Wealth tax in Appenzell Ausserrhoden is levied on the taxpayer’s net assets as at the end of the tax period (normally 31 December). The cantonal tax law provides detailed valuation rules in the section Bewertung (Arts. 44–50) and links wealth tax to the same period rules used for income tax (Arts. 53–55).

This page summarises how the canton expects you to value assets and liabilities for wealth tax purposes, and how these interact with exemptions and rates (tax-free amounts and rates are set out in Arts. 50–52 and are covered on the Allowances & Deductions and Rates pages).

1. General Principle (Art. 44)

As a starting point, all assets are valued at fair market value (Verkehrswert), unless a specific provision states otherwise. This applies to movable and immovable property, financial assets and other rights.

2. Real Estate (Arts. 47–48)

Real estate is subject to special rules which replace the generic “fair market value” principle:

• Standard properties: For ordinary properties, the official market value assessment (amtlicher Verkehrswert) is binding for wealth tax (Art. 47(1)).
• New builds & value-enhancing investments: Where new constructions, extensions or other value-adding investments have not yet been reflected in the official valuation, a temporary uplift of 80% of the actual cost is added to the existing official value (Art. 47(2)).

2.1 Agricultural Property (Art. 48)

• Agricultural properties falling under the federal bäuerliches Bodenrecht and used predominantly for agricultural or forestry purposes are valued at their income value (Ertragswert) (Art. 48(1)).
• For value-enhancing investments in such agricultural properties that are not yet reflected in the official income value assessment, a 20% uplift of the cost is added to the existing income value (Art. 48(2)).

3. Business Assets & Intangibles (Art. 44(2))

Intangible assets and movable assets belonging to business assets are not valued at generic market value but at the income tax value (Einkommenssteuerwert) (Art. 44(2)). This ties wealth tax directly to the accounting and valuation approach used for income tax purposes.

• Use the values reported in the business accounts underlying the income tax return.
• Ensure hidden reserves and write-down policies are consistent and defensible.
• For complex situations (e.g. self-created intangibles, IP structures), keep a short memo explaining the valuation basis.

4. Life & Annuity Insurance (Art. 45)

Life insurance policies and comparable annuity products are subject to wealth tax based on:

• Surrender value: Life insurance policies are taxed at their surrender value (Rückkaufswert) (Art. 45(1)).
• Equivalent treatment: Refundable annuity insurance (rückkaufsfähige Rentenversicherungen) are treated the same way as life insurance for wealth tax purposes.

Non-refundable pure risk policies (without surrender value) generally do not form part of taxable wealth.

5. Securities & Receivables (Art. 46)

For securities and claims, the law differentiates between market-traded positions and illiquid or uncertain rights:

• Listed securities: Valued at market price (Kurswert) (Art. 46(1)).
• No market price: If there is no market price, valuation is based on the intrinsic value (innerer Wert) (Art. 46(2)).
• Disputed or uncertain claims: For contested or demonstrably uncertain receivables, the probability of loss must be taken into account (Art. 46(3)) – effectively allowing a value reduction.

In practice, year-end portfolio statements and, where applicable, valuation reports form the backbone of documentation.

6. Employee Participations (Art. 46a)

Appenzell Ausserrhoden has specific rules for the wealth tax treatment of employee participation schemes:

• Employee participations under Art. 20b(1): These are valued at fair market value (Verkehrswert), with lock-up periods appropriately taken into account via a discount (Art. 46a(1)). Details are governed by ordinance.
• Employee participations under Arts. 20b(3) and 20c: These must be declared at the time of grant but with no taxable wealth value (zero value) at that point (Art. 46a(2)).

Maintain plan documents, grant notices and valuation reports, particularly where lock-up discounts are applied.

7. Other Movable Assets & Personal Items (Arts. 44, 50)

Beyond the specific categories above, all other assets are valued at fair market value. Two distinctions are important:

• Taxable other assets: cash, bank deposits, precious metals, investment-grade collectibles and similar assets follow the general fair market value principle (Art. 44).
• Tax-free personal assets: household goods and personal items (Hausrat und persönliche Gebrauchsgegenstände) are exempt from wealth tax (Art. 50).

Cryptoassets and other modern asset classes are typically treated as financial assets at fair market value as of year-end.

8. Foreign Assets & Exchange Rates

The law requires that the taxable wealth be determined as at the end of the tax period (Art. 55), including foreign assets. While the statute does not spell out FX rules, practice follows the federal approach:

• Foreign currency assets and liabilities are converted into CHF using official or recognised year-end exchange rates.
• Foreign real estate is valued at local market or official value and then converted into CHF.
• Keep documentation in the original currency plus the conversion basis used.

9. Liabilities & Debt Deduction (Art. 49)

The cantonal law defines which debts are deductible when determining net wealth:

• Fully deductible: Debts for which the taxpayer is solely liable are deducted in full (Art. 49(1)).
• Partially deductible: Other debts such as joint and guarantee obligations (Solidar- und Bürgschaftsschulden) are deductible only to the extent the taxpayer must actually bear them (Art. 49(1)).
• Foreign-currency debts are converted into CHF at the same year-end rates used for assets.

10. Timing & Tax Period (Arts. 53–55)

Several provisions coordinate the timing of wealth and income tax:

• The tax period is the calendar year (Art. 53(2)).
• The taxable wealth is measured at the end of the tax period or tax liability (Art. 55(1)).
• For business owners with a non-calendar financial year, the taxable business wealth is based on equity at the end of the business year that falls into the tax period (Art. 55(2)).
• If tax liability only exists for part of the year, the wealth tax is proportionally adjusted (Art. 55(3)).

11. Planning Takeaways

• Real estate: Monitor construction and renovation projects — the 80% (or 20% for agricultural property) uplift rule can materially affect interim wealth tax numbers until a new official valuation is issued.
• Business owners: Because business assets are tied to income-tax values, accounting choices (write-downs, hidden reserves) affect both income and wealth tax bases.
• Employee participations: Differentiating between Art. 20b(1) and 20b(3)/20c participations is crucial: the former are wealth-tax relevant (subject to lock-up discounts), the latter declared with zero value at grant.
• Exempt assets & allowances: Household items are tax-free (Art. 50) and the law grants significant tax-free amounts (e.g. CHF 150,000 for married couples and CHF 25,000 per child, Art. 51). These are discussed in more detail on the Allowances page.
• International situations: Tax-free amounts in Art. 51 are only fully granted to persons with unlimited tax liability at the international level (Art. 51(3)) — important for expatriates or cross-border movers.