Sorry to hijack this Thread but I am doing my tax declaration for first time with the ETF and stocks I bought last year.
I have an accounf at degiro with W8 form and only residency in Switzerland.
The ETF are in Ireland. Also I have single stocks from USA.
How do I know that I can fill out the DA-1 form?
I am a bit confused in that way.
thanks
You put your ETF in Ireland in your normal tax declaration. The withholding tax that was retain between the country of the stock held by the ETF and Ireland is lost and you canât do anything about it.
You put your shares from US company in the DA-1 but not on your tax declaration. Once the DA-1 is filled you report on your tax declaration the fiscal value and the income. You will get a tax credit according to what has already been paid to Uncle Sam.
make sure to include all dividend statements when you send the DA-1. in general if the 15% are mentioned in the dividend statement, the security goes into the DA-1 form, otherwise into the wertschriftenverzeichnis.
For da-1, keep in mind that some stocks are withheld differently. For example BND on IB is withheld at a lower rate, not 15% (but thatâs the only one Iâm aware of).
Maybe just attach the 1042-s that your broker gives you? It should be the correct number for da-1.
Hi guys,
I am a complete noob in dividends topic and would appreciate if someone could explain in few simple steps the process or confirm my understanding.
I am B permit holder in Zurich and own stocks of EU based company. They will pay dividends in EU.
I understand the tax of 15% will be paid in EU.
Then I will have to declare dividends in form DA-1 and Zurich will calculate 35% on it.
Then they will claim 15% from tax authority of EU country and 2 years later they will send me a bill to pay 35-15=20 remaining percent.
Is this correct?
I donât think thatâs how it works. First the withholding rate depends on the country (15% is for CH resident with US stock).
Then, I think it will depend whether you have tax filing obligations. Assuming you do, youâd declare the gross dividend in your DA-1 and the tax office will send you a refund for the tax paid abroad, and then you pay the full swiss tax on it when you get the final bill.
Note: I only did it on C permit, so itâs possible they wait or something for the refund, or that they credit it to your âtaxed at sourceâ amount. But should be the same end result.
(and I donât think the countries actually pay each other, but it doesnât matter here 
).
Thanks for the swift response! What would be the amount of Swiss dividend tax? 35%?
Upd: probably I misunderstood you. You meant that Swiss tax for US stock is 15% and for EU countries can be different, right?
Is there a list anywhere?
You pay withholding tax in the domicile country of your ETF. You pay income tax in your domicile country.
- Withholding tax on US ETFs is 30%
- But if youâre domiciled in Switzerland, it can get lowered to 15%.
- On Swiss ETFs is 35%.
- On Irish ETFs I think itâs 0%.
Your income tax in Switzerland could be 10%, could be 25%, depends on the size of your income and the place you live. By default, you first pay withholding tax in the country of the ETF and then you pay then income tax on whatâs left.
What the DA-1 allows is to say to the Swiss tax office: hey, I already paid 15% there! So they will still tax you the full amount of your tax, but will make you a separate bank transfer of what you paid to the other country (if your income tax rate is higher than 15%).
At least thatâs how it works for me in Zurich. Since I am on B permit and Quellensteuer, they send me the money to my account like 1-2 months after my tax declaration. I already got it for 2018 and 2019, but for example I still didnât hear anything regarding the tax declaration itself for 2018.
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