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Old 28.12.2008, 23:41
Isambard Mews
 
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net wealth tax - tables

I found this:

http://sh.ch/fileadmin/Redaktoren/Do...genssteuer.pdf

And based on 400k, it says 700 of tax which works out to 0.175%. Though it says 1.75% in the column.

Anyone know how wealth tax is calculated?

Also, does anyone know, or can they link to anything in relation to exemptions from income/wealth tax e.g. if I rent out my home in the UK while I'm in CH or sell it, are there exemptions from CGT etc. (in Schaffhausen).

I'm happy to wade through German legislation if someone can provide the relevant link. Thanks.
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Old 29.12.2008, 00:24
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Re: net wealth tax - tables

It's calculated per mille (°/oo) as shown as the bottom of your link, not per cent (%) as shown incorrectly at the top of the columns...
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Old 29.12.2008, 00:32
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Re: net wealth tax - tables

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I found this:

http://sh.ch/fileadmin/Redaktoren/Do...genssteuer.pdf

And based on 400k, it says 700 of tax which works out to 0.175%. Though it says 1.75% in the column.

Anyone know how wealth tax is calculated?

Also, does anyone know, or can they link to anything in relation to exemptions from income/wealth tax e.g. if I rent out my home in the UK while I'm in CH or sell it, are there exemptions from CGT etc. (in Schaffhausen).

I'm happy to wade through German legislation if someone can provide the relevant link. Thanks.
There is no CGT for non-UK Residents unless you move back to the UK within 7 years of the sale of the asset. Didn't you mention that you were a tax consultant on another thread? Wealth tax is based on your net worldwide assets. This was 0.0891% for me in Zug. You can also claim an expat allowance of around 20k per year, regardless if you keep your UK home or not.
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Old 29.12.2008, 00:59
Isambard Mews
 
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Re: net wealth tax - tables

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There is no CGT for non-UK Residents unless you move back to the UK within 7 years of the sale of the asset. Didn't you mention that you were a tax consultant on another thread? Wealth tax is based on your net worldwide assets. This was 0.0891% for me in Zug. You can also claim an expat allowance of around 20k per year, regardless if you keep your UK home or not.
Apologies if not clear, I was asking about the Swiss tax consequences only. My understanding is that Swiss levies tax on world-wide income - I was wondering if this includes worldwide gains and if so whether there are specific exemptions for overseas real property (as there sometimes can be).

I've been informed that there is not Swiss tax on capital gains at the federal level, but I believe that Schaffhausen does levy tax on capital gains (if my poor German is up to it). However, I wondered whether there were any reliefs in relation to overseas real properties or a link to relevant legislation so that I could confirm directly as 'overview of tax' pages can often overlook the details.
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Old 29.12.2008, 01:02
Isambard Mews
 
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Re: net wealth tax - tables

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It's calculated per mille (°/oo) as shown as the bottom of your link, not per cent (%) as shown incorrectly at the top of the columns...
Thanks! Makes perfect sense now!
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Old 29.12.2008, 01:31
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Re: net wealth tax - tables

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My understanding is that Swiss levies tax on world-wide income
My understanding, having been in the situation, is that worldwide income is used to fix your tax bracket, but that only income earned in Switzerland would be subject to Swiss income tax (at the rate appropriate to your worldwide income).
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Old 29.12.2008, 10:40
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Re: net wealth tax - tables

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Apologies if not clear, I was asking about the Swiss tax consequences only. My understanding is that Swiss levies tax on world-wide income - I was wondering if this includes worldwide gains and if so whether there are specific exemptions for overseas real property (as there sometimes can be).

