Ordinance on the Tax Act (Steuerverordnung) - Legal and Factual Separation of Marriage (Art. 10 para. 1 StG)

1. A legal separation of the marriage exists when the marriage is separated or dissolved under civil law.

2. A marriage is considered to be factually separated when the shared household has been dissolved, there is no longer any joint provision for housing and maintenance between the spouses, and any possible support from one spouse to the other is only provided in specifically quantified amounts.

**1. The person to be heard is the Mayor or another person designated as responsible by the Municipal Council from among its members.**

1. Income in kind received by employees is valued at market prices. As a general rule, the standards applicable to the Swiss federal old-age and survivors insurance are used as a reference.

2. Goods and services that a taxable person withdraws from their business for themselves, their family members, or their employees are valued at cost price.

1. Upon the transfer of business assets into private assets, the difference between the market value and the income tax value is considered a taxable capital gain.

2. If the market value cannot be determined, the transfer value is deemed to be the income tax value, or at least the official market value.

1. Declaration at the Time of Acquisition: An irrevocable written declaration to the Cantonal Tax Administration within 30 days from the acquisition of the participation shall be considered valid.

1. The basis for calculating the imputed rental value is generally the rental value of the latest official assessment. Renovations and extensions or other value-enhancing investments not covered by this assessment are considered with a surcharge of 2.8 percent of the expenses.

2. The imputed rental value of properties that taxable persons permanently inhabit at their place of residence corresponds to the relevant value according to para. 1, minus 20 percent. For agricultural properties as well as second homes and holiday homes, the deduction does not apply.

3. The Cantonal Tax Administration issues a leaflet outlining how the relevant rental value is determined when no official assessment is available. The rental value of farm manager residences in agricultural operations is determined according to the Federal Lease Interest Ordinance.

1. Deductions for travel between residence and workplace may be made up to the amount specified in Art. 29 para. 1 lit. a StG

a) * the necessary expenses for using public transportation, or

b) * the necessary costs per kilometer traveled for using a private vehicle, provided no public transportation is available or its use is unreasonable.

2. ...

3. The costs under para. 1 lit. b can be deducted according to the flat rates applicable for the direct federal tax.

4. For the round trip to residence during midday, the travel expenses may be deducted up to the amount of the deduction that could be claimed under Art. 29 para. 1 lit. b StG.

1. The additional costs for meals outside of the residence may be deducted according to the standard rates applicable to direct federal taxation, provided that it is unreasonable for the taxable person to have a main meal at home due to the distance from the residence or the short meal break set by the employer, as well as in cases of continuous shift work.

2. Only half of the deduction is permissible if meals can be taken in an employee restaurant, or if there is a significant reduction in price due to employer contributions.

3. Staggered or irregular working hours are equated with shift work, provided that both main meals cannot be consumed at home at the usual times.

4. The deduction for shift work cannot be claimed in addition to the deduction for additional meal costs.

1. Taxpayers with a workplace located outside their regular place of residence, who cannot reasonably be expected to return daily to their tax-residence, may deduct the additional costs incurred for staying at the external location. The deduction for additional meal expenses incurred outside follows the flat-rate allowances applicable for federal direct taxation.

2. For external accommodation, a maximum deduction equivalent to the customary local rental cost for a room may be claimed. Article 15 applies mutatis mutandis to travel to the external accommodation.

1. For other necessary professional expenses, CHF 700 plus 10 percent of net income, but no more than CHF 2400, can be deducted.

2. The provision for proof of higher necessary expenses is reserved. It must be demonstrated that avoiding these expenses is not reasonable.

3. The costs of a home office in a private residence are recognized as necessary professional expenses if a taxpayer is dependent on a specifically equipped workplace, such a space is actually designated, and a substantial part of professional work must be performed at home. A part is considered substantial if at least 40 percent of the work, measured against full-time employment, must be done at home.

1. In the case of dependent secondary employment, the necessary professional expenses are deducted according to the flat rates applicable to direct federal tax.

2. For the professional expenses of part-time members of authorities, an additional flat deduction of up to CHF 2,600 is applied.

3. The proof of higher necessary expenses remains reserved.

1. Movable items in the essential fixed assets of a business can be immediately depreciated in the year of acquisition or construction by the amount of the difference between the asset value and the salvage value.

