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  #41  
Old 21.04.2021, 12:02
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Re: Day trading and declaration of taxes

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Thanks! Interesting that professional status can be rescinded. I had thought the only way out was to flee the canton .

What I meant was - say I'm 65 and getting 30k or so chf AHV. I have a buy and hold strategy but sell 70k of assets a year to generate money to live off (imagine thats 35k initial capital with 100% return).

Or for that matter if I retire at 55 and am living solely from capital gains (again from the sale of long held assets).
In the first instance, you would most likely not be classed by the taxman as a professional trader.

In the second instance, you would be classed as professional as that's your main source of income and be taxed accordingly.
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  #42  
Old 21.04.2021, 12:22
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Re: Day trading and declaration of taxes

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In the first instance, you would most likely not be classed by the taxman as a professional trader.

In the second instance, you would be classed as professional as that's your main source of income and be taxed accordingly.
Interesting. So it's important that you start realising gains (under your salary) and reinvest before taking early retirement. You'll still be a professional investor following early retirement, but the capital gains subject to taxation will be much lower.

I'm guessing this is why FMF is "in" Malta
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  #43  
Old 21.04.2021, 13:02
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Re: Day trading and declaration of taxes

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Interesting. So it's important that you start realising gains (under your salary) and reinvest before taking early retirement. You'll still be a professional investor following early retirement, but the capital gains subject to taxation will be much lower.

I'm guessing this is why FMF is "in" Malta
Not necessarily, you may have an income from a job of say CHF 150,000 but invested capital of CHF 2,500,000 It's more the frequency with which you trade and the number of trades you make that defines professional in the taxmans eyes. It's all rather vague and I've never seen a document from the authorities saying how exactly they define it nor can my tax lawyer give a hard and fast answer. I may be wrong, but I guess it's trial and error and common sense that rules.
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  #44  
Old 23.04.2021, 11:52
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How to declare income from selling an AppStore app and what is the tax?

Hi everyone!

I am thinking about making and selling an iOS app. How should I declare the income earned that way and what tax applies?

Thanks!
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  #45  
Old 23.04.2021, 12:31
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Re: How to declare income from selling an AppStore app and what is the tax?

What permit do you have? If still an L then you're not allowed to be self-employed in any way as far as I know. If a B is it still tied to your employer or open? If not open you'd probably need to check with your employer/cantonal migration office whether you'd be allowed to do that on the side.
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  #46  
Old 23.04.2021, 14:03
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Re: How to declare income from selling an AppStore app and what is the tax?

I’m on a B permit. The app is not tied to the employer, completely side project. Assuming I get permission from the authorities, how much is the tax? If I don’t get a permission, what other options do I have? E.g. I was thinking about opening a company in Estonia which is easy, and accepting payments at that company. Can I then pay myself another salary from that company to the Swiss personal account?
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  #47  
Old 23.04.2021, 16:36
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Re: How to declare income from selling an AppStore app and what is the tax?

Well, unless it's an absolute blockbuster best case you'll make 50 rappen. You can declare small amounts of extra income on your tax return. There's a limit above which you'll be self-employed (sole trader) and will have to pay social contributions.

Frankly - until you make money, don't worry about it.
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  #48  
Old 24.04.2021, 12:16
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Re: How to declare income from selling an AppStore app and what is the tax?

So you would suggest just get started, receive whatever money I make to my bank account and worry about how to legalise it as it growth? If I declare the extra income though, the tax will roughly be around 20%, right?
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  #49  
Old 26.04.2021, 19:33
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Re: Day trading and declaration of taxes

I would like to allocate some percentage of my monthly amount that I spend on investments to buy some crypto. Purely hypothetically - let's assume that within a few months/years the return is several hundred/thousand percent.

I would like to cash or secure part of it but since capital gains generated would account for a significant portion of my basic income I would be considered a professional trader and would have to pay CGT on it.

What if I didn’t sell it into fiat but traded for tether or any other stable crypto?

Are there any other options to avoid paying CGT?
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  #50  
Old 02.05.2021, 16:13
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Selling on Ricardo - Taxes, income

Hello,

So I recently started to buy and sell some collectible cards stuff (Pokémon)
On Ricardo.
Sometimes it comes from local shops where I buy it and then sell it for resell prices. Sometimes it comes from US ebay where I buy cards for myself.
The business is getting pretty good any Im getting few hundreds profit each month. Its just based on current high demand sittuation for these cards.
The money I got as extra is usually invested into my card collection..

Im currently B permit citizen with 100% work contract, all taxes and stuff are being taken care by my employer.

My question is:
1) Until what ammount do I have to make my little business oficial, to pay additional taxes to goverment?

2) is Ricardo somehow connected with goverment so they can check that my account produced XXXXX CHF this year and then somehow check that?

