[Thierry]

I am not from Valais. 🙂

I use the official software of my canton (VD). I installed VStax just to see what you were talking about. Overall it is similar even if the interface is very different, that this additional information is requested and R-US 164 and DA-1 are separated although under the same section.

About the imputation, it is also treated as an advance tax for my case. But it seems that it depends on the situation (and maybe the taxer). See my 2 links above. Sorry the 2nd is not the right one. I will update later (I don't see an edit button though).

So no problem per se. I was just wondering if anyone knew if it was necessary/useful to fill in points 3 and 4 (and what influence this information has).

Thank you and see you soon,

Good day.

 

 

• This reply was modified 1 year, 7 months ago by Thierry.

[Thierry]

But why are you bothering with this form?

Hi,

So it depends what you mean by “this form”.
Fortunately, I do not fill out this form directly. The declaration via the software clarifies the procedure and fills in the form fields automatically when the declaration is generated (form which remains different between VS, NE, VD, etc.). However, the questions on page 2 all appear under the "additional information" part of the "DA-1" section of my tax software (not seen on VStax).

If on the other hand you ask why I bother with these tax "details", it is to satisfy my curiosity and my desire to better understand the subject. 😉
…and possibly get some peanuts that I'm entitled to.

[Thierry]

Why is there a difference between foreign withholding tax on US dividends, and additional US withholding tax, withholding tax, but only by a Swiss depository (which excludes IB)?
Does money smell different depending on whether it comes from Switzerland or elsewhere?

These 2 links seem to provide a (part of the) answer:
https://finpension.ch/fr/retenue-dimpot-supplementaire-usa/
https://www.estv.admin.ch/dam/estv/fr/dokumente/dbst/formulare/2022/da-1-2022.pdf.download.pdf/da-1-2022.pdf

According to my understanding (I paraphrase), this particularity results from the double taxation agreement between the USA and CH. The withholding tax in the USA is generally 30%. According to the agreement, it is only 15% when it comes to a Swiss taxpayer (I am simplifying) => recoverable via declaration + imputation request.
There additional USA retention performed by a Swiss intermediary serves to create a pledge to encourage correct declaration in Switzerland (15% at source may be < than the total tax). This deduction is fully recoverable via the declaration in all circumstances (like withholding tax). While the imputation is not fully recoverable in all cases (see the example in link 2, although it deals with a non-US case).
Corollary: the fact that IB does not collect the additional US withholding tax for Swiss taxpayers likely creates a small back door for tax evasion.
Now, why is the convention with the USA 15% + 15% instead of the total amount collected at source and then imputable as for European countries for example? Probably geo-eco-politico-diplomatic reasons?
But above all... why in 2020+, two countries like the USA and CH can't create an automated system to exchange the necessary information and "definitively" resolve this problem? Crazy, right?

Thierry

[Thierry]

Hello everyone,

Ahahaha, I just realized why we have trouble understanding each other and what adds to the fog of an already thorny subject: we don't have the same information in front of us!

In all my naivety, I thought that 1) the R-US 164 and DA-1 forms were standardized at the Confederation level and that 2) the interface for filling out the tax return, although customized to the particularities of the cantons, was also standardized. Not at all!
And to think that it is precisely our taxes that finance this kind of inefficiency. How sad…

Brief…
I was referring to point 3 on page 2 of the DA-1 form on the Confederation website:
https://www.estv.admin.ch/dam/estv/fr/dokumente/dbst/formulare/2022/da-1-2022.pdf.download.pdf/da-1-2022.pdf

There is also a point 4: "Have you paid any interest?" which I have not found an equivalent for in VSTax.

Thierry

[Thierry]

Hi Jerome,

Thank you very much for your answers, always so promptly! 🙂

I will come back with some detailed questions as soon as I find a moment... and also for all the questions that I note down as I go along on other subjects but that I never take the time to ask...

Have a nice day, see you soon

 

 

[Thierry]

Hello Jérôme and all the speakers,

Thanks for all your contributions on this head-scratching topic. I'm trying to untangle the ball of yarn to better understand the long term. I'll probably have a few questions about details later, but I'll start with the essentials:

I followed Jerome's great tutorial to create the IBKR tax report and fill out the tax return. There are a few points I would like to clarify; perhaps because the IB report has changed over the years?

1. I don't see a section "Net assets" in the report generated according to instructions. Only "Total Shares in CHF" and "Total" of the value in CHF for the forex balance (cash), the sum of which seems to correspond roughly to the net asset value (NAV). Have you added the "net asset value" section since the 2018 tutorial?
   a) After testing, this Net Assets section includes "Accumulated Interest" and "Accumulated Dividends" in the total (+ Cash and Shares, therefore). Accumulated Dividends corresponds, unless I am mistaken, to dividends awaiting payment (bad translation?).
   b) Are the sections “Open Positions” and especially “Forex Balances” really necessary if at all?
2. In the IBKR report customization, under "Section Configurations", the option "Hide details for positions, transactions and client fees sections?" = Yes, by default. Is this a new option that you leave on Yes, compared to the 2018 instructions, or are these details required by the tax authorities? (Or kept for security)
3. My tax software, in the DA-1 form, asks me for additional information. In point 3. "Income on the basis of which the tax rate due for the tax year (2022) is determined according to the tax return:", there is a field for the IFD and for the ICC. I assume that this is the taxable income calculated by the software. But I don't quite understand why I should enter it myself here since I'm not supposed to know the figures at this stage... What about it? Can we leave it blank? (the software doesn't complain)

Thank you for your enlightenment!

Thierry

[Thierry]

Good morning,

I always find it interesting to rewind to analyze the actual evolution of a stock compared to old predictions (or wishful thinking?) and try to understand what happened, whether you bought or not.

So far, the Achiko nugget has turned into a loss of almost 90%.
Thank you Jérôme 😉

[Thierry]

Hi,

I was also going to suggest VIAC.

Raiffeisen also offers index funds (passive management), but with slightly higher fees, unless I'm mistaken.

Good day.

 

[Thierry]

Hi Jerome,
Thanks for your quick response!

It would be nice if they improved it indeed; but I don't count on it too much in the medium term since they have probably invested time to arrive at this new heavier version, common to E-Finance, and this heaviness seems to depend on the concept/technology used.
It's a real shame that they've chosen this direction, because apart from that, I'm completely satisfied with their services so far and I actually found their online offering to be strong.

Good evening.

[Thierry]

Good morning,

I am new to the world of investment (no purchase yet, I am looking into it first). I had opened an e-trading account on Postfinance a little before the change of interface and fee system.
My question: would you use Postfinance e-trading in my situation, or another broker?

Notes: I already have the majority of my accounts with Postfinance.
I don't like their new interface at all, unnecessarily heavy to load and more buggy (e-trading & e-finance).
I took a look at auto signal trading and Interactive Brokers. It seems interesting to me but also more complicated / less familiar to start with. In particular, creating an account with an intermediary that I do not know and abroad, puts me off a little.

Thanks for your advice!
Thierry

[Thierry]

Great job!
Browsing and reading are actually more enjoyable (on Android too. :)
Thanks for the draw, nice!

Thierry

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