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Old 30.10.2020, 20:58
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Wealth tax - rough impact?

Hi, a while ago I asked a question about what value to declare for property owned abroad for tax return purposes, and due to various factors it seemed that submitting the purchase price might be acceptable. What kind of impact does wealth tax actually have though? I seem to be getting different answers to this. If I were to declare a property value of CHF 100,000 vs CHF 1,000,000 on a salary of CHF 200,000, for example, roughly what kind of difference in tax totals would we be talking?
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Old 30.10.2020, 21:02
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Re: Wealth tax - rough impact?

The scales are listed here:

https://www.vd.ch/themes/etat-droit-...remes/baremes/
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Old 30.10.2020, 21:30
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Re: Wealth tax - rough impact?

The value of foreign real property is used in setting the cantonal wealth tax rate for all other taxable assets that the taxpayer owns. The foreign real property itself is not subject to cantonal wealth tax. Other taxable assets would include financial assets and Swiss real property. Pension assets are normally excluded.
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Old 30.10.2020, 21:46
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Re: Wealth tax - rough impact?

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The value of foreign real property is used in setting the cantonal wealth tax rate for all other taxable assets that the taxpayer owns. The foreign real property itself is not subject to cantonal wealth tax. Other taxable assets would include financial assets and Swiss real property. Pension assets are normally excluded.
It may be a cantonal difference, but the value of foreign property is subject to wealth tax in SG at least.
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Old 30.10.2020, 22:39
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Re: Wealth tax - rough impact?

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It may be a cantonal difference, but the value of foreign property is subject to wealth tax in SG at least.
Art. 15 and 16 of Canton SG tax law says otherwise.
https://www.gesetzessammlung.sg.ch/a.../versions/2863

Also in SG a foreign real estate should only have an impact on the tax rate but are not taxed themselves.
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Old 30.10.2020, 22:43
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Re: Wealth tax - rough impact?

At the below link is a paragraph on "tax separation" (Steuerausscheidung) for Canton St. Gallen. It indicates (translated):

"The tax separation results in the distribution of the total income and assets among the participating cantons and countries. St.Gallen real estate and the income from it (third-party and own notional rent) are taxed exclusively by Canton St. Gallen at the location of the real estate as well as the profits from independent activity at the St. Gallen business location (property or business location). The tax rate is based on the total worldwide income and assets. The debts and debt interest are allocated to the participating cantons/ countries proportionally according to the location of the total assets.

In both intercantonal and international relations, tax separation is carried out by the Canton of St.Gallen."

https://www.sg.ch/content/dam/sgch/s...2018%20def.pdf
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Old 30.10.2020, 22:54
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Re: Wealth tax - rough impact?

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. If I were to declare a property value of CHF 100,000 vs CHF 1,000,000 on a salary of CHF 200,000, for example, roughly what kind of difference in tax totals would we be talking?
Salary is not important for wealth tax. What matters is the total net wealth (assets - debts).

The link to the tax table has been given. Next we have to know the cantons and commune multiplier and add them up. The canton multiplier is 1.545. The communes multiplier depends on the commune so let us pick Lausanne were the multiplier is 0.79. The total multiplier which we have to apply to the basic tax rate is thus 2.335if one lives in Lausanne.

Let say your total net wealth is 1M then the basic wealth tax rate is 0.2775%
If the real estate abroad has a value of 500k then the wealth tax due is calculated on the remaining 500k, and accordingly 1387.25 x 2.335= 3239.25 wealth tax is due .

If you are a criminal and do not declare the house abroad your declared net wealth would be just 500k, tax rate is 0.2241 and the wealth tax which will be paid is just 1120.30 x 2.335 = 2615.90.

And if we assume you sold the house, or you think about buying a house abroad, than you have 1M taxable assets. The tax rate is the already known 0.2775% which means 2774.5 x 2.335 = 6478.45 has to be paid-

Note: 1 ‰ = 0.1 %
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Old 31.10.2020, 00:32
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Re: Wealth tax - rough impact?

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Salary is not important for wealth tax. What matters is the total net wealth (assets - debts).

The link to the tax table has been given. Next we have to know the cantons and commune multiplier and add them up. The canton multiplier is 1.545. The communes multiplier depends on the commune so let us pick Lausanne were the multiplier is 0.79. The total multiplier which we have to apply to the basic tax rate is thus 2.335if one lives in Lausanne.

Let say your total net wealth is 1M then the basic wealth tax rate is 0.2775%
If the real estate abroad has a value of 500k then the wealth tax due is calculated on the remaining 500k, and accordingly 1387.25 x 2.335= 3239.25 wealth tax is due .

If you are a criminal and do not declare the house abroad your declared net wealth would be just 500k, tax rate is 0.2241 and the wealth tax which will be paid is just 1120.30 x 2.335 = 2615.90.

And if we assume you sold the house, or you think about buying a house abroad, than you have 1M taxable assets. The tax rate is the already known 0.2775% which means 2774.5 x 2.335 = 6478.45 has to be paid-

Note: 1 ‰ = 0.1 %
Is fiddling your tax for a few CHF 100 now a criminal offence? It always used to be a civil matter.
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Old 31.10.2020, 09:15
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Re: Wealth tax - rough impact?

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It may be a cantonal difference, but the value of foreign property is subject to wealth tax in SG at least.
Thanks to those who corrected me - you're right.

My tax accountant uses "taxable wealth" for the full amount through the summary they send me, but on the very last line after all the calculations of allowances etc they exclude the non-Swiss stuff.
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Old 31.10.2020, 09:54
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Re: Wealth tax - rough impact?

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Is fiddling your tax for a few CHF 100 now a criminal offence? It always used to be a civil matter.
It's a civil matter below 300k a year of evasion.
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