[Will31]

When I start investing through a company, I will make a thread on this forum, to share the good and bad surprises...

[Will31]

Thank you for the welcome.

The principle of the company is very simple: it is that of the Swiss Holding which aims to avoid double taxation. If you create a "simple" company, the dividend is taxed at 35% in the company and then, when you pay yourself a dividend, again at 35%.

So, a dividend of 100 paid to a company ABC, taxed at 35 becomes 65 of income for ABC. It pays me 65 taxed at 35, or 42.25. That is, in total 57.75% of taxes (!)

If I create a company in Switzerland, Vaud, since the RIE 3 (and therefore the removal of the Holding status), the rate will be, to simplify, 14%. However, after certain criteria (1MCHF of portfolio or at least 10% of the capital of another company), we are entitled to the reduction for participation which has not been removed. Basically, if 95% of the company's turnover comes from investments, then it will be taxed at 14% on the remaining (100%-95%) = 5%.

We therefore benefit from a large tax lever during the investment period, without withdrawal.

The interesting point is also that, if you lend to your company (ex here 25KCHF annually for 20 years), the company has a debt towards its shareholder. If, for example, you plan to withdraw 50KCHF from the portfolio annually, you can make 30 KCHF of repayment and 20KCHF of dividend, taxed on income at "peanuts" because very low in terms of tax rate.

There is a fiscal risk of undercapitalization, but the Vaud tax authorities recognize that liabilities must be less than 60% of assets. So from time to time it will be necessary to pay into the capital rather than lend, but it will not be huge if the portfolio performs well.

It's not really complicated to manage. There are accounting software programs that are very easy to access and we all have a trusted friend who can take a look at the annual accounts. And then we can pass on some expenses to the company, while being reasonable, of course.

 

For oil, it is obvious that it is not really the future. Except that the only truly alternative future is clean nuclear (recycling/reduction of radioactivity of waste, fusion). And for the moment we are heading towards windmills and coal, gas and… fuel oil power stations…

So oil, no, it's not yet the past.

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