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Old 03.04.2019, 10:36
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Buying US stock vs Swiss stock - Tax implications

Dear EF Members,

Let's say you are interested in investing in a company that is traded both in the US stock market and the Swiss stock market. From a tax perspective which one would be more advantageous?

There is no interest in selling the stock for the next 5 years and this stock pay's dividends every quarter.

Thank you for your feedback.

N
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Old 03.04.2019, 10:46
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Re: Buying US stock vs Swiss stock - Tax implications

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Dear EF Members,

Let's say you are interested in investing in a company that is traded both in the US stock market and the Swiss stock market. From a tax perspective which one would be more advantageous?

There is no interest in selling the stock for the next 5 years and this stock pay's dividends every quarter.

Thank you for your feedback.

N
US as the costs of buying & selling will be far less with zero stamp duty. Dividends will only have 15% withholding tax deducted. Depending on your lervel of income & residence permit US is likely to be better, as a high earner doing a tax return the tax liability will be identical.
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Old 03.04.2019, 14:57
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Re: Buying US stock vs Swiss stock - Tax implications

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Dear EF Members,

Let's say you are interested in investing in a company that is traded both in the US stock market and the Swiss stock market. From a tax perspective which one would be more advantageous?

There is no interest in selling the stock for the next 5 years and this stock pay's dividends every quarter.

Thank you for your feedback.

N
It depends what you mean by “Traded both in the US stock market and the Swiss stock market”...

... and which tax are you talking about?

Income Tax (i.e dividends)? Capital gains? Withholding tax?Other tax??

What is your residency status?

All else being equal, there should be no difference.
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Old 03.04.2019, 15:37
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Re: Buying US stock vs Swiss stock - Tax implications

No real difference. You still have to declare the dividends and while the deduction is higher in CH, 35%. you claim it back via your tax declaration and only pay your applicable rate.

The only thing to bear in mind, depending on your reference currency, is the exchange rate risk. If you have a 10% gain in the US portfolio but the currency depreciates by 15%, then you have a technical loss when converted back to CHF.
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Old 03.05.2019, 18:40
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Re: Buying US stock vs Swiss stock - Tax implications

Hello
Request for clarification of future tax consequences:
I would like to find out tax consequences before I invest my CHF into
SIX Swiss Exchange. I have a Permit C card. There are a few possible cases as below:
Case 1. I buy US company, Kraft Heinz Co shares (in CHF, but it pays me dividends in USD) from SIX Swiss Exchange via brokerage company (Degiro).
Case 2. I buy a Swiss company, Logitech shares (in CHF) from SIX Swiss Exchange via brokerage company (Degiro).
Case 3. I buy a Chinese company, Baidu shares (in CHF) from SIX Swiss Exchange via brokerage company (Degiro). It does not pay a dividend.
Case 4. I buy a Chinese company, Tencent shares (in CHF) from SIX Swiss Exchange via brokerage company (Degiro). It does pay a dividend.

Is there any TAX implication, I must be aware of among above-mentioned cases?

Thank you
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Old 03.05.2019, 19:32
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Re: Buying US stock vs Swiss stock - Tax implications

The same for all these cases:
Shares have to be listed on the wealth declaration form, any dividend will be added to your income.
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Old 04.05.2019, 10:15
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Re: Buying US stock vs Swiss stock - Tax implications

All those can be bought on US markets with zero stamp duty. Does SIX have stamp duty?

No special tax implications regardless of exchange, highest withholding tax via a Swiss Broker. US traded stocks will be between 0 - 15% depending country on the country the company domiciled in.

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Hello
Request for clarification of future tax consequences:
I would like to find out tax consequences before I invest my CHF into
SIX Swiss Exchange. I have a Permit C card. There are a few possible cases as below:
Case 1. I buy US company, Kraft Heinz Co shares (in CHF, but it pays me dividends in USD) from SIX Swiss Exchange via brokerage company (Degiro).
Case 2. I buy a Swiss company, Logitech shares (in CHF) from SIX Swiss Exchange via brokerage company (Degiro).
Case 3. I buy a Chinese company, Baidu shares (in CHF) from SIX Swiss Exchange via brokerage company (Degiro). It does not pay a dividend.
Case 4. I buy a Chinese company, Tencent shares (in CHF) from SIX Swiss Exchange via brokerage company (Degiro). It does pay a dividend.

Is there any TAX implication, I must be aware of among above-mentioned cases?

Thank you
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Old 26.06.2019, 10:49
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Re: Buying US stock vs Swiss stock - Tax implications

I appreciate very much for your kind reply.
Now, I understand that " US traded stocks will be between 0 - 15% depending country" means "Dividends will only have 15% withholding tax deducted. "
Thank you
Y
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Old 26.06.2019, 11:06
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Re: Buying US stock vs Swiss stock - Tax implications

[QUOTE=Yuk;3078801]I appreciate very much for your kind reply.
Now, I understand that " US traded stocks will be between 0 - 15% depending country" means "Dividends will only have 15% withholding tax deducted. "
However, please refer to the following site which explains it from different angle if you agree.

https://www.quora.com/Why-do-people-...-is-low-to-nil

Thank you
Y
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  #10  
Old 26.06.2019, 11:59
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Re: Buying US stock vs Swiss stock - Tax implications

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I appreciate very much for your kind reply.
Now, I understand that " US traded stocks will be between 0 - 15% depending country" means "Dividends will only have 15% withholding tax deducted. "
Thank you
Y
If bought in the US & you fill in W8BEN yes, bought in CH 30% withholding tax
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