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Old 05.03.2016, 19:34
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Re: Taxes on US ETFs

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Hi again.
sorry can you explain again please?
because of the tax treaty benefits between us and switzerland, ameritrade will withhold 15% tax on dividends.

is this 15% lost or can i get that back somehow?
if so, it is not clear to me how and by whom. i mean is it ameritrade who has to pay it back?
sorry if it sounds dumb
As a general rule, financial institutions, funds, etc., when they are the beneficial owner of the payment that has been withheld upon, do a tax reclaim with the IRS at the end of the year if they are able to avail of treaty benefits that lower or eliminate the tax that was withheld ((the other method is to claim the treaty benefits at the front-end and therefore not have any withholding (or a lower rate of withholding) per the tax treaty)).

How that works specifically for individuals (who are not High Net-Worth Individuals and therefore don't have a Global Family Office or high-cost advisers to assist them), I don't know. I trust @fatmanfilms's details above as he knows a lot about individual taxation while my knowledge is limited to Financial Institutions and international taxation.
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  #22  
Old 05.03.2016, 19:57
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Re: Taxes on US ETFs

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As a general rule, financial institutions, funds, etc., when they are the beneficial owner of the payment that has been withheld upon, do a tax reclaim with the IRS at the end of the year if they are able to avail of treaty benefits that lower or eliminate the tax that was withheld ((the other method is to claim the treaty benefits at the front-end and therefore not have any withholding (or a lower rate of withholding) per the tax treaty)).

How that works specifically for individuals (who are not High Net-Worth Individuals and therefore don't have a Global Family Office or high-cost advisers to assist them), I don't know. I trust @fatmanfilms's details above as he knows a lot about individual taxation while my knowledge is limited to Financial Institutions and international taxation.
A US institution issues a 1042S tax certificate for non US persons showing any withholding tax deducted. A Swiss tax payer can reclaim this tax (15%) & then pay whatever their actual tax rate is.
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  #23  
Old 05.03.2016, 20:58
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Re: Taxes on US ETFs

Just want to add that Ive been using Ameritrade for ages. Great service that puts all Swiss traders to shame (But thats easy to do). Anyway, Yes, you will have to fill out the DA1. Funny thing is, because of the 15% Pauschal one basically breaks even in owing any tax. Also your allowed to take a pauschal of 3 thousand percentage (thats your fortune divided by 1000 and times 3) as a cost deduction on your assets. I normally do this with my Ameritrade and fidelity assets. Fidelity is also good, but new one has to have a state side address to make investments. Hope, this helps.
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Old 06.03.2016, 23:20
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Re: Taxes on US ETFs

Hi,
As a US citizen filling out Zurich tax form, if I have US Funds do I declare them both under "Wertschriftenverzeichnis" and on form DA-1? Or only on form DA-1?
What's the advantage of doing this if my dividends and distributions are less than 1K CHF?

Thanks for your help,
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Old 07.03.2016, 03:14
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Re: Taxes on US ETFs

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Hi,
As a US citizen filling out Zurich tax form, if I have US Funds do I declare them both under "Wertschriftenverzeichnis" and on form DA-1? Or only on form DA-1?
What's the advantage of doing this if my dividends and distributions are less than 1K CHF?

Thanks for your help,
DA1 only. If you can't be bothered then fill in the Wertschriftverzeichnis but you won't get any credit / refund.
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