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Old 28.02.2017, 00:59
ykp ykp is offline
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investing in VTI and VSUX, should I pay taxes?

Hi there,

I am non-EU, non-US person here making less than 120k and get taxed at source. I opened an IB account and consider buying Vanguard VTI and VSUX ETF.

Should I fill tax return since I have investments or is it legal not to fill tax return since I am taxed at source?
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Old 28.02.2017, 11:41
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Re: investing in VTI and VSUX, should I pay taxes?

Theoretically it's taxable and they should bother to look into it from (AFAIK) 2500 CHF/year side income and get you treated to "ergänzende Veranlagung zur Quellensteuer". To get to that threshold at current yields you'd probably need 100-150k invested or so. I wouldn't file until they ask, it's cheaper this way. You'd only owe 15% cut on any dividends to Uncle Sam, but if you file, it'll be more to CH at your marginal tax rate. IB, as a foreign broker, might rat out that you have an account and total of dividends and sale proceeds though. Swiss brokers shouldn't talk.

Last edited by ivank; 28.02.2017 at 11:54.
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Old 04.03.2017, 03:44
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Re: investing in VTI and VSUX, should I pay taxes?

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Theoretically it's taxable and they should bother to look into it from (AFAIK) 2500 CHF/year side income and get you treated to "ergänzende Veranlagung zur Quellensteuer". To get to that threshold at current yields you'd probably need 100-150k invested or so. I wouldn't file until they ask, it's cheaper this way. You'd only owe 15% cut on any dividends to Uncle Sam, but if you file, it'll be more to CH at your marginal tax rate. IB, as a foreign broker, might rat out that you have an account and total of dividends and sale proceeds though. Swiss brokers shouldn't talk.
Thanks for the info, btw do you have any links/documents for the 2500 chf/year side income?
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Old 04.03.2017, 03:48
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Re: investing in VTI and VSUX, should I pay taxes?

The keywords to search for are ergänzende Veranlagung zur Quellensteuer
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Old 08.03.2017, 01:09
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Re: investing in VTI and VSUX, should I pay taxes?

Thanks a lot
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