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«Service as in Private Banking – At a Way Lower Cost»

Tax Return: Completed Faster, More Money Back

Felix Niederer07.01.2022

By the end of March: Extend the deadline or submit your tax return. We will help you to finish on time and reclaim all withholding taxes.

Are you already thinking about your tax return for 2021? In Switzerland, you will either submit it to your tax office by the end of March – or at least contact them briefly to get an extension of this deadline. In any case, it is now time to gather all the documents.

It's good to know that a tax statement is already available in your True Wealth account. Automatically and at no extra cost. This means you can easily declare everything you need to about your securities with minimal effort – you have all the information you need to reclaim withholding tax in Switzerland and abroad.

Fulfilling the obligation easily

We have structured the tax statement in such a way that you only need to transfer two lines to the securities register of your tax return. These collective entries are enough. If your tax commissioner wants to take a closer look at the details, they will find everything in the detailed list of all your holdings and transactions. It is therefore best to enclose all the pages of the tax statement with your tax return. This will save you tedious legwork – and you will have fulfilled your obligation and declared everything.

The securities register with tax value and income subject to tax: Only two lines and the obligation is fulfilled.

Nothing is forgotten

The tax statement is structured to ensure that nothing is forgotten. This way, you not only complete your tax return with minimal effort. You are also perfectly prepared for all eventualities and avoid any queries. We draw the official values of the Federal Tax Administration from the official exchange rate lists for your tax statement. This means that all the information on your securities is automatically correct– not only for the holdings at the end of the year, but also for the dividends paid out throughout the year and all transactions with which we have adjusted your portfolio during the year. The values are always at the official rate, converted into Swiss francs. All this in a clear report that we have coordinated with the Cantonal Tax Office of Zurich.

If your tax inspector takes a closer look: All transactions and taxable income are listed in detail.

Get more money back

With the two entries in the securities register, you have not only fulfilled your obligation, but have also already begun the voluntary part: reclaiming the Swiss withholding tax. The 35 percent on dividends withheld by the state are now automatically offset against your tax burden.

With the templates that we at True Wealth provide you with, you can easily extend the voluntary part even further. Have you ever claimed back foreign withholding taxes? The first step to higher refunds is Form DA-1, which you can fill out, but don't have to. Many investors find it complicated, so they miss out on cash year after year.

Money back with just four numbers: The DA-1 is also filled out quickly.

In True Wealth's tax directory you will find all the information you need to complete the DA-1 quickly. This way you secure the lump-sum tax credit in one fell swoop.

Your entries in the securities register and the DA-1 in your tax return are sufficient for you to receive credit for withholding taxes from Switzerland and the USA. 

That's why we at True Wealth mainly use ETFs from these countries for your portfolio (as well as Ireland, where often no withholding taxes are levied in the first place). With just one tax return in Switzerland, you get back at least part of what you are entitled to. Therefore we call these securities "tax-efficient".

Money back for past years too

For those who have not done so in previous years: crediting withholding taxes is also possible retrospectively. The lump-sum tax credit can still be claimed with the DA-1 in Switzerland three years later. However, the minimum amount for a reclaim is 50 francs. If you have already been a client of True Wealth for several years, you will find a tax list in your account for the previous years as well.

Automatically a better service

A tax directory is so useful that banks usually charge dearly for it. Most Swiss custodian banks charge a basic fee and many also charge a fee per item.

Anyone who diversifies their portfolio with ETFs properly across the asset classes will quickly have ten to twenty different securities in the custody account that have to be listed individually – such a tax directory then often costs 100 francs or more. Those who diversify with individual securities might also have to report on dozens or even a hundred positions. In this case, the costs for a tax statement quickly reach 500 or even more than 1,000 francs.

With True Wealth, the tax statement costs nothing extra, it is automatically included in the services and is already available for printing in your account. A service that clients are otherwise only familiar with from private banking. Only much cheaper – just as you would expect from True Wealth.

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Disclaimer: We have taken great care with the content of this article. Nevertheless, we cannot exclude the possibility of errors. The validity of the content is limited to the time of publication.

About the author

author
Felix Niederer

Founder and CEO of True Wealth. After graduating from the Swiss Federal Institute of Technology (ETH) as a physicist, Felix first spent several years in Swiss industry and then four years with a major reinsurance company in portfolio management and risk modeling.

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