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Old 27.12.2012, 21:30
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Tax from US company?

we have a US company and wanted to know if we move to switzerland would our taxes be more or less or similar.

Right now we may ourselves from income from the LLC.

So the income would not be earned in country of residence
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Old 27.12.2012, 22:02
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Re: Tax from US company?

Income is income... taxes on which are paid where you live, and in some *situations in the US as well... yes, as well.

* depending on the amount and possibly 100% double taxed in the future
JC
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Old 27.12.2012, 22:31
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Re: Tax from US company?

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Income is income... taxes on which are paid where you live, and in some *situations in the US as well... yes, as well.

* depending on the amount and possibly 100% double taxed in the future
JC

the company would have to pay US income tax but no the salary deducted I believe.

I understand we'd have to switch from US taxes to Swiss taxes but various websites have me confused as just what % of tax we'd be liable for.
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Old 27.12.2012, 22:36
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Re: Tax from US company?

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the company would have to pay US income tax but no the salary deducted I believe.

I understand we'd have to switch from US taxes to Swiss taxes but various websites have me confused as just what % of tax we'd be liable for.
So, the way I understand this, you plan to live here in Switzerland without paying taxes for the infrastructure provided?
JC

EDIT: You will pay for your income if you are registered and living here. The %age depends on where you live, as each Canton and even each community has different tax rates.
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Old 27.12.2012, 22:40
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Re: Tax from US company?

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So, the way I understand this, you plan to live here in Switzerland without paying taxes for the infrastructure provided?
JC

EDIT: You will pay for your income if you are registered and living here. The %age depends on where you live, as each Canton and even each community has different tax rates.

you must not have read what I wrote.

income tax would be switched from US to SWISS income tax. But I don't know if there is a massive difference.

I never said I wasn't going to pay tax. Of course though I am looking to have the least tax burden. I saw one of the other threads, I'm not going to collect my pennies to add them up for my income tax.
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Old 27.12.2012, 22:51
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Re: Tax from US company?

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you must not have read what I wrote.

income tax would be switched from US to SWISS income tax. But I don't know if there is a massive difference.

I never said I wasn't going to pay tax. Of course though I am looking to have the least tax burden. I saw one of the other threads, I'm not going to collect my pennies to add them up for my income tax.
Yes, there are tax havens here, where income tax is minimum. My experience shows that housing and cost of living in those areas are higher - though someone may jump in and confirm or deny this.

Would imagine a few specific searches here on EF will provide a general overview of your main questions.
JC
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Old 27.12.2012, 22:55
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Re: Tax from US company?

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you must not have read what I wrote.

income tax would be switched from US to SWISS income tax. But I don't know if there is a massive difference.

I never said I wasn't going to pay tax. Of course though I am looking to have the least tax burden. I saw one of the other threads, I'm not going to collect my pennies to add them up for my income tax.
If you are a US citizen then you will pay US taxes AND Swiss taxes on the income, as US demands income tax payments regardless of whether you live in or out of the US.

There's a threshold below which you don't pay US taxes, I think its somewhere around 70k to 100k CHF.

Of course, the impact depends on your income bracket:
Are you on <100k CHF?
or 100k to 500k?
or 500k to 1m?
or >1m?

PS: typical Swiss taxes, all included, for incomes of <400k, are around 15% (+/- 5%) of your income
Varies depending on religion, marital status, amount of children, housing situation, amount of wealth, etc etc etc etc
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Old 27.12.2012, 22:56
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Re: Tax from US company?

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we have a US company and wanted to know if we move to switzerland would our taxes be more or less or similar.

Right now we may ourselves from income from the LLC.

So the income would not be earned in country of residence
To be fair....the question is unanswerable the way you have written it....nobody here knows how much you pay now, how you are structured, so how can anybody possibly make a judgement about whether it would be different here?

The only thing worth saying is that tax rates vary hugely from canton to canton and for residents, even from village to village....so you will have a vast array of options and depending on how big the company is, you can even negotiate.

But as I'm assuming that you aren't very big (as had you been Starbucks, you may have found a different way to try to get this info), I think you probably need to spend a bit of money on a Swiss tax attorney who will be able to advise you
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Old 27.12.2012, 22:58
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Re: Tax from US company?

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we have a US company and wanted to know if we move to switzerland would our taxes be more or less or similar.

Right now we may ourselves from income from the LLC.

So the income would not be earned in country of residence
Really this question cannot be answered on the basis of the info provided, and probably not well at all without more info than you would be prepared to reveal.

Cross border taxation is bad enough without throwing in LLC considerations which just add another layer of complexity. Strong suggestion to get professional advice.
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Old 27.12.2012, 22:59
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Re: Tax from US company?

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If you are a US citizen then you will pay US taxes AND Swiss taxes on the income, as US demands income tax payments regardless of whether you live in or out of the US.

There's a threshold below which you don't pay US taxes, I think its somewhere around 70k to 100k CHF.

Of course, the impact depends on your income bracket:
Are you on <100k CHF?
or 100k to 500k?
or 500k to 1m?
or >1m?
not a US citizen so not an issue. But if I keep the US company the company will have to pay something regardless where we live I'm told
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Old 27.12.2012, 23:01
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Re: Tax from US company?

