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-   -   Trading in Switzerland - Capital gains/income taxes? (https://www.englishforum.ch/finance-banking-taxation/120179-trading-switzerland-capital-gains-income-taxes.html)

Wheat Hoarder 23.07.2011 13:43

Trading in Switzerland - Capital gains/income taxes?
 
Let's say I make a living off trading (with financial instruments such as stocks and futures) in Switzerland.

Are my trading profits taxed in Switzerland? I hear there is no capital gains tax in Switzerland. But will I be taxes according to the income tax?

AbFab 23.07.2011 13:57

Re: Trading in Switzerland - Capital gains/income taxes?
 
As Wheat Hoarder GmbH you will pay both. This has been covered before. The search function is your friend - or the foot of this page...

Wheat Hoarder 23.07.2011 14:16

Re: Trading in Switzerland - Capital gains/income taxes?
 
Quote:

Originally Posted by AbFab (Post 1273983)
As Wheat Hoarder GmbH you will pay both. This has been covered before. The search function is your friend - or the foot of this page...

I've tried searching, but I've never come across any concrete information. Okay, so let's say I start Wheat Hoarder Trading Operations GmbH. What do you mean I'll be charged both capital gains and income taxes? I wouldn't have any income other than trading profits.

What kind of tax rates, approximately, are we talking about? Between 20% and 30%?

fatmanfilms 23.07.2011 15:15

There is no personal CGT on shares, however if your a trader you may be taxed as a business

Guest 24.07.2011 21:11

Re: Trading in Switzerland - Capital gains/income taxes?
 
As a private individual, if you trade frequently and this is deemed to be a professional activity, then you pay income tax on the gains made. You also pay wealth tax on your net assets.

If you trade occasionally for the purpose of building e.g. a pension fund, then capital gains are tax free.

Wheat Hoarder 25.07.2011 19:33

Re: Trading in Switzerland - Capital gains/income taxes?
 
Quote:

Originally Posted by Eiger (Post 1275123)
As a private individual, if you trade frequently and this is deemed to be a professional activity, then you pay income tax on the gains made. You also pay wealth tax on your net assets.

If you trade occasionally for the purpose of building e.g. a pension fund, then capital gains are tax free.

Do you know what it takes for the activity to deemed "professional"? And what approximately is "frequent"?

I mean, if I make say 100 trades (buys, sells, or short sells) per year, is that "frequent"? Also, I technically speaking am doing this trading to increase my wealth, so it could be said that I'm doing this to "build my pension". Wondering if that makes it tax-free...

marmsg 25.07.2011 19:55

Re: Trading in Switzerland - Capital gains/income taxes?
 
As far as I know, if you have a high volume of trades, the authorities could consider it as a professional activity, and it would be taxed. In that case, what I dont know is, if every trade should be taken into consideration in the accounting. Does anybody anything about it?

fatmanfilms 25.07.2011 22:38

This is something that bothers me. My earnings are fairly low , below capital gains, possibly 100 trades a year

danny 28.08.2012 00:54

Re: Trading in Switzerland - Capital gains/income taxes?
 
how about stocks held by people working in startups ? Is there a tax on that if and when the gains are realized ?

martin959 03.03.2020 14:24

Re: Trading in Switzerland - Capital gains/income taxes?
 
Quote:

Originally Posted by Eiger (Post 1275123)
If you trade occasionally for the purpose of building e.g. a pension fund, then capital gains are tax free.

I do this having a B Permit and less than 120k per year salary, should i do something? :rolleyes:


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