Deductions DA-1

Taxes
1

It is well known (at least in the canton of Zurich) that 0.3% of private assets can be deducted from income as costs, known as “costs for the management of securities held as private assets”.

I have read in this forum that these costs must then also be deducted from DA-1. I have not read in any instructions that this is correct. Can anyone confirm this?

Example invoice:

50’000 invested in VT. Dividend yield = 3% = 1500.
Of which 15% tax withheld = 225.
These 225.- can in principle be reclaimed with DA-1. However, if I now deduct 0.3% from my 50,000 assets as costs (= 150.- ), these can no longer be reclaimed with the DA-1. Accordingly 225 - 150 = 75.

Since the minimum amount is CHF 100, it would only be worth filling out a DA-1 form if I had assets of around 80,000 or more (and even then only marginally…).

2

It’s (proportionally) deducted from the gross dividend yield of your DA-1 securities to calculate your tax rate, not from the withholding tax amount. And this is done by the internal calculation of the tax authorities, you don’t have to deduct this yourself on the DA-1 form.

In your example you certainly won’t fall below the CHF 100 threshold because of that (assuming you don’t have an extremely low tax rate).

With a sufficiently high tax rate you get both, an income tax deduction amounting to 0.3% of your investments and a tax credit for the full 15% US WHT.

Side-note: VT dividend is around 2.1%, not 3%.

1 Like
3

thank you! i didn’t check vt’s dividend yield, it was just an example :slight_smile: