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Old 25.03.2008, 21:42
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What are the rates for Taxation at Source

If I leave Switzerland, and more than a Year later, exercise some stock options, I am told that taxation at source still applies as the options were granted while still living in Switzerland. My question is what would be the tax rates if this is true?
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Old 25.03.2008, 21:45
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Re: What are the rates for Taxation at Source

how can you pay tax when you've de-registered?
you would potentially bow to the tax rules of your new residency.
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Old 25.03.2008, 22:26
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Re: What are the rates for Taxation at Source

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If I leave Switzerland, and more than a Year later, exercise some stock options, I am told that taxation at source still applies as the options were granted while still living in Switzerland. My question is what would be the tax rates if this is true?
It can be since in general stock bonuses, preferential stock purchasing programs and options are treated as income and taxed accordingly during the year when they are initially awarded.
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Old 26.03.2008, 18:05
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Re: What are the rates for Taxation at Source

In the 14 years I have been in Switzerland, I have never been taxed at source.

My company had two plans to choose from for stock options:

One plan taxes the options at grant. The taxable amount is discounted as the options cannot be exercised for the first three years.

The other plan (the one I chose) is suppose to tax the options value as ordinary income at exercise time. Again, If I am no longer in Switzerland for more than a Year when I exercise, do I still owe tax (quellensteuer) in Switzerland? If this is the case, what is the tax rate?

Thanks in advance, HunterEu
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Old 26.03.2008, 18:23
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Re: What are the rates for Taxation at Source

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In the 14 years I have been in Switzerland, I have never been taxed at source.

My company had two plans to choose from for stock options:

One plan taxes the options at grant. The taxable amount is discounted as the options cannot be exercised for the first three years.

The other plan (the one I chose) is suppose to tax the options value as ordinary income at exercise time. Again, If I am no longer in Switzerland for more than a Year when I exercise, do I still owe tax (quellensteuer) in Switzerland? If this is the case, what is the tax rate?

Thanks in advance, HunterEu
One company I worked for (the one with the big blueish bull logo) also had these "plans". After throwing lots of money through the window - sorry, many a consultation with "tax experts" (one of the Big 4) they found out the only thing that mattered was the opinion of the tax authorities, which actually happened to differ from this tax deferral neat planning...

At any rate, once domiciled abroad, Swiss tax authorities have no jurisdiction over your income. And if you've never been taxed at source, then quellensteuer certainly isn't something that applies to you.
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