessment was incorrect.

1. Part: State Taxes - 7. Procedural Law - C. Assessment in Ordinary Proceedings
Art. 173 Tax Act - 3. Decision on Objection Official ↗

1. The assessment authority decides on the objection based on the investigation. It may reassess the tax base and, after hearing the taxpayer, modify the assessment in all aspects to the taxpayer's detriment.

2. The decision on the objection shall be reasoned.

1. Part: State Taxes - 7. Procedural Law - C. Assessment in Ordinary Proceedings
Art. 174 Tax Act - V. Statute of Limitations for Tax Assessment Official ↗

1. The right to assess a tax expires five years after the end of the tax period. This is subject to the collection of additional taxes and fines. The limitation period does not begin or is paused

a) during an objection, appeal, or revision procedure;

b) as long as the tax claim is secured or deferred;

c) as long as neither the taxpayer nor a liable person has a tax residence or domicile in Switzerland.

2. The limitation period restarts with

a) any official action aimed at establishing or asserting the tax claim that is brought to the attention of a taxpayer or liable person;

b) any explicit acknowledgment of the tax claim by the taxpayer or liable person;

c) the submission of a request for remission;

d) the initiation of criminal proceedings for completed tax evasion or tax offenses.

3. The right to assess a tax is in every case prescribed 15 years after the end of the tax period.

1. Part: State Taxes - 7. Procedural Law - D. Special Procedural and Organizational Provisions
Art. 175 Tax Act - I. Collection of Withholding Tax 1. Duties of the Debtor of the Taxable Performance Official ↗

1. The debtor of the taxable service is required to undertake all necessary measures for the complete collection of the tax, in particular

a) to report to the Cantonal Tax Administration all natural and legal persons to whom he provides services subject to withholding tax;

b) to withhold the owed tax upon maturity of monetary performances and, in the case of other performances, notably in-kind benefits and gratuities, to demand the owed tax from the taxable persons;

c) to proceed with tax collection even if the taxable person is subject to taxation in another canton;

d) to deliver the taxes to the Cantonal Tax Administration within the deadline and to periodically settle accounts with it;

e) to grant the Cantonal Tax Administration access to all documents for the control of tax collection and to verbally or in writing provide information about the conditions relevant for the collection of the withholding tax;

f) to issue to the taxable persons a statement or confirmation of the amount of tax deduction, as well as, upon request, if necessary, a wage statement;

g) * to report to the Cantonal Tax Administration, unsolicited and annually, taxable persons subject to subsequent ordinary assessment according to Art. 103;

h) to notify the Cantonal Tax Administration of performances to beneficiaries or recipients from occupational pension schemes and tied private pension schemes at least 30 days prior to disbursement.

i) * the employer is obliged to remit the proportional taxes on employee options exercised abroad. He owes the proportional tax even if the monetary benefit is provided by a foreign group company.

1. Part: State Taxes - 7. Procedural Law - D. Special Procedural and Organizational Provisions
Art. 176 Tax Act - 2. Obligations of Taxpayers Official ↗

1. The taxable persons are required to provide information, either orally or in writing, to the Cantonal Tax Administration and the debtors of the taxable benefit regarding the circumstances relevant to the collection of the withholding tax.

2. The Cantonal Tax Administration may obligate the taxable persons to make additional payments of the withholding taxes owed by them if the taxable benefit has not been paid, or not fully paid, after deduction of the withholding tax, and a subsequent collection from the debtors of the taxable benefit is not possible.

1. Part: State Taxes - 7. Procedural Law - D. Special Procedural and Organizational Provisions
Art. 176a Tax Act - 2a. Necessary Representation Official ↗

1. The Cantonal Tax Administration can require a person liable to tax with residence or domicile abroad to appoint a representative in Switzerland.

2. Persons who apply for a subsequent ordinary assessment pursuant to Art. 114a must submit the necessary documents and designate a delivery address in Switzerland. If no delivery address is designated or if the delivery address loses its validity during the assessment procedure, the competent authority grants the taxable person an appropriate period to designate a valid delivery address. If this period lapses without result, the withholding tax replaces the tax to be assessed in the ordinary procedure. Art. 171 para. 2 applies accordingly.

