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Old 09.02.2020, 14:10
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Tax on Dividends (BS)

Hello!

I'm using Interactive Brokers and every time when I get dividends, they take the 15% for the US part of the tax. I get 85%. Since I have a B permit and I'm taxed at source, there is no easy way to pay the other 15% to the CH. I called the tax office in Basel, and they didn't know what to do. They proposed that I should write them a letter, explain everything, write down all the dividends etc. It looked to me, that they are not aware of this problem or that they just simply dont care. We are not talking about lot's of money, it would be 100chf at most. I'm not sure if I want to go down this road for 100chf. Going from quellensteuer to normal tax declaration would cost me 10 times more.

Is anyone here with a similar story?
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Old 09.02.2020, 15:39
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Re: Tax on Dividends (BS)

I thought the whole idea of Tax at Source was that it was taken at a rate to cover all your earnings, whatever they are, saving you the bother of making a declaration and saving the tax authorities the need to review it. It's only when your earnings get above a certain threshold that you have to start making declarations.
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Old 09.02.2020, 16:38
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Re: Tax on Dividends (BS)

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Hello!

I'm using Interactive Brokers and every time when I get dividends, they take the 15% for the US part of the tax. I get 85%. Since I have a B permit and I'm taxed at source, there is no easy way to pay the other 15% to the CH. I called the tax office in Basel, and they didn't know what to do. They proposed that I should write them a letter, explain everything, write down all the dividends etc. It looked to me, that they are not aware of this problem or that they just simply dont care. We are not talking about lot's of money, it would be 100chf at most. I'm not sure if I want to go down this road for 100chf. Going from quellensteuer to normal tax declaration would cost me 10 times more.

Is anyone here with a similar story?
There is no other 15% to pay, depending on your tax rate you may get a partial refund on the 15% paid or have slightly extra to pay. With a C permit the 15% would be refunded in full then you pay normal tax on it.

Probably no need to do anything, when you have a C permit just declare in full.
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Old 09.02.2020, 21:30
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Re: Tax on Dividends (BS)

You only need to file a tax return in certain cases. e.g. if you exceed the famous 120k income limit (varies by canton). however, there's also typically a much lower limit for unearned income (such as interest/dividends) if you exceed that, you'll need to file a tax return.
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Old 09.02.2020, 22:32
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Re: Tax on Dividends (BS)

The 2019 tax instructions for Basel-Stadt indicate that an ordinary tax filing should be submitted if the source-tax taxpayer has other income not subject to source tax, e.g., income from securities. See this translation:

"A retrospective ordinary assessment is carried out if the source taxed income of a person amounts to more than CHF 120,000 in a calendar year.

An additional ordinary assessment is carried out if, in addition to the income subject to source tax, other income that is not subject to withholding tax (income from self-employment, income from social and other insurance, income from securities or real estate, maintenance contributions, etc.) has been earned or is available."

Filing an ordinary tax return should allow a DA-1 form to be submitted to recover 15% of the taxes paid on US securities under the double-tax agreement (DBA).

See the first pdf at this link, p.5 (German):

https://www.steuerverwaltung.bs.ch/s...antworten.html
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Old 10.02.2020, 09:48
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Re: Tax on Dividends (BS)

In case of filing a tax declaration you need both to declare your stocks (Vermögen) together will all your bank account and assets (house abroad, car, etc) and the dividends resulted from the stocks.

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The 2019 tax instructions for Basel-Stadt indicate that an ordinary tax filing should be submitted if the source-tax taxpayer has other income not subject to source tax, e.g., income from securities. See this translation:

"A retrospective ordinary assessment is carried out if the source taxed income of a person amounts to more than CHF 120,000 in a calendar year.

An additional ordinary assessment is carried out if, in addition to the income subject to source tax, other income that is not subject to withholding tax (income from self-employment, income from social and other insurance, income from securities or real estate, maintenance contributions, etc.) has been earned or is available."

Filing an ordinary tax return should allow a DA-1 form to be submitted to recover 15% of the taxes paid on US securities under the double-tax agreement (DBA).

See the first pdf at this link, p.5 (German):

https://www.steuerverwaltung.bs.ch/s...antworten.html
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Old 10.02.2020, 14:47
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Re: Tax on Dividends (BS)

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Hello!

Going from quellensteuer to normal tax declaration would cost me 10 times more.
Why would going from tax-at-source to full declaration cost you so much more?

If that's the case, you must have a lot of undeclared income or undeclared wealth, which may have already crossed a threshold meaning you should volunteer to fill the full declaration.

For claiming the 15% back from the USA, you need to fill the DA-1 form with the full declaration. Swiss income tax is charged on all dividends, foreign and domestic.
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Old 10.02.2020, 14:58
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Re: Tax on Dividends (BS)

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Why would going from tax-at-source to full declaration cost you so much more?

If that's the case, you must have a lot of undeclared income or undeclared wealth, which may have already crossed a threshold meaning you should volunteer to fill the full declaration.

For claiming the 15% back from the USA, you need to fill the DA-1 form with the full declaration. Swiss income tax is charged on all dividends, foreign and domestic.
10 times more than the 100 in tax so 1000, quite possible depending on deductions & village
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Old 10.02.2020, 15:35
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Re: Tax on Dividends (BS)

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10 times more than the 100 in tax so 1000, quite possible depending on deductions & village
Ah, gotcha.

So yeah... probably not worth declaring, unless you're obliged the declare due to wealth / income requirements
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