Ahh okay
So for tax return on dividend purposes , it can be declared as normal
It should be.
There are some that say it could get rejected, but I donât see why.
Just declare your whole IB account dividends + withholding tax and then itâs fine.
Itâs stated as dividends (it say in parenthesis in lieu) and per dividend distributed is the exact 15% withholding declared and deducted.
Did this in VD and they didnât say anything about it.
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I guess it depends by each canton then (or VD didnât check correctly), but in general the withholding tax on payments in lieu is unfortunately not reclaimable.
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I would like some official source for this statement.
E: Thought soâŠ
As I simply refuse to believe this is true. Withholding tax is levied by the US (and you pay that and it specifically lists that as well) and you would be double taxed otherwise. This ticks all the boxes considering the dta.
When most of the current DBAs were established, the income in lieu of dividends from securities lending wasnât really considered, simply because it wasnât a thing yet (certainly not for a private investor). The definition of dividends in the US-CH DBA is:
«Dividenden» bedeutet EinkĂŒnfte aus Aktien oder anderen Rechten â ausgenommen Forderungen â mit Gewinnbeteiligung sowie aus sonstigen Gesellschaftsanteilen stammende EinkĂŒnfte, die nach dem Recht des Vertragsstaates, aus dem sie stammen, den EinkĂŒnften aus Aktien steuerlich gleichgestellt sind.
I would argue this includes any payment in lieu of dividends, certainly if that payment was judged under CH law. Newer DBAs further enlarge the definition which supports the argument that the idea is to treat a dividend likewise to a payment in lieu of a dividend.
Local tax authorities might of course have a different view and you might have to argue through the court(s). Many local tax authorities likely wonât even realize the difference (depending on how you report it in your taxes).
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This my view as well, after combing through documents. Also specifically interest payments and the likes are also mentioned in the dba.
I also plan on contacting the respective authorities on tax refunds and application on the double tax treaties, referenced here:
Any news on the refunding of WHT for dividends in lieu?
Where do you guys declare the income from the SYEP in the tax form and how do you handle the daily USD returns in terms of currency conversion. Capturing daily distributions seems like an overkill
I capure annual and convert at annual average rate.
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Considered this approach as well. Will probably do it also this way.
The income was quite scattered around the corporate action of one holding (DRPF), when the security had heavy short interest and high borrowing cost. But i just attach the entire activity report.
So the tax office can treat it however they wish 
On VT i earn virtually nothing with the SYEP.
Would be interested to see what the SYEP yields on really volatile things like IBIT
Just got an email telling me I could earn about 1% on FWRA (they give an absolute USD value, I converted to % it so I donât have to disclose the size of my position). Iâm assuming this is per year.
Sounds very high to me. Is that realistic?
I assume itâs temporary due to the current volatility.
That would be my guess too. As I use margin IB keeps the best pieces for itself and I get probably less than 1/000.
The nice part: on non-US stocks that are lent out you pay no withholding tax on the dividend (that is paid by the borrower).
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OK thanks everybody. 1% p.a. would be incredible. And we all know if something sounds too good to be true⊠
Annualized, only on borrowed shares - sure, could be even over 5%. What is the fraction of your position that will be borrowed - probably not much.