2. Buildings in the essential fixed assets of a business with specific special uses, such as factory buildings, warehouses, workshop buildings, company garages, and greenhouses, can be subject to an immediate depreciation of 30 percent in the year of acquisition or construction.

1. The provision established for replacement procurement must be used for depreciation on the replacement asset within three years. The period may be extended if a delay occurs due to an objective compulsion situation which could not have been avoided even with careful action.

2. The hidden reserves may also be transferred to an asset acquired in the previous fiscal year.

3. The hidden reserves of a sold fixed asset can only be transferred to the replacement asset to the extent that the income tax value of the replacement asset does not fall below the previous income tax value of the sold fixed asset.

1. The loss carryforward is determined based on net income plus the deductions pursuant to Art. 35 of the Tax Act, insofar as these are not directly related to the generation of income.

**1. For real estate within private assets that is not predominantly used by third parties for business purposes, a flat-rate deduction can be claimed instead of the actual maintenance and management costs, provided the annual gross rental income of the entire real estate holdings does not exceed CHF 100,000. The flat-rate deduction amounts to 10 percent of the gross rental income for buildings up to 10 years old and 20 percent of the gross rental income for older buildings. In the calculation of an imputed rental value, this is decisive. The age of the property is determined based on the key date relevant for the wealth tax assessment period.**

**2. The taxable person may choose between the flat-rate deduction and the deduction of actual costs in each assessment period. The right to choose is available for each individual building.**

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1. Deductible are interest on debts, including construction loan interest, provided that their payment is likely.

1. The decisive factor is the time of actual payment by the person who owes the pension or maintenance contributions.

1. In the case of dependent employment of the other spouse, the cooperation must be contractually agreed upon between the employer of the working spouse and the cooperating spouse.

1. The living expenses included in the third-party childcare costs are not deductible.

2. Only third-party childcare costs for children under the parental care of the taxable person, for whom no maintenance contributions according to Art. 35 letter c StG are deducted, are deductible.

1. No sickness or accident costs are, in particular

a) Preventive measures;

b) The costs of household management by third parties.

1. Unless otherwise provided by Art. 39b StG and the provisions of this article, the provisions of the StG and this ordinance regarding withholding tax shall apply mutatis mutandis in the simplified accounting procedure.

2. The tax is levied based on the gross salary reported by the employer to the AHV compensation fund.

3. The provisions of the ordinance on old-age and survivors' insurance regarding the simplified accounting procedure apply mutatis mutandis to the accounting and delivery of withholding tax to the responsible AHV compensation fund.

4. If the tax is not paid following a reminder from the AHV compensation fund, the fund shall notify the tax authority of the canton where the employer has its registered office or residence. The tax authority shall collect the tax in accordance with tax legislation regulations.

5. The AHV compensation fund transfers the collected tax payments to the tax authority of the canton where the taxable employee resides, after deducting the commission it is entitled to.

6. Art. 100 para. 3 and Art. 104 StG are not applied.

7. The distribution of tax revenues occurs analogously to the general withholding tax.

**1. For the taxation of liquidation gains with a pension character, the Federal Ordinance on the Taxation of Liquidation Gains upon the Final Cessation of Self-Employment (LGBV) is applied mutatis mutandis.**

1. The intrinsic value is determined according to the guidelines for the valuation of securities without market value for wealth tax.

2. For closely held companies domiciled in Appenzell Ausserrhoden, the value according to paragraph 1 is reduced by 20 percent. No reduction is granted if the personal nature of the company has already been considered in the valuation of the intrinsic value.

3. In any case, the value is at least one-third of the net asset value.

1. In the case of restricted employee shares, the blocking period must be considered in accordance with income tax regulations.

2. Employee shares with a redemption obligation must be taxed at the redemption price until the shares are either redeemed or the redemption obligation ceases.

1. For the determination of the official market value of real estate, the date of the appraisal is decisive.

1. For properties located within the construction zone according to the legally binding zoning plan, as well as for properties serving as capital investment, the market value shall be reasonably taken into account.

1. Household effects are defined as the usual items used for furnishing an apartment or a house. These include, in particular, furniture, carpets, paintings, dishes, books, kitchen, household, and gardening tools.

2. Personal belongings are defined as items such as clothing, jewelry, watches, photo and film cameras, as well as consumer electronics devices.

