1 Foundations and Organization, Public Levies » 17 Public Levies » 172 Cantonal Taxes (GGSTV)

1. Subject Matter

This Ordinance contains the implementing provisions for the assessment

and collection of real estate gains taxes, as well as related additional taxes.

2. Relationship with other Implementing Provisions

Where this Ordinance contains no provision, the remaining implementing provisions to the Tax Act shall apply *mutatis mutandis*.

II. Substantive Implementation Provisions

1. Transfer of controlling interests in real estate companies

1 An interest in a real estate company is considered controlling within the meaning

of § 106 para. 2 letter a of the Tax Law (StG) if, by itself or in conjunction

with third parties, it confers a majority of voting rights, or if the

interest grants special rights to a residential unit or special usage rights.

2 The controlling point in time of disposal in the case of a staggered transfer is

the point in time of the transfer of the share that, in total, results in a

controlling interest being considered as transferred.

2. Inheritance Partition

In the event of a change of ownership of a property as part of an inheritance partition to one or several heirs, a complete deferral of taxation always occurs, irrespective of any equalization payments.

3. Advancement of Inheritance, Donation, and Legacy

1 In the case of dispositions involving partial advancement of inheritance, mixed donation, or partially remunerative legacy, taxation is deferred, provided that the proceeds from the disposition do not exceed 75% of the market value of the property and the tax deferral is jointly requested by the parties.

2 If the proceeds from the disposition exceed 75% of the market value, the entire real estate gain will be taxed.

3 Insofar as the Federal Act on Rural Land Rights5 applies to properties, the market value corresponds to the achievable proceeds.

4 For non-agricultural properties, the tax market value according to the legally binding valuation decision is generally decisive, adjusted for inflation since the valuation date according to the tax-relevant construction cost index. In justified cases, the assessment authority may deviate from the determined value.

5. Replacement Acquisitions

a) Time Limit for Replacement Acquisitions

1 The time limit for replacement acquisitions within the meaning of §§ 108 and 109 of the Tax Law (StG) is calculated from the time of disposal for which a tax deferral is claimed.

2 Replacement acquisitions for residential property made after the expiry of four years will only result in a subsequent deferral if they were not possible within the period for important reasons. The same applies mutatis mutandis to advance acquisitions.

b) Calculation and Taxation of Deferral

1 In the case of replacement acquisitions within the meaning of §§ 108 and 109 StG, the taxation

is deferred by the proportion of the capital gain by which the

relevant acquisition costs of the replacement property or the replacement participation

exceed those of the divested property or the divested participation.

If the seller of the replacement property or the replacement participation was granted a

tax deferral according to § 107 StG, then instead of the acquisition costs of the

replacement property or the replacement participation, the acquisition price paid by the

purchaser and the expenses borne by the purchaser within the meaning of § 116 StG

are decisive.

2 Upon disposal of a replacement property or a replacement participation,

untaxed gains are deducted from the acquisition costs.

3 When calculating the tax deferral according to para. 1, both for the divested

property and for the replacement property, the ownership relationships as recorded

in the land register must be used; in the case of joint ownership, the quota

applicable in the internal relationship must additionally be considered.

c) Residential Property

For the determination of the sale proceeds relevant for the deferral of taxation

due to replacement acquisition of a property partially used by third parties, the

portion attributable to third-party use must be excluded. The same applies mutatis

mutandis for the determination of the relevant investment costs of a partially

third-party-used replacement property. If the seller of the replacement property was

granted a tax deferral according to § 107 of the Tax Law (StG), then instead of the

investment costs of the replacement property, the acquisition price paid by the

acquirer and the expenses borne by them in the sense of § 116 StG shall be

decisive.

2 For self-occupied properties that are only partially developed, paragraph 1 applies

mutatis mutandis.

III. Organization and Procedure

1. Tax Declaration

1 The non-delivery of a tax declaration does not relieve the obligation for timely declaration.

2 § 142 StG applies mutatis mutandis.

2. Estimated Tax Amount

a) Prior Notification of Disposal

Disposing and acquiring persons are obliged, for the purpose of tax

security, to notify the competent notary and land registry office of disposals

that result in an entry in the land register at least five days in advance.

For non-land register disposals, notification must be made within the same period

to the cantonal tax administration. Section 15 applies mutatis mutandis.

b) Determination and Communication

1 The estimated tax amount is determined taking into account the information

provided in the disposal notification.

2 The assessment authority shall communicate the estimated tax amount, determined

in accordance with § 197 StG, in writing to the disposing person. In the case of

disposal with a land register entry, it shall also communicate it to the notary's office

and the land registry office, which, in the event of insufficient tax security, shall

inform the acquirers in writing about the legal situation according to § 197 para. 3 StG.

3 In the case of disposals not subject to a land register entry, the assessment authority

shall additionally inform the acquiring person in writing about the existence of a

tax security obligation (without specifying the amount), the tax liability in case of

non-payment, and the possibility of inquiring with the Office for Finance before the

disposal about the provision of the required tax security.

