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Old 23.12.2011, 22:04
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lump sum taxation: what about tax on interests and dividends (35%)?

good morning, i know that i go to live in switzerland i must pay 35% on dividends and banking interests/international bonds (and 0% for capital gain)

But what happen if i have a B permission, and i have a fiscal deal with switzerland (lumps sum tax of forfait tax)?

do i must pay again the 35% on dividends /interest in advance ?

Or not (because i have yet paid the lump sum tax every year)?

Or i must pay in advance 35% on dividends/interest banking, and after 1 year i have it back from switzerland?

And if i live in switzerland, i have lump sum tax, what happen if i have my money in a foreign tax and i recive in the foreign bank dividends and interets of internationals bonds?

Thanks a lot and sorry for my english
letosa
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Old 23.12.2011, 23:21
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Re: lump sum taxation: wath about tax on interests and dividends (35%)?

The 35% withholding tax can be claimed as part payment of the lump sum tax.

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good morning, i know that i go to live in switzerland i must pay 35% on dividends and banking interests/international bonds (and 0% for capital gain)

But what happen if i have a B permission, and i have a fiscal deal with switzerland (lumps sum tax of forfait tax)?

do i must pay again the 35% on dividends /interest in advance ?

Or not (because i have yet paid the lump sum tax every year)?

Or i must pay in advance 35% on dividends/interest banking, and after 1 year i have it back from switzerland?

And if i live in switzerland, i have lump sum tax, what happen if i have my money in a foreign tax and i recive in the foreign bank dividends and interets of internationals bonds?

Thanks a lot and sorry for my english
letosa
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Old 23.12.2011, 23:56
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Re: lump sum taxation: wath about tax on interests and dividends (35%)?

thanks for your reply.

but if i must pay 50000chf/year for the lump sum tax, but i pay 200000 chf/year for the 35% withholding tax (from dividends and interests on bonds), do i have the 100000chfs (=150000-50000) back from the switzerland ?

and if yes, when ?
after 1 year? is a long and hard process?

If i have my money (cash, bonds, equity) in a foreign bank (in europe), and i have the lumps sum tax, i don't pay the 35% withholding tax (because the foreign bank can not send money to the switzerland for me..)?
Is it correct?

thanks a lot
letosa
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Old 23.12.2011, 23:58
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Re: lump sum taxation: wath about tax on interests and dividends (35%)?

You need a proper tax advisor or wealth management firm.
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Old 24.12.2011, 00:07
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Re: lump sum taxation: wath about tax on interests and dividends (35%)?

yes i know, but i live alone from the switzerland for meet a tax advisor, and so i don't want make a long travel for nothing.

So i want before ask here for have more info like first step.

thanks
Andrea
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Old 24.12.2011, 00:13
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Re: lump sum taxation: wath about tax on interests and dividends (35%)?

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yes i know, but i live alone from the switzerland for meet a tax advisor, and so i don't want make a long travel for nothing.

So i want before ask here for have more info like first step.

thanks
Andrea
I'm sure they have phones.
Really, it's your best option. Spend a little to potentially save a lot.
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Old 24.12.2011, 10:11
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Re: lump sum taxation: wath about tax on interests and dividends (35%)?

The tax is offset, at least in VS. Obviousely if the withholding tax is more than your lump sum taxation you won't get any back. You have other deductions as well.........However with your wealth I thnk you can pay for advice, you will probably save even more & the advice is tax deductable.

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thanks for your reply.

but if i must pay 50000chf/year for the lump sum tax, but i pay 200000 chf/year for the 35% withholding tax (from dividends and interests on bonds), do i have the 100000chfs (=150000-50000) back from the switzerland ?

and if yes, when ?
after 1 year? is a long and hard process?

