My sole investment in 2018 was VT of which I detailed the dividend payments in a DA-1 form.
The Canton de Vaud Office d’Impôt has now got back to me on my tax filing and said that I cannot write off the 15% VT WHT and asked me to pay that extra amount in Swiss tax.
The exact wording of the letter is:
Chapitre impôt anticipe, USA. IFI
La convention de double imposition entre la Suisse et les Etats-Unis ne porte pas sur les rendement de fonds de placement.
which I understand roughly translates to
Withholding tax chapter, USA. IFI
The double taxation agreement between Switzerland and the United States does not apply to returns on mutual funds.
- VT is an ETF not a mutual fund (or can fonds de placement also translate to ETF?)
- There is no tax on “returns” as they are unrealised and no capital gains anyway? So assuming they mean dividends…
- My understanding was that DA-1 and 15% WHT double taxation negation applied to VT as a US domiciled ETF. Am I missing something here?
Greatly appreciate any advice. At the bottom of the letter it says I can write to them to dispute within the next 30 days which I’m thinking I should because it seems wrong to me.