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Old 21.10.2011, 17:50
Nehp Nehp is offline
Join Date: Oct 2011
Location: Basel
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Why am I not getting charged witholding tax?

Hello all, newbie here so go easy. I have trawled the various links on tax but have not found a response to my specific questions.

I have been contracting in Basel since the middle of this year and as of yet I have not paid any witholding tax. My contract is with a UK based agency who charge the client here in Basel. The agency pay my daily rate directly into my account and basically say tax is my problem as I am a contractor and not an employee.

I have read (here and on other tax related sites) that any company contracting staff out to Swiss companies needs to be registered in Switzerland and needs to withold tax from the ex-pat contractors. My permit which I have not received yet, but for which I have seen proof of the decision by Basel authorities to grant me a permit, lists the agency as my 'employer', which for me makes them liable for the witholding tax?

From what I have read also, I must file a tax return if I am on a foreign payroll and resident here and I do not pay tax witholding.

Do I need to set a company for myself here, should I go back to the agency and tell them to sort it out, or what other alternative do I have?

One piece of information I forgot to mention is that I am resident here, i.e. I have moved everything here and intend to stay here for the next 2/3 years (pending contract extension).

Thanks for any help you can give me, if I have left out important details then please let me know.

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