Qualified dividends are taxable

Lucerne tax book

The mitigation of the economic double burden on income from qualified participations is basically analogous to the direct federal tax according to the partial taxation procedure on the assessment basis. Depending on the tax period, tax and asset type, the partial taxation rate for investments in private assets (PV) and business assets (GV) is:

Tax period

State and municipal taxes

Direct federal tax
PVGVPVGV
from 202060%50%70%70%
from 201860%50%60%50%
until 201750%50%60%50%

Partial taxation takes place on income from participation rights that make up at least 10% of the share capital of a corporation or cooperative. Income from cooperatives without share capital and share certificates do not qualify for partial taxation (see BGE 2C_812 / 2018 of August 20, 2019). For the details cf.

KS of the Income Tax Ordinance No. 22 of December 16, 2008 regarding partial taxation of income from participations in private assets and limitation of the debt interest deduction (valid for income due by December 31, 2019)

KS of the EStV No. 22a of January 31, 2020 regarding partial taxation of income from participations in private assets and limitation of the debt interest deduction (valid for income due after December 31, 2019)

KS of the EStV No. 23 of December 17, 2008 regarding partial taxation of income from participations in business assets and participations declared as business assets (valid for income due by December 31, 2019)

KS of the EStV No. 23a of January 31, 2020 regarding partial taxation of income from participations in business assets and participations declared as business assets (valid for income due after December 31, 2019)

The corresponding participations and distributed income are listed in the securities and credit register with QB (non-traded shares / ordinary shares GmbH With privileged taxation; Participation greater than = 10%) or NG (non-traded shares / ordinary shares GmbH without privileged taxation; Participation <10%) or a corresponding list must be attached to the list of securities and credit balances. The relief for income from investments in business assets is determined in the corresponding questionnaire (self-employed, general partnerships).

Proof that the above requirements for reduced taxation are met must be provided by the taxable person. If there is no corresponding proof, full taxation will apply if the requirements for reduced taxation are not obvious.

The Tax Office of the Canton of Lucerne, Securities and Withholding Tax, together with the list of securities and credit balances, checks whether the requirements for a tax reduction are met. It also determines the extent of the tax reduction for income from qualified participations in private assets and reports the result to the competent tax authority. The Tax Commission decides on any objections after consulting the Tax Office of the Canton of Lucerne, Securities and Withholding Tax.