Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #1  
Old 14.10.2020, 10:51
Junior Member
 
Join Date: Jun 2014
Location: Zurich
Posts: 52
Groaned at 4 Times in 2 Posts
Thanked 19 Times in 11 Posts
gvanrenterghem has no particular reputation at present
Taxes on Dividends French SASU for Swiss Tax resident

Hi there, this topic has been raised partially in past posts but I am struggling to find information that guarantee me that my computation is 100% right in my specific case.

My situation is that I am a French tax resident for now, own 100% of a SASU in France (i.e. a SASU is not defined as Sole Trader, SASU have limited liability, limited to the EUR 1000 in Capital I brought in), the SASU never paid me or anyone a salary or paid a dividend (basically this is a pile of cash sitting there). At the same time, I am unemployed and receive unemployment benefit (unbelievable but that is absolutely legal in France as I am also looking for a job), pay taxes on unemployment benefit, social charges etc.

I am about to relocate to Switzerland (Zurich) this month or next to join my wife who moved there in August with the kids (we have separate fiscal addresses, this also is legal in our case) but I am wondering whether I should pay myself a dividend while still a French tax resident (flat tax at 30%) or pay myself once in Switzerland.

As far as I understand, I:
- would be taxed 12.8% withholding tax in France if I can prove that I am Swiss tax resident (Filling formulary 5000 aka cerfa 12816.03 to be stamped by Zurich tax authorities and to then be sent to my French Corporate Bank for payment of dividend with 12.8% taxes deducted)
- then fill a tax return in Switzerland in 2021 for which I would pay taxes on only 60% of the dividend received in 2020, the tax rate applied being the tax rate coming from adding these 60% of dividend (before the 12.8% french tax) on top of what my wife earns each month (multiplied by 12)
- then ask my Swiss tax bill for 2020 to be reduced of the 12.8% taxes paid to France (Formulary DA-1 aka "demande d'imputation forfaitaire" in French).

Based on a CHF 190,000 gross dividend and wife at CHF 140,000 Gross salary per year (and 2 kids aged 3 and 5), my computation (based on this website https://swisstaxcalculator.estv.admi...ome-wealth-tax) suggests that my dividends would increase my Swiss tax bill by CHF 36,500, translating into an implied Dividend tax rate of 19.2% (36500/190000).

Do you think I get these septs and computation right?

Thanks in advance for your help (none of my friends, most of them working in Finance) have any clue about that mechanism...
Reply With Quote
Reply




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Swiss resident for US taxes as freelancer kiki Finance/banking/taxation 11 28.01.2019 23:19
U.S. taxes on withdrawal from Swiss 2nd + 3rd pilar for U.S. resident (green card)? greghoch Finance/banking/taxation 10 29.11.2018 17:09
Swiss taxes query for temporary Swiss resident Canadastudent Finance/banking/taxation 9 31.05.2016 20:38
Taxes as Swiss Resident kkk777 Finance/banking/taxation 4 25.12.2015 00:30
Reclaiming witheld taxes on dividends from outside Switzerland Miller Finance/banking/taxation 3 13.08.2015 23:27


All times are GMT +2. The time now is 13:40.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2021, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0