CompensationFeb 25, 2019
Apple🏃‍♂️boy

Zurich tax on GSUs

Hi folks of Blind, What is the tax on GSUs (Google Stock Units)/Stocks in Zurich? Is there any tax on capital gains as well? I hold Indian citizenship. Ex: Assuming 75000$ GSU per year has been allotted to me, what’s the tax on that and how much can I expect to vest? I know that there’s canton tax and social tax etc on income, do those apply to stocks as well? TC: 240k CHF Yoe: 6

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Google statusz Feb 25, 2019

RSUs are taxed as ordinary income at vesting. Full amount vested including gains from grant till vesting is taxed. At Google's salaries you'll be looking at 30-40% marginal tax rate, depending on municipality in which you choose to live, plus social security payments - 5.125% AHV and 0.5% ALV. Capital gains afterwards when you sell are tax free and no soc sec to pay,. Unless you're day trading in which case they might tax. Dividends are ordinary income, no soc sec is due on them, and there's no discounts for long term holding.

Apple 🏃‍♂️boy OP Feb 25, 2019

Thanks for the reply! Really appreciate it. And Wow. 30-40% is a lot! Is it the same on income as well? Social security payments are savings right? (If I exit the country can I withdraw that money?)

Google statusz Feb 25, 2019

That's *marginal* tax rate, please kindly look up what that means on google. Average rate that you'll see on your tax bill for the whole of your income is of course likely to be smaller, maybe 20-25%. About 80% of AHV payment goes towards building your state pension entitlement. I don't think Indians are eligible to cash it out when leaving, you'll be able to draw it as pension at 65+, but some other nationalities can indeed withdraw (most of) it when leaving. The other 20% are social insurances, you don't get it back ever unless an insured event happens - death or disability. ALV is unemployment insurance, you'll only benefit from it if you get fired and choose to stay in Switzerland, otherwise that money's wasted too. However it's not exactly free money if it comes to a claim - they will force you to work and top up the pay to 70-80% of what Google paid you for a couple of years. It's a good deal if you want to stay, considering that the market around are mostly random small companies paying maybe half of what Google pays, but it's not as lucrative as moving on to the US of course