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not a US citizen so not an issue. But if I keep the US company the company will have to pay something regardless where we live I'm told
, , , ,

Maybe that would be best answered by a US tax specialist, not Swiss.
JC
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Old 27.12.2012, 23:02
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Re: Tax from US company?

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Yes, there are tax havens here, where income tax is minimum. My experience shows that housing and cost of living in those areas are higher - though someone may jump in and confirm or deny this.

Would imagine a few specific searches here on EF will provide a general overview of your main questions.
JC
I guess I need to see where the income tax is less and see if they are areas of interest.

The cost of housing I am currently paying is crazy, so a reduction could be nice. We also pay on the very low end for the area. I've seen people paying $6,000 USD for 1bed apts+

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Really this question cannot be answered on the basis of the info provided, and probably not well at all without more info than you would be prepared to reveal.

Cross border taxation is bad enough without throwing in LLC considerations which just add another layer of complexity. Strong suggestion to get professional advice.
Maybe it's best to set up as self employed? I have no idea. I don't see swiss jobs paying silicon valley rates sadly, so hope we can keep the US clients when we move back to the EU
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Old 27.12.2012, 23:03
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Re: Tax from US company?

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, , , ,

Maybe that would be best answered by a US tax specialist, not Swiss.
JC

well yes of course But that isn't my concern really, it's the income tax that ends up hurting my purse most
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Old 27.12.2012, 23:09
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Re: Tax from US company?

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In general, an American employed in Switzerland can expect to pay at least as much tax to the various Swiss government levels as he would have to if he were paying tax in the United States.
Source - under Taxes
JC
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Old 27.12.2012, 23:14
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Re: Tax from US company?

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not a US citizen so not an issue. But if I keep the US company the company will have to pay something regardless where we live I'm told
Green cards = US persons

As you can see this is turning to 20 questions...

Did you hear the one about the tax accountant.
Accountant: I charge 1000 usd for the initial consultation.
Client: How many question can I ask?
Accountant: Two, what's your second question?
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Old 28.12.2012, 00:40
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Re: Tax from US company?

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Green cards = US persons

As you can see this is turning to 20 questions...

Did you hear the one about the tax accountant.
Accountant: I charge 1000 usd for the initial consultation.
Client: How many question can I ask?
Accountant: Two, what's your second question?
Complicated but no green card, visa, no longer valid, hence moving

Tax lawyers charge $450 an hour here, I know that, not far off your joke!
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Old 28.12.2012, 09:47
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Re: Tax from US company?

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Complicated but no green card, visa, no longer valid, hence moving

Tax lawyers charge $450 an hour here, I know that, not far off your joke!
If you think that's a lot, you might want to reconsider your choice of destinations...
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Old 28.12.2012, 11:04
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Re: Tax from US company?

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Complicated but no green card, visa, no longer valid, hence moving

Tax lawyers charge $450 an hour here, I know that, not far off your joke!
How can you not have a green card and work/run a business in the US? If the green card is no longer valid, then make sure it's cancelled for US tax purposes pronto.

Search the forum here for FATCA and see what problems it has been causing for Americans. You may not run into problems getting a bank account here as you're EU nationals, but if you have/ever had a green card then you might, especially if you continue to have American connections via your business. Also google FATCA so you have an understanding of what is coming.

You will pay tax here in Switzerland, but how much depends on the canton and commune you decide to live in; this varies so much that no here could give you an exact answer. You will almost certainly also pay tax in the US, both from your business and personal as all US citizens/green card holders have to file US tax forms on their worldwide income regardless of where they live.

My advice, get rid of any green cards and make sure the IRS knows they have been cancelled, not just handed back, close your US business and then you won't have to worry about US taxing you out of existence, either through what you owe them or the exorbitant costs of filing annual US returns.
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Old 28.12.2012, 19:02
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Re: Tax from US company?

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How can you not have a green card and work/run a business in the US? If the green card is no longer valid, then make sure it's cancelled for US tax purposes pronto.

Search the forum here for FATCA and see what problems it has been causing for Americans. You may not run into problems getting a bank account here as you're EU nationals, but if you have/ever had a green card then you might, especially if you continue to have American connections via your business. Also google FATCA so you have an understanding of what is coming.

You will pay tax here in Switzerland, but how much depends on the canton and commune you decide to live in; this varies so much that no here could give you an exact answer. You will almost certainly also pay tax in the US, both from your business and personal as all US citizens/green card holders have to file US tax forms on their worldwide income regardless of where they live.

My advice, get rid of any green cards and make sure the IRS knows they have been cancelled, not just handed back, close your US business and then you won't have to worry about US taxing you out of existence, either through what you owe them or the exorbitant costs of filing annual US returns.
No green cards, not an issue.

If I close the US LLC, we need to figure out how to process bills to US clients.

The cost of filing when I lived in the UK was not much. Maybe they will change that, I don't know.
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Old 28.12.2012, 20:07
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Re: Tax from US company?

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No green cards, not an issue.

If I close the US LLC, we need to figure out how to process bills to US clients.

The cost of filing when I lived in the UK was not much. Maybe they will change that, I don't know.
I ask again: if you didn't/don't have green cards how are you able to run a business in the US?

Anyway, from the link given before by Jumping Captain is this quote:

"In general, an American employed in Switzerland can expect to pay at least as much tax to the various Swiss government levels as he would have to if he were paying tax in the United States."

I can't see your situation being much different to an American living and working here.
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