4 There is no right of objection against the calculation of the estimated tax amount.

3. Cooperation of Other Authorities

a) Notaries and Land Registry Offices

aa) Duties

1 In the real estate gains tax procedure, notaries and land registry offices have the following duties

a) Reporting of prospective sales with land register entry;

b) Cooperation in the calculation of the prospective tax amount;

c) Receipt and remittance of tax securities;

d) Instructing purchasers about tax liability;

e) Reporting on sales completed in the land register.

2 The cooperation must be carried out in accordance with the directives of the cantonal tax administration.

bb) Notification of Disposition

1 Notary publics and land registries shall notify the cantonal tax administration,

as per its instructions, of dispositions of real estate or shares therein, and of legal

transactions that have an equivalent effect to dispositions.

2 Each notification of disposition must contain

a) Names, dates of birth, and addresses of the disposing and acquiring

persons;

b) Object of disposition (municipality of the property, land register/cadastre

number, area/shares, description) and rights objectively linked to it;

c) Consideration (disposition price and other performances);

d) Type of acquisition.

3 Notifications of prospective dispositions must, in addition to para. 2, contain

a) Prospective dates of notarization and land register entry;

b) Share of the disposing persons in the disposition costs (notary and land

register fees);

c) Date of the last taxable disposition and personal details of the disposing

persons at that time.

4 Notifications of completed dispositions must, in addition to para. 2, contain the

dates of public notarization, land register entry, and effective date of transfer.

5 The cantonal tax administration may request additional information.

b) Debt Enforcement and Bankruptcy Authorities

In debt enforcement proceedings, the debt enforcement and bankruptcy authorities

cooperate, for the purpose of tax securing and assessment, according to the instructions of the cantonal

tax administration.

c) Compensation

1 Notary publics and land registries, as well as debt collection and bankruptcy

authorities, receive a flat-rate compensation for their cooperation.

2 The Government Council regulates the compensation.

4. Deferral of Taxation

a) Replacement Acquisition (new)

aa) (new) Assertion in Case of Prior Replacement Acquisition

In the case of a prior replacement acquisition, the deferral of taxation for a later realized capital gain must be asserted at the latest by the expiry of the period within which an objection against the assessment of this capital gain can be lodged.

bb) Disposition for subsequent replacement acquisition

If a replacement acquisition occurs more than 30 days after the sale, the tax assessment authority shall first assess the gain without considering the replacement acquisition and subsequently make an adjustment within the meaning of § 173 StG.

b) Restructuring

1 If the conditions for a continued deferral of taxation in the sense of Article 107 lit. d of the Tax Law (StG) that are necessary for a restructuring cease to exist prematurely, the profit must be retroactively taxed as of the time of the disposal for which a deferral was granted. The participation in a real estate company disposed of in accordance with Articles 20 para. 2 StG or 67 para. 2 StG does not itself have to be material in the sense of Article 4.

2 Decisions made on the basis of a previous deferral of taxation must be adjusted. In appeal proceedings, only an incorrect adjustment can be claimed.

3 The procedure is governed by Articles 175 et seq. StG.

5. Tax Collection

a) Collecting Authority

The Office of Finance collects all claims governed by this Ordinance.

b) Due Date and Payment Period

1. The real estate gains taxes and additional taxes become due 30 days after the sale and must be paid within 30 days of invoicing.

2. The collection of additional taxes shall be postponed for the duration of an objection or court procedure.

3. The obligation for tax security pursuant to § 197 para. 1 StG remains reserved.

c) Interest

aa) Remuneration Interest

1 Tax amounts paid on the basis of a notification regarding the probable tax amount or an invoice shall be subject to interest in favour of the taxpayers ex officio and in full until their due date, and thereafter to the extent that they exceed the definitive tax amount.

2 Remuneration interest shall be calculated from the day of tax payment (value date of receipt) until the due date or until repayment.

3 Article 173 para. 2 of the Tax Act remains reserved.

bb) Default Interest

1 Default interest shall be levied on taxes and supplementary taxes from the due date.

2 The default interest shall be invoiced together with the claim amount or after its receipt.

d) De Minimis

1 Taxes, tax claims, and interest will not be collected if, in total per disposal, they do not exceed 30 Swiss Francs.

2 Subsequent taxes will always be levied.

e) Tax Refund and Offset

Tax credits are refunded, insofar as an offset is not possible.

6. Tax Security

a) Types of Security

1 Tax deposits within the meaning of § 197 para. 1 StG must be made in cash or by

check from a bank domiciled in Switzerland, whereby the

bank check must be handed over to the submission

office no later than five days before the expiration of the presentation period according to

Art. 1116 para. 1 of the Swiss Code of Obligations and must be made out in favor of the competent notary and land

registry office or the Office of Finance.

