§ 26 Tax Act (StG) - Restructurings
§ 26 StG · Restructurings
**1. Hidden Reserves of a Sole Proprietorship or Partnership (Sole Proprietorship, Partnership) Are Not Taxed During Restructuring, Including in Cases of Merger, Division, or Transformation, Provided the Tax Obligation Persists in Switzerland and the Values Previously Relevant for Income Tax Are Adopted:**
a. in the transfer of assets to another sole proprietorship or partnership,
b. in the transfer of a business or part of a business to a legal entity,
c. in the exchange of ownership or membership rights during restructuring as per § 75 paragraph 1 or merger-like consolidations.
**2. In a Restructuring Under Paragraph 1b, the Transferred Hidden Reserves Are Subsequently Taxed According to the Procedure in §§ 174-178, to the Extent That Within the Five Years Following the Restructuring, Ownership or Membership Rights Are Sold at a Price Above the Transferred Tax Equity; In This Case, the Legal Entity May Claim the Corresponding Hidden Reserves Taxed as Profit.**