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Old 08.12.2018, 17:01
bill_door bill_door is offline
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Re: Short term capital gains taxes in switzerland

it's good to see you asking the questions and trying to understand what goes on before committing, but you might be way over thinking this! the 5 'rules' are woolly and it is not easy to give you a definitive answer until the year end list of transactions are known. what i have described up to now would be a general scenario and in my opinion would not classify as a professional trader. and ultimately it rests with the personal opinion of the tax return assessor in the end, with whom you can discuss.

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bill_door, tnx for the good answers. The sttategy you describe is what i'm planning to do - selling covered calls on my 3 long term ETFs. I don't have time for weekly trading so I would set them up once per month.
repeat after me: There is no CGT on regular securities trading in CH!
(unless you use the CGT to fund your extravagant lifestyle i.e. large CGT disappear from your tax estate. even if your CGT is comparable to your salary or more, and the funds stay in your bank accounts i don't think this would trigger professional status.)
Either you have the security in your portfolio, or you have the cash in the account. (or you've spent it!) year-on-year when you report for your taxes, the portfolio contents and the account liquid cash balances should more or less be stable, within reason. but even if you are lucky and hit it good with a good trade all the data is transparent to the taxman, open date, price then close date, price gives the gain! both of these situations are reflected in the wealth tax calculation.
if you liquidate a large position and the cash disappears from your overall estate then the taxman might want to know where the money went. to me that seems civilised and common sense. in CH the threshold for an interesting difference between tax returns and what is 'large' could be many several thousand francs!
with what you suggest, you might have a bigger problem with the frequency of your trades. if you are scalping in and out of stock and or options more frequently than once a month (<-- my opinion) then that will lean towards professional. if you are doing as I suggest long stock, selling 1 month (or 2/3/4 months out in time) calls as a hedge (or as a cost-basis reduction strategy!) then I think that would be about fine. At least I think i could argue with the taxman that i am hedging (as i said before i think the common sense threshold would be about 30--45 days perhaps). even if your stock gets called away and you re-establish the same position then you are just creating again your long term position which you have had. and no CGT! all these transaction will be documented by your broker and they must be reported to the tax man.

and in advance you can ask the tax man what would be the limitations around what you plan to do.

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Maybe this could be understood as hedging, thou, its more than that if we are being honest.
exactly and the tax man knows that. and that is why the 'rules' in combination are so woolly to give YOU some benefit of doubt and some chance at opportunity. the CH taxman really is quite civilised!

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I also don't mind paying taxes on sold puts and calls. It's normal. Lets say I make 10% capital gain on my long portfolio by simple buy and hold strategy. And on that I make few thousand CHF on selling/buying options. As I said, please tax my options, but leave my capital gain alone. Would this be something that tax authorities would understand?
repeat after me: There is no CGT on regular securities trading in CH!
depending on the frequency of trades this is exactly what I think would happen. There is no CGT! if you can determine the frequency limit from the tax man you may not even have an issue! and even if you do, your tax on the 'revenue' piece will be quite low.

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I also have a B visum so I'm taxed at the source.
really! really? are you required to make a tax return? do you earn >120k? have you already told the taxman you have a portfolio of any size, additional world assets? everything I have said till now assumes you actually HAVE to make a tax return. you may not even have to declare these trades at all unless you are required to make a tax return! or if you want to reclaim the US/EU 15/30% withholding tax on dividends that you can only get back from the CH government or reduce your profits by deducting the the trade costs.
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