If i have my money (cash, bonds, equity) in a foreign bank (in europe), and i have the lumps sum tax, i don't pay the 35% withholding tax (because the foreign bank can not send money to the switzerland for me..)?
Is it correct?

thanks a lot
letosa
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Old 26.12.2011, 15:56
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Re: lump sum taxation: wath about tax on interests and dividends (35%)?

but if i make the lump sum tax, how much do i pay for the pillar 1?

thanKS
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Old 26.12.2011, 17:15
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AVS payments are a percentage , it may or may not be included in the lump sum. You need to talk to who negotiated your lump sum. I get the feeling that you have not actually negociated a lump sum deal as if you had you would know the answer .
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Old 02.05.2014, 19:09
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Re: lump sum taxation: wath about tax on interests and dividends (35%)?

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The 35% withholding tax can be claimed as part payment of the lump sum tax.

What happens about the 35% automatic withholding tax on dividends from Swiss stocks if the owner of these shares (Swiss resident) is subject to a lower income tax rate than 35% (e.g. income tax rate of 25%)? Does he get a tax refund because he paid more than 25% for his dividend income? Can he claim this as a credit on tax payments on dividends from non-Swiss stocks (e.g. US stocks are subject to 15% witholding so he would need to pay some additional Swiss tax on these dividends)? The individual is not on a lump sum taxation. He also has income from his job. Any advice would be appreciated. Thank you in advance.
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Old 02.05.2014, 19:51
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Re: lump sum taxation: what about tax on interests and dividends (35%)?

ALL withholding tax is 100% reimbursble for those who reside in switzerland. Even those who have a B/L permit and dont have to do a tax return. Its just a prepayment to make sure you dont 'forget' to declare it. If you do 'forget' it, nothing happens, they just keep the 35% which is generally higher than the correct tax. If u do a tax return they take it off you tax bill, if you are taxed at source they put it in ur bank account.

If you are never a ch resident you may have a problem, as generally you cannot just sent a tax return purely to get reimbrsed the withholding tax if you have no other incomes to report. But even it that case you can get a discount on the tax due to your county of taxation due to double taxation agreements.
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Old 05.11.2014, 14:19
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lump sum taxation: can one change between regular Swiss tax system & Lump sum tax

I have a question about flexibility of change between regular Swiss tax system and Lump sum taxation in Switzerland. I found this on:

http://www.isyours.com/e/taxes/personal/lumpsum.html

You need to be a Swiss resident with a B or C permit, to be retired and not to have worked in Switzerland for the last 10 years.

Flexible - If at some point you want to give up lump-sum taxation, you are free at any time to choose the regular Swiss tax system.

QUESTION: For example, can a wife choose Lump sum taxation in this situation:
  • Wife has never worked in Switzerland and has been under regular Swiss tax system for 8 years – filing joint tax return with her husband who has been working in Switzerland.
  • Couple left Switzerland for 4 years and now are coming back to Switzerland. Can the wife apply for lump sum taxation upon her return to Switzerland and her husband files his tax return separately under regular Swiss tax system? i.e. wife is under lump sum taxation and husband under regular Swiss tax system?
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Old 05.11.2014, 14:53
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Re: lump sum taxation: can one change between regular Swiss tax system & Lump sum tax

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QUESTION: For example, can a wife choose Lump sum taxation in this situation:
  • Wife has never worked in Switzerland and has been under regular Swiss tax system for 8 years – filing joint tax return with her husband who has been working in Switzerland.
  • Couple left Switzerland for 4 years and now are coming back to Switzerland. Can the wife apply for lump sum taxation upon her return to Switzerland and her husband files his tax return separately under regular Swiss tax system? i.e. wife is under lump sum taxation and husband under regular Swiss tax system?
No, husband and wife are always taxed together.

Tom
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Old 06.11.2014, 09:38
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Re: lump sum taxation: can one change between regular Swiss tax system & Lump sum tax

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I have a question about flexibility of change between regular Swiss tax system and Lump sum taxation in Switzerland. I found this on:

http://www.isyours.com/e/taxes/personal/lumpsum.html

You need to be a Swiss resident with a B or C permit, to be retired and not to have worked in Switzerland for the last 10 years.

