Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation
Reply
 
Thread Tools Display Modes
  #1  
Old 03.12.2014, 11:08
Newbie
 
Join Date: Dec 2014
Location: Zürich
Posts: 6
Groaned at 0 Times in 0 Posts
Thanked 0 Times in 0 Posts
Marcobaster89 has no particular reputation at present
Investment in foreign stocks using CH account - Taxation

Dear all,

I have invested in US and Swiss stocks and I am not entirely sure how to handle taxation on capital gains and dividends on both of these two types. Could somebody help me?

Cheers,
Marco
Reply With Quote
  #2  
Old 04.12.2014, 18:43
smashe's Avatar
Junior Member
 
Join Date: Jun 2009
Location: Zurich
Posts: 68
Groaned at 4 Times in 1 Post
Thanked 29 Times in 21 Posts
smashe has no particular reputation at present
Re: Investment in foreign stocks using CH account - Taxation

No tax on capital gains in CH

You may want to use a CH based brokerage account

Tax on dividends 15-35%, but you can claim partly the tax back by using a form called DA-1 when you fill your tax declaration if you are not taxed at source

If you are taxed at source, then its complicated
Reply With Quote
  #3  
Old 04.12.2014, 18:48
Newbie 1st class
 
Join Date: Jul 2011
Location: Baden / Brugg AG Switzerland
Posts: 11
Groaned at 0 Times in 0 Posts
Thanked 4 Times in 3 Posts
Sarah J has no particular reputation at present
Re: Investment in foreign stocks using CH account - Taxation

Most US brokerage accounts have significantly lower trading costs Unless I am missing something
Tax is not complicated as smashe stated It just takes time to complete the forms
Reply With Quote
  #4  
Old 04.12.2014, 21:32
Newbie 1st class
 
Join Date: Jul 2013
Location: Ticino
Posts: 29
Groaned at 0 Times in 0 Posts
Thanked 8 Times in 7 Posts
ivan37 has no particular reputation at present
Re: Investment in foreign stocks using CH account - Taxation

Quote:
View Post
No tax on capital gains in CH

You may want to use a CH based brokerage account
Unfortunately that doesn't prevent you from having to calculate+pay the capital gains to the US anyway.
Reply With Quote
  #5  
Old 05.12.2014, 21:27
Newbie 1st class
 
Join Date: Jul 2011
Location: Baden / Brugg AG Switzerland
Posts: 11
Groaned at 0 Times in 0 Posts
Thanked 4 Times in 3 Posts
Sarah J has no particular reputation at present
Re: Investment in foreign stocks using CH account - Taxation

If you are tax resident in CH do you pay capital gains in US? I do not. I only have withholding tax on dividends.
Reply With Quote
  #6  
Old 06.12.2014, 15:56
Forum Legend
 
Join Date: Oct 2014
Location: Ostschweiz
Posts: 3,018
Groaned at 99 Times in 79 Posts
Thanked 3,740 Times in 1,935 Posts
Urs Max has a reputation beyond reputeUrs Max has a reputation beyond reputeUrs Max has a reputation beyond reputeUrs Max has a reputation beyond reputeUrs Max has a reputation beyond reputeUrs Max has a reputation beyond repute
Re: Investment in foreign stocks using CH account - Taxation

Quote:
View Post
If you are tax resident in CH do you pay capital gains in US? I do not. I only have withholding tax on dividends.
I think due to FATCA all US citizens are to sumbmit their tax info to the IRS, no matter where they live. And since capital gains aren't taxed in Switzerland you'll probably be fullly taxed on your capital gains by IRS.

Mind you though, I'm not US and the above is merely what stuck in my brains from skimming some threads on here, meaning I could be completely wrong. At any rate, presuming you're US citizen, you most probably do want to inform yourself on FATCA and its implications.
Reply With Quote
  #7  
Old 20.12.2014, 13:58
Newbie
 
Join Date: Dec 2014
Location: Zürich
Posts: 6
Groaned at 0 Times in 0 Posts
Thanked 0 Times in 0 Posts
Marcobaster89 has no particular reputation at present
Re: Investment in foreign stocks using CH account - Taxation

Thanks guys, very much appreciated!
Reply With Quote
  #8  
Old 20.12.2014, 14:35
Junior Member
 
Join Date: Jun 2013
Location: Basel Area
Posts: 77
Groaned at 2 Times in 2 Posts
Thanked 96 Times in 42 Posts
Kaloid123 is considered knowledgeableKaloid123 is considered knowledgeableKaloid123 is considered knowledgeable
Re: Investment in foreign stocks using CH account - Taxation

Just a hint - I suggest totally avoiding holding any "PFIC's" (Passive Foreign Investment Companies.) This would include non-SEC registered accounts e.g. European mutual funds, pension investment funds, etc. The US IRS has very complicated rules on how to report this, down to needing individual transactions and cost bases on each mutual fund position. Really a nightmare, sadly I learned this the hard (and expensive) way. More info at this link http://www.taxsamaritan.com/tax-prep...hat-is-a-pfic/
or just google PFIC + IRS + expat
There really isn't any way around this - but the rules are the rules regardless of how unbalanced or ill-advised they may be. Good luck!
Reply With Quote
  #9  
Old 20.12.2014, 15:12
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 13,715
Groaned at 209 Times in 181 Posts
Thanked 11,027 Times in 6,254 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Investment in foreign stocks using CH account - Taxation

Quote:
View Post
If you are tax resident in CH do you pay capital gains in US? I do not. I only have withholding tax on dividends.
Unless your a US person then NO. Dividends on foreign stocks held in the USA have a 15% withholding tax which is reclaimable if you do a CH tax return. Reclaimed withholding tax for many years whilst resident in CH.
Reply With Quote
  #10  
Old 02.01.2015, 20:20
Newbie 1st class
 
Join Date: Jul 2011
Location: Baden / Brugg AG Switzerland
Posts: 11
Groaned at 0 Times in 0 Posts
Thanked 4 Times in 3 Posts
Sarah J has no particular reputation at present
Re: Investment in foreign stocks using CH account - Taxation

I agree I am not a US person therefore only have the 15% withholding tax. As you stated this is reclaimed when you complete your CH taxes
Reply With Quote
Reply




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
American in Switzerand Investment Account in USA dollivm Finance/banking/taxation 17 06.12.2014 20:02
Foreign Direct Investment stats, Interesting? colinwheeler Finance/banking/taxation 0 17.08.2011 13:03
Taxation and foreign real estate + foreign mortgage belgian beer lover Finance/banking/taxation 27 06.01.2011 02:31
Using foreign mobile phone in Switzerland? heatherC TV/internet/telephone 29 26.12.2009 22:19
Swiss taxation for foreign residents bobschoos Finance/banking/taxation 24 27.10.2009 19:27


All times are GMT +2. The time now is 06:40.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2016, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0