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Old 29.07.2019, 08:23
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Wealth tax on Swiss/foreign private company shares

Hello,

I did not found a thread of this so i thought this might serve other people as well.

Basicly Swiss based private company shares are taxed by the actual value

BUT

Foreign based private company shares just make the tax bracket higher.


Example (seen as if these would be the only assets of the taxpayer):
Net value of Swiss company shares 500000 CHF
Net value of foreign company shares 500000 CHF

The tax percentage is based on 1000000 CHF, but actual wealth tax is only paid for Swiss company shares.

Please fix if i have not understood or explained this in a right way.

I live in Canton Vaud, but i quess it does not make the principle of wealth taxation any different.

All the best for everyone reading this!
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Old 29.07.2019, 10:36
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Re: Wealth tax on Swiss/foreign private company shares

Wealth tax is charged on worldwide wealth. It doesn't matter if it's in Switzerland or elsewhere.
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Old 29.07.2019, 11:56
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Re: Wealth tax on Swiss/foreign private company shares

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Wealth tax is charged on worldwide wealth. It doesn't matter if it's in Switzerland or elsewhere.
I am not sure if i understand.

It says is Invest Vaud website, published by Cantonal Department of Economic Affairs, Innovation and Sport (DEIS)

”Shareholdings in foreign businesses and plants are not subject to wealth tax, nor are properties abroad. ”


I think this is due to tax agreements and OECD principle that taxation of economic units is done where the registered office is.
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Old 29.07.2019, 15:31
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Re: Wealth tax on Swiss/foreign private company shares

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The tax percentage is based on 1000000 CHF, but actual wealth tax is only paid for Swiss company shares.

Please fix if i have not understood or explained this in a right way.
This is mostly correct. Just to clarify the 'combined rate' is applied to your FULL Swiss wealth, not just the Swiss Company part (e.g. including bank accounts).

By declaring the foreign asset though you draw attention to it and you need to verify DTT (double taxation treaties) between Switzerland and the tax authority of the non-Swiss component. You are correct that the asset itself in this case is not taxed, but do you receive a dividend/expenses/salary from this foregin asset? You will need to prove that you own the asset (Shareholder extract verified/signed/published by the board [CEO/CFO?] ) and then prove the items i just mentioned.
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