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Old 16.11.2011, 22:18
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Bond coupon taxes refund

Hi,

I'm probably going subscribe to EDP 3 years bonds, it's a Portuguese energy company. The YTM is 6%. Coupon is paid every six months

I'm going to subscribe through a Portuguese broker. So, every time I receive the coupon a tax of 21,5% will be automatically charged over it.

I'm currently employed in Switzerland with Permit B.

The question is: If I fill the tax return form can I have those 21,5% back?

As my annual income is less than 120k CHF, I suppose it's possible to have 100% of the coupon taxes back. (?)

Thanks in advance.
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Old 19.11.2011, 15:51
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Re: Bond coupon taxes refund

Anyone?

Thanks
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Old 19.11.2011, 16:48
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Re: Bond coupon taxes refund

The Portugese energy company are trying to raise money in Portugal, to avoid the international trading risks,
they could easily borrow money from a Swiss bank. And now you want to lend them money, and risk loosing
the profits on the bond with the varying currency exchange rate.

Tax reduction only if the Portugese government allow foreigners to escape taxes. Why not ask someone in Portugal, maybe your broker?

And if the Euro in Portugal collapses, how much will your bond then be worth?
http://www.bbc.co.uk/news/business-15748696

No possibility of a Swiss tax reduction in my opinion.

You could also buy Swiss National Bank issued bonds. They are not in the Euro
zone and very safe. Any bank will sell them to you, and maybe the post office too.
http://www.snb.ch/

http://finance.yahoo.com/q?s=EURCHF=X

http://www.bondsonline.com/Todays_Ma...gle&country=SZ

.

Last edited by Sbrinz; 19.11.2011 at 17:04.
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Old 20.11.2011, 17:03
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Re: Bond coupon taxes refund

Quote:
The Portugese energy company are trying to raise money in Portugal, to avoid the international trading risks,
they could easily borrow money from a Swiss bank. And now you want to lend them money, and risk loosing
the profits on the bond with the varying currency exchange rate.
I don't keep any Swiss Francs, I convert it to Euro. I don't pretend to live in Switzerland for too long, so Swiss Francs won't value nothing for me.
Once SNB established the minimum of 1,2 EURCHF there is no point about keep my CHF waiting for better exchange rate.
So, I think in my investments in EUR.

Quote:
Tax reduction only if the Portugese government allow foreigners to escape taxes. Why not ask someone in Portugal, maybe your broker?
Already asked, nobody knows.
The way how taxes are charged on coupon is not the same as dividends? If so, filling the tax return makes it possible to avoid double taxing. Isn't it?



If the Euro collapses it's better to hide in a bunker and worry about surviving, not about money.

Swiss bonds have very low returns. I'm young, I can take more risk.
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