Pressure from the federal government
The federal parliament has set the course with the revision of the Federal Spatial Planning Act (SPA) and the electorate has approved this amendment. Since 1 May 2014, the new Art. 5 para. 1bis to para. 1sexies RPG regulate the minimum requirements for the levy on added value.
The amount of the added value levy in the canton of Zurich
The canton of Zurich has fulfilled its obligation with the entry into force of the legislation on added value. A distinction is made between zoning and upzoning/rezoning. For single-zone developments, the canton charges 20% of the added value. The municipalities can stipulate a maximum levy of 40% for upzoning or rezoning. The estimated levy rates vary between 20% and 40%.
When calculating the value-added levy, the municipalities can exercise a certain degree of discretion and allow certain deductions: Firstly, value-added levies of less than CHF 30,000 are not charged. In addition, the legislation provides for a flat-rate deduction of CHF 100,000. Furthermore, the municipalities determine an open area of between 1,200 m2 and 2,000 m2. Planning expenses can also be deducted from the added value.
Assessment and legal protection
In individual cases, the municipalities consult valuation companies to calculate the added value. In practice, it has been shown that these companies use their own databases, the data basis of which is hardly comprehensible for those affected. Nevertheless, certain corrections can sometimes be made at this stage. It is therefore worth examining such calculations in depth and analysing them.
After granting the right to be heard, the authority determines the added value by means of a ruling. This can be appealed to the Building Appeal Court of the Canton of Zurich.
Urban development contract – a useful instrument
An alternative is the urban development contract (Section 21 MAG). In such a contract, the parties are free to agree on benefits in kind from the landowner instead of a payment. In this case, the added value and value of the services do not necessarily have to be estimated. In many cases, this gives the parties economic and spatial room for manoeuvre. Possible agreements could relate to the upgrading of publicly accessible areas, the promotion of public transport, participation in public facilities (e.g. crèche) or the creation of affordable housing. The landowner receives a means of upgrading their own development or its surroundings by offsetting the value-added tax to be paid; often a win-win situation.
Solutions allow a lot of money to be used for your own development that would otherwise disappear into a state pot. It is advisable to consult a specialised law firm for the possibilities.
Tag: Vertrag
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Value-added tax in the canton of Zurich – skilful solutions required
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Schlieren concludes planning contract for new retirement centre
In March, Schlierem’s voters approved a loan of 44,317,000 Swiss francs for the construction of the retirement centre Wohnen am Stadtpark. The new building in the middle of the city is to replace the Sandbühl retirement centre. Now the city council has awarded Liechti Graf Zumsteg Architekten from Brugg AG the contract for the corresponding architectural work, the Schlieremer city administration informs in its current city council news. The volume of the planning contract is 3.7 million Swiss francs.
Wohnen am Stadtpark is designed as a building complex with contemporary and affordable flats for older people. The concept by Liechti Graf Zumsteg Architekten envisages a two-storey base with concrete elements housing the restaurant and nursing rooms. Four upper floors for the flats for the elderly will be built in timber. According to the city administration’s information on the project, the new building will “meet the requirements of a healthy and ecological construction method according to Minergie-P ECO and be certified accordingly”. The completion of the new retirement centre is planned for 2026.
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Merger of Credit Suisse and UBS
Credit Suisse and UBS entered into a merger agreement on Sunday under which UBS will be the continuing entity. Following the negotiations that took place over the weekend and led to the signing of the merger agreement, UBS and Credit Suisse have concluded that a merger is in the best interests of their shareholders and stakeholders. The Federal Department of Finance, the Swiss National Bank and FINMA had previously required the two companies to complete this transaction in order to restore the necessary confidence in the stability of the Swiss economy and the Swiss financial centre.
The merger is subject to the following material conditions:
- All Credit Suisse shareholders will receive 1 UBS share for 22.48 Credit Suisse shares in exchange for the merger. This exchange ratio corresponds to an acquisition price of CHF 3 billion for all Credit Suisse shares.
- The merger is subject to customary closing conditions. Both parties are confident that all conditions can be fulfilled. The merger is expected to be completed, if possible, by the end of 2023.
- The Swiss National Bank will provide Credit Suisse with access to facilities through which it will receive substantial additional liquidity.
- It is expected that, in order to ensure a smooth integration of Credit Suisse into UBS, UBS will appoint employees to key positions at Credit Suisse as soon as legally possible.
- Credit Suisse will continue its business as usual and implement its restructuring measures in cooperation with UBS.
- UBS has expressed confidence that Credit Suisse employees can continue to be employed.
Credit Suisse was informed on Sunday by FINMA of its decision that Credit Suisse’s Additional Tier 1 capital (arising from the issuance of Tier 1 capital notes) in the aggregate principal amount of approximately CHF 16 billion will be written down to zero.
Taking into account the special circumstances affecting the Swiss economy as a whole, the Federal Council issues an emergency ordinance tailored to this specific transaction. It should be noted that the merger is being carried out without the otherwise required approval of the shareholders of UBS and Credit Suisse in order to increase transaction security.
Axel P. Lehmann, Chairman of the Board of Directors of Credit Suisse, said: “The announced merger represents the best possible outcome given the extraordinary and unprecedented circumstances. Credit Suisse has been through an extremely difficult period. Although the team has worked tirelessly to clean up many significant legacy issues and implement the new strategy, today we are forced to adopt a solution that will deliver a sustainable outcome.”