2 Tax securities by bank guarantees or bank sureties within the meaning

of § 197 para. 1 StG must be issued in favor of the Office of Finance

and may not contain any formulations deviating to the disadvantage of the creditor

from the provisions of the Swiss Code of Obligations.

3 The cantonal tax administration may prescribe the texts and forms to be used.

b) Filing Office

1 Tax securities for dispositions requiring land register entry are to be furnished to the competent notarial offices and land registry offices, and for other dispositions, to the Office of Finance.

2 Tax securities that do not meet the requirements pursuant to § 197 para. 1 StG and § 26 of this Ordinance are to be accepted only with the explicit remark of insufficient tax security. The acquirers must be informed in writing that they are not released from tax liability upon completion of the disposition.

c) Forwarding

1 Notary offices and land registries shall transfer deposited tax amounts to the Office of Finance within 30 days. In case of delayed transfer, default interest will be charged.

2 Bank guarantees and bank sureties shall be forwarded without delay to the cantonal tax administration, which shall transmit them to the Office of Finance after the issuance of the assessment notice.

d) Enforcement

1 Tax deposits made by bank checks must be cashed immediately upon receipt.

2 Tax securities provided by bank guarantees and bank suretyships must be enforced at the latest with the opening of the assessment procedure (dispatch with proof of delivery).

1. Commencement and Repeal of Previous Law

This Ordinance enters into force retroactively on January 1, 2001. It replaces the Ordinance concerning the Collection of Real Estate Gains Tax of November 4, 1997.

2. Transitional Provision

1 The Ordinance on the Collection of Real Estate Capital Gains Tax of

November 4, 1997, remains applicable to dispositions entered in the land register before January 1, 2001. For dispositions without a land register entry, the date of the transfer of the power of disposition or of the participation rights is decisive.

2 Sections 247 to 249 para. 1 of the Tax Law (StG) and special statutory provisions on the distribution of real estate capital gains tax revenues remain reserved.

2a. Partial Revision 2006

Restructurings and replacement acquisitions undertaken after February 28,

2006, shall be governed by the new law. For all other matters, the amended provisions shall apply to disposals where the

entry in the land register or the transfer of the power of disposal or the participation

rights takes place after December 31, 2006.

2b. Partial Revision 2017

§§ 9 para. 1 and 10 para. 1 shall apply for the first time to dispositions in which the entry in the land register or the transfer of the power of disposition or of the participation rights takes place after December 31, 2017.

3. Publication

This Ordinance shall be published in the Official Gazette and included in the Collection of Laws.

1 GS 20-97 as amended on December 19, 2006 (GS 21-109), December 10, 2013 (GS 23-96b), October 21, 2014 (RRB Adaptation of Implementing Provisions to the Tax Law, GS 24-19b), December 9, 2015 (FHV, GS 24-60f), December 13, 2016 (RRB Adaptation of Implementing Provisions to the Tax Law and the Ordinance on the Refund of Additional Tax Withholding of the United States of America, GS 24-86b) and December 12, 2017 (RRB Adaptation of Implementing Provisions to the Tax Law, GS 25-12b).

2 SRSZ 172.200.

3 Repealed on October 21, 2014.

4 Paras. 1 and 4 as amended on December 19, 2006.

5 SR 211.412.11.

6 Repealed on December 19, 2006.

7 Paras. 2 and 3 (new) as amended on December 19, 2006, para. 1 as amended on December 12, 2017.

8 Para. 1 as amended on December 12, 2017.

9 Para. 3 as amended on December 9, 2015.

10 Para. 3 lit. b and para. 4 as amended on December 13, 2016.

11 Heading as amended on December 19, 2006.

12 Newly inserted on December 19, 2006.

13 Heading and para. 1 as amended on December 19, 2006.

14 Version of December 9, 2015.

15 Para. 1 as amended on October 21, 2014.

16 Paras. 1 and 2 as amended on October 21, 2014.

17 Para. 1 as amended on October 21, 2014.

18 Paras. 1 and 2 as amended on December 9, 2015.

19 SR 220.

20 Para. 1 as amended on December 9, 2015.

21 Paras. 1 and 2 as amended on December 9, 2015.

22 Para. 2 as amended on December 10, 2013.

23 Abl 1997 1683; amendments of December 19, 2006 entered into force on March 1, 2006 (sections 9, 18a and 19) and January 1, 2007 (remaining provisions; Abl 2006 2299), of December 10, 2013 on January 1, 2014 (Abl 2013 2981), of October 21, 2014 on January 1, 2015 (Abl 2014 2452), of December 9, 2015 on January 1, 2016 (Abl 2015 2849), of December 13, 2016 on January 1, 2017 (Abl 2016 2869) and of December 12, 2017 on January 1, 2018 (Abl 2017 2856).

24 Abl 1997 1683.

25 Newly inserted on December 19, 2006.

26 Newly inserted on December 12, 2017.