Tax declaration on dividends

Hi

I’ll start apologising if this has been answered before, I have used the search function and read all relative existing topics about it, but somehow I can’t say I understand yet.

I live in Basel-stadt, I have a B permit and earn less than 120k CHF per year. As such, my employer takes care of my income taxes and since I started investing that was that. Now I have a small amount (<20k) invested in ETFs with DEGIRO, which pays some dividends. I have filed the W8-BEN on the DEGIRO, and therefore I pay 15% on them, directly deducted from DEGIRO.

My question is if I still have to declare these dividends to the swiss authority, and if so any advice on how to proceed would be great. I have tried navigating through the websites and forms but my inexperience with the topic and my very limited german did not help. At the moment I am mostly interested in not evading taxes, more than having anything reimbursed since we are talking about a tiny tiny amount.

From this post from hedgehog in a similar thread I seem to understand I don’t have to do anything: here

However, my wife is also employed and also earns <120K CHF per year, and therefore also taxed at the source. Our shared income is however > 120k. Does this impact the situation at all?

Thanks for any help and again sorry for the repeated question.

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. Our shared income is however > 120k.

Doesn’t matter, individual income is decisive

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Hi @ripper23,

I agree with @hedgehog: I don’t think you have to do more than you’re already doing. But when in doubt, ask the tax office in Basel-Stadt. They describe three cases where B-permit holders have to declare taxes (emphasis mine):

  • Individual income >120.000 CHF
  • Income that is not taxed at the source (self-employed work, (social) insurance, investments, properties, alimony)
  • Marrying a C-permit holder or Swiss citizen
    (Source: official comments on taxation 2018 in Basel-Stadt, German original on p. 5)

Only the second trigger is relevant for you, but the form you mention may be sufficient already. I have to file the DA-1 form, but Berne is different anyway (other triggers) and my “authority” in that matter limited.

Regards,

J.

In Zurich they have:

3 Ein ergänzendes Veranlagungsverfahren wird nur durchgeführt, wenn das der Quellensteuer nicht unterworfene steuerbare Einkommen mindestens Fr. 2’500 oder das steuerbare Gesamtvermögen mindestens Fr. 200’000 beträgt.

https://www.steueramt.zh.ch/internet/finanzdirektion/ksta/de/steuerbuch/zuercher-steuerbuch-definition/zstb-93-1.html

So, if I understand correctly (from translating it in Google), if we have:

  • less than 2’500 CHF on dividends; or
  • less than 200k CHF wealth

we don’t have to do anything.

But I think I’ll ask them about this.

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Would be great if you could share the answer in case you ask them.

Btw: If you don’t do anything you won’t get back withdrawl tax on dividends of swiss based securities

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Hey ripper23, how did you fill it out ? Since it seems to me very US specific : what did you feel for “U.S taxpayer ID number” or “Social Security Number” ?

Thanks !

For swiss resident, see https://www.oecd.org/tax/automatic-exchange/crs-implementation-and-assistance/tax-identification-numbers/Switzerland-TIN.pdf

(Should be the AHV-13)

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I’ve sent an email containing this:

(…)
After searching on your website I found:

3 Ein ergänzendes Veranlagungsverfahren wird nur durchgeführt, wenn das der Quellensteuer nicht unterworfene steuerbare Einkommen mindestens Fr. 2’500 oder das steuerbare Gesamtvermögen mindestens Fr. 200’000 beträgt.

(…)
So, If I have a net worth that is less than 200’000 CHF and my dividends less than 2’500 CHF, I don’t need to fill any declaration. Am I correct?

And the answer:

Sehr geehrter Herr “ajPT”

Ihre Schlussfolgerung ist korrekt.

Freundliche Grüsse

4 Likes

Sent a similar question to Basel-Stadt tax office, asking them if there are any thresholds (for B permit, <120k), and got the following response:

Bitte diese Beträge in der Tarifkorrektur, bei welcher Sie die Säule 3a in Abzug bringen, deklarieren.

Seems they want it declared regardless of the amounts.

Oh, that’s not good. I tried looking at the forms and given my horrible german I’m already lost…

Hello All,
I didn’t want to start another topic related to dividend tax, so will try to explain my situation here.
Similarly to ripper23, I’m a B permit holder living in Zurich with an annual income of less than 120K CHF, employer dealing my income tax. Nearly one yer ago I started investing through Interactive Brokers. Here is the list of ETF’s I have:
CEUS - ISHARES MSCI EMU SML-C ACC
CSPX - ISHARES CORE S&P 500
CUSS - ISHARES MSCI US SML CAP ACC
MEUD - LYXOR CORE EURSTX 600 DR

All ETF’s are accumulating and Ireland domiciled. The total value of investments is less than 40K CHF.
I used ICTAX to check the amount of dividends accumulated trough 2018 and the total amount is less than 600 CHF.

Not having any experience with taxes in this matter, my question is - do I need to declare the dividends to the tax authority or pay anything? If so, how should I do it?

Going trough the topic here I noticed that ajPT asked the authorities about tax declaration and reply was that if the net worth is less than 200K CHF or yearly dividends are less than 2’500chf, there is no need for for tax declaration. Still, to be on the safe side, I would like to double check my case with more experienced members than me and get an opinion if I should do something.

Thank you
Minndulio

You will not get a definite answer here -> you should contact the tax office directly.

Me personally, I wouldnt bother

Thanks oozoo, will decide soon.

Any more thoughts from other forum members?

I also didn’t have to submit tax declaration due to these limits (in Zug) this year and last year.

Hi, just wondering what people generally do in the situation outlined above, i.e., Permit B, <CHF120k salary, what to do about dividends?

For me, I think the situation is quite relaxed as my canton told me this: “Les personnes soumises à l’impôt à la source sur le revenu de leur activité lucrative dépendante ne reçoivent pas de déclaration d’impôt ordinaire et ne doivent pas nous en retourner.” ≈ “People being taxed at the source on their revenue from gainful employment don’t receive a normal tax declaration and should not send us one.”

My take is that, as my marginal rate is >15% (i.e. the US withholding amount), this works out in my advantage. Ignoring wealth tax, someone could potentially have significant dividend income and not pay tax here on it in this situation.

A bit off-topic, but another concern I have is which foreign savings need to be included in the wealth tax calculation (e.g., foreign registered accounts for retirement savings and education savings)…

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