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Old 01.01.2021, 02:40
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Gift documentation

So my parents gifted me some money this year.

For those that received a gift of cash from parents, what documentation did you have to provide? Because the only documentation I have is essentially an amount of money that hit my Swiss bank account. Money is transferred from a Hong Kong bank account.

Last edited by Phil_MCR; 01.01.2021 at 17:34.
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  #2  
Old 01.01.2021, 07:57
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Re: Gift documentation

Itís not income, why would the tax people need to know about it? It will be counted towards your fortune and your bank will have included it in the year end tax documents they will be giving you.
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Old 01.01.2021, 10:24
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Re: Gift documentation

For Basel-Stadt, the OP should indicate that a gift has been received under Erhaltene Schenkung (received gift) and record the account value on form W, using the code S.

The Basel-Stadt instructions, Hauptformular (top form) and form W do not indicate the need for an attachment supporting the received gift.


Added:

Basel-Stadt form W Wertschriftenverzeichnis requires this information for received gifts:

"Erhaltene Schenkung
(2)Haben Sie im Jahre 20xx eine Schenkung erhalten? Nein (inkl. Erbvorbezug) ja,
Schenker/in (Name, Vorname) Verwandtschaftsgrad Datum der Schenkung Wohnsitz"

For Verwandtschaftsgrad (Relationship) write in Eltern (parents).

https://www.steuerverwaltung.bs.ch/s...formulare.html

Last edited by Mullhollander; 01.01.2021 at 17:50.
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Old 01.01.2021, 10:32
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Re: Gift documentation

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So my parents gifted me some money this year.

For those that received a gift of cash from parents, what documentation did you have to provide? Because the only documentation I have is essentially an amount of money that hit my Swiss bank account.
I will soon be gifted a couple of properties in order to offset UK IHT and as I understand it (so far at least), if you receive money or property in this way (ie: not as taxable income) then they are just declared as a gift and then taxed as part of your your overall wealth when you hand in your tax declaration forms at the end of the year.
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Old 01.01.2021, 10:32
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Re: Gift documentation

Also look here: https://www.ch.ch/en/taxation-gifts/ for another interpretation of the Gift Tax rules
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Old 01.01.2021, 10:36
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Re: Gift documentation

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Also look here: https://www.ch.ch/en/taxation-gifts/ for another interpretation of the Gift Tax rules
But this would be a gift from a person within Switzerland and not from another country, right? I know Phil didn't specifically state that his was received from another country but as he is an expat I am assuming it was likely from parents in the UK.
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Old 01.01.2021, 10:46
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Re: Gift documentation

Well, apart from finding a few seemingly relevant articles, and adding a caveat about the well meaning opinions from the English Forum community, the only further thing I can say is that professional advice may be good in cases where the sums are substantial. Especially if the matter is "Tax Optimisation" which may skirt close to one boundary or another.
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Old 01.01.2021, 10:55
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Re: Gift documentation

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Well, apart from finding a few seemingly relevant articles, and adding a caveat about the well meaning opinions from the English Forum community, the only further thing I can say is that professional advice may be good in cases where the sums are substantial. Especially if the matter is "Tax Optimisation" which may skirt close to one boundary or another.
Agreed. I would have done that but the guidelines on wealth tax seemed clear enough and in the end what is levied in this way will still be WAY less than what UK IHT would be. *spits*
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Old 01.01.2021, 11:25
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Re: Gift documentation

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So my parents gifted me some money this year.

For those that received a gift of cash from parents, what documentation did you have to provide? Because the only documentation I have is essentially an amount of money that hit my Swiss bank account.
Have a look here: https://www.credit-suisse.com/ch/en/...en-201611.html

Seems like you indeed pay gift tax.
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Old 01.01.2021, 11:27
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Re: Gift documentation

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Have a look here: https://www.credit-suisse.com/ch/en/...en-201611.html

Seems like you indeed pay gift tax.
Again, isn't this if you receive a gift from a giver that is a taxable citizen within Switzerland? Genuine question so sorry if I am misunderstanding anything.
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  #11  
Old 01.01.2021, 17:32
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Re: Gift documentation

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Itís not income, why would the tax people need to know about it? It will be counted towards your fortune and your bank will have included it in the year end tax documents they will be giving you.
because it will show up as an increase in my wealth tax and it should not be taxable on me as it is from my parents, but I'm not sure what documentary support I need to indicate that it is from my parents.
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Old 01.01.2021, 19:13
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Re: Gift documentation

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So my parents gifted me some money this year.

