Swiss Tax Authorities Examining Given Account
Going Swiss: Tax Implications for Germans
Got a yen for Swiss banks? You're not alone. With the Euro's weakness and geopolitical turmoil, more Germans are opting for Swiss deposits. But before you dive in, here's the lowdown on the tax landscape.
German Tax Liabilities
When it comes to filing your annual income tax return, don't forget to declare capital gains from Swiss accounts as foreign income in the KAP and KAP INV annexes, alongside other capital gains.
Cross-account Loss Offset
Good news for couples filing jointly! The regulation on cross-account loss offset lets you offset losses from Swiss accounts without worrying about the December 15 deadline for requesting loss certificates.
Data Transmission
Switzerland, one of the 111 countries exchanging financial account information with Germany, triggers data requests from the German Tax Authority for those who haven't filed the KAP or declared foreign capital gains. Just remember, this often results in double reporting of capital gains for married couples.
Relocating to Switzerland
Dividends from Swiss companies can be subject to double taxation under the double taxation agreement (DTA) with Switzerland. However, Germany has a taxing right of 15% on gross dividend amounts. Any additional withholding taxes can be refunded to German residents in Switzerland if they apply electronically to the Federal Central Tax Office.
Swiss Franc Accounts
No need to fret about Swiss franc accounts causing extra tax burden. Swiss banks prepare tax reports for German taxpayers in Euro, including foreign exchange gains or losses.
Expert Opinion
Anton Goetzenberger, a tax advisor specializing in wealth and succession planning, offers his insights. His book "Optimale Vermoegensuebertragung" is a classic in the field, now preparing for its seventh edition.
In the grand scheme of things, Germans with Swiss bank accounts must declare and pay tax on their worldwide income, including Swiss deposits. Switzerland's participation in the Automatic Exchange of Information (AEOI) reduces the risk of concealing foreign bank accounts, making compliance essential.
Remember, the DTA between Switzerland and Germany prevents double taxation, ensuring income is taxed once or offering credits to prevent double taxation. Don't forget to claim your Swiss withholding tax refund by filing the correct forms within three years and proving tax residency, heir status (if applicable), and specific share of the estate.
So, there you have it. Swapping your cash for Swissies might seem tempting, but it pays to know the fiscal facts first!
- Germans with Swiss bank accounts must declare and pay tax on their worldwide income, including capital gains from Swiss accounts, in the KAP and KAP INV annexes of their annual income tax return.
- Couples filing jointly can offset losses from Swiss accounts without worrying about the December 15 deadline for requesting loss certificates, thanks to the regulation on cross-account loss offset.