3. Motor vehicles, boats, horses, and other assets with a significant market value that exceeds the usual are not considered household effects or personal belongings, particularly collections of any kind.

1. Income from self-employment is determined according to the results of the fiscal years concluded within the tax period. This applies also when commencing or ceasing the activity or when changing the timing of the fiscal year completion, provided the resulting fiscal year spans more or fewer than twelve months.

2. The result of the fiscal year completion is utilized in its actual scope for determining the income relevant for the tax period.

3. For an entire year of tax liability, the result of the fiscal year completion is used for the rate determination without conversion. In cases of partial-year tax liability and simultaneously a partial fiscal year, the ordinary profits for rate determination are converted to a twelve-month basis depending on the duration of the tax liability. However, if the duration of the partial fiscal year exceeds the duration of the tax liability, ordinary profits for rate determination can only be converted to a twelve-month basis according to the duration of the fiscal year.

4. Ordinary profits of a fiscal year that encompasses twelve or more months are not converted for rate determination even in cases of partial-year tax liability.

5. No conversion is made for losses.

1. If taxable persons inherit assets during the tax period, the assessment is only adjusted if the inheritance amounts to at least CHF 100,000.

1. The provisions regarding the tax liability of natural persons shall apply mutatis mutandis.

1. The provisions regarding the tax liability of natural persons shall apply mutatis mutandis.

1. A partial tax exemption is permissible when the charitable activity constitutes a significant part of the activities of the legal entity, a separate annual financial statement is prepared for this activity, separate accounting is maintained, and the permanent dedication to a charitable purpose is ensured.

2. Competition with private enterprises exists when the service is essentially the same and is provided to predominantly the same group of people, without considering the economic capacity of the recipients of the service.

1. The provisions regarding income tax are applied mutatis mutandis.

1. Upon entry into the patent box with offsetting, reduced taxation is applied insofar as the net profit from patents and comparable rights exceeds the total recapture amount according to Art. 69a para. 3 StG.

2. An unoffset amount is added to the taxable net profit

a) as of the relocation date, if the taxable person moves the patent box within five years of entry to a canton with different entry taxation or abroad;

b) at the end of the fifth year following entry into the patent box;

c) at any time upon the request of the taxable person.

3. To the extent of the amount added according to para. 2, a taxed hidden reserve must be established.

1. If the tax reductions exceed the statutory relief limitation, they shall be reduced in the following order

1. Additional deduction of research and development expenses (Art. 70a StG);

2. Depreciation on uncovered hidden reserves (Art. 285e para. 4 StG);

3. Reduction of net profit from patents and similar rights (Art. 69a StG).

1. Movable items in the essential fixed assets of a business can be immediately depreciated in the year of acquisition or construction by the amount of the difference between the asset value and the salvage value.

2. Buildings in the essential fixed assets of a business with specific special uses, such as factory buildings, warehouses, workshop buildings, company garages, and greenhouses, can be subject to an immediate depreciation of 30 percent in the year of acquisition or construction.

1. The provisions regarding income tax are applied mutatis mutandis.

1. If a legal entity is subject to taxation in multiple municipalities within the canton, a tax apportionment among the involved municipalities shall take place, provided that

a) the share of the taxable profit attributable to the municipality exceeds CHF 1,500, or

b) the share of the taxable capital attributable to the municipality exceeds CHF 100,000.

2. The tax apportionment by the Cantonal Tax Administration is conducted in accordance with the principles established by the federal court jurisprudence on the prohibition of intercantonal double taxation.

3. ...

4. The minimum tax on capital according to Art. 90 StG is allocated to the main tax domicile.

1. The following tax codes shall be applied to the withholding tax deduction for the persons listed below

a) Tax Code A: for single, divorced, legally or actually separated, and widowed persons who do not live in the same household with children or persons in need of support;

b) Tax Code B: for spouses living in legally and actually unchanged marriages where only one spouse is gainfully employed;

c) Tax Code C: for spouses living in legally and actually unchanged marriages where both spouses are gainfully employed;

d) Tax Code D: for persons receiving benefits under Art. 18 para. 3 AHVG; the tax rate is 9 percent;

e) Tax Code E: for persons taxed under the simplified settlement procedure according to Art. 39b StG;

