Wealth tax in Appenzell Innerrhoden is based on the fair market value as at 31 December, unless a specific rule applies. The legal basis is found in the cantonal tax law (Vermögensbewertung, Art. 39–45). This page summarises the key valuation rules and documentation expectations for the 2025 tax year.

1. Real Estate

Real property is valued according to the official market value assessment (amtliche Verkehrswertschätzung), as mandated by Art. 39(6) of the cantonal law.

• Official valuation applies to all properties with an existing cantonal assessment.
• For new constructions or substantial renovations without an updated valuation, a temporary surcharge is applied:
  70% of the construction or value-enhancing renovation costs is added to the existing official valuation (Art. 39(6)).
• Agricultural properties outside building zones and agricultural enterprises are valued at agricultural income value (Ertragswert) if personally farmed (Art. 39(6)).
• Keep the most recent valuation notice (amtliche Schätzung) as documentation.

2. Listed Securities

Listed securities must be valued at their market price as at 31 December (Art. 39(3)):

• Use the FTA’s official year-end price list (Kursliste).
• If no market price exists, apply the intrinsic value (innerer Wert).
• For uncertain or contested claims, the probability of loss must be considered (Art. 39(3)).
• Portfolio statements showing year-end positions are required.

3. Unlisted Shares & Business Assets

Business assets are valued under special rules in Art. 39(2):

• Movable business assets and intangible assets are valued at the income tax value.
• Intangible assets under Art. 22quater (e.g., acquired IP) are included at 50% of their income-tax value.
• For shares in unlisted companies, the valuation typically follows the federal practitioner method unless cantonal rules override.

Recommended documentation:

• Financial statements for the last 2–3 years.
• Details of intangible assets and valuation adjustments.
• Explanation of exceptional items affecting earnings or equity.

4. Employee Shares & Options

Appenzell Innerrhoden applies clear rules in Art. 39(4):

• Genuine employee shares with lock-up periods receive a reasonable discount from fair market value.
• Non-listed or locked employee options are not subject to wealth tax.
• “Unechte” (non-genuine) employee participations are also exempt.
• All employee participation instruments must still be listed in the securities inventory (Wertschriftenverzeichnis) when granted.

5. Life & Pension Insurance

Life and annuity insurance policies are taxed based on their surrender value (Rückkaufswert) per Art. 39(5).

• Use the insurer’s official year-end statement.
• Policies without surrender value (e.g., term life insurance) are not taxable.

6. Other Assets

All other assets are valued at fair market value unless a specific rule applies. This includes:

• Cryptoassets: Use FTA year-end crypto rates or recognised exchange averages.
• Precious metals: Use published bullion prices.
• Art & collectibles: Declare realistic fair value; obtain appraisals for significant items.
• Cash, deposits, receivables: Use nominal value (Art. 39(3) for doubtful receivables).

7. Foreign Assets & Exchange Rates

All foreign-currency assets and liabilities must be converted using the FTA’s official year-end FX rates.

• Foreign real estate must be declared at local market/official value and then converted to CHF.
• Maintain evidence of both the foreign valuation and the exchange rate applied.

8. Liabilities (Art. 44)

Deductible debts include:

• All proven debts solely borne by the taxpayer (full deduction).
• Joint debts (solidary or guarantee obligations) only to the extent the taxpayer must carry them.
• Foreign-currency liabilities must be converted at FTA year-end rates.

9. Documentation & Verification

• Statements dated 31 December for bank accounts, portfolios and insurance policies.
• Official property valuation notices.
• Construction invoices for the 70% temporary addition rule.
• Valuation summaries for intangible assets or employee shares.
• Evidence supporting reduced values for doubtful receivables.

10. Planning Takeaways

• Real estate valuations are central—watch for new assessments and use the 70% rule correctly during transition periods.
• Employee participation instruments may offer planning opportunities through lock-up discounts or full exemptions.
• Business owners should document intangible asset valuations carefully, especially when the 50% rule applies.
• Synchronise wealth tax valuations with inheritance and gift planning to avoid inconsistent values.