3)Since my buyers send mostly money to my bank account, is there any chance that banks will notice that or goverment that suddenly my account is getting a lot of incoming transactions?
I try to keep less than 5000 CHF on my bank account, rest I got on Revolut or invested in some other stuff.

4)What are your tips to keep my Ricardo account going without being forced to paid taxes and other stuff? Dont want to do anything illegal but if there is any way or tips to give me so I minimilize taxes

5) If I have to start declaring extra income and make it official, what are the steps to do in this situation? What kind of permit should I be looking at

Thanks everyone for help
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  #51  
Old 02.05.2021, 16:27
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Re: Selling on Ricardo - Taxes, income

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3)Since my buyers send mostly money to my bank account, is there any chance that banks will notice that or goverment that suddenly my account is getting a lot of incoming transactions?
Swiss banks normally don't report accounts of swiss residents to swiss government - bank secrecy tradition.

But with 6+ figures revenues I suppose eventually you'd get a call from bank's money laundering department to figure out what terrorists, if any, you're financing with those transactions
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  #52  
Old 02.05.2021, 16:53
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Re: Tax and income declaration on trading, ebay/ricardo, appstore etc.

There is never being a bigger amount of money received than like, Once i Had 2k and 3k CHF transaction, but mostly is being couple dozens or few hundreds.
But mostly I really try to keep my bank ballance low..
For me its just like a hobby bussiness, keeping my collection expenses covered...

I just really dont want to get any call from goverment or bank being asked “Hey why are you getting so much money on your bank account”
“Why are you selling so much stuff etc”.

But from what I mostly sell some vintage stuff and like trading card generally is highly speculative field..Cant I just tell them Im selling my large collection of cards?
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  #53  
Old 02.05.2021, 16:58
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Re: Tax and income declaration on trading, ebay/ricardo, appstore etc.

Also, all the stuff I buy I buy with my Revolut card or paypal, its all on ebay, so basically no one can really know what I ordered, right?

I wanna keep it smart but not like illegal you know.
So if there is any way to not pay any extra stuff since its purely for my collection, I will surely like to do it that way
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  #54  
Old 02.05.2021, 17:03
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Re: Tax and income declaration on trading, ebay/ricardo, appstore etc.

Revolut is a UK bank, they are obliged to report your account, balance, total yearly turnover to authorities. But not details of individual transactions.
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Old 02.05.2021, 17:09
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Re: Tax and income declaration on trading, ebay/ricardo, appstore etc.

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Revolut is a UK bank, they are obliged to report your account, balance, total yearly turnover to authorities. But not details of individual transactions.
So in my given situation, how would you suggest to proceed?
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  #56  
Old 03.05.2021, 09:08
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Re: Tax and income declaration on trading, ebay/ricardo, appstore etc.

Everyone dreams about being tax exempt, it's normal. One day you think "oh I could earn a few bucks if I only I don't have to pay the taxes and social deductions", the other day you look at your pay slip and cry "if not the taxes I would be able to do/buy x,y,z". Grow up
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  #57  
Old 03.05.2021, 09:22
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Re: Tax and income declaration on trading, ebay/ricardo, appstore etc.

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Revolut is a UK bank, they are obliged to report your account, balance, total yearly turnover to authorities. But not details of individual transactions.
Well. A Lithuanian bank. But transferwise isn't, and doesn't report to tax authorities. https://wise.com/help/articles/29323...y-wise-account

I myself dont use it to avoid tax, I am a lawyer and being found guilty of an offence of dishonesty wouldn't be a good look - but you could.

If you want to pay no tax legally set up a business somewhere that has no corporation tax (eg Isle of Man) and don't draw income.
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  #58  
Old 03.05.2021, 20:37
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Re: Tax and income declaration on trading, ebay/ricardo, appstore etc.

As I said guys,
I just need to know when exactly do I reach the threshold that I will have to report it somewhere?

Basically said yea, I really dont want to to pay taxes if there is any clever NOT-ILLEGAL WAY. Its not like im running a big business, it just covers my collection expenses so I really dont want to pay extra taxes since its going back into my collection.

But from what Im doing now I try to pay cash as much as possible, also I will probably make an another bank account to split the cashflow and use transferwise more than Revolut.¨¨

Any other tips you guys can give me around this matter?
I just dont want to have bank or police knocking at my door someday asking "
hey sir why did XX money flowed through your account when you earn XX"
"Why are you having so many incoming payments" etc. etc.
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  #59  
Old 04.05.2021, 01:11
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Re: Tax and income declaration on trading, ebay/ricardo, appstore etc.

Just read recently the FINMA regulations, up to 25k a month, one time or/and cumulative, doesn't trigger the alerts but your bank may ask on its own, perhaps if your monthly income and savings are way lower than the cumulative amount of monthly transfers
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