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If you are a US person and you invest in American securities from your Swiss bank account, you have the choice of paying American tax on the investments anonymously or declaring your account to the IRS.

This restriction does not apply to US persons who don't use their Swiss bank account to invest in American securities or to non-US persons.

What is meant by US person?
The IRS has a very broad definition of the American taxpayer. If you answer yes to one of these questions, you have the status of US person:

1. Are you an American citizen? (even if you have another passport)
2. Is your official place of residence in the United States or do you have a permanent residence permit for the United States?
   A permanent residence permit means, for example, a green card, an extended stay in the United States this year and during the two past years, or a substantial physical presence test.
3. Are you, for any other reason, subject to American tax?
   Dual residence, spousal joint tax return, person who has given up US nationality or a residence permit after an extended stay, other reasons.

What is meant by American securities?
This new regulation applies specifically to:

• Interest paid by American issuers on registered debt securities.
• Dividends paid on stocks held in custody by American issuers.
• Premiums (Original Issue Discount/OID) paid by American issuers when reimbursing registered debt securities.
• Revenue paid to holders of Depositary Receipts for securities issued by American issuers. However, this regulation does not apply to revenue paid to holders of American Depositary Receipts.

It is interesting to note that the interest paid on bonds issued to holders outside of the United States (e.g. money market funds) do not fall under this regulation.

This regulation does not apply whatsoever to any other securities. So a US person who buys British stocks from his or her Swiss bank account will not pay any tax in Switzerland and will continue to enjoy Swiss bank secrecy.

What is meant by American tax?
It is a 30%source tax on capital gains and dividends. The bank collects the tax and cedes the overall revenue back to the IRS.

Frequently asked questions:

I have the status of US person and I still wish to invest in American securities. How do I go about it?
You can do so but the bank will have to withhold the American tax on capital gains and dividends on American securities AND give information to your investments to the IRS - make sure that's what you really want before you go down that route.

I have the status of US person and I would like to make investments that are not affected by this regulation. What are my options?
American securities represent only a small portion of the investment possibilities available with your Swiss bank account. They are only slightly limited by this regulation.

What does QI mean and how does it affect me?
A QI bank is a bank that has obtained the status of Qualified Intermediary with the IRS. Only QI banks allow you to invest in American securities. To obtain this status, the bank must commit to collect the 30% tax for the IRS.
All of the Swiss banks we work with have QI status. Our Swiss postal account is the only exception.

I do not have the status of US person. Does this concern me?
No, this page does not concern you at all. The Swiss bank will not collect any tax from your account for the American tax authorities. What is more, the Swiss government won't collect any tax from your account either.

Other pages of interest:

Investing from your Swiss bank account No taxes on your Swiss account Swiss bank secrecy and tax evasion