1. Part: State Taxes - 7. Procedural Law - D. Special Procedural and Organizational Provisions
Art. 177 Tax Act - 3. Disposition Official ↗

1. The taxable person may request from the tax assessment authority a decision on the existence and scope of tax liability by March 31 of the tax year following the due date of the payment if they

a) * disagree with the withholding tax deduction according to the certificate pursuant to Art. 175 letter f; or

b) * have not received the certificate pursuant to Art. 175 letter f from the employer.

1bis The debtor of the taxable payment may request from the tax assessment authority a decision on the existence and scope of tax liability by March 31 of the tax year following the due date of the payment.

2. The debtors of the taxable payment remain obligated to withhold tax until a final decision is made.

1. Part: State Taxes - 7. Procedural Law - D. Special Procedural and Organizational Provisions
Art. 178 Tax Act - 4. Delivery Official ↗

1. The debtors of the taxable service must submit a report on the deducted taxes to the Cantonal Tax Administration within 15 days after the end of the accounting period. The deducted taxes must be transferred within 60 days after the end of the accounting period.

2. In the case of a late transfer, a default interest will be charged.

1. Part: State Taxes - 7. Procedural Law - D. Special Procedural and Organizational Provisions
Art. 179 Tax Act - 5. Additional Claim and Reimbursement Official ↗

1. If the debtors of the taxable service have not made or have insufficiently made the tax deduction, the tax authority orders the additional payment. The right of recourse for the debtors against the taxable person is reserved.

2. If the debtors of the taxable service have made an excessive tax deduction, they must refund the difference to the taxable person.

3. If it becomes apparent only after the delivery that an excessive tax has been deducted, the Cantonal Tax Administration may directly refund the difference to the taxable person.

1. Part: State Taxes - 7. Procedural Law - D. Special Procedural and Organizational Provisions
Art. 180 Tax Act - 6. Objection Official ↗

1. Against a decision regarding the withholding tax, the taxable person and the debtor of the taxable benefit may file an objection according to Art. 171.

1. Part: State Taxes - 7. Procedural Law - D. Special Procedural and Organizational Provisions
Art. 181 Tax Act - II. On Real Estate Capital Gain Taxes Official ↗

1. The assessment authority determines the profit in an appealable decree, for which the taxation is deferred in the event of a replacement acquisition pursuant to Art. 124 para. 1 lit. d-f.

2. Economic transfers of ownership must be reported by the taxable person to the competent tax authority within 30 days.

1. Part: State Taxes - 7. Procedural Law - D. Special Procedural and Organizational Provisions
Art. 182 Tax Act - III. Regarding Inheritance and Gift Taxes 1. Tax Assessment Authority Official ↗

1. The assessment authority for inheritance and gift tax is the division authority of the municipality.

1. Part: State Taxes - 7. Procedural Law - D. Special Procedural and Organizational Provisions
Art. 183 Tax Act - 2. Assessment Bases Official ↗

1. Inheritance tax is assessed based on the official inventory or the record of the estate.

1. Part: State Taxes - 7. Procedural Law - D. Special Procedural and Organizational Provisions
Art. 184 Tax Act - 3. Procedural Obligations Regarding Gifts Official ↗

1. Any person who receives a gift inter vivos must report it to the relevant municipal office or the Cantonal Tax Administration within 30 days. The report must include information about the relationship to the donor as well as the nature and amount of the gift.

1. Part: State Taxes - 7. Procedural Law - D. Special Procedural and Organizational Provisions
Art. 184a Tax Act - 3a. Procedural Obligations upon the Discontinuation of the Reduction of Inheritance or Gift Tax in the Context of Business Succession Official ↗

1. Any person who has been granted a reduction in inheritance or gift tax pursuant to Article 147a must report to the competent municipal office or the Cantonal Tax Administration within 30 days of the subsequent discontinuation of the reduction as per Article 147b.

1. Part: State Taxes - 7. Procedural Law - D. Special Procedural and Organizational Provisions
Art. 185 Tax Act - 4. Supervision by the Cantonal Tax Administration Official ↗

1. The Assessment Notice must be submitted to the Cantonal Tax Administration for review prior to issuance.

1. Part: State Taxes - 7. Procedural Law - D. Special Procedural and Organizational Provisions
Art. 186 Tax Act - 5. Commencement Official ↗

1. The assessment is deemed to be opened upon service to the representatives of the heirs. The opening may also occur directly with the heirs.

