Flat asset management costs in the Swiss tax return

Deducting asset management costs in the tax return offers a not to be underestimated tax advantage in Switzerland. This article explains the most important points you should know about flat-rate asset management costs.

What are flat-rate asset management costs?

Flat-rate asset management costs include expenses such as consulting fees, custody fees, or the costs for managing investment funds, which are tax-deductible up to a certain amount without individual receipts.

In the canton of Zurich, the lump-sum deduction for asset management costs is 0.3 per mille of the managed assets. As always, the regulations vary by canton. We therefore recommend looking up the specific regulation in the guide of the canton of residence.

Is there a lower limit?

There is no specific lower limit for the lump-sum deduction in the legal regulations. However, it is expected that the managed assets are significant enough to justify any management costs. Smaller amounts or everyday savings amounts often do not fall into this category. For the lump-sum deduction in the canton of Zurich, this means that there should generally be a substantial asset available so that the deduction of 0.3 per mille can be meaningfully applied.

Example

Suppose Mr. Müller owns a portfolio of CHF500,000. With a lump-sum deduction of 0.3 per mille, he can deduct CHF 1'500 (0.3 per mille of CHF 500,000) from his taxable income without having to document the costs for asset management.

Conclusion

The option to deduct flat-rate asset management costs is an attractive option to lower the tax burden. Even though there is no explicit lower limit, taxpayers should ensure that their assets are sufficiently large to realistically justify such costs. This tax advantage is a practical tool for minimizing administrative effort while at the same time benefiting from possible savings.

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