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Old 27.09.2007, 13:00
Richard Richard is offline
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Re: Help for Businesses/Freelancers in CH

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I would be looking to start as a sole trader once again...I am quite scared to make the wrong decisions! I think in Geneva this type of business is classed as a Raison Individuelle.

Say I could earn 120k CHF brut per year in the Vaud (after TVA/VAT) a soletrader selling many items to clients all over the world. What kind of taxes would be involved and how could a sole trader be more tax efficient? I would obviously set up a seperate business account in CH to make things more black and white.

Also, I came up against a real shit law this week in France. It came about as I sold some amplifiers for over 10000 euros and the gents travelled around 1000kms to check them over first. When I tried to take my money to the bank in cash they told me it was forbidden to deposit cash into a business account in France...only in small amounts per month under 3k euros. I can only imagine how it encourages people here to hide money away...crazy. Is it the same in CH?

From what I can see there is a minimum pillar 1 contribution. This is on top of the income tax in the Vaud. Then there is personal pension (pillar 2?), can this be in the form of property/second home?

I guess I can get a B-CE permit to start all this off.

What I want to make sure is that we would definitely be better off in the Vaud than in Strasbourg....from a tax/earnings perspective.
When you work as a sole trader your tax situation is that of an individual. Granted you can make additional deductions but you are still being taxed on earnings as if you were an individual.

Your are correct when you say there is a minimum pillar 1 contribution. Pillar 2 is optional and the rules for the pillar 3 change to allow you to make higher contributions. In Switzerland you can deposit whatever you like into a bank - cash is king here. I would also be surprised if that is a law in France. It seems strange as you are allowed to make that kind of deposit as an individual and from there you can transfer the cash over electronically. So it makes not sense to restrict the amount of cash you can deposit. Add to that what if you are a shop and take 4K per day. With this rule you would need to go to the bank twice per day and if your meant that 3K per month is the limit then you would not be able to run your business as you would have the cash but would not be able to buy anything from your suppliers unless you paid cash as well. That makes no sense whatsoever so I think (but don't know) that a mistake has been made somehow.

If you are making or believe you will make 120K Brutto that means you will be having a profit after everything but before tax of 120K. In this case you will also be liable for VAT. It will work out better for you to set up a GmbH or seeing as you are in the French part of Switzerland a Sarl (Société à responsabilité limitée). This would then be appreciatively more tax efficient...
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