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Glossary

Commercial Securities Trading

Commercial Securities Trading describes the tax classification under which trading in securities no longer counts as private asset management but as self-employed gainful activity. The distinction matters because private capital gains on movable assets are tax-free, whereas commercial gains are taxed as earned income and are subject to social-security contributions. The ESTV assesses this question on the basis of Circular No. 36 and a multi-stage examination.

At a glance

01

Private capital gains on movable assets are tax-free; if the trading is classified as commercial, the gains count as taxable earned income.

02

The ESTV Circular No. 36 contains a pre-examination with five criteria; if these are met cumulatively, commercial trading is generally ruled out.

03

Key criteria include, among others, a holding period of the securities of at least six months and a limited transaction volume relative to the opening portfolio.

Frequently asked questions

Capital gains from the private management of one's own movable assets are tax-free in Switzerland. If, however, the activity is classified as Commercial Securities Trading, the gains count as income from self-employed gainful activity. They are then captured by income tax and also trigger AHV contributions.
The ESTV Circular No. 36 provides for a pre-examination with five criteria. If these are met cumulatively, there is generally no commercial trading. They include in particular a minimum holding period of six months for the securities sold and a transaction volume that does not exceed a certain multiple of the securities and cash holdings at the start of the tax period. Further criteria concern the financing, the significance of the gains for living expenses and the use of derivatives.

Part of the topic

Steuern (privat)

Sources: ESTV Kreisschreiben Nr. 36 (Gewerbsmässiger Wertschriftenhandel) · Eidg. Steuerverwaltung (ESTV)