How to claim the foreign tax credit on your dividend withholding tax

Antony

Hello everyone,
I moved to Switzerland from the U.S. this year. I have a relatively large portfolio of stocks from the U.S. I have read a bit that it is possible to apply in Switzerland to reclaim foreign withholding tax on dividends. I have found such a page on the Internet. https://www.estv.admin.ch/estv/de/home/internationales-steuerrecht/international-laender/sif/usa.html#par_headline_499964275
I am not an expert in this field, and I don´t know what form to fill out as an American citizen living in Switzerland.
Tony

Manninen

Hey.
The solution depends on whether you have a B or C residence permit. If you have B, then you pay the withholding tax from your salary. You don't declare your other income and you don't pay tax on it in Switzerland.
With residence permit C, you are a resident of Switzerland who is subject to Swiss income and profit tax. You have to fill in the whole tax return. There is an additional form DA-1 that you have to fill in.

Antony

Thank you! That looks very simple then. By the way, I have a residence permit C.
But why are there so many forms on the website mentioned?

Manninen

You can use these forms to claim back a withholding tax from the USA. As far as I know, if you are a US citizen resident in Switzerland, you can file a Form W-9. In this case, you are not exempt from Swiss withholding tax but from US withholding tax.

Underwood

Regarding USA shares.
Is it true that with a W8-Ben form the withholding tax is reduced to 15% in the USA? And is then still 15% reclaimable in Switzerland?
Happy New Year to you all!

Manninen

Yes, with this form you can reduce to 15% taxes in USA. Form W-8BEN is used to document individuals who are not U.S. citizens.