Listing ETF for the first time in the declaration this year - quick check

Taxes
1

Hi Mustachians!

Bought my first ever shares of VOO S&P 500 ETF through Interactive Brokers this year. I declared it in my “Wertschriftenverzeichnis” by typing in the ISIN and the number of shares I own and then it pretty much filled out everything by itself:

  • Category: “Anlagefonds”
  • Share price at 31.12.2019
  • Total Portfolio Value
  • Dividends (Had to adjust as I held it only for 5 months)
  • Category: “Ohne Verrechnungssteuer” (No withholding tax)

Is this correct so far? I’m confused that it sets the category to “No withholding tax” as there is a certain amount of withheld dividends:

I was paid out CHF 125 dividends (I think it’s distributing and not automatically reinvesting) and have a total of CHF 18 withheld by US tax authorities. What’s the procedure for reclaiming these dividends?

I’m aware that CHF 18 isn’t relevant but since I’m gonna add more money soon this will stack up by time.

Thanks a lot for your help!

2

You cannot claim amounts < 50 CHF through DA-1 (at least in TI)

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3

Can you claim it in the next year together with the 2020 withholding tax?

4

The procedure is: you do not put VOO in Wertschriftenverzeichnis, but in DA-1. Then you print the DA-1 and send it via a separate letter to your cantonal tax office.

The procedure might differ between cantons, but in Zurich you provide your IBAN and in a few months they send you the money (if at least 50 CHF).

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5

What tool do you use?

Regarding dividend, BalTax, the tool used for taxes in BS, has a tiny button that opens a dialog where you can record when you bought and, if applicable, sold. Then it automatically adjusts dividends.

6

Interesting. I filed for the first time last year and, upon asking my tax specialist why they didn’t include a completed DA-1 form, received the following response:

I wasn’t aware of this rule and had intended to clarify here on the forum. So if I understand correctly, the dividend threshold in ZH in which you should file a DA-1 form is >=50 CHF (and not >=100 CHF as they wrote to me)?

Edit: or rather, when 15% of the total dividends paid from your US-based stocks equal >=50 CHF?

7

Thanks everyone for the answers! I checked the DA-1 Form (Kanton St. Gallen) and the same rule applies: Withheld dividends below CHF 50 are not refundable, but you can deduct them as “Verwaltungskosten für Wertschriftendepot”.

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Thanks! I found the DA-1 printable letter but I don’t understand where the DA-1 sector is within the eTax software. I assume I have to declare it there somewhere as it represents part of my wealth.

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Maybe your tax specialist charges 50 CHF for doing the DA-1? Because there is nothing expensive in filing the DA-1. In fact, in the first year my WTAX was exactly 51 CHF and I did it, even if for the sake of exercise. And they transferred me that amount. Or maybe in your canton the limit is 100, but then that’s what the specialist should write, and not that its “too expensive”.

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10

Yes, you declare the DA-1 amount in Wertschriftenverzeichnis. In Zurich, under the table there is a cell “Übertrag ab DA-1”, and that’s where it goes. then you sum it up as your total wealth.

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11

You’re right, my tax specialist charges for it. I just found an “additional fees” section on their website which states “Form DA-1 (reclaim of foreign withholding tax): CHF 20.- per position min. CHF 100.-”

So, my original post should’ve instead read “…my previous tax specialist”

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12

For the zurcher:
Fragen an die Besitzer von USA-Wertschriften
Sind im Antrag US-Erträge enthalten, die in den USA den Einkommenssteuern unterliegen?

Has anyone noticed this question? On the Tax tool it’s different!

Fragen an der Besitzer von USA Wertschriften. Machen Sie für Ihren Antrag geltend USA Bürger zu sein?
The translations from google translate is hilarious…
(freaking tool…you can’t copy and paste)

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Are you looking for an English translation? If yes, here it is:
Questions for the owners of US-shares / equities
Are there US-incomes (dividends) in the attachment on which US income taxes (withholding taxes?) must be paid?

Questions for the owners of US-shares / equities
Do you qualify as a a US citizen for this inquiry / matter?

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I was wondering why there are two different Phrases. The translations should be the same.

What did you answer on that point on the DA1?

From the first translation I believe it’s a “No”. I"m not an US citizen so I shouldn’t pay us taxes. For the second I"m not sure. Do I qualify just for tax reasons or not?

I’m confused.

15

Isn’t that the reverse, if you hold US securities and don’t have a green card are not a citizen, I’d answer yes/no.

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I’d answer yes / no too.

First question is: Do you have US securities that have paid “Erträge” (= Dividends)?
–> Yes (if you own any ETF or US shares that have paid dividends and you need to reclaim DA-1

Second question:
Are you a US citizen?
–> No (unless you hold Green card or US passport)

Hope that helps, otherwise let us know!

17

It doesn’t help at all. :frowning:

In case you didn’t get it, the answer to both question must be the same since the question is the same.
The first appear when you use the tax advisor tool, the second is the question that appears printed on the page.

Also note that the question after that, in both versions is “What is your SSN Number?” which means they believe you are a US citizen probably…

This is the second question:
image

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This is a screenshot from my DA-1

image
image1125×375 122 KB

Don’t find the question you write about

19

You should take a screenshot of the Java application

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I don’t use the Java app. I use the web app. But clearly the answer here has to be NO, because we do not have a US social security number. We will not pay income tax in USA.

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