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Old 12.02.2019, 09:50
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GmbH contract with physical person outside of Switzerland

Hello

I have a GmbH and would need to pay for a service done by a physical person that resides in EU (outside of Switzerland).
I was wondering what is needed to do so? Do I need to do a contract with that person and if yes what type of the contract it would be? Would I need to pay some local taxes for that person?
What is the usual practice?

thanks.
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Old 12.02.2019, 10:44
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Re: GmbH contract with physical person outside of Switzerland

They send you an invoice for services rendered and you pay them. They pay taxes in their country on their self employed income / profit after expenses.

And welcome to the forum!
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Old 12.02.2019, 10:55
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Re: GmbH contract with physical person outside of Switzerland

thanks - but the person providing the service is a physical person - so are you saying that as per swiss law, it is fine to write a kind of Invoice by a physical person and then, GmbH can pay it ?
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Old 12.02.2019, 11:55
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Re: GmbH contract with physical person outside of Switzerland

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thanks - but the person providing the service is a physical person - so are you saying that as per swiss law, it is fine to write a kind of Invoice by a physical person and then, GmbH can pay it ?
Probably. But it depends what the service is and how it is performed. The fact that the contracting person is a GmbH is irrelevant. If you as a physical person pay a physical person to perform a service, the same rules apply.

In some instances, you might have to employ the person. So long as they don't work in Switzerland though, probably not.
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Old 12.02.2019, 11:57
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Re: GmbH contract with physical person outside of Switzerland

Yes, they just send you an invoice for the work they have done. Obviously they need to be self employed in their country so they can pay taxes on their profit, but that's their responsibility not yours.

It might get complicated if that person is working 100% for you and for no one else, but I guess the level of complication will depend on what country they are resident and what locals laws are. In that case the person should get advice from a local accountant.
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Old 12.02.2019, 12:51
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Re: GmbH contract with physical person outside of Switzerland

thanks a lot!
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Old 12.02.2019, 22:28
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Re: GmbH contract with physical person outside of Switzerland

It also depends on what services the person is providing.


You might not NEED a contract under Swiss Law. But if something goes wrong - and it was mission critical - you would certainly be GLAD you had one.


A decent contract should be 2 way, protecting both parties equally.


It's particularly important for services. If you buy a product like, say, wine and the quality turns out to be not so good, you just don't buy any more.


But if you hire a programmer who says he is a whizz, can do it over night, and support any bugs... and then you find the app is delivered late, doesn't work and your business is swamped with complaints, duplicate orders, lawsuits... well...


Regards




Ian


Source: Bitter experience...
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Old 12.02.2019, 22:53
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Re: GmbH contract with physical person outside of Switzerland

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But if you hire a programmer who says he is a whizz, can do it over night, and support any bugs... and then you find the app is delivered late, doesn't work and your business is swamped with complaints, duplicate orders, lawsuits... well...
... that's what you get for offshoring?
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Old 13.02.2019, 22:20
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Re: GmbH contract with physical person outside of Switzerland

Nope...


Web development, UK based (so was I then), twat of highest order (him not me).

(And actual example changed significantly to protect the guilty)





Regards




Ian
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