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Old 31.08.2009, 22:32
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Australian citizen :-) Tax :-(

Hello good people,

I have a small yet complicated taxation query for your learned minds. Any experiences from Australians in the same boat would be very cool...

Basically I am working for my employer who is based in Australia. I have married a Swiss lady and plan to stay here - I have the B-permit. Anyway what started out as part-time work around Europe whilst still on the Australian pay roll (ie I am still getting paid in aussie dollars into my Australian bank account), has turned into a ALOT more. Basically Europe is taking off for us, and I can would prefer to work here in Switzerland as self-employed rather than being on the Oz payroll and paying tax both in Oz and here - I assume that I have to declare this soon here as well.

I want to know what my options are for starting my own company here in Switzerland as an International Contractor and billing my boss back in Australia as such. Basically I would prefer to avoid the massive taxes in Australia and rather pay the lower rate here in Switzerland. I have no intention of returning to Australia in the forseeable future....

Does anyone know if this is feasible? I am open to all options. I also know that Australian Tax law recently changed to minimise 'expats' tax exemptions - don't quote me on this; that expats on short-medium even long term work assignments overseas used to be able to claim overseas tax breaks - even if they were still on the local (oz) payroll, and that the only way around this is to officially 'transfer' overseas. To further complicate my situation - my present company does not have any "Swiss" representation here - no local offices etc so there is no means of a 'transfer'.

I have looked around and found a few relevant threads but their circumstances are slightly different....

Thanks in advance,
Bob
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Old 01.09.2009, 14:16
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Re: Australian citizen :-) Tax :-(

Launching a Swiss LLC will give you more flexibility, security and facilitate optimization.

There are some hassles in setting up the LLC and recurring chores later. The knowledgeable on this forum and professionals elsewhere can help you.
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Old 01.09.2009, 14:51
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Re: Australian citizen :-) Tax :-(

Hi

It is feasible. I do not know the details of starting your own contracting company in Switzerland, however according to Australian law once you declare yourself a non-resident and have worked for a period of time in another country paying taxes directly to that country, you do not have ot pay tax in Australia.

Whilst you are employed by an Australian company, you will have to pay taxes in both countries unless you can prove to the Swiss side that you are not a permanent resident in Switzerland. This is almost impossible seeing as you are declared B Permit holder residing in Switzerland.

Best to speak with your accountant on both sides of the fence, perhpas there may be others here who can give you advice on setting up a contracting firm.
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Old 01.09.2009, 21:56
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Re: Australian citizen :-) Tax :-(

I'm Australian and am registered as independent (sole trader) in Switzerland although most of my clients are in Oz. If you want to send me a PM I'd be happy to chat further.

SS
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Old 01.09.2009, 22:17
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Re: Australian citizen :-) Tax :-(

Quote:
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I'm Australian and am registered as independent (sole trader) in Switzerland although most of my clients are in Oz. If you want to send me a PM I'd be happy to chat further.

SS
Cool. Thanks I will definitely PM you over the next cuppla days. Cheers
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Old 07.10.2009, 20:30
Elpis
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Re: Australian citizen :-) Tax :-(

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Hello good people,

I have a small yet complicated taxation query for your learned minds. Any experiences from Australians in the same boat would be very cool...

Basically I am working for my employer who is based in Australia. I have married a Swiss lady and plan to stay here - I have the B-permit. Anyway what started out as part-time work around Europe whilst still on the Australian pay roll (ie I am still getting paid in aussie dollars into my Australian bank account), has turned into a ALOT more. Basically Europe is taking off for us, and I can would prefer to work here in Switzerland as self-employed rather than being on the Oz payroll and paying tax both in Oz and here - I assume that I have to declare this soon here as well.

I want to know what my options are for starting my own company here in Switzerland as an International Contractor and billing my boss back in Australia as such. Basically I would prefer to avoid the massive taxes in Australia and rather pay the lower rate here in Switzerland. I have no intention of returning to Australia in the forseeable future....

Does anyone know if this is feasible? I am open to all options. I also know that Australian Tax law recently changed to minimise 'expats' tax exemptions - don't quote me on this; that expats on short-medium even long term work assignments overseas used to be able to claim overseas tax breaks - even if they were still on the local (oz) payroll, and that the only way around this is to officially 'transfer' overseas. To further complicate my situation - my present company does not have any "Swiss" representation here - no local offices etc so there is no means of a 'transfer'.

I have looked around and found a few relevant threads but their circumstances are slightly different....

Thanks in advance,
Bob

After consulting with my partner ....

If you are directly employed by an Australian employer and are not an overseas company you will pay Oz tax. If you have set up your own Swiss company you can invoice your Oz imployer through your Swiss business. I would also assume that after you set up your business here you will have more than one client. The ex Oz employer becomes an overseas client.

Always consult with local and Oz accountants.
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