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Old 12.09.2006, 23:05
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Tax related help/self employed

My husband is Swiss(employed) and we have been married 7 years. We moved to CH 6 years ago. I was fully employed for first 4+ years. Then I became unemployed.
I took unemployment benefit for 6 months after which I told RAV that I did not want it anymore as they wanted my career to go in depressing unrelated directions. I told them that I would eventually become self-employed so I did not want to take jobs unrealted to my field. I had and still have plenty of money saved up so I did not care too much. On January 2007 I am planing to go self-employed. For 2005 Tax return my husband declared that I did not earn any money. I have not payed any AHV and other stuff after I said bye to RAV. I was told that I was not obliged to pay it if I don't want unemployment benefit and if I want to go self-employed. We are in the middel of doing 2006 tax return but the only problem is that I earnt CHF5000 in that year via freelance work on the side. In the tax return form there are two columns. One for me and one for my husband. Should I declare the CHF5000 or do it like 2005 Tax return where I said that I did not earn anything?
As I am unemployed, not taking any money from govt and as I am going to be self-employed what will the effect of me declaring those CHF 5000 for 2006 be?

Btw the pension money from my full time job is sitting in Winthertur insurance. I am allowed to take it if I go self-employed. Am I liable to pay any taxes for 2006? Do I have to make any contribution towards AHV etc in light of what I explained above?

I am very confused as things took lot longer than I thought it would with regards to getting the business up. Everything is going in the right direction now but this CHF 5000 is tricky. What if I say that I did not earn aynthing just like I said in 2005? Can CHF 5000 get me in trouble?
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Old 12.09.2006, 23:06
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Re: Tax related help/self employed

Oh and hello everyone. I am reading other similar threads but I thought I would ask as my situation is bit specific.
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Old 12.09.2006, 23:13
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Re: Tax related help/self employed

Try this link that maybe help you with your question.

http://www.gza.ch/default_en.asp?pgn...6/06_001en.asp

other let me know if you still need help, I have a friend who is an accounting I could ask him. However, any money that you become in cash nobody will find out if you don't say.
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Old 12.09.2006, 23:23
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Re: Tax related help/self employed

Quote:
Try this link that maybe help you with your question.

http://www.gza.ch/default_en.asp?pgn...6/06_001en.asp

other let me know if you still need help, I have a friend who is an accounting I could ask him. However, any money that you become in cash nobody will find out if you don't say.
Good point but I did bill the client and the money did get transfered to my bank. If it was all cash then I would not have cared. So the client has a invoice with my anme which he probably used as part of his tax return.

Maybe to make it easier I will break my questions into parts:

Part1- As unemployed, non state dependant, not earning anything person am I liable to pay any contributions towards anything? Stuff like AHV, BVG etc?
Keeping in mind that I have no plans to work for anyone apart from myself (2007)

Part2- As self-employed person what are the contributions that are compulsory and which ones are my choice ie. not compulsory?

Part3- Are self-employed people forced to contribute towards pension and unemployment benefit? I know unemployment contribution are not compulsory as being self-employed means you are on your own.
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Old 12.09.2006, 23:23
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Re: Tax related help/self employed

Thanks for the link I am reading it.
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Old 12.09.2006, 23:27
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Re: Tax related help/self employed

Part4- In 2007 when I go self-employed will I be able to deduct money that I spent in 2006 towards starting my business (equipment, training, software amongst other things)? I have all bills saved.
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Old 12.09.2006, 23:52
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Re: Tax related help/self employed

noob2the_max, please don't take this the wrong way, but it sounds like you have quite a few questions regarding your taxes. Please understand that this forum is for casual advice - your case sounds a bit more complex. I'm a little surprised that you haven't already booked a session with an accountant to go over all of these things.

I'm not saying that the advice you may get here is wrong, but you'll have no guarantee that it will be 100% correct either. For the sake of peace of mind you may be better off spending the money on an hour of a professionals time.

But that's just my free advice
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Old 13.09.2006, 07:20
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Re: Tax related help/self employed

We aren't talking about much tax anyway and it seems to worry you! I'd have declared it. But presumably the tax return for 2005 was lodged earlier this year.

The correct advice is to contact your local tax office and say you forgot and ask them to add it to your joint income - this may well mean you complete a new tax form and start all over. Or at least re-sign the existing one.

My advice is forget it! The tax people have bigger fish to fry.


Pension: your pension fund should have terms and conditions by the book load to explain this. It is common for a pension fund to be frozen until you are at least 50 - especially if there are special contribution terms - ie where the employer has paid a part or you claimed it against tax - like "pillar" 3A. But if it was a simple % of your income, then you may be able to have the pension now in a lump sum.
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