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Old 10.05.2019, 13:08
albireo albireo is offline
Join Date: Mar 2019
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Re: Taxation when working for foreign employer (salary via Paypal)

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First the OP will need to register for part time self employment & pay at least min 475 AVH.
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AFAIK self-employment usually requires at least three custormers to be accepted.
I think Urs Max is right: she can not be self-employed in Switzerland. Here is the quote from the official Swiss SME portal ( "What does being self-employed mean? In terms of social insurance, persons working for and on their own behalf, who are independent in their work and who assume the financial risk are self-employed. They decide on their organization, their method of working and outsourcing work to third parties. They work for more than one client."

She does not work on her on behalf (she works on behalf of foreign company), she is not independent (she depends on that company), she does not assumes financial risk, she does not decide on her organization, she does not choose method of working, she can not outsource her work, and she works only for one client.

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It looks to me as though the employer isn't registered as a Swiss company. Are deductions for AHV, pension schemes, unemployment being taken on the salary? Are they able to deliver a Swiss salary certificate for tax purposes? If not it looks to me as though you're more closely to being self-employed and probably ought to be declared as such.
Yes, the foreign company is not registered in Switzerland, and as far as I know no Swiss deductions are taken from the salary. Their position is - settling tax obligations in your country is your problem, we pay you agreed amount per hour, and you will have to figure out by yourself if you have to pay some taxes and how much.

I know that someone has to pay these Swiss deductions, so obviously in this case she will have to pay it.

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