1. Part: State Taxes - 7. Procedural Law - D. Special Procedural and Organizational Provisions
Art. 187 Tax Act - 6. Objection Official ↗

1. The objection must be filed with the assessment authority. It submits the objection decision to the Cantonal Tax Administration for review before it is issued.

1. Part: State Taxes - 7. Procedural Law - E. Appeal Proceedings
Art. 188 Tax Act - Requirements Official ↗

1. The decision on the objection can be appealed in writing to the Higher Court within 30 days of notification. The appeal must contain a petition and be substantiated. The contested decision must be enclosed.

2. ...

3. In the procedure for levying withholding tax, the right to appeal is also granted to the debtor of the taxable benefit.

4. ...

5. The court recesses according to Art. 7 of the Law on Administrative Procedure do not apply in tax proceedings.

1. Part: State Taxes - 7. Procedural Law - E. Appeal Proceedings
Art. 188a Tax Act - Federal Court Official ↗

1. Against the decision of the Superior Court, the taxable person, the Federal Tax Administration, and the Cantonal Tax Administration may file a complaint in public law matters in accordance with the Federal Supreme Court Act.

1. Part: State Taxes - 7. Procedural Law - F. Amendment of Final Decisions
Art. 189 Tax Act Official ↗

1. A final and binding decision can be revised in favor of the taxable person upon request or ex officio

a) if significant facts or decisive evidence are discovered;

b) if the deciding authority has disregarded significant facts or decisive evidence known to it or which should have been known, or has otherwise violated essential procedural principles;

c) if a crime or misdemeanor has influenced the decision;

d) if, according to the rules applicable to intercantonal double taxation conflicts, the avoidance of double taxation according to the deciding authority is to be carried out by the Canton of Appenzell Ausserrhoden;

e) if the taxation violates a state treaty;

f) if the conditions for a deferral of the real estate capital gain tax are fulfilled only after final assessment.

2. Revision is precluded if the grounds for revision are based on circumstances that could have been asserted in the ordinary procedure with due diligence. An application for revision pursuant to paragraph 1, letters d and e, of this provision will not be entertained if the double taxation is the result of a shift in profits or income intentionally or negligently caused by the applicant.

1. Part: State Taxes - 7. Procedural Law - F. Amendment of Final Decisions
Art. 190 Tax Act - 2. Forfeiture and Limitation Official ↗

1. The request for revision must be submitted within 90 days of the discovery of the ground for revision, but no later than ten years after the notification of the order or decision.

1. Part: State Taxes - 7. Procedural Law - F. Amendment of Final Decisions
Art. 191 Tax Act - 3. Legal Remedies Official ↗

1. An appeal can be filed with the Superior Court against the decision on a revision request or the newly issued decision if approved.

2. The lodging of an objection is excluded.

1. Part: State Taxes - 7. Procedural Law - F. Amendment of Final Decisions
Art. 192 Tax Act - II. Accounting Errors and Clerical Mistakes Official ↗

1. Calculation errors and clerical mistakes in final decisions can be corrected within five years of notification upon request or ex officio by the authority that made the error.

2. An appeal against the correction or its rejection can be filed with the Superior Court.

1. Part: State Taxes - 7. Procedural Law - F. Amendment of Final Decisions
Art. 193 Tax Act - III. Additional Taxation 1. Ordinary Additional Taxation Official ↗

1. If, based on facts or evidence unknown to the tax authority, it emerges that an assessment was unjustly omitted or a legally binding assessment is incomplete, or if the omission or incompleteness of an assessment is due to a crime or offense against the tax authority, the unpaid tax along with interest shall be claimed as additional tax.

2. If the taxpayer has accurately and fully declared their income, assets, net profit, or equity capital in their tax return, and the tax authorities were aware of the basis for assessment, no additional tax may be levied, even if the assessment was inadequate.

1. Part: State Taxes - 7. Procedural Law - F. Modification of Final Decisions
Art. 193a Tax Act - 1a. Simplified Retroactive Taxation of Heirs Official ↗

1. All heirs have the right to simplified supplementary taxation of the assets and income elements evaded by the deceased, independent of each other, if

a) the evasion is unknown to any tax authority;

b) they unconditionally support the authorities in determining the evaded assets and income elements; and

c) they make a serious effort to pay the owed supplementary tax.

2. The supplementary tax is calculated for the last three tax periods preceding the year of death according to the regulations for ordinary assessment and is claimed along with default interest.

