Hi,
Does anyone know what assets are covered by the Vaud fortune tax ? Is it all global assets ? Specifically, are properties that we own abroad (in this case in the UK and US) subject to the tax ? If so, at what value are they assessed ?
Thanks in advance.

Hi,

Foreign properties are not taxed but they have to be disclosed in the tax return for tax rate purpose. You are taxed at the rate applicable to your total income and wealth (as if everything would be in Switzerland). This is why you have to disclose it. The net value is taxable, i.e. mortgage is deductible from the property value which is usually the taxable value in the other country or market value or last purchase price if the first two values are not available. Vaud tax authority usually accepts the value you mention without asking questions as long as the value seems reasonable and you are able to sustain it.

Cheers

Many thanks for the clear, succinct and rapid response. Not sure how to groan / thank, but I'd post a 'thanks' if I could.
Cheers.

start an overseas company. put all assets in company name. you own nothing and are taxed nothing.

... and you realize a perfect and nice tax evasion! Great advice indeed!

But your company is taxed - at a higher rate. So what's the point?

If this was 1) financially viable and 2) legal, everyone would be doing it, so somehow I doubt it is a real option...

Hi,
I have a question on "fortune tax".

I see the link:
http://www.vd.ch/fileadmin/user_uplo...rtune_2012.pdf
But i'm concerned about the figures:

Example: For a fortune of 100'000chf you only pay 80.80chf tax?? (0.808%).
So it's once a year, if you have 100 000chf you pay only 80.80chf???


Also, I though we were taxed only from a "fortune" being higher than 100 000chf, but this list starts at 50 000chf?

Thanks

With 100K your not concidered rich so little tax in ZH it would be 0.
Look at the figures for 1 million & 10 Million, the percentage rises rapidly.

Actually, you might not even pay that. I think the first CHF 250'000 is tax free, but I may be mistaken about the amount.

Depends on the Kanton

Actually this is tax avoidance and is perfecttly legal. You tend to find a lot of wealthy people own property and generally conduct their personal affairs using companies.

You will find that a lot of large expensive properties across the world (London, NY, CH, Bahamas etc.) are owned by companies located in tax havens. Who do you think "runs/owns" these companies?

Thanks,
So I am really surprised there is some people trying to have undeclared stuffs (not talking about rich people here, but people with way less than 100 000chf), especially if the tax is so "relatively" low.

I guess they don't know or it's smuggling money...

It's a sport in CH, even poor people want to play the game!

so you own a company which is worth the value of the assets you put in it... now what?

Market value of company could well be much lower or higher than book value of assets, as the share holders of an AG are hidden with bearer shares, it's very easy in CH to hide assets. Banks don't disclose any info to the Swiss Tax offices......