Swiss equities are not only regarded as sound investments, but also as an attractive source of dividend income. But how are these dividends taxed? And what options are there to reduce the tax burden? This article offers you a detailed insight into dividend tax on Swiss shares.
1 What is dividend tax?
Dividend tax, also known as withholding tax, is a withholding tax levied on dividend distributions from Swiss stock corporations. It currently amounts to 35% and is deducted directly by the distributing company and paid to the Swiss Federal Tax Administration (FTA).
2. refund for Swiss investors
For investors resident in Switzerland, the withholding tax is not lost for good. They can reclaim the tax via their tax return by declaring the dividend income in their income tax return. The main purpose of the withholding tax is therefore to ensure taxation and not to place an additional burden on Swiss investors.
3. taxation for foreign investors
Foreign investors who own Swiss shares and receive dividends can reclaim part of the withholding tax if there is a double taxation agreement (DTA) between Switzerland and their home country. The exact percentages and procedures vary depending on the agreement and country.
4 Dividend tax and the second pillar
Special regulations apply to pension schemes such as pension funds that hold Swiss shares. They are exempt from withholding tax, but must ensure that the dividend income is used exclusively for pension provision.
5 Current developments
The taxation of dividends is a recurring topic in the political debate. Efforts are being made to reduce the burden of withholding tax for investors in order to make the Swiss financial center even more attractive. It is therefore worth keeping an eye on new legislation and political discussions.
Conclusion
The dividend tax on Swiss shares influences the overall return on investments. While Swiss investors can largely reclaim the tax, international investors should observe the regulations of the respective double taxation agreement. It is essential to keep up to date with changes and adjustments in taxation in order to fully exploit the investment potential.
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