3. The simplified supplementary taxation is excluded if the estate is officially or administratively liquidated by the bankruptcy office.

4. The executor of the will or the estate administrator can also request simplified supplementary taxation.

1. Part: State Taxes - 7. Procedural Law - F. Amendment of Final Decisions
Art. 194 Tax Act - 2. Procedure Official ↗

1. The initiation of the supplementary tax procedure shall be communicated in writing to the taxpayer or their heirs, stating the reason. It shall be pointed out that there is the possibility of subsequently initiating criminal proceedings for tax evasion if such proceedings are neither initiated, pending, nor can be excluded from the outset at the time of the initiation of the supplementary tax procedure.

2. The provisions regarding procedural principles, the assessment procedure, and the appeals procedure shall apply mutatis mutandis.

1. Part: State Taxes - 7. Procedural Law - F. Amendment of Final Decisions
Art. 195 Tax Act - 3. Costs and Liability Official ↗

1. The costs of the supplementary tax procedure shall be imposed on the taxable person, provided that the procedure was caused by their fault.

2. The heirs are liable for the costs and the supplementary tax up to the amount of their inheritance shares, including any advances received.

1. Part: State Taxes - 7. Procedural Law - F. Amendment of Final Decisions
Art. 196 Tax Act - 4. Forfeiture Official ↗

1. The right to initiate a supplementary tax procedure expires ten years after the end of the tax period for which an assessment was unjustly omitted or a legally binding assessment is incomplete.

2. The right to determine the supplementary tax expires 15 years after the end of the tax period to which it relates.

3. For non-periodic taxes, the time limit begins to run with the accrual of the tax claim.

1. Part: State Taxes - 7. Procedural Law - G. Inventory
Art. 197 Tax Act - I. Inventory Obligation Official ↗

1. Upon the death of a taxable person, an official inventory shall be taken within two weeks.

2. The taking of an inventory may be omitted if it is obvious that no assets are present.

1. Part: State Taxes - 7. Procedural Law - G. Inventory
Art. 198 Tax Act - II. Subject Matter Official ↗

1. The inventory includes the assets existing on the day of death of the deceased person, the spouse living in an undivided marriage, and the minor children under parental care or custody.

2. Facts that are relevant for the tax assessment are determined and recorded in the inventory.

1. Part: State Taxes - 7. Procedural Law - G. Inventory
Art. 199 Tax Act - III. Procedure for Inventory Recording 1. Safeguarding of Inventory Recording Official ↗

1. The heirs and the persons who administer or hold the estate assets may only dispose of these assets with the consent of the inventory authority before the inventory is taken.

2. To secure the inventory, the inventory authority or the Cantonal Tax Administration may proceed with the immediate sealing.

1. Part: State Taxes - 7. Procedural Law - G. Inventory
Art. 200 Tax Act - 2. Cooperation Duties Official ↗

1. The heirs, the legal representatives of heirs, the estate administrators, and the executors are obliged

a) to provide truthful information about all circumstances that may be relevant for determining the tax factors of the deceased person;

b) to present all books, documents, certificates, and records that may shed light on the estate;

c) to open all premises and containers that were at the disposal of the deceased person.

2. Heirs and the legal representatives of heirs who have lived in a household with the deceased person or have safeguarded or managed property of the deceased person must also allow inspection of their rooms and containers.

3. If the heirs, the legal representatives of heirs, estate administrators, or executors become aware of items of the estate that are not recorded in the inventory after the inventory has been taken, they must report them to the inventory authority within ten days.

4. At least one capable heir and the legal representative of minor heirs or heirs under comprehensive guardianship must be present during the inventory recording.

1. Part: State Taxes - 7. Procedural Law - G. Inventory
Art. 201 Tax Act - 3. Duty to Provide Information and Certification Official ↗

1. Third parties who held or managed the assets of the deceased person, or to whom the deceased had monetary rights or claims, are obligated to provide the heirs with all related information in writing, upon request, for the benefit of the inventory authority.

2. If there are significant reasons preventing the fulfillment of this obligation to provide information, the third party may submit the required information directly to the inventory authority.

3. Articles 165 and 166 apply accordingly.

1. Part: State Taxes - 7. Procedural Law - G. Inventory
Art. 202 Tax Act - IV. Authorities Official ↗

1. The civil law inventory authority is the inventory authority within the meaning of this law.

2. The Cantonal Tax Administration may be represented during the inventory taking. Inventories prepared in its absence must be promptly submitted to it for review.

