Nominal value principle
The nominal value principle is a principle of Swiss tax law , according to which withholding tax and income tax are assessed. It is a sub-principle of objective income measurement that is used in the area of private wealth. With the corporate tax reform II , which was approved by the people in an optional referendum on February 24, 2008 , the nominal value principle has been replaced by the (modified) capital contribution principle .
General
Income resulting from the repayment of face values is not subject to taxation.
Income tax
The nominal value principle is not explicitly anchored in the Federal Law on Direct Federal Taxes (DBG). However, from the fact that bonus shares and similar income are part of taxable income ( Art. 20 (1) lit. c DBG), it must be concluded that the legislature was based on the principle of nominal value for income measurement. In addition, the security function of withholding tax can only be fulfilled to a limited extent if the taxable income is calculated differently for income tax than for withholding tax.
scope of application
The nominal value principle only applies to income from private assets, income from business assets is calculated according to the book value principle.
Withholding tax
In the Withholding Tax Ordinance (VStV), the nominal value principle is explicitly used to calculate the taxable income. ( Art. 14 para. 1 VStV for income from customer balances, Art. 20 VStV for income from share rights and Art. 20 para. 1 VStV for income from fund shares)
criticism
In teaching, the nominal value principle was heavily criticized. In particular, the fact that premiums (agio) paid during the establishment or capital increase were taxed on repayment appeared unreasonable. This was taken into account with the Corporate Tax Reform Act II of March 23, 2007, which has been in force since January 1, 2011. Repayments of deposits, premiums and grants made by the holders of the participation rights after December 31, 1996 are treated in the same way as repayments of share capital and are therefore tax-free.