I've been informed that there is not Swiss tax on capital gains at the federal level, but I believe that Schaffhausen does levy tax on capital gains (if my poor German is up to it). However, I wondered whether there were any reliefs in relation to overseas real properties or a link to relevant legislation so that I could confirm directly as 'overview of tax' pages can often overlook the details.
Depending on your initial permit and income you may not be able to complete a tax declaration, and hence will not be asked to declare anything. Swiss tax years are normal calendar years, so anything you have sold this year you can't be asked to declare when you move next year. As for Swiss property allowances, you can claim all interest paid on property abroad, plus a flat 20% of gross rent maintenance allowance for property > 10 years old, with no need for it to be rented furnished.
There is no specific place for a capital gain on the Zug tax declaration. You enter the purchase price, date purchased and value at 31.Dec. When you sell you simply put the date sold and sale price, with no value at 31.Dec. I sold UK property a couple of years back and my gain wasn't taxed. I did buy here at the same time though.

Hope this helps
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Old 03.06.2010, 13:33
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Re: net wealth tax - tables

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I found this:

http://sh.ch/fileadmin/Redaktoren/Do...genssteuer.pdf

And based on 400k, it says 700 of tax which works out to 0.175%. Though it says 1.75% in the column.

Anyone know how wealth tax is calculated?
You seem to be confusing per cent and per mille: % & ‰.

Wealth tax calculators are on several banks' Internet sites and elsewhere. http://www.taxation.ch/index.cfm/fus...path/1-534.htm
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Old 03.06.2010, 14:31
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Re: net wealth tax - tables

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You seem to be confusing per cent and per mille: % & ‰.
Like I pointed out in post 2 above, some 18 months ago??
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Old 11.06.2010, 17:28
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Re: net wealth tax - tables

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Like I pointed out in post 2 above, some 18 months ago??
Do you have any idea how an evaluation of overseas located property is done ?

I mean a purchased price or cadastral value is accepted or there is any other concepts of establishing a market value as in Switzerland.


Thanks
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Old 11.06.2010, 21:35
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Re: net wealth tax - tables

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Do you have any idea how an evaluation of overseas located property is done ?

I mean a purchased price or cadastral value is accepted or there is any other concepts of establishing a market value as in Switzerland.


Thanks
By "overseas" do you mean Switzerland?

The Swiss like to have formulas for everything and property prices are often based on a square metre of living are price. (This is around CHF8000 in the Zurich area).

However in the end there are so many factors that this is a gross over simplification. Location, age, condition, outlook, amenities will also count. Not to mention a buyer willing to pay "the price".

The value of property for taxation purposes is usually below the market price. In my experience about 20-25% below...
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Old 11.06.2010, 21:42
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Re: net wealth tax - tables

Having sold my UK properties over the last couple of years, my Swiss tax advisor just requested a reasonable figure of what the properties would sell for in the UK. This was put on the Swiss tax returns and as all taxes have been paid for the years I can only assume the figures have been accepted. As it worked out with the UK property price falls the figures worked out reasonably close. In my limited experience I have found that if the figures are sensible they are accepted, putting a value of 50K on a 400k property may cause questions. D
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Old 12.06.2010, 02:43
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Re: net wealth tax - tables

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By "overseas" do you mean Switzerland?

The Swiss like to have formulas for everything and property prices are often based on a square metre of living are price. (This is around CHF8000 in the Zurich area).

However in the end there are so many factors that this is a gross over simplification. Location, age, condition, outlook, amenities will also count. Not to mention a buyer willing to pay "the price".

The value of property for taxation purposes is usually below the market price. In my experience about 20-25% below...

Thanks.

But I mean a real estate located abroad in case when swiss resident mentioning it in a declaration.

Im Ausland gelegene Liegenschaften sind mit dem Verkehrswert anzugeben. Dieser Wert wird lediglich für die Satzbestimmung herangezogen. Effektiv wird die betreffende Liegenschaft nur im Ausland besteuert.

Ziffer 31.4
Liegenschaften im Ausland


Here is some more info about it.
http://www.hev-schweiz.ch/home/aktue...5878f2bf5b1881

I know it is not really making a big difference because it’s not taxed but only used for calculating the applicable rate.


But it’s unclear what they mean by market value and how they can be satisfied about that, especially if it’s located not in EU but in Botswana for example.
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