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Old 14.01.2013, 17:43
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taxation when self emloyed

Hi, firstly apologies if this question has been posted elsewhere. Being new here I thought this be the appropriate place to post.
I am self employed in Germany and moving/registering with my husband to Basel in the next few months. He will be employed in Switzerland, but I want to continue with my self-employment. Does anyone know what the tax situation will be? Most of my business in done in Germany, so will I pay taxes on income in Germany or Switzerland, and how does that effect our combined taxes? Thanks
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Old 14.01.2013, 17:53
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Re: taxation when self emloyed

It may depend on what your business is whether you can be self employed here. It's not something you decide, it's up to the Swiss authorities as it affects the permit you get. What sort of business are you running?
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Old 14.01.2013, 18:07
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Re: taxation when self emloyed

Medea, I run worskshops, seminars and do organisational development consulting. My permit will be attached to my husband, who is taking up permanent employment.
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Old 14.01.2013, 18:43
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Re: taxation when self emloyed

Usually you add your income up as a family. If he makes over the tax at source limit (usually 120K, but that can change by canton) then you just add your income to your husbands. If he makes under that amount, you'll have to discuss with the canton tax authorities how to deal with your situation.

Then you need to get in touch with the social deceptions/payments to work out how to pay in your social contributions.
http://www.ahv-iv.info/ahv/index.html?lang=fr
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Old 14.01.2013, 19:36
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Re: taxation when self emloyed

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Medea, I run worskshops, seminars and do organisational development consulting. My permit will be attached to my husband, who is taking up permanent employment.
Not exactly sure what the situation would be then. Often for self employment the Swiss authorities like to see contracts with at least 3 different clients; this tells them that you are not working for just one main company. It's all to do with the various insurances that are needed on the employment side which an employer would pay for an employee, but not for someone who is self employed who would have to pay those themselves. It might be worth a check with the Basel cantonal authorities to see what they say.

As far as taxes go, as you're resident in Switzerland you'll pay taxes here regardless of where your clientele are. You'd only be liable for any German tax if you were renting premises in Germany or if you still keep bank accounts there, things like that I think.
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Old 14.01.2013, 20:40
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Re: taxation when self emloyed

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It may depend on what your business is whether you can be self employed here. It's not something you decide, it's up to the Swiss authorities as it affects the permit you get. What sort of business are you running?
Don't confuse being self employed in respect of social security and work permit issues with the tax situation! The tax authorities treat self-employment as a fact not a determination and it is not uncommon to have people treated as self-employed for tax purpose, while be refused the same status in respect of other agencies of government... I've been there!
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Old 14.01.2013, 20:54
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Re: taxation when self emloyed

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Often for self employment the Swiss authorities like to see contracts with at least 3 different clients; this tells them that you are not working for just one main company. It's all to do with the various insurances that are needed on the employment side which an employer would pay for an employee, but not for someone who is self employed who would have to pay those themselves. It might be worth a check with the Basel cantonal authorities to see what they say.
This would only apply if the OPs clients were Swiss based. As they are not and assuming the OP is doing business in their own right as opposed to a company, then the minimum payments for social security with most likely apply - a couple of hundred francs per year.

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As far as taxes go, as you're resident in Switzerland you'll pay taxes here regardless of where your clientele are. You'd only be liable for any German tax if you were renting premises in Germany or if you still keep bank accounts there, things like that I think.
Here is actually where I see a potential problem! Under normal circumstances, the 180 day rule would apply, but it is not the only rule available to the authorities in determining residence. If the business is fully conducted in Germany and the OP regularly visits Germany for the purpose of conduction this business, then there may well be a small door open to the German authorities to make a claim, even if the OP does not have a German bank account or premises available to them as you suggest.

I really think the best advices would be for the OP to seek proper professional advice in respect of all these issues, rather than our opinions....
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Old 14.01.2013, 21:27
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Re: taxation when self emloyed

[QUOTE=Jim2007;1767835]This would only apply if the OPs clients were Swiss based. As they are not and assuming the OP is doing business in their own right as opposed to a company, then the minimum payments for social security with most likely apply - a couple of hundred francs per year.[QUOTE]

They are moving to Basel, what are the differences when they do.
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Old 15.01.2013, 10:41
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Re: taxation when self emloyed

The OP hasn't told us what their nationality is, either, and that will have a bearing on what permit her husband gets and consequently whether she is even allowed to work on a self-employed basis here. That comes long before tax/social security issues
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Old 15.01.2013, 20:33
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Re: taxation when self emloyed

Thanks everyone so far for the comments, very much appreciated. My husband is British, I am German if that helps?
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Old 15.01.2013, 20:36
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Re: taxation when self emloyed

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The OP hasn't told us what their nationality is, either, and that will have a bearing on what permit her husband gets and consequently whether she is even allowed to work on a self-employed basis here. That comes long before tax/social security issues
He is British, I am German . I assume it is a B permit.
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