WillBe Tagesgeldkonto - Tax?

I have a willbe Tagegeldkonto account with 1.3% interest per quarter. I use this account as my savings account. When I need the money, I transfer it back to my private account. I know that if you earn more than CHF 200 in interest from capital, you have to pay a withholding tax of 35%. How does it work with taxes in this case? Do I have to pay any taxes?

Same as with everything. You declare the balance and interest in your tax forms with the statement you will receive after the end of the year.

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When you retire, you can keep the money from the FreizĂĽgigkeitskonto running for another 5 years. After those 5 years, you must transfer the money to your private account, and then various taxes such as cantonal taxes apply. Is this not the case with Willbe?

The two things you are talking about in posts #1 and #3 are completely unrelated.

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…in Switzerland, for accounts at Swiss banks.

wiLLBe isn’t (from) a Swiss bank. Liechtenstein does not have withholding tax.

There are separate columns to declare interest received with and/or without Swiss withholding tax in the tax return.

So it would not be in the same column as interest from Swiss banks (provided you receive enough interest from a Swiss bank to have withholding tax deducted by the bank).

That would be nice, but it’s only 1.3% p.a., so approx. 0.33% paid out every quarter.

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Are you sure? I guess I need to ask willbe directly

All interests are always annual numbers. They are just paid at different intervals.

But you can safely assume that you were not promised >5% return for 12 months. It would be 1.3% for 12 months if the rates don’t reduce again

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Interest earned from foreign accounts just has to be entered as income in the relevant field on your tax returns, the same as with interest from Swiss bank accounts.

As stated above, only Swiss banks hold back the Swiss withholding tax. But the withholding tax is largely irrelevant. The income tax rate for income from interest and dividends is the same in both cases.

The only possible impact on your finances, as far as I can see, is that you cannot earn optimal interest on your money during the months that it is blocked for withholding tax.

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@Abs_max @rolandinho you were right, interest ist annual. Willbe just confirmed.

@Daniel Can you explain?
In the tax software I usually declare the information in the vermögen section as bank account and then you can add the interest you received from the bank.

How about Willbe? Isn’t it the same? I add the new account as foreign bank account in my tax. In the tax software, I would take the sum of all the interest I received from each quarter and declare the sum as the amount the interest in the tax software, but without the checkbox a withholding tax of 35%.

The only possible impact on your finances, as far as I can see, is that you cannot earn optimal interest on your money during the months that it is blocked for withholding tax.

What do you mean by this? Why should it be blocked?
Why do you think that I cannot earn the optimal interest on my money?

So in the end, it is better to just park the money in a swiss bank account?
The advantage for Willbe is that you don’t have the Rückzug rule of certain amount on your money.

Exactly.

With a Swiss bank you receive the interest typically in the end of a year, and only 65% of it. The rest 35% de facto go to tax prepayment. So no compounding for these money.

Practically if you won’t earn 1% on 1% of your cash deposit makes 0 difference.

That is correct.

What I mean is that if you use a Swiss bank, the Swiss bank will deduct the Swiss withholding tax from your interest and dividend payouts. However, the withholding tax is only paid back or credited once your tax returns have been processed. That can be a fairly long period during which you won’t be earning interest on that money (AFAIK tax offices don’t pay interest on withholding tax). Of course, this is only a notable issue if you earn substantial amounts of interest/dividends.

Using a foreign bank prevents this problem, because you only need to pay tax on that income once you receive your final tax bill. So it would be an argument FOR using a foreign account and AGAINST using a Swiss account.

It’s kind of similar to the Swiss stamp tax which only applies to Swiss banks. I find it very peculiar that we have taxes which seem to have no other purpose than disadvantaging the Swiss financial industry against foreign competition.

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