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Old 08.07.2011, 02:34
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Interactive Brokers - Opening an Account/Transfering Funds/Dividend Taxes

Hi,

I would like to know how to transfer CHF from my UBS account to my account at Interactive Brokers (US). I don't want to buy other currencies when transfering, I think is more advantageous to buy USD/EUR once I have CHF in my IB account. This way I won't pay any fees to my bank for the exchange.
I never did a transaction from Switzerland to outside, so any info/advice is welcome.

My second question is about dividend taxes. How much tax I will pay for foreign earnings/dividends? Probably there is double taxation(?) If so, which rates are applied?

I don't have much experience, so don't use very complicated terms

Thanks in advance
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Old 08.07.2011, 11:08
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Re: Interactive Brokers - Opening an Account/Transfering Funds/Dividend Taxes

Assuming you fill in a tax return, & earn approx 65k CHF you will receive 100% of the US dividends, the dividends are then added to your other earnings. So your taxed in the normal way.

If your earnings are are very low 15,000 chf a year you only get approx 5% rather than 15% of the withholding tax back.

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Hi,

I would like to know how to transfer CHF from my UBS account to my account at Interactive Brokers (US). I don't want to buy other currencies when transfering, I think is more advantageous to buy USD/EUR once I have CHF in my IB account. This way I won't pay any fees to my bank for the exchange.
I never did a transaction from Switzerland to outside, so any info/advice is welcome.

My second question is about dividend taxes. How much tax I will pay for foreign earnings/dividends? Probably there is double taxation(?) If so, which rates are applied?

I don't have much experience, so don't use very complicated terms

Thanks in advance
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  #3  
Old 09.07.2011, 18:29
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Re: Interactive Brokers - Opening an Account/Transfering Funds/Dividend Taxes

What do you mean with normal way? At which rate?

Thanks
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Old 09.07.2011, 18:51
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Re: Interactive Brokers - Opening an Account/Transfering Funds/Dividend Taxes

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What do you mean with normal way? At which rate?

Thanks
If you fill in a tax return all your income is added up & then your taxed on it. The rate depends on your earnings to the nearest 1000 or so you earn.

As your asking the question I doubt you fill in a return, it's not very difficult and financially there will not be a great deal in it from experiance.
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Old 10.07.2011, 02:59
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Re: Interactive Brokers - Opening an Account/Transfering Funds/Dividend Taxes

True, I never filled a tax return. I have permit B, so I'm taxed at source.

For exemple:
If I receive dividends from a french company I will be taxed at 25% (tax rate in France for dividends) and then double taxed in Switzerland.

If I fill the tax return I will receive my 25% back?

Let's say my only income is my mensal paycheck, and I'm taxed at 12% at "retenue impôts source" (taxed at source). Should I expect to have my dividends taxed at 12%?

Thanks
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Old 10.07.2011, 10:57
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Re: Interactive Brokers - Opening an Account/Transfering Funds/Dividend Taxes

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True, I never filled a tax return. I have permit B, so I'm taxed at source.

For exemple:
If I receive dividends from a french company I will be taxed at 25% (tax rate in France for dividends) and then double taxed in Switzerland.

If I fill the tax return I will receive my 25% back?

Let's say my only income is my mensal paycheck, and I'm taxed at 12% at "retenue impôts source" (taxed at source). Should I expect to have my dividends taxed at 12%?

Thanks
If you fill out a swiss tax return they will deduct from the 12% tax rate applicable to you, the 25% you already paid and therefore you would get back 13%.

As for transferring funds, you can do it in CHF and will receive it in your account in CHF (regardless of the base currency that you set up in your account).
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Old 10.07.2011, 15:35
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Re: Interactive Brokers - Opening an Account/Transfering Funds/Dividend Taxes

[QUOTE=SA-V;1258051]If you fill out a swiss tax return they will deduct from the 12% tax rate applicable to you, the 25% you already paid and therefore you would get back 13%.
QUOTE]

In Zurich I get 100% of foreign dividends back by bank transfer, paying the tax is a seperate transaction, however as my income has fallen in the last couple of years I don't get quite all back.
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Old 10.07.2011, 15:39
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Re: Interactive Brokers - Opening an Account/Transfering Funds/Dividend Taxes

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True, I never filled a tax return. I have permit B, so I'm taxed at source.

For exemple:
If I receive dividends from a french company I will be taxed at 25% (tax rate in France for dividends) and then double taxed in Switzerland.

If I fill the tax return I will receive my 25% back?

Let's say my only income is my mensal paycheck, and I'm taxed at 12% at "retenue impôts source" (taxed at source). Should I expect to have my dividends taxed at 12%?

Thanks
If you fill in a tax return you will be able to claim expenses, your final tax bill will be adjusted to the villiage you live in so the amount could be more but likely less than you pay at the moment. The gross dividends are just added to salary less allowable expenses.

12% is what zou pay from you gross income? If you do a return just net income received is taxable less expenses, so the percentage will be above 12% however tax payable should be less.
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Old 10.07.2011, 19:31
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Re: Interactive Brokers - Opening an Account/Transfering Funds/Dividend Taxes

[QUOTE=fatmanfilms;1258242]
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If you fill out a swiss tax return they will deduct from the 12% tax rate applicable to you, the 25% you already paid and therefore you would get back 13%.
QUOTE]

In Zurich I get 100% of foreign dividends back by bank transfer, paying the tax is a seperate transaction, however as my income has fallen in the last couple of years I don't get quite all back.
You just receive 100% of foreign dividends back after submit the tax return, right? In that case, what's the point about receiving the foreing tax back and then pay the tax in Switzerland, instead of just receive the diference between foreign rate and your tax bill rate? (I hope this makes sense)

Quote:
12% is what zou pay from you gross income? If you do a return just net income received is taxable less expenses, so the percentage will be above 12% however tax payable should be less.
I'm already taxed at source, I don't want have my net income taxed again.
(Sorry, I didn't get it...)
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Old 10.07.2011, 20:23
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Re: Interactive Brokers - Opening an Account/Transfering Funds/Dividend Taxes

[QUOTE=Metallising;1258429]
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You just receive 100% of foreign dividends back after submit the tax return, right? In that case, what's the point about receiving the foreing tax back and then pay the tax in Switzerland, instead of just receive the diference between foreign rate and your tax bill rate? (I hope this makes sense)



I'm already taxed at source, I don't want have my net income taxed again.
(Sorry, I didn't get it...)
Thats how it's done in ZH, one dept for foreign dividends & 1 dept for taxation. BTW you get the money back well before the tax calculation is done, I got repaid in May & I expect to receive a bill in November.

Your options are do nothing, or fill in a tax return, if you fill in a tax return you wil PROBABLY be better off. You may get some of your tax at source returned.

Why not do a private tax return on your PC & look at the numbers!
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Old 11.07.2011, 00:42
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Re: Interactive Brokers - Opening an Account/Transfering Funds/Dividend Taxes

Is that possible to do a simulation? Where can I find those tax returns forms?
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Old 11.07.2011, 02:41
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Re: Interactive Brokers - Opening an Account/Transfering Funds/Dividend Taxes

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Is that possible to do a simulation? Where can I find those tax returns forms?
Here is the software for Zurich.
http://www.steueramt.zh.ch/internet/.../software.html
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