An analysis by Taxpartner AG, Taxand Switzerland
The Zurich Cantonal Tax Office has recently updated its guidelines on the deductibility of costs for managing private securities. These changes restrict deductions for asset management costs, disallowing flat-rate fees from non-bank asset managers and introducing a distinction between flat-rate deduction and deduction of actual costs.
Under the new rules, a fixed percentage can be deducted as a flat-rate without proof of actual costs, up to a maximum limit. However, higher deductions require proof of actual costs and their deductibility, and all-in fees necessitate estimating deductible costs based on portfolio values.
There is also a limit on the deduction for all-in fees when securities account values exceed 2 million. This applies to both state and local taxes and requires immediate implementation for ongoing tax periods, with similar regulations in place in other cantons.
Dieter Weber and Claudia Kehrle of our Swiss firm, Taxpartner AG, analyse these rules in more detail here.
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