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Old 09.03.2010, 15:34
Syt Syt is offline
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Re: How to handle a sole trader as an additional revenue

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First of all 'hello everybody!' as I am new here.

I tried to find the answer in the previous topics but it seems to be my case is a bit different.

I have a permanent contract with my swiss employee ('B' permit) and also wanted to have an additional income as a sole trader (I need my employer acceptance first which should be fine). As I B permit holder I am not declaring my incomes at the end of each year. The taxes are deducted on a monthly basis.

I have three questions:
1. As soon as I will become a sole trader, should I declare my revenues from my business activity separately from my salary filling the annual list of incomes?

2. Should I open a separate bank account to handle my sole trader activity?

3. Should I change my AVS and pay something in addition (I already have AVS as I am employed)?

I will be grateful for all your suggestions.
Even if you are a EU citizen, check that your B permit entitles you to act as self-employed and has not been given for your employment only.

1. Yes, you should declare your income. Though, what do you mean by "acting as a sole trader"? Do you really qualify as a professinal trader? Remember private capital gains are tax free in CH. Therefore: how much can you get tax free and how much are "professional"? That's where it starts to be interesting...

2. Not necessarily but as a self-employed, you shall provide the tax authority with the details of your income, costs and assets, therefore it is probably easier for you to manage a separate account.

3. Yes, you have to announce yourself as having a self-employed activity to the AVS. You will have to pay it all by yourself (no employer there...), therefore it can be as high as 10.1%...

If I remember correctly the rules in GE, you will remain at source for your employment and you shall file a tax return only for your self-employed activity and wealth.

Rgds
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