Discount Bond Taxation

[sprpck]

Hi All,

I have a basic taxation question regarding discounted bonds. Maybe it was already discussed, but I haven't found it on the forum.

Interest is taxable in CH, capital gain is not.
What if one has some discounted treasury bills in a foreign country? Once maturity comes, is the gain taxed as interest or capital gain? Technically it seems like a capital gain, but law-wise it might be accrued interest. How does the tax authority decide on that? And how shall one declare these gains?

Another scenario is, if one sells the bill just before maturity, the same question arises.

And at last, if instead of going directly to the bill, one uses an ETF holding that bill, does it make the situation any different?

I have not really found comprehensive documentation on the matter, just asked GPT, but its response is also not fully direct.

Thanks for your thoughts and shared knowledge!

 

[Baptiste Wicht]

I have no experience with discounted bonds.

But I would think that if you sell before maturity, it's still a capital gain (or loss) based on what you bought.
As for ETFs, it should be simpler: Anything given as dividends should be counted as income and you would only count capital gains (or loss) when selling the ETF.

 

[Denis]

No experience too ! you may call your canton tax dept...

 

[sprpck]

Thanks for your replies! I also thought what you, Baptiste, but I'll clarify with the authority.