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Old 29.08.2007, 19:44
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Re: Postdoc tax question

Quote:
If any of you do get EU money or euro funding, how do you transfer it into Switzerland - do you get it paid into a bank account there?
Short summary of your situation assuming you are talking about salary, not research money: it will be complicated and largely very annoying in terms of dealing with the financial implications (tax, pensions, moving costs as you will see).
  1. The money will be given to the uni, not him; they will transfer the lump sum into an account in Swiss francs, hence hope the exchange rate on that day will be good as this determines your effective salary to some degree
  2. The uni will give him a contract, based on a salary in swiss francs; the uni will be the employer, not the EU;
  3. The uni will pay employer contributions for his pension from his salary
  4. He himself will then pay his own contributions from his salary
  5. Hence, the net salary is much less than you might expect
  6. He will be taxed at source if he earns less than 120000 CHF per year
  7. He then has a choice of claiming tax back or not
  8. The reason I mention point 7 is that any allowances the EU will give him for relocation costs, travel costs will be taxed fully, and this may or may not be retrieved in part by a tax return; this I yet have to find out by trying it myself
  9. If you are lucky point 8 might be untrue depending on the law on expenses in his kanton, or on your negotiating skils, meaning if it seems expenses will be taxed, ask the uni to compensate for this somehow
  10. As an example, I paid about 50 to 80% effective tax on my expenses
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