**1. Part: State Taxes - 8. Tax Collection, Tax Security, and Tax Exemption - A. Tax Collection**
Art. 203 Tax Act - I. Authority Official ↗

1. The income and wealth taxes, profit and capital taxes, supplementary taxes, real estate capital gain taxes, and withholding taxes are collected by the Cantonal Tax Administration, while the remaining state taxes are collected by the municipalities following the instructions of the Cantonal Tax Administration.

**1. Part: State Taxes - 8. Tax Collection, Tax Security, and Tax Exemption - A. Tax Collection**
Art. 204 Tax Act - II. Provisional Tax Assessment Official ↗

1. A provisional tax assessment shall be issued to the taxpayer

a) for periodic income and wealth taxes in each calendar year for the tax period ending in the same year;

b) for profit taxes and capital taxes for the current tax period;

c) for non-periodic taxes, if the estimated amount of tax due justifies a provisional tax assessment or if the taxpayer requests one.

2. The provisional tax assessment may be divided into installments for the periodic income and wealth taxes.

3. The basis of the provisional assessment is the tax declaration, the last legally binding assessment, or the estimated amount of tax due.

4. An advance payment may be required if the provisional tax assessment

a) for periodic taxes, is not paid by the end of the tax period;

b) for non-periodic taxes, is not paid within 90 days.

**1. Part: State Taxes - 8. Tax Collection, Tax Security, and Tax Exemption - A. Tax Collection**
Art. 205 Tax Act - III. Final Accounting Official ↗

1. The final assessment is delivered to the taxpayer after the completion of the assessment. It may be combined with the notification of the assessment.

2-3

...

**1. Part: State Taxes - 8. Tax Collection, Tax Security, and Tax Exemption - A. Tax Collection**
Art. 206 Tax Act - IV. Compensatory Interest Official ↗

1. Interest on the final account is calculated as follows

a) in favor of the taxable person on all payments made by them up to the final account;

b) in favor of the tax authority on the assessed tax amount starting from the due date.

2. For non-periodic taxes, the due date is considered to be the 90th day after the tax liability arises. The due date for periodic taxes is determined by regulation.

1. Part: State Taxes - 8. Tax Collection, Tax Security, and Tax Waiver - A. Tax Collection
Art. 207 Tax Act - V. Special Rule for Inheritance Taxes Official ↗

1. Inheritance tax is calculated individually for each heir or legatee, but is billed collectively for all taxable persons.

2. Heirs, estate administrators, executors, legatees, and other persons entrusted with the distribution of the estate must deduct the tax amounts from the bequests before they are granted.

**1. Part: State Taxes - 8. Tax Collection, Tax Security, and Tax Exemption - A. Tax Collection**
Art. 208 Tax Act - VI. Payment Deadline and Default Interest Official ↗

1. A payment period of 30 days is granted for amounts invoiced via the advance payment order or the final invoice.

2. After the expiration of the payment period, interest on arrears is owed on the tax amount, regardless of any possible objection or appeal procedure.

3. ...

**1. Part: State Taxes - 8. Tax Collection, Tax Security, and Tax Exemption - A. Tax Collection**
Art. 208a Tax Act - Payment Facilities Official ↗

1. In the presence of special circumstances, the Cantonal Tax Administration may extend the payment deadline or approve installment payments for due taxes, interest, fines, and costs. The Cantonal Tax Administration's decision is final.

2. Payment reliefs may be conditional upon appropriate security services or partial payments.

3. Payment reliefs lapse if their conditions cease to exist or if the conditions upon which they are based are not fulfilled.

4. Default and compensatory interest remain owed upon the granting of payment reliefs.

**1. Part: State Taxes - 8. Tax Collection, Tax Security, and Tax Exemption - A. Tax Collection**
Art. 209 Tax Act - VII. Waiver Due to Insignificance Official ↗

1. In the case of a minor tax amount, compensation, or default interest, a collection will be waived. The Governing Council determines the amount.

**1. Part: State Taxes - 8. Tax Collection, Tax Security, and Tax Exemption - A. Tax Collection**
Art. 210 Tax Act - VIII. Collection Official ↗

1. Debt collection proceedings are initiated if the amount due based on the advance payment order or the final invoice is not paid. As a rule, a reminder must be issued.

