Short guide to CHF fixed income options

[nabalzbhf]

@Dr.PI

deducted from the taxable income up to certain, rather high, limits

Aren’t those the health insurance premium limits? Which at least for me is already lower than my basic health insurance premium (cheapest/highest deductible)

I wouldn’t call then very high

[Dr.PI]

OK, probably we had ran again into differences between cantons, but for me those limits are applied on interest only, separately from the health insurance deduction (maxed out). So it looks like I can earn tax-free interest up to like 200k CHF at least.

[Tony1337]

which canton? (please be ZH )

also does this apply to bond etfs? or only single bonds?

[nabalzbhf]

In ZH it’s definitely the same limit.

Edit: looks like it’s separate only in a few french speaking cantons. (Note Bund is always combined)

[Abs_max]

@Dr.PI

According to the taxation practice in Switzerland, the “interest earned on capital” is added to the taxable income and then deducted from the taxable income up to certain, rather high, limits.

It’s not clear to me.
How exactly this works?

Let’s assume I only have saving accounts and interest is 500 CHF. This number is reported under interest income in Bank account section.

And then there is no tax on it? I didn’t see any tax free interest income on my tax return. But maybe it’s part of the overall calculation and I didn’t realise.

[nabalzbhf]

There’s a section interests from savings in the deduction part of the form.

[Abs_max]

Oh I see.
I understand now

This number is part of same section as Health insurance premiums and others in canton ZH.

As long as other costs of insurance exceed the limit; then this deduction won’t apply.

[nabalzbhf]

Yes (Zinsen auf Sparkapitalien). But as mentioned most people are already maxing out the deduction with just the base insurance, so not worth bothering entering anything.

[Dr.PI]

@nabalzbhf

(Note Bund is always combined)

Yes, I see how these two deductions are combined in the Confederation part, that deduction is maxed out, of course.

OK, in this case I guess everyone should check what applies to them…

If I interpret the same document correctly, the deduction for interest is separated from the health insurance deduction in FR and VD. @thepoorswiss ?

[thepoorswiss]

In Fribourg, there is indeed a small deduction for that. It’s 150 CHF for a single person and 300 CHF for a married couple. In the tax software, the interest (dividends and interest for instance) is automatically deducted up to this limit.