Flexible - If at some point you want to give up lump-sum taxation, you are free at any time to choose the regular Swiss tax system.

QUESTION: For example, can a wife choose Lump sum taxation in this situation:
  • Wife has never worked in Switzerland and has been under regular Swiss tax system for 8 years – filing joint tax return with her husband who has been working in Switzerland.
  • Couple left Switzerland for 4 years and now are coming back to Switzerland. Can the wife apply for lump sum taxation upon her return to Switzerland and her husband files his tax return separately under regular Swiss tax system? i.e. wife is under lump sum taxation and husband under regular Swiss tax system?
Zurich no longer accepts lump sum taxation, the concept was voted against about 3 years ago. Roughly 25% of all lump sum tax payers live in VS, most of those are probably in Verbier as its a way of rich foreigners buying large properties (over 200m2). Those people are happy to pay 120k in tax for the privilege to being able to buy, they are also hardly ever at home
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Old 06.11.2014, 10:33
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Re: lump sum taxation: what about tax on interests and dividends (35%)?

Jo Flower, just an FYI: The inititiave «Schluss mit den Steuerprivilegien für Millionäre» will be voted on later this month.

https://www.ch.ch/de/volksabstimmung...albesteuerung/

The Bundesrat and Parliament have recommended against the initiative and the GFS poll show that at present the initiative does not have a majority.
http://www.gfsbern.ch/de-ch/Detail/v...-nov-2014-5418

But nonetheless you should keep any eye on the vote if you are interested in applying for lump sum taxation.

As FMF pointed out, canton ZH has already done away with Pauschalsteuer, after a popular vote.
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Old 06.11.2014, 12:37
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Re: lump sum taxation: can one change between regular Swiss tax system & Lump sum tax

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No, husband and wife are always taxed together.

Tom

are you sure? I know of people where husband is resident of one canton and wife of a different canton so they are not taxed together??? can anymore here confirm what Tom wrote that husband and wife are always taxed together?? thanks
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Old 06.11.2014, 13:08
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Re: lump sum taxation: can one change between regular Swiss tax system & Lump sum tax

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are you sure? I know of people where husband is resident of one canton and wife of a different canton so they are not taxed together??? can anymore here confirm what Tom wrote that husband and wife are always taxed together?? thanks
If they live in different countries is for sure an exception, which is the case of several people living in Verbier.
If lump sum taxation is stopped, many will pay no further tax as they can change their primary residence into a secondary residence if it's more than a couple of years ago & say the no longer live in Switzerland. No problem in keeping the property either. It's one of those things with the popular vote, if they win they will not get what they expect.
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Old 06.11.2014, 13:15
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Re: lump sum taxation: what about tax on interests and dividends (35%)?

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are you sure? I know of people where husband is resident of one canton and wife of a different canton so they are not taxed together??? can anymore here confirm what Tom wrote that husband and wife are always taxed together?? thanks
Ehepaar- und Familienbesteuerung nach dem Bundesgesetz über die direkte Bundessteuer (DBG)

http://www.google.ch/url?sa=t&rct=j&...78677474,d.ZWU


Jo, as your situation appears to be unusual you really should speak directly to the cantonal Steueramt.

Especially in the case of Pauschalsteuer. The rules seem to at times be subject to interpretation, and application seems to vary by individual case.
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Old 06.11.2014, 13:17
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Re: lump sum taxation: can one change between regular Swiss tax system & Lump sum tax

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are you sure?
Yes.

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I know of people where husband is resident of one canton and wife of a different canton so they are not taxed together???
They are taxed together even in this case, but in only one of the cantons.

Tom
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Old 06.11.2014, 17:59
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Re: lump sum taxation: can one change between regular Swiss tax system & Lump sum tax

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Yes.



They are taxed together even in this case, but in only one of the cantons.

Tom
I know of a couple where husband is resident in Geneva and wife in Zug ...
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