f) Tax Code F: for cross-border commuters under the agreement of October 3, 1974, between Switzerland and Italy regarding the taxation of cross-border commuters and the financial compensation in favor of Italian border municipalities, who live in an Italian border municipality and whose husband or wife is gainfully employed outside Switzerland;

g) Tax Code G: for all substitute incomes replacing earned income according to Art. 98 para. 2 lit. b StG, which are not paid out to withholding tax liable persons through employers;

h) Tax Code H: for single, divorced, legally or actually separated, and widowed persons who live in the same household with children or persons in need of support and primarily provide for their maintenance;

i) Tax Code L: for cross-border commuters under the agreement of August 11, 1971, between the Swiss Confederation and the Federal Republic of Germany to avoid double taxation on income and wealth taxes (DBA-D), who meet the requirements for Tax Code A;

j) Tax Code M: for cross-border commuters under the DBA-D, who meet the requirements for Tax Code B;

k) Tax Code N: for cross-border commuters under the DBA-D, who meet the requirements for Tax Code C;

l) Tax Code P: for cross-border commuters under the DBA-D, who meet the requirements for Tax Code H;

m) Tax Code Q: for cross-border commuters under the DBA-D, who meet the requirements for Tax Code G.

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1. The tariffs according to Art. 44 para. 1 lit. a-c, g and h include the fire brigade replacement levy.

1. An individual shall be subsequently ordinarily assessed according to Art. 103 para. 1 lit. a StG if their gross income from dependent gainful employment amounts to at least CHF 120,000 in a tax year.

2. Gross income from dependent gainful employment shall be deemed to include income according to Art. 98 para. 2 lit. a and b StG.

3. Dual-income married couples shall be subsequently ordinarily assessed if the gross income of either the husband or the wife amounts to at least CHF 120,000 in a tax year.

4. The subsequent ordinary assessment shall be maintained until the end of the withholding tax obligation, regardless of whether the gross income temporarily or permanently falls below the minimum amount of CHF 120,000, or in the event the spouses divorce or separate de facto or legally.

5. In the case of partial-year tax liability, the calculation of the minimum amount shall be governed by Art. 53 para. 3 and para. 4 StG.

1. Upon request of individuals subject to withholding tax who make maintenance contributions pursuant to Art. 35 para. 1 lit. c of the Cantonal Tax Act (StG) and for whom the tariff code A, B, C, or H is applied, child deductions may be considered up to the amount of the maintenance contributions to alleviate hardship cases in the calculation of the withholding tax.

2. If maintenance contributions have been considered in the application of one of these tariff codes, subsequent ordinary assessment is only carried out at the request of the individual subject to withholding tax (Art. 104 StG). If subsequent ordinary assessment is requested, it will be conducted until the end of the withholding tax liability.

1. An individual who was previously taxed at source will be assessed through the regular procedure for the entire tax period if they

a) obtain a permanent residence permit;

b) marry a person with Swiss citizenship or a permanent residence permit.

2. Withholding tax is no longer owed from the month following the issuance of the permanent residence permit or the marriage. The tax deducted at source will be credited without interest.

1. If income is initially subject to ordinary taxation within a tax period and subsequently to withholding tax, the taxable person shall be assessed ordinarily for the entire year and until the end of the withholding tax obligation retroactively.

2. Divorce and the actual or legal separation from a husband or wife with Swiss citizenship or a settlement permit trigger withholding tax again for a foreign employee without a settlement permit from the beginning of the following month.

3. Any advance payments made before the transition to withholding taxation as well as taxes deducted at the source shall be credited.

1. Withholding tax shall not be levied if the taxable gross income is less than

a) CHF 300.- per event for services rendered by artists, athletes, and speakers subject to tax by a debtor providing the taxable service (Art. 108 StG);

b) CHF 300.- in total over a tax year for services rendered by bodies of legal entities subject to tax by a debtor providing the taxable service (Art. 109 StG);

c) CHF 300.- in the tax year in the case of mortgage creditors (Art. 110 StG);

d) CHF 1,000.- in the tax year for recipients of pensions (Art. 111 StG).

1. The accounting period is defined as the calendar month.

2. The tax authority may approve longer accounting periods (quarterly, semi-annually, annually) provided that the withholding tax is not settled via the electronic payroll reporting procedure.

3. ...

