Taxation for Less than 90 days contract in switzerland

**BlasterBates** · 13 October 2010, 07:43

You're on a Swiss work permit, probably liable for Swiss tax on the work you're doing.

Generally that's what you should assume and check out with a Swiss accountant when you get there.

The 183 day rule really only applies to personal tax, not when you're doing business somewhere. On the whole the authorities want their "cake".

If not then that's fine but don't assume it.

If it's taxed in Switzerland then on the whole it won't be taxed again in the UK, there shouldn't even be a top-up tax.

Check what sort of permit it is. You can be "seconded", and in this case you could be taxed in the UK, but you need to double check.

**Fred Bloggs** · 13 October 2010, 08:20

If you fly in on a Monday and home again on a Friday afternoon , staying in Hotel in between, I'd be amazed if you couldn't just pay UK tax for those 3 months.

**BlasterBates** · 13 October 2010, 09:43

Switzerland offshore legal and tax regime

A person is deemed resident in Switzerland if:

He has Swiss employment (to work in Switzerland a non-national needs a work permit - limited work permits of 90-120 days can be granted and where granted lead to limited taxation);
He carries on a business in Switzerland; or
He lives in Switzerland for not less 180 days in any one year. If however he remains in the same abode the time required to be a resident for tax purposes drops to 90 days.

So it looks like you pay tax.

**Fred Bloggs** · 13 October 2010, 10:53

Just reminds me why I won't take overseas jobs. The hassle and the uncertainty of non compliance just makes it not worthwhile IMO, particularly for such a short duration job.

**BlasterBates** · 14 October 2010, 06:55

Actually it isn't that much hassle just find an account locally or management co. Usually for a short term co. there's a lot less red tape anyway, just fill out a very simple tax form with your earnings from the contract and the invoices. If you always "go local" there's always certainty. As a temporary resident there's a whole lot of red tape your spared. I did a 3 month contract in Lux. and it was very simple. So definitely worth doing but just need to find an accountant or management co.

I see the problem is when you try using your Ltd improperly, that's where it gets uncertain.

The other thing is that the rules are simpler, i.e. Insurance (think NI) no IR35 investigation, no-one looking at your other earnings, just a plain simple tax take on your invoices.

...and provided you fill out the right box on your UK form no tax additional tax to pay.

**Fred Bloggs** · 14 October 2010, 08:51

Thanks, maybe I needn't be so put off but it always seems the likes of the Man Co's etc.. are out to run some kind of dodgy scam. It isn't perhaps as bad as it seems when looking in from the outside.

**andreas7** · 15 October 2010, 11:42

Thank you all for your replies

Actually i am trying to make it as simple as possible (but legal)
I have also found that for less than 30 working days (and 90 days without or with work) i am not a swiss tax resident.
So if i go and work for 29 days that means i can just pay everything to uk?not tax and dont declare anything to swiss tax?

**BlasterBates** · 16 October 2010, 08:53

No if you´re on a swiss permit you probably pay tax, as it says in my previous posting.

You will not be a full tax resident.

The Swiss have issued you a permit, so they know you´re there, if you don´t pay tax they´ll know about it, and it is quite possible that they would chase this up through the UK courts.

Take advice from a local Swiss accountant, or contact a Swiss management co. In this particular situatuation I think you´ll find declaring and paying tax on your Swiss income easy, in fact the bank may arrange this.

Of course I could be wrong, but should take professional advice and not just rely on advice from here. THe sums involved aren´t really astronomical but not really worth getting wrong.

Taxation for Less than 90 days contract in switzerland