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Old 22.03.2020, 17:05
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UBS Employee Stock Purchase Plan - tax declaration questions

1. I participate in the UBS Employee Stock Purchase Plan. For each 3 stocks bought, I get 1 for free. I am not allowed to sell any of these shares for 3 years. Below is the screenshot showing the way I declared the stocks bought (free shares are not included) in 2019 – is this correct?





2. On the screenshot above there is no way to declare the dividend I received on these shares. Does it mean that there is no need to declare the dividends received?


3. Do I need to declare the free shares received from the UBS Employee Stock Purchase Plan?


4. Do I need to declare the dividend I received on the free shares received from the UBS Employee Stock Purchase Plan?
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Old 26.03.2020, 14:51
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Re: UBS Employee Stock Purchase Plan - tax declaration questions

Quote:
1. I participate in the UBS Employee Stock Purchase Plan. For each 3 stocks bought, I get 1 for free. I am not allowed to sell any of these shares for 3 years. Below is the screenshot showing the way I declared the stocks bought (free shares are not included) in 2019 – is this correct?
You need to check with your employer. Is the additional stock given to you at the beginning of the program (you truly hold it but can't sell)? Or does the transfer only happen at the end of the three years? In the former case, you should declare. In the latter you shouldn't.

Quote:
2. On the screenshot above there is no way to declare the dividend I received on these shares. Does it mean that there is no need to declare the dividends received?
You have to declare dividends received. They are considered income and taxed at your marginal income tax rate. I'm unfamiliar with the specific tool for you canton, but you could check this for an extra reference

Quote:
3. Do I need to declare the free shares received from the UBS Employee Stock Purchase Plan?
Same answer to 1: yes, but only when you are truly the holder

Quote:
4. Do I need to declare the dividend I received on the free shares received from the UBS Employee Stock Purchase Plan?
Do you keep that dividend yourself? If so, yes
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Old 27.03.2020, 15:47
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Re: UBS Employee Stock Purchase Plan - tax declaration questions

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You need to check with your employer. Is the additional stock given to you at the beginning of the program (you truly hold it but can't sell)? Or does the transfer only happen at the end of the three years? In the former case, you should declare. In the latter you shouldn't.


You have to declare dividends received. They are considered income and taxed at your marginal income tax rate. I'm unfamiliar with the specific tool for you canton, but you could check this for an extra reference


Same answer to 1: yes, but only when you are truly the holder


Do you keep that dividend yourself? If so, yes



Thanks, Ztm. In regards to the dividends I found that the tax was actually deducted at the time the dividends were payed out. The tax rate was 35% but they should be taxed at the same rate as the rest of my income. How do I claim the tax back in this case? I assume that the DA-1 form cannot be used because the dividends were paid by a Swiss entity.
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Old 27.03.2020, 17:26
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Re: UBS Employee Stock Purchase Plan - tax declaration questions

Have you completed the “Zu- & Abgänge” tab (to the right of the “Wertpapier” tab? That’s where you enter the movements for the year, including the free shares “Gratisektien”. This data is the reconciliation of all the movements (& transaction date) of your share ownership for the year. Once it sees you owned shares at the time of a dividend issue, it will calculate the dividend, withholding tax etc and include these in the tax return.

You do need to declare all the dividends (it’s taxable income)and the free shares (for wealth/capital tax).

BTW, do you know that the 2019 filing deadline has been extended to 31 May as part of the Federal Government’s Corona-Paket?
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Old 27.03.2020, 19:55
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Re: UBS Employee Stock Purchase Plan - tax declaration questions

I can give you my opinion based on some knowledge, but this is not professional advice and you need to decide for yourself the appropriate information to declare.

You should have received a "Wealth Tax Statement" from the company with a name similar to the employee share plan (I'm sure you know who I mean).

The shares purchased each month should be entered in the “Zu- & Abgänge” tab as detailed in the "Positions subject to wealth tax with a possible discount" sheet of the above wealth tax statement (this has the date of acquisition, blocked until date and quantity). These are legally your shares that you purchased from your salary, but are blocked, so your wealth taxable value is discounted accordingly. You already entered the Sperrfrist or blocking date on the tab you showed - taxcalc will work out the discount and you can check it against the 'taxable value' column on the mentioned sheet in the wealth tax statement.

The matching notional shares (1 for every 3 shares bought) are not yet legally yours until they vest at the Sperrfrist above, they are listed on the "positions not subject to wealth tax" sheet from above company, and do not need to be declared on your wealth tax form.

The "dividend" was a distribution from capital reserves and no witholding tax would have been applied. Regarding the dividend on the shares you already own, you would have received cash, but not sure where you see 35% being withheld on that - it should not have been. The tax form knows this - you see the message "Rückzahlung aus Reserven ... " on your screenshot and the Erträge section is empty (this would otherwise list your taxable dividends).

The notional shares in that plan are also effectively attracting a dividend, but that cannot be paid to you as you don't own the notional shares. Instead if you look carefully you will see you have in May a small amount of additional notional shares credited to you which will vest alongside the others - this represents the dividend value. Again, they are not yet part of your wealth so do not need to be declared.
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Old 30.03.2020, 20:54
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Re: UBS Employee Stock Purchase Plan - tax declaration questions

Thanks, Jaudi - this is really helpful!


I have a similar question about declaring cryptocurrencies. There is a cryptocurrency (NeoGas) which is received due to owning another cryptocurrency (Neo), which makes similar it to stock dividends. Assuming that I received CHF 1000 worth of Neo last year, is it declared correctly on the below screenshot?





On the other hand, KICK cryptocurrency was granted to me for free without myself knowing about it. Here is the story:

https://medium.com/@kickecosystem/88...g-2937a1abf641

Is it OK to declare it the same way as NeoGas above?
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