REGULATION on the allocation methods of the federal compensation aiming to mitigate the effects of implementing the TRAF (RFFA) (R-RFFA) - Principle [ 1 ] (R-RFFA)

1. The portion of the federal compensation allocated to the municipalities in accordance with Article 16 of the LPIV is calculated based on the ratio between the yield of cantonal taxes and that of municipal taxes on the profits and capital of legal entities.

2. The portion of the compensation calculated according to paragraph 1 is distributed among the municipalities based on the yield of their taxes on the profits and capital of legal entities.

1. For the civil year concerned (hereinafter year N), the federal compensation shall be distributed between the Canton and the municipalities as well as among the latter in the following manner

a. a provisional distribution shall take place in the form of advance payments made by the Canton to the municipalities during year N according to the procedures set out in Article 4;

b. a final settlement shall be established in the following civil year (hereinafter year N+1) according to the procedures set out in Article 5, with the amounts provisionally paid being corrected where appropriate.

1. The Directorate General of Taxation (DGT) ensures the distribution of the amount of federal compensation between the Canton and the municipalities, the allocation of municipal shares, and the disbursements or billings to the municipalities.

1. The amount of the federal compensation as carried out in this title in the Canton budget for the year N is allocated between the Canton and the municipalities, proportionally to the ratio between the yield, for the year N-2, of the taxes on the profit and on the capital of legal entities of the Canton and the total yield of these same taxes for all the municipalities, based on the closing figures communicated by the DGF to the municipalities.

2. The share of the federal compensation allocated to the municipalities in accordance with paragraph 1 is distributed among them in proportion to the yield of the taxes on the profit and on the capital of legal entities of each municipality for the year N-2, as established by the DGF and communicated upon closing.

3. Municipalities presenting a negative yield are excluded from the scope of the provisional allocation, and their yield is not included in the calculations of the provisional allocation.

4. The payment of the amounts due to the municipalities as provisional allocation takes place in a single installment, before March 31 of the year N.

1. For its definitive allocation, the amount of federal compensation, as it appears in the Canton's accounts for the year N, is distributed between the Canton and the municipalities in proportion to the ratio between the revenue for year N of the corporate profit and capital taxes of the Canton and the total of these same taxes for all the municipalities, based on the closure figures communicated by the DGF to the municipalities.

2. The definitive inter-municipal distribution of the amount allocated to the municipalities in accordance with paragraph 1 occurs in proportion to the revenue from the corporate profit and capital taxes of each municipality for the year N, as established by the DGF and communicated at the time of the closure.

3. The difference between the advances paid in accordance with Article 4 and the definitive amounts determined according to the previous paragraphs is credited to the municipality's account.

4. Any positive balance determined according to paragraph 3 is paid before March 31 of year N+1.

1. The Department responsible for municipal affairs is tasked with the implementation of the present regulation, which retroactively comes into effect on January 1, 2020.