B permit holder - shares and tax return

Finance, Taxes, Banking, Insurance and Retirement
1
Hello everybody,

I am a B permit holder taxed at source and I have two questions:

- in past years, I have been submitting a simplified tax return as I was putting money into the 3rd pillar. I understand from fiscal year 2021 this is not possible anymore and we need to file a normal tax return, is this correct?

- in 2021 I've started investing in shares (less than 20k) and didn't sold them (so didn't realize any capital gains): do I need to declare them in the tax return? If yes, in which section?

Many thanks!

2
You are interested in this process:

https://www.zh.ch/de/steuern-finanze...erkorrekt.html

To deduct the pension contributions from your taxable income you will have to file a regular tax declaration, you will obviously need to declare shares you held on 31-Dec-2021 and other assets should you have them as well.

I don't live in ZH and never used ZH software but the app in AG has a very nice demo showing you what has to be declared where. Take a look at this link, maybe it's something similar:

https://zhp.services.zh.ch/app/ZHpri...20/#/demo/home

3
Yes, most probably same section where you declare bank accounts but as Aktien. If listed shares then you might be able to find them in the Swiss tax software and it'll handle the dividends for you.

4
Shares are both wealth that you own and source of income (dividends), and you need to represent both on your tax return. You can either do it by putting the total value of your shares on the 31st December + dividends you received through the year, or if you list all transactions and ICTax knows the share - it will calculate these for you

5
Hello,

if you do not need to file a normal tax declaration (income below 120K CHF per year) I would start to check if you get money back or not (because of 3a pillar).

Sometimes it could be that also with a 3A pillar payment (deductible) the taxes paid at source might be lower than taxes after filing a full tax declaration. (Means: the tax bill as normal tax declarer could be higher.)

If you MUST file a full declaration, you have no choice you need to do it.

Be aware once you moved into the system “being a normal tax declarer” you have the obligation to file a full tax declaration the following years.

6
Many thanks for the reply. I checked the demo but still quite not sure where to declare the shares; at the moment I'm thinking under Vermoegen -> Geschaefts und Korporationsanteile (I guess Vermoegen betrag is the value of shares at 31.12.2021 and Einkommen betrag is the value of dividends of those shares)

At the same time though, I've seen that under Wertschriften -> Wertschriftenverzeichnis I can search directly for shares and add them there: is that actually the right place?

One last question: I couldn't find the section where to declare bank accounts

7
Thanks! How can I check if I will actually save money ore not by filing a normal tax declaration? (Asking for my partner which is in the same situation as me but doesn't have any share).

I will be on C permit in few months, so I guess from next year I'll have to file a normal tax return anyway, isn't it?

8
Bank accounts are in the same section as stock and shares, Wertschriftenverzeichnis, Just pick Konto instead of stocks.

9

Complete a tax return using the 2021 Private Tax software, which should be available in the second half of January. Otherwise, use the 2020 Private Tax software. Will need a PID (Person Identification number) to use the software, available from your friendly tax office.

- If you request a PID, however, the tax office might expect that you will submit a tax return for 2021.

Once you receive a C permit you can plan to switch to ordinary taxation.

10
If the tax situation is basic (e.g. no foreign real estate) I think that you can get a decent approximation by computing the taxable income as net salary plus stock dividends minus all the deductions that you are planning to make, compute your wealth - and see what your cantonal tax calculator says for those 2 numbers

11
Thanks again for all your replies!

I have two more questions:

- Regarding dividends: I use Degiro as broker and every time I receive a dividend, Degiro automatically deducts dividend tax. Does this not mean I've already paid taxes on the dividend? And which value shall I declare in the tax return, the gross or net dividend?

- I forgot to mention that from 2020 I have a child I'm not married with the mother and I am the one receiving the child allowance: does it mean I am the only one that can deduct childcare expenses and that can declare the child in the tax return?

Many thanks!

12
Same as withholding tax: you always declare the gross dividend, and then the final calculation about what you owe is done. If you use ZH online tool and your stocks/funds are known to ICTax - it will do the job for you.

When you receive the dividend from a US stock/fund for example:

- US takes 15%. This can be taken back from Swiss tax office by filing DA-1 (together with the tax return). They will simply wire your money back shortly after and tax liability is calculated on the gross dividend

- US takes extra 15% if your broker did you register you properly as non-US person. These are gone, unless you actually file requests directly with US to get it back.

- If the broker is Swiss (I am not sure if Degiro is) then Switzerland takes another 15%. This won't be returned directly but will count to offset your taxes

13
Many thanks for the reply! Do I understand correctly that for US stock I should declare the stock twice: once under "Wertschriftenverzeichnis" and once under "DA-1 Wertschriftenverzeichnis", in order to get the first US 15% back?

14
No, only once in its according (non-CH) section.

15
On a paper return, I am not sure to be honest. With the online tool (at least last year) you would not duplicate: if you wanted a withholding reimbursement you would only include them in DA-1 and the tool would consider that as part of the total securities.

I found this guide very helpful, even if it is from a couple of years ago and specific to the desktop software, not the online tool. It touches on many useful points, including how to deal with DA-1: https://www.mypersonalfinance.ch/tax...-personliches/

16
Hello,

I've applied for "Antrag auf Korrektur der Quellensteuer oder nachträgliche ordentliche Veranlagung einreichen" last week, am I now supposed to receive the tax return form with the access code so that I can start the online tax return?

So far I've received only payment recommendation for 2021 and 2022: is this something I can discard or I shall now make these payments?