2. Final and binding orders and decisions regarding taxes, fines, costs, and interest are equated with enforceable judicial judgments according to Article 80, paragraph 2 of the Swiss Debt Collection and Bankruptcy Act (SchKG).

1. Part: State Taxes - 8. Tax Collection, Tax Security, and Tax Waiver - A. Tax Collection
Art. 211 Tax Act - IX. Limitation Period for Collection Official ↗

1. The limitation period for tax claims occurs five years after the tax assessment becomes final.

2. The suspension and interruption of the limitation period are governed by Art. 174.

3. In any case, the limitation period occurs ten years after the end of the year in which the taxes were definitively assessed.

**1. Part: State Taxes - 8. Tax Collection, Tax Security, and Tax Exemption - A. Tax Collection**
Art. 212 Tax Act Official ↗

1. In the case of tax refunds to spouses who live in an undivided marital relationship both factually and legally, each spouse is considered authorized to receive payments.

2. Tax refunds may also be offset against preliminary invoices or final invoices.

**1. Part: State Taxes - 8. Tax Collection, Tax Security, and Tax Exemption - A. Tax Collection**
Art. 213 Tax Act - 2. To Divorced or Separated Spouses Official ↗

1. If the spouses have divorced or are actually or legally separated, and as a result, tax amounts are to be refunded that were previously paid based on provisional or final invoices on behalf of both spouses, the refund shall be made equally, half to each spouse.

2. Such tax refunds may also be offset.

**1. Part: State Taxes - 8. Tax Collection, Tax Security, and Tax Exemption - A. Tax Collection**
Art. 214 Tax Act - 3. Claims for Reimbursement in Finalized Assessments Official ↗

1. A paid tax amount that has been determined by a legally binding assessment can be reclaimed with interest if the tax has been reduced in an appeal or correction procedure.

2. The right to reclaim expires five years after the end of the calendar year in which the payment was made. If the claim is established through an appeal or correction only in the last year of this period or after its expiration, it can still be asserted within one year.

3. The Cantonal Tax Administration decides on the claim for reimbursement.

**1. Part: State Taxes - 8. Tax Collection, Tax Security, and Tax Exemption - A. Tax Collection**
Art. 215 Tax Act - XI. Offset Official ↗

1. Claims to be collected by the Cantonal Tax Administration may be offset by the administration against counterclaims of the taxable person and jointly liable persons, even if these are not yet due.

**1. Part: State Taxes - 8. Tax Collection, Tax Security, and Tax Exemption - A. Tax Collection**
Art. 216 Tax Act - XII. Implementing Provisions Official ↗

1. The details of the subscription procedure shall be determined by regulation.

2. The government council shall determine the rates of compensation, default, and refund interest.

**1. Part: State Taxes - 8. Tax Collection, Tax Security, and Tax Exemption - A. Tax Collection**
Art. 217 Tax Act - XIII. Objection and Appeal Official ↗

1. An objection and appeal may be lodged against the advance payment order, the final invoice, the decision on default interest, as well as the decision on a reimbursement claim.

**1. Part: State Taxes - 8. Tax Collection, Tax Security, and Tax Exemption - A. Tax Collection**
Art. 218 Tax Act - XIV. Delivery Official ↗

1. The collection authorities shall transfer the apportioned tax shares, which are due to another community, on a monthly basis. They shall settle accounts annually. In the event of a delay, the governing council may impose a default interest rate.

1. Part: State Taxes - 8. Tax Collection, Tax Security, and Tax Remission - B. Tax Security
Art. 219 Tax Act - Securing of Claims Official ↗

1. If the taxable person does not have a residence in Switzerland or if the payment of the tax owed by them appears to be at risk, the Cantonal Tax Administration may require the provision of security for the presumably owed tax amount even before the assessment becomes legally binding. The security order specifies the amount to be secured and is enforceable immediately. It is equivalent to a court judgment (Art. 80 para. 2 of the Swiss Debt Enforcement and Bankruptcy Act).

2. The security must be provided in cash, through the deposit of secure, marketable securities, or by guarantee.

3. The taxable person may file an appeal against the security order with the single judge of the higher court within 30 days.

4. The appeal does not stay the enforcement of the security order.

1. Part: State Taxes - 8. Tax Collection, Tax Security, and Tax Remission - B. Tax Security
Art. 220 Tax Act - Arrest Official ↗

1. The order of attachment is deemed an attachment order pursuant to Article 274 of the Swiss Federal Debt Collection and Bankruptcy Act (SchKG). The attachment is executed by the competent debt enforcement office.