For those that received a gift of cash from parents, what documentation did you have to provide? Because the only documentation I have is essentially an amount of money that hit my Swiss bank account. Money is transferred from a Hong Kong bank account.
I looked into this when I received an inheritance from overseas. The advice I got for BL was that there was nothing to declare - just the increase in wealth. Some people open up an account specially to receive it, and "forget" to inform the tax office. I don't recommend that.

When I gifted my son a largish sum, he declared it as a gift, and I declared it as the giver. As I recall there was no special form. And it made no difference to the tax paid by either of us (except wealth of course).
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Old 01.01.2021, 21:02
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Re: Gift documentation

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I will soon be gifted a couple of properties in order to offset UK IHT and as I understand it (so far at least), if you receive money or property in this way (ie: not as taxable income) then they are just declared as a gift and then taxed as part of your your overall wealth when you hand in your tax declaration forms at the end of the year.
I assume your parents realise CGT on an gain at market value needs to be paid within 30 days. Giving away is a disposal for U.K. CGT , many people falsely assume no CGT is payable as no money is received. They must also not live in or use the homes gifted.

CGT on property is usually 28% v 40% IHT however potentially 1 million exemption IHY for a couple with a home unless large assets but then 650k exemption.

Of course paying the CGT reduces the estate value
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Old 01.01.2021, 21:10
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Re: Gift documentation

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because it will show up as an increase in my wealth tax and it should not be taxable on me as it is from my parents, but I'm not sure what documentary support I need to indicate that it is from my parents.
A letter from your parents setting out the gift would be prudent, probably will never be needed but you never know. Hong Kong bank transfers like with Jersey cause more excitement! I closed my HSBC expat account because of this
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Old 01.01.2021, 21:33
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Re: Gift documentation

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A letter from your parents setting out the gift would be prudent, probably will never be needed but you never know. Hong Kong bank transfers like with Jersey cause more excitement! I closed my HSBC expat account because of this
Exactly, I was concerned that the HK account would raise eyebrows (funds came from sale of HK property).
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Old 01.01.2021, 21:56
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Re: Gift documentation

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Exactly, I was concerned that the HK account would raise eyebrows (funds came from sale of HK property).
As your bank is used to dealing in larger sums, it's likely to be ignored, more in issue with the likes of currency fair for current conversions. Sending USD from HSBC Expat OK, returning Euro's to HSBC expat always got blocked until documentation provided. Similar sized transactions form Switzerland, France or Malta just went through without question.
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Old 01.01.2021, 22:24
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Re: Gift documentation

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As your bank is used to dealing in larger sums, it's likely to be ignored, more in issue with the likes of currency fair for current conversions. Sending USD from HSBC Expat OK, returning Euro's to HSBC expat always got blocked until documentation provided. Similar sized transactions form Switzerland, France or Malta just went through without question.
Funds arrived no problem. I got it already months ago. I was just more concerned about the tax authorities challenging it as 'hidden funds' and what documentation I had to provide to prove otherwise.

Last edited by Phil_MCR; 02.01.2021 at 10:46.
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Old 01.01.2021, 22:35
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Re: Gift documentation

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Funds arrived no problem. I got it already months ago. I was just more concerned about the tax authorities challenging it as 'hidden funds'.
As it can be explained with a letter from your parents & a copy of the HK sale contract / account of the solicitor acting for your parents, I can't see any problem regardless of amount involved. A paper trail as in an Audit should be sufficient.
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Old 02.01.2021, 06:52
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Re: Gift documentation

We declared gifts/loans to family in our Swiss tax declaration. Essential so that we didn't have to pay taxes when we received the funds back again. Receipt was the bank transfer. The tax authorities do keep a track of your accounts and called us when we were 100k less one year. Reason being, we spent it
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