Hello,

I will soon be working for a Swiss company, training in Lausanne for five weeks, and then I will return to the United States. I will commute as needed, yet the bulk of my work will be done from home via linking into the main server.

I will be paid via direct deposit to a bank in Switzerland, and pay Swiss taxes, etc. Does anyone have any experience with a similar situation. I have seen posts regarding working AND residing in Switzerland, yet I don't recall seeing any for people working for a Swiss company but maintaining primary residence in the United States. I may relocate to Switzerland if it makes it easier, yet details haven't been finalized. Thanks in advance for any help, and I look forward to meeting some of you when I travel to Lausanne in late March through April.

I spent time yesterday looking at I.R.S. related sites, and I am now more confused. I know that must come as a shock.

John

If you are in the US, you will pay taxes to both the US and Switzerland. Foreign tax credits eliminate double taxation, however, so the most you will pay is the highest rate in the US (or CH).

The tax status will depend on several facts not stated in the original post. From the OP's "handle", I assume that (a) he/she is a US citizen, (b) has a permanent residence in the USA, (c) does not own or rent a residence in CH, and (d) does not spend more than 183 days per year in CH. (If any are not correct, please tell us?)

On that basis, I respectfully I disagree with Scrambled (and invite his/her reply).

Per Article 15 of the US-CH tax treaty ("Dependent Personal Services"), the income is taxed according to where the services are performed:

"wages...derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State."

Per the original post, the work will be performed in the USA, thus the wages would not be taxable in CH. If some of the work is done in CH, then that part may be taxable in CH (and in the US).

For clarity (to minimize the number of tax returns), it is best to have a written agreement with the employer specifying that the work is performed in the US, and visits to CH are only for training.