DA-1 Refund calculation

Anyone knows the exact calculation for the DA-1 Refund?
I got it back this week and noticed they paid me less since they calculated some kind of expenses before calculating the final amount.

They deduct ‘Kosten fĂŒr die Verwaltung des beweglichen Privatvermögens’ (and interest on debt) from the gross dividends because you don’t pay taxes on that. This is done proportionally to your taxable net worth.

Let’s say you have invested CHF 100k in VT, have a VT gross dividend income of CHF 2000, have a taxable net worth of CHF 300k and have deducted CHF 600 for the management of your wealth. As your investment in VT is 1/3 of your taxable net worth, they will deduct CHF 200 (600/3) from the CHF 2000 VT dividends. This leaves CHF 1800 as taxable DA-1 earnings. Then they multiple this with your effective income tax rate, e.g. 20%. This results in a maximum DA-1 return of CHF 360. This is higher than 15% of CHF 2000, so in this example you get the whole CHF 300 back.

However, if you have relatively high deductions or a relatively low effective income tax rate, the maximum DA-1 return may be lower than the 15% of the gross dividend, in which case you get less back. The reason is that effectively the US taxed you more than Switzerland and Switzerland will never return more than what you pay in Swiss taxes (for the DA-1 assets).

(Foreign-Dividends - (Foreign-Assets/Total-Assets) * (Debt Interest + Cost)) * Tax rate
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Thanks. I have to check all numbers carefully. At the moment it seems that the “Vermögenvervaltungskosten” that they use to calculate are bigger than what I’ve declared on my tax forms.
I can deduct more next year then :slight_smile:

Why „US“ dividends?

Isn‘t there many other countries that have withholding taxes that can be refunded through DA-1 in the same way?

Yes you are right. Should be foreign dividends

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Found this: Tax declaration guide (4/6): Wertschriften - mypersonalfinance.ch

The DA-1 form is most commonly used to recover US withholding tax. In theory, though, you could use it with other countries. The necessary condition is that a tax treaty between the foreign country and Switzerland exists. Find here a full list of applicable countries as of tax year 2019.

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