Must securities sold during the year be declared?

Many taxpayers are unsure whether securities they sold during the year and no longer own on December 31 must be declared in the tax return. The answer is clear: Yes, securities sold during the year must also be declared.

In this article, you will learn why this declaration is important and what points to consider.

Why Must Sold Securities Be Declared?

Even if the securities are no longer included in assets at year-end, they continue to play an important role from a tax perspective. The main reasons are:

Income Up to the Sale Date

All income earned up to the sale must be declared as income, for example:

• Dividends from stocks
• Interest from bonds
• Distributions from funds (including accumulating funds)

This income is subject to income tax even if the securities were sold later.

Important: The relevant time for declaring dividends is when the claim arises (usually the resolution at the general meeting), not the year for which the dividend is distributed. Example: The dividend for fiscal year 2025 is approved at the AGM on May 15, 2026. It therefore represents income for 2026 and must be reported in the 2026 tax return.

Reclaim of Withholding Tax

If withholding tax of 35% was deducted on dividends or interest, it can only be reclaimed if:

• the securities and
• the corresponding income

are correctly listed in the securities register of the tax return.

Important deadlines: The right to reclaim withholding tax expires if the application is not submitted within three years after the end of the calendar year in which the taxable benefit became due. This deadline can neither be extended nor interrupted. An extension for the tax return does not apply to the reclaim application!

Traceability of Wealth Development

The tax authorities verify the change in your wealth from year to year. By declaring purchases and sales, it becomes clear:

• why your securities holdings have decreased
• why your bank balance has increased
• how your total wealth has developed

Without this information, inquiries or corrections could occur.

Verification of Capital Gains

For private individuals, capital gains from the sale of securities in Switzerland are generally tax-free. Nevertheless, transactions must be declared so that the tax authorities can verify whether:

• it involves private wealth management or
• commercial trading activity exists

Criteria for tax exemption of capital gains:

Commercial trading is excluded if the following criteria are cumulatively met:

• The holding period is at least six months
• The transaction volume does not exceed five times the securities and credit balance at the beginning of the tax period
• Capital gains do not constitute a necessity for financing living expenses

If not all these criteria are met, commercial trading may exist. In this case, capital gains are taxed as income from self-employment, and additional AHV/IV/EO contributions of around 10% are due.

How Are Securities Sold During the Year Declared?

The declaration is made in the securities register of the tax return. Among other things, the following are recorded:

• Description of the security (with security number for clear identification)
• Number of securities
• Purchase and sale date
• Income up to the sale date
• Withholding tax

Using the Bank's Tax Statement

The easiest way to declare is with a tax statement (also called tax register) from your bank. This typically contains:

• all purchases and sales during the year
• tax-relevant income
• creditable withholding tax
• official tax values as of December 31

Practical tip: Many banks provide the tax statement as a PDF file (via online banking or on request). When filing the tax return electronically, it is sufficient to record the total of the depot and upload the complete tax statement as proof. An individual listing of all securities is then not necessary.

What Else Should Be Noted for Sales During the Year?

Non-Deductibility of Purchase and Sale Costs

Important: Purchase and sale commissions (brokerage fees), stamp duties, and stock exchange fees are not deductible. They cannot be deducted from income or gains.

Losses Cannot Be Claimed

Capital losses from the sale of securities in private assets cannot be deducted from income or wealth. This is the flipside of the tax exemption for capital gains.

Irrelevant Sales

Only securities that were already sold in a previous tax year (before the reporting year) are irrelevant for the tax return. These no longer need to be declared.

Conclusion

Securities sold during the year must also be declared in the tax return. The key factors are:

• the declaration of income earned (with correct due date)
• the reclaim of withholding tax (within the three-year deadline!)
• the correct presentation of wealth development
• the distinction between private wealth management and commercial trading
• the indication of purchase and sale dates to verify the holding period

With a complete tax statement and proper declaration in the securities register, you avoid inquiries from the tax authorities and ensure that all tax benefits (especially the reclaim of withholding tax) are correctly considered. For day traders and investors with many transactions, the declaration can be time-consuming, but banks usually provide detailed listings that significantly ease this work.