How to disclose stocks positions to tax authorities

I filled in all stocks separatly and I am struggling to figure out how to put dividend (paid out quarterly, not held for all 4 quarters) :smiley:

Just enter the purchase and sale transactions (number of shares and date), and it will figure out the dividends automatically (from ICtax, as long as the stocks are listed)?!

I don‘t think this works with taxme.ch

Wow. That may be quite a game-changer for me, cos I’ve built up quite a few small positions recently. Thank you. Will try it out this tax declaration season! Sorry one more question - Are yours all US stocks, so all dividends have 15% WHT & go on DA-1? I have some Smithson ETFs @ IB, so that’d be separate as there wouldn’t be 15% WHT on that… although not sure now if Smithson pays a dividend at all :thinking:

No, never been US-only.

I could do the same in DA-1 in my tax software, never tried that though.

I’ve once asked this to the tax inspector who worked through my taxes the year before (crazy right? In Switzerland you can speak to the person who’s actually going over your tax declaration!).

The important thing is to list any position changes you’ve done during the tax year since that influences the dividends (income) you’ll have received. If you purchased an ETF in December and missed all dividends, you don’t want to be taxed for that. On the other hand, they don’t care about the dates of stock purchased in previous years, since you’ll have collected the full year of dividends anyway. In this case, you should consolidate them per ETF/stock.

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Important note: This works for distributing ETFs (such as the VT and most if not all U.S.-domiciled ETFs).

For accumulating ETFs, IBKR would not list the “virtual” taxable income according to ICTax, so one might risk underreporting - unless you adjust or report separately.

No new info really. But I just stumbled over it, since this year is the first I’m just copying the income values (due to having switched my base currency to CHF) and not calculating income manually. (I actually had one accumulating ETF but sold before the tax “payable” date in ICTax).

I dont think I quite get this. For example, I have purchased different ETFs during 2020, also individual stocks (US and non-US-based companies). It is going to be a nightmare to fill out all the position changes and associated dividends if I follow the VaudTax instructions that MP outlined once in one of his blogpost. Therefore if I could really do it all in “one line” that would be awesome.

Could someone confirm if this “easy way” is possible in VaudTax and accepted by tax authorities?

Worst case they’ll ask you for details? Seems low risk if that’s what you prefer.

Here’s the equivalent form, if I’m not mistaken. To quote the footnote (emphasis them, not me):

“Par relevé fiscal bancaire, il faut comprendre exclusivement le relevé annuel de votre portefeuille titres à sa valeur fiscale émis, sur demand, par l’établissement bancaire auprès duquel les titres sont en dépôt”

Does the IBKR report list the tax value determined by the federal tax administration? Probably not.
They are not a bank that produces tax statements conforming to local law.
Does it make a substantial difference in the year end values though? Again, probably not.

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Sample:
IBKR applied a USD/CHF exchange rate of 0.885081 to my year end holdings on 31 dec 2020.
ICTax lists a rate of 0.883944.

That’s a difference of approximately 0.13%.
In my canton that would amount to a difference in wealth tax of about 5 CHF per Million CHF of wealth.
…though in my case the FX differences almost cancel each other out with holdings in other currencies.

Thanks for the example!

Because my IBKR activity statement is 22 pages long, I am going to try to list all assets together with their dividends (with the assets+dividends subject to witholding tax separated) as “relevés fiscaux bancaires (depôts de titres)” in VaudTax. I will send my activity statement along with it. If the tax office complains I will redo it.

I thought I am more likely to make a mistake when I dont do it the easy way.

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I believe it’s fine to list the overall position and income as one line.

Last year it took me so much time to make it share by share, in the end they don’t even request any document.

Would you mind sharing which fields you filled in the relevés fiscaux bancaires with which data? I’m looking at my IBKR statement and can’t for the life of me figure out how to fill in based on the data requested.

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This is just my attempt at an answer. Please correct me and/or do your own research and diligence.

  • Fortune, valeur imposable au 31.12.20xx ← Net Asset Value* of portfolio at 31 December
  • Rendements bruts échus en 2020 non soumis** à l’impôt anticipé ← Dividends + Broker interest received***

* without accruals, cause they should be taxed in the next tax period?
** cause at foreign broker, such as IBKR, income is not subject to Swiss anticipatory tax
*** plus possibly other income. As far as I know IBKR would notably not report retained income from accumulating funds (though it should be listed on the return)

DA-1 is optional. If the amount of non-recuperable withholding in DA-1 is less than 100 CHF, you can also declare net dividends and net interest in your tax return - though that might need additional reporting, since IBKR (…I think?) does not indicate on their reports.

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Hi, yes I will. Haven’t gotten back to it yet. I thought we would apply common sense and quickly finalize it but got confused with the repetitive entries of “releves fiscaux bancaire” (occurs three times) and which one to use.

After a small simulation of a few VT positions the “lengthy” way and the easy, single entry way, the total amount of taxes did not change. This gave us some confidence that it is more or less ok to declare our stock positions under “releves fiscaux bancaires” under “imputatation forfataire d’impot (DA-1)”. Of course I have no idea if the tax authorities will accept this.

From the activity statement we take the dividends, withholding tax and ending value:

Then you add it here in VaudTax:

I hope the tax office will accept this.

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Canton Vaud accepted our “one line” stock declaration as I described above. This saved me tons of work!!!

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In a standard Swiss “relevé fiscal” you will have several values for wealth and income for positions subject to wiltholding tax, positions not subject to any withholding tax, positions to report in the DA-1 section and US positions. That’s 4 types of positions times 2 files (wealth and income), so 8 datapoints. If you just copy the values and attach the “relevé” to your tax declaration it’s way easier. The thing is Swiss brokers usually charge several hundred CHF for this document.

As you have happily discovered yourself, the tax authorities also accept this way of doing even though the “relevé fiscal” is not the official Swiss one :slight_smile:

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Truly interesting and helpful for my next tax declaration for 2021, thank you :slight_smile:

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