1. The debtor of the taxable service receives a commission of 1 percent of the tax amount delivered.

2. For capital services, services to governing bodies of legal entities, and monetary benefits from employee participations, the commission amounts to 1 percent of the tax amount delivered, but not exceeding CHF 50.- per taxable service.

1. Amounts of less than CHF 10.- will neither be refunded nor paid retrospectively.

1. A transfer of economic ownership specifically includes the sale of a majority stake in a real estate company to a purchaser if the stake held by the seller, either alone or together with collaborating parties, constitutes more than 50 percent of the capital or voting rights in the company.

2. Collaboration is presumed if the sales occur within a one-year period to the same purchaser.

1. The proceeds from the sale may be used within three years after the disposal for the acquisition of a replacement property. The period may be extended if a delay has been caused by an objective situation of compulsion that could not have been avoided even with due diligence. If the acquisition of the replacement property occurs after the disposal, the capital gains tax on real estate is assessed and collected.

2. The replacement property can be acquired within one year prior to the disposal of the property to be replaced. The period may be extended if a delay has been caused by an objective situation of compulsion that could not have been avoided even with due diligence.

3. ...

1. In the case of a prior transfer of the property from business assets to private assets, the transfer value shall be considered the purchase price.

1. A mixed gift exists when the consideration exceeds the value of the performance by more than 20 percent. For real estate, the official market value is taken into account.

2. The taxable person or the cantonal tax administration may request a revaluation.

1. In the case of gifts between life partners, the relevant moment is the time of execution of the gift.

1. The costs of data transfers from the municipalities shall be charged to them, provided that the instructions of the Cantonal Tax Administration are not followed.

2. The Cantonal Tax Administration represents the canton in collection tasks concerning certificates of loss before the court.

1. The procedure may be conducted electronically, provided that the joint portal of the canton and municipalities offers respective eServices.

2. The use of eServices requires an electronic identity verified by the AGOV authentication service of the Swiss authorities.

3. The competent tax administration authority determines the necessary identity data and the required authentication level for the use of eServices.

4. An electronic submission is considered filed when the corresponding eService confirms the transmission.

5. Insofar as there are no special regulations, the general provisions on electronic commerce are applicable.

1. The Department may issue general authorizations for certain information disclosures.

2. The Cantonal Tax Administration provides the municipalities with debtor lists pertaining to them twice a year. The municipal council regulates access rights to the debtor lists.

1. The competent administrative authorities shall report all data necessary for the assessment to the Cantonal Tax Administration free of charge and in accordance with its instructions.

2. In particular, they shall report without delay

a) the residents' registration offices shall report all changes, especially in the population registry, each arrival and departure, as well as any address change;

b) the land registry offices shall report any change of ownership and appraisal of real estate;

c) the commercial register office shall report any entry and deletion in the commercial register;

d) the Office for Internal Affairs and the Office for Economy and Labor shall report all permits granted for the exercise of a gainful activity, the remuneration of which is subject to withholding tax at the source;

e) all state and municipal offices shall report any facts that may give rise to the initiation of a supplementary tax procedure.

1. Costs may be imposed for the inspection of files from tax assessment procedures that have been concluded with final legal effect.

1. The Cantonal Tax Administration charges a fee for granting an extension of the deadline. The first extension is free of charge. Each subsequent extension is subject to a fee.

2. The Cantonal Tax Administration imposes reminder fees. The first reminder is free of charge. Each subsequent reminder is subject to a fee.

3. The amount of the fees is determined according to the Office Fees Ordinance.

1. The costs in the supplementary tax proceeding are governed by the Act on Fees in Administrative Matters.

1. The provisional tax assessment is divided into three installments, payable by March 31, June 30, and September 30.

2. The Cantonal Tax Administration may, with the consent of the taxpayer, divide the provisional tax assessment into up to a maximum of twelve installments. The additional costs are to be borne by the taxpayer.

1. Expiration Date is June 30.

2. If the tax liability exists for less than eight months during a tax period, the midpoint day of the duration of the tax liability shall be considered the expiration date.

1. Amounts invoiced in the final invoice, including balancing interest, of less than CHF 10, as well as default interest of less than CHF 10, will not be collected.

