# AHV/ALV is not charged when dividends are taxed, right? **URL:** \ **Category:** Taxes\ **Created:** [December 9, 2019, 9:02pm UTC](https://forum.mustachianpost.com/t/ahv-alv-is-not-charged-when-dividends-are-taxed-right/2879 "2019-12-09T21:02:47Z")\ **Posts on this page:** 6\ **Page:** 1
**Author:** ![zip](https://forum.mustachianpost.com/letter_avatar_proxy/v4/letter/z/6f9a4e/32.png) [@zip](https://forum.mustachianpost.com/u/zip)\ **Post date:** [December 9, 2019, 9:02pm UTC](https://forum.mustachianpost.com/t/ahv-alv-is-not-charged-when-dividends-are-taxed-right/2879/1 "2019-12-09T21:02:47Z")
I assume this is the case but just to make sure: After I declare dividend income to get back the 35% withholding tax, the tax I am charged on dividends is my normal income tax rate for my salary only, i.e. no deduction for AHV or ALV are done as is done for salary? For simplicity, let’s assume we are dealing with Swiss domiciled ETFs or stocks held at a Swiss broker. ---
**Author:** ![pandas](https://forum.mustachianpost.com/letter_avatar_proxy/v4/letter/p/7ab992/32.png) [@pandas](https://forum.mustachianpost.com/u/pandas)\ **Post date:** [December 9, 2019, 9:14pm UTC](https://forum.mustachianpost.com/t/ahv-alv-is-not-charged-when-dividends-are-taxed-right/2879/2 "2019-12-09T21:14:46Z")
No AHV/ALV for dividends, correct, just pure income tax. But not your “normal income tax rate for my salary”. Income tax is highly progressive. After the salary, your dividend income will belong to high tax brackets with much higher marginal tax rates. ---
**Author:** ![flenker](https://forum.mustachianpost.com/letter_avatar_proxy/v4/letter/f/9f8e36/32.png) [@flenker](https://forum.mustachianpost.com/u/flenker)\ **Post date:** [December 10, 2019, 4:09pm UTC](https://forum.mustachianpost.com/t/ahv-alv-is-not-charged-when-dividends-are-taxed-right/2879/3 "2019-12-10T16:09:11Z")
> [@pandas](#): > > ut not your “normal income tax rate for my salary”. Income tax is highly progressive. After the salary, your dividend income will belong to high tax brackets with much higher marginal tax rates. That’s an irrelevant and unnecessarily complicated statement. As OP said, they are taxed as normal income, no special treatment. You can consider that to be marginal tax rate, or just the average tax rate which happens to be affected by the dividend income. You could probably be charged AHV if you are a professional trader, but I haven’t looked into the details. ---
**Author:** ![romzzz](https://forum.mustachianpost.com/user_avatar/forum.mustachianpost.com/romzzz/32/5236_2.png) [@romzzz](https://forum.mustachianpost.com/u/romzzz)\ **Post date:** [December 11, 2019, 4:22pm UTC](https://forum.mustachianpost.com/t/ahv-alv-is-not-charged-when-dividends-are-taxed-right/2879/4 "2019-12-11T16:22:24Z")
That, and also (at least in VD) the taxable amount is 70% of the total dividend amount, see [https://www.vd.ch/fileadmin/user\_upload/organisation/dfin/aci/fichiers\_pdf/Deductions\_fiscales\_Votations\_08.02.09.pdf](https://www.vd.ch/fileadmin/user_upload/organisation/dfin/aci/fichiers_pdf/Deductions_fiscales_Votations_08.02.09.pdf) (page 8) So yay for dividends 🙂 ---
**Author:** ![REandSTOCK](https://forum.mustachianpost.com/letter_avatar_proxy/v4/letter/r/7ea924/32.png) [@REandSTOCK](https://forum.mustachianpost.com/u/REandSTOCK)\ **Post date:** [December 11, 2019, 5:38pm UTC](https://forum.mustachianpost.com/t/ahv-alv-is-not-charged-when-dividends-are-taxed-right/2879/5 "2019-12-11T17:38:32Z")
That is only when you own MORE THAN10% of a company. Personally my maximum is 0.03% of a company. ---
**Author:** ![romzzz](https://forum.mustachianpost.com/user_avatar/forum.mustachianpost.com/romzzz/32/5236_2.png) [@romzzz](https://forum.mustachianpost.com/u/romzzz)\ **Post date:** [December 11, 2019, 11:23pm UTC](https://forum.mustachianpost.com/t/ahv-alv-is-not-charged-when-dividends-are-taxed-right/2879/6 "2019-12-11T23:23:08Z")
Indeed, I was thinking about some other threads where people were talking about salary vs dividend as a way of getting paid 😉