Hello,
I moved to Zurich a few months back and started working in the university with the withholding tax. Three weeks before, I received a letter from the tax office. It requires to mention my monthly salary, signature, and also tick marking several applicable options. These include below two and several other options.
* income not subject to withholding tax (e.g. income from securities or real estate) amounts to at least CHF 3,000
* taxable assets (e.g. securities, real estate) amount to at least CHF 80,000
By going through the ZH cantonal guidelines ([https://www.zh.ch/de/steuern-finanzen/steuern/quellensteuer/Quellensteuerpflichtige-Personen.html#undefined](https://www.zh.ch/de/steuern-finanzen/steuern/quellensteuer/Quellensteuerpflichtige-Personen.html#undefined)), it is clear that a resident has to apply for the subsequent ordinary assessment if income not subject to withholding tax amounts to >3000 CHF. I believe anyone who trades crypto will have an extra income much more than this. I also understand that capital gains in Switzerland are tax-free. I have a few questions which could be best answered by a person who went for a subsequent ordinary assessment.
(1) Will my employer know if I apply for the subsequent ordinary assessment? Am I obliged to inform my employer about it?
(2) It is mentioned that the subsequent ordinary assessment will be continued until the end of the withholding tax obligation. Does it mean that my employer will still keep me on withholding tax?
(3) Will I be considered a professional trader If I perform several trading transactions per month on kucoin or binance futures? Of course, I will be doing it to generate more funds to buy more cryptos to be held long-term and not to manage my living expense. Will this be considered self-employment, even though I am employed in the university?
(4) If the extra income is judged to be from business activities (professional trader), the tax regulations on self-employment apply ([https://www.zh.ch/de/steuern-finanzen/steuern/treuhaender/steuerbuch/steuerbuch-definition/zstb-16-5.html#undefined](https://www.zh.ch/de/steuern-finanzen/steuern/treuhaender/steuerbuch/steuerbuch-definition/zstb-16-5.html#undefined)). Does anybody have any idea, what will be the applicable tax rates?
(5) Although capital losses are irrelevant for tax purposes, whether the losses incurred during professional activities would be deductible?
(6) I couldn’t clearly understand the below sentence from [https://www.zh.ch/de/steuern-finanzen/steuern/treuhaender/steuerbuch/steuerbuch-definition/zstb-16-5.html#undefined](https://www.zh.ch/de/steuern-finanzen/steuern/treuhaender/steuerbuch/steuerbuch-definition/zstb-16-5.html#undefined) — The practice of commercial securities trading (Circular No. 36 of the Swiss Federal Tax Administration of July 27, 2012) is applied mutatis mutandis to distinguish it from private asset management. — Does it mean that they might also consider your professional trading activities as an asset management activity? If so, would the income fall under capital gains?
(7) Although the subsequent ordinary assessment could be requested online, is it easy to file the income tax return by our self? Or should a professional be hired? If so, how much do they generally charge? Any recommendations for such a person in Zurich?
2 comments
(1) I do not know, I think not. There are many reasons to do an ordinary tax return,
(2) Yes. Withholding tax is still deducted and forwarded to the tax authority.
(3) Maybe, maybe not. Not enough information were given: [See kreisschreiben 36](https://www.estv.admin.ch/dam/estv/de/dokumente/bundessteuer/kreisschreiben/2004/1-036-D-2012.pdf.download.pdf/1-036-D-2012-d.pdf).
(4) The net profit is just added to your total worldwide income and taxed as such.,
(5) Yes they would be.
(6) It is either private asset management or professional trading. The former means tax free capital gains and no loss deduction.
(8) It is easy if you understand what you have to do. [Install the Software read the Wegleitung](https://www.zh.ch/de/steuern-finanzen/steuern/steuern-natuerliche-personen/steuererklaerung-natuerliche-personen.html).
(1) Your not obliged to inform your employer, however he might get word of it.
He definitly won’t know why you got the ordinary assessment. As per tax year 2021 every one can file for a ordinary assessment without a reason.