Hey guys, I am thinking about converting some CHF into USD and put them into VSUXX which is currently giving ~5%/y/. How would this be taxes for me in Switzerland? Any other suggestion?
If you are talking about this one
https://advisors.vanguard.com/investments/products/vusxx/vanguard-treasury-money-market-fund#priceanddistributions
Dividends must be declare in your tax declaration.
It will increase your other revenu and your marginal tax rate. You will pay taxes on it at the same % of your salary.
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And note that the expected long term return of those is the same as the equivalent CHF funds (as the dollar is expected to weaken over time).
So besides the short term FX risk, you’ll be paying extra taxes due to the higher yield.
Edit: and US funds (except for ETFs) are usually not available to non-US investors so not sure you can buy it as a swiss resident.
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Why not look at T-Bills from the US treasury instead? It currently also yields over 5%, for example there is this ETF:
Or is it also as badly taxed for Swiss citizens as the US money market funds?