2. An objection against the attachment order under Article 278 of the Swiss Federal Debt Collection and Bankruptcy Act (SchKG) is not permissible.

1. Part: State Taxes - 8. Tax Collection, Tax Security, and Tax Remission - B. Tax Security
Art. 221 Tax Act - Lien on Real Property Official ↗

1. The state is entitled to a statutory lien on the property for taxes on profits from immovable property, including interest, which takes precedence over all other liens without registration. Notwithstanding this lien, enforcement may also be pursued by garnishment.

2. The lien shall expire if it is not registered within six months from the date the tax assessment decision becomes legally binding, but no later than three years after the registration of the property transfer in the land register. If the transfer does not require registration in the land register, the determination by the competent tax authority is decisive. The protection of bona fide third parties according to Art. 836 para. 2 of the Swiss Civil Code (ZGB) is reserved for liens exceeding an amount of 1,000 Swiss francs.

3. The lien procedure is initiated with the issuance of the lien notice.

4. The lien notice can be appealed to the High Court with a written complaint within 30 days of the notification. The complaint must include a petition and be substantiated.

5. The details of the lien procedure are regulated by ordinance.

6. The purchaser may request information from the Cantonal Tax Administration regarding the due taxes and may require the seller to provide security for this purpose.

Part 1: State Taxes - 8. Tax Collection, Tax Assurance, and Tax Remission - C. Tax Remission
Art. 222 Tax Act - I. Conditions Official ↗

1. If the payment of tax, interest, costs, or a fine due to an offense constitutes a severe hardship for a taxable person as a result of an emergency, the Cantonal Tax Administration may, upon request, waive the amounts owed in full or in part.

2. The purpose of tax remission is to contribute to the permanent rehabilitation of the economic situation of taxable persons. It should benefit the taxable person themselves and not their creditors.

3. Fines and back taxes are waived only in particularly justified exceptional cases.

4. The Cantonal Tax Administration will only consider remission requests submitted before the delivery of the payment order (Art. 38 para. 2 of the Federal Act on Debt Collection and Bankruptcy, SchKG).

5. In withholding tax cases, only the taxable person themselves or their designated contractual representative may submit a remission request.

**1. Part: State Taxes - 8. Tax Collection, Tax Security, and Tax Remission - C. Tax Remission**
Art. 222a Tax Act - Grounds for Rejection Official ↗

1. The tax waiver can be wholly or partially refused, particularly if the taxpayer

a) has seriously or repeatedly violated their obligations during the assessment procedure, making it impossible to evaluate the financial situation for the relevant tax period;

b) has not made any reserves from the tax period to which the waiver request pertains, despite available means;

c) did not make any payments at the time the tax claim was due, despite available means;

d) negligently or with gross negligence caused the lack of financial capacity through a voluntary renunciation of income and assets without good reason, through extravagant living, or similar conduct;

e) has preferentially treated other creditors during the evaluation period.

**1. Part: State Taxes - 8. Tax Collection, Tax Security, and Tax Remission - C. Tax Remission**
Art. 223 Tax Act Official ↗

1. The application for remission must be submitted in writing, stating the reasons, and must include the necessary evidence. The application must outline the hardship that would be caused by the payment of the tax, interest, costs, or fines, indicating that such payment would represent a significant difficulty.

**1. Part: State Taxes - 8. Tax Collection, Tax Security, and Tax Remission - C. Tax Remission**
Art. 223a Tax Act - 2. Procedural Rights and Obligations of the Applicant Official ↗

1. The applicant is subject to the procedural rights and obligations under this law. They are required to provide the Cantonal Tax Administration with comprehensive information about their financial circumstances.

2. If the applicant refuses to cooperate in a necessary and reasonable manner despite being prompted and warned, the Cantonal Tax Administration may decide not to consider the application.

3. The waiver and objection procedures before the Cantonal Tax Administration are free of charge. However, the applicant may be charged costs in full or in part if they have submitted a manifestly unfounded application.

**1. Part: State Taxes - 8. Tax Collection, Tax Security, and Tax Remission - C. Tax Remission**
Art. 223b Tax Act - 3. Means of Investigation Official ↗

1. The Cantonal Tax Administration possesses all investigatory tools according to this law.

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