1. A notice of default can be waived in cases of urgent necessity.

1. The Land Registry Office expressly informs the parties involved in each transfer of ownership or similar legal transactions, as well as during the establishment of new liens on real property, about the existence and scope of the statutory lien for the tax on gains from real property and the transfer tax. The reference must be mentioned in the deed.

2. Additionally, the Land Registry Office advises on the possibility of securing the taxes.

1. For properties within business assets, the determination of the portion of the tax claim secured by the real estate lien is made according to the significance of the property gain for the total tax claim of the canton and municipality.

2. By entering the provisional tax claim, the period of three years is deemed to be preserved.

3. The lien notice is communicated to the taxable person and the owner of the property.

4. The assessed tax is binding on the owner of the property.

**2. The authority responsible for issuance makes the final decision on the repurchase of loss certificates.**

3. If the applicant pays, without reservation, the taxes, interest, or fines affected by the waiver request in full or in part while the request is pending with the waiver authority, the waiver procedure becomes moot to the extent of the payment.

1. The provisions of the Federal Act on Direct Federal Tax and the Ordinance of the Federal Department of Finance on the Treatment of Requests for Remission of Direct Federal Tax shall apply mutatis mutandis.

1. If a natural person is liable to tax in multiple municipalities within the canton, a tax apportionment between the involved municipalities is carried out, provided that

a) the portion of taxable income attributable to the municipality exceeds CHF 1,000, or

b) the portion of taxable assets attributable to the municipality exceeds CHF 25,000.

1. The provisions of the real estate capital gains tax shall be applied mutatis mutandis.

**1. In the absence of an agreement, the parties each owe half of the tax.**

1. The entry of the provisional tax claim is considered to meet the three-year deadline.

2. The lien order is delivered to the taxable person and the owner of the property.

3. The assessed tax is binding on the owner of the property.

1. On Depreciations of Assets, which Due to a Change to the Predominance Method as of January 1, 1995, have been Removed from Business Assets, Accounting Shall be Made at the Time of Actual Realization (Sale, Gift) or, if this Occurs Earlier, Upon Cessation of Independent Business Activity (Liquidation, Transfer).

1. Replacement acquisitions that occur before the sale of the asset to be replaced or the property are possible no earlier than January 1, 2001.

1. Whether extraordinary income is present is generally assessed based on a comparison with previous years.

1. Extraordinary Income from Self-Employment in Specific Cases

a) Percentage reductions in inventory reserves in relation to the inventory value; absolute reductions in inventory reserves only when they are not operationally related;

b) Percentage reductions in the provision for bad debts in relation to receivables; absolute reductions in provisions for bad debts only when caused by partial liquidation;

c) Changes in previous depreciation and provisioning practices, in any case where necessary depreciations or provisions are omitted;

d) Contributions to professional pension schemes for the benefit of one's own staff that are less than the ordinary contributions of employers.

1. Losses from the tax years 1999 and 2000, as well as any remaining offsettable losses from previous years, may be deducted from the extraordinary income of the years 1999 and 2000, reduced by the extraordinary expenses related to such income.

2. Losses from self-employment in previous years are to be offset against the ordinary income of the years 1999 and 2000.

1. The revision must be carried out at the latest during the next main assessment.

2. Revision requests submitted after the finality of the main assessment for the tax year 2001 will not be considered.

1. For companies that relocated their registered office or place of effective management to the canton in the years 1999 or 2000, the applicable rate for the fiscal year 1999 is 100 percent.

2. The rate for companies is determined according to Article 81 of the Tax Code (StG) based on profits, and in all other cases, based on capital.

1. Profit shares distributed at the expense of the annual financial statement for the fiscal year 2000 in the year 2000 will not be taken into account.

2. Distributable reserves that have arisen due to a change in valuation practices compared to previous years will not be considered.

1. For tax amounts not collected or refunded by the municipalities by December 31, 2001, the Cantonal Tax Administration shall assume responsibility for collection or refund.

2. If reasonable collection measures or refunds have not been taken, the expenditures will be charged to the municipality. The State Tax Commission shall determine case-based flat rates to cover costs.

1. The archiving of tax assessment files, pertaining to the tax years from 1991 up to and including 2002, shall be carried out by the Cantonal Tax Administration.

2. The Cantonal Tax Administration may issue instructions to the Municipal Tax Office, particularly concerning the format and order in which the tax assessment files are to be delivered.

1. This regulation enters into force on 1 January 2001.