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Old 22.08.2018, 14:42
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Tax on interest earned on foreign account

Hi,
I wanted to know how much is the tax levied on interest earned on foreign account. Is it 35%? or the income is added to your existing income and then taxed accordingly.

Also how much is the wealth tax if total assets are more than 500000CHF
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Old 22.08.2018, 15:10
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Re: Tax on interest earned on foreign account

No idea, minimal most likely, but do be sure to add that account to your tax filings, not only the interest.
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Old 22.08.2018, 17:03
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Re: Tax on interest earned on foreign account

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Hi,
Is it 35%? or the income is added to your existing income and then taxed accordingly.
Latter case. 35% is the witholding tax that is applied in CH for interest and dividend income that is returned when you file tax return. The gross interest or dividend is then taxed as normal income at your effective tax rate.

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Also how much is the wealth tax if total assets are more than 500000CHF
Depends which kanton/gemeinde you are in. Check on the simple calculator here
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Old 04.09.2018, 20:52
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Re: Tax on interest earned on foreign account

Hi,
I read online that 35% tax is only applied to the interest earn in ch and not abroad. Abroad income is jusy added to total income.
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Old 04.09.2018, 21:34
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Re: Tax on interest earned on foreign account

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Hi,
I read online that 35% tax is only applied to the interest earn in ch and not abroad. Abroad income is jusy added to total income.

It is not a 35% tax, in CH. The CH provider WITHHOLDS 35% of your interest/dividends so that you are encouraged to declare to the SWISS authorities both the underlying account AND the interest you earned (similarly asset/dividend). On your tax return the 35% is returned to you (a credit) and as DUTCH has said the total interest (+dividends) is added to your income and taxed at your effective income tax rate.


Other jurisdictions may have different local requirements. In that case you need to check the appropriate Double Taxation Treaty between CH and that jurisdiction as to how to recover the 'double tax'. But usually if you are officially non-tax-resident in the other jurisdiction, nothing is withheld. YMMV though c.f. DTTs.

Last edited by bill_door; 04.09.2018 at 21:44. Reason: clarity
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