The deduction of asset management costs in the tax return offers a tax advantage in Switzerland that should not be underestimated. This article explains the most important points you should know about lump-sum asset management costs.
What are lump-sum asset management costs?
Flat-rate asset management costs include expenses such as advisory fees, custody account fees or the costs of managing investment funds, which are tax-deductible up to a certain amount without the need for itemized deductions.
In the canton of Zurich, the flat-rate deduction for asset management costs is 0.3 per thousand of the assets under management. As always, the regulations differ from canton to canton. We therefore recommend looking up the specific regulations in the guidelines of your canton of residence.
Is there a lower limit?
There is no specific lower limit for the lump-sum deduction in the statutory regulations. However, it is expected that the assets under management are significant enough to justify any management costs at all. Smaller amounts or everyday savings often do not fall into this category. For the flat-rate deduction in the canton of Zurich, this means that there should generally be substantial assets in order for the deduction of 0.3 per thousand to be applied in a meaningful way.
Example
Assuming Mr. Müller owns a portfolio of CHF 500,000, he can deduct CHF 1,500 (0.3 per thousand of CHF 500,000) from his taxable income with a flat-rate deduction of 0.3 per thousand without having to prove the costs of asset management.
Conclusion
The possibility of deducting lump-sum asset management costs is an attractive option for reducing the tax burden. Although there is no explicit lower limit, taxpayers should ensure that their assets are sufficiently large to realistically justify such costs. This tax benefit is a practical tool to minimize the administrative burden while benefiting from potential savings.
