Withholding tax of 35% on the credit interest

Taxes
1

Is withholding tax on credit interest in Switzerland 35%? Time deposit. Earn up to 1.75% interest now. (credit-suisse.com)
“Withholding tax of 35% on the credit interest; for accounts with annual closing statements, taxable credit interest up to CHF 200 is exempt from withholding tax.”

2

Yes, since, like, forever. It’s the one that is been reimbursed when you declare it in the tax declaration.

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3

Thanks. What is the pre-requisite to get tax reimbursement?

4

To declare it in your tax statement.

5

:slight_smile:
So obvious question is what is the point to collect the tax when it is super easy to get it reimbursed?

6

Not everybody would be incentivised to declare it otherwise and the taxes would be lost. Also, foreign investors may not necessarily recover it.

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7

Historically there was this thing called banking secrecy :slight_smile:

So by having a withholding tax rate close to or higher than the marginal rate, people are more likely to declare it (and if they don’t declare it, it’s still ~neutral for tax revenue).

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