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Old 14.03.2019, 12:09
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Tax implications of running an LTD whilst residing in Switzerland?

Does anybody know what the implications are of running an LTD and receiving dividends / occasional salaries, whilst residing in Switzerland and receiving a salary there too?
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Old 14.03.2019, 12:24
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Re: Tax implications of running an LTD whilst residing in Switzerland?

The implication is simple: More income. more tax.
Swiss residents are taxed on the worldwide income.
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Old 14.03.2019, 13:47
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Re: Tax implications of running an LTD whilst residing in Switzerland?

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The implication is simple: More income. more tax.
Swiss residents are taxed on the worldwide income.
Ok, but what about the taxes in the UK?
Will I have to pay taxes on my salary/dividends both in the UK and Switzerland? Is there a way around it?
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Old 14.03.2019, 13:49
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Re: Tax implications of running an LTD whilst residing in Switzerland?

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Ok, but what about the taxes in the UK?
Will I have to pay taxes on my salary/dividends both in the UK and Switzerland? Is there a way around it?
Your trying to use your UK tax allowance, it will work for your UK liability but not your Swiss liability. Switzerland will give you credit for what you paid in the UK (zero).
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Old 17.03.2019, 17:45
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Re: Tax implications of running an LTD whilst residing in Switzerland?

In case you don't declare (show) your UK earnings;
are these figures declared by UK tax office or requested by Suisse tax office?
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Old 17.03.2019, 18:48
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Re: Tax implications of running an LTD whilst residing in Switzerland?

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In case you don't declare (show) your UK earnings;
are these figures declared by UK tax office or requested by Suisse tax office?
That "not declaring it" sounds very much like dliberate evasion of tax in one or other jurisdiction.

You may or may not get caught out by Automatic Exchange of Information.

If you get away with it of course everything is great. If you don't... and they catch up with you a number of years down the line... they might ask for up to 7 years back taxes as well as a fine.

This will not be a fine situation to be in!!!

Regards


Ian
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Old 17.03.2019, 20:21
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Re: Tax implications of running an LTD whilst residing in Switzerland?

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That "not declaring it" sounds very much like dliberate evasion of tax in one or other jurisdiction.

You may or may not get caught out by Automatic Exchange of Information.

If you get away with it of course everything is great. If you don't... and they catch up with you a number of years down the line... they might ask for up to 7 years back taxes as well as a fine.

This will not be a fine situation to be in!!!

Regards


Ian
I am also doing the same. The income in India is taxable in India. I am paying taxes in India(very little almost 0 as I do not have much income in India). I was under the impression, that you can choose in which country you pay taxes?
for example, if you have income in two countries ex UK and Swiss, you can pay taxes in England for the earning in England and in Switzerland for the Swiss earning.
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Old 17.03.2019, 20:24
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Re: Tax implications of running an LTD whilst residing in Switzerland?

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I was under the impression, that you can choose in which country you pay taxes?
for example, if you have income in two countries ex UK and Swiss, you can pay taxes in England for the earning in England and in Switzerland for the Swiss earning.
You are wrong. You have to declare your world wide income in Switzerland. Can´t comment on the other countries but here it is your full income anywhere.
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Old 17.03.2019, 21:56
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Re: Tax implications of running an LTD whilst residing in Switzerland?

Quite interesting.

Do you fill in declaration yourself or always go to tax services?

Any specific tax adviser / fiduciary in Geneve cartoon? (or other french speaking)
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Old 18.03.2019, 10:00
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Re: Tax implications of running an LTD whilst residing in Switzerland?

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Do you fill in declaration yourself or always go to tax services?
Good question.

After paying my due taxes to HMRC on the salary and dividends I get from my LTD, need to add-up all the other world incomes and taxes on some yearly declaration?

How would the double taxation agreement take into play? And, can someone recommend an accountant in Zurich knowledgeable on this matter?

Trying to do my best to avoid overpaid taxes, or fines for not paying them
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Old 18.03.2019, 10:20
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Re: Tax implications of running an LTD whilst residing in Switzerland?

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Good question.

After paying my due taxes to HMRC on the salary and dividends I get from my LTD, need to add-up all the other world incomes and taxes on some yearly declaration?

How would the double taxation agreement take into play? And, can someone recommend an accountant in Zurich knowledgeable on this matter?

Trying to do my best to avoid overpaid taxes, or fines for not paying them
Tax on dividends are only 7.5%, you also have a personal allowance so very little UK tax paid is credited against your Swiss tax. Expect a Swiss tax liability possibly as big or bigger than your UK one on top.
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Old 24.03.2019, 19:24
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Re: Tax implications of running an LTD whilst residing in Switzerland?

Thanks for details.

How to go around the case when personal tax declaration can be delayed in other country?

I am coming from Netherlands and tax declaration can be delayed.

How would one fill in the forms - "Demande de rectification de l'imposition à la source
(art 23 LISP) concernant les revenus de l'année 2018" ??

Any suggestions please.

Best!
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Old 29.03.2019, 00:00
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Re: Tax implications of running an LTD whilst residing in Switzerland?

Folks,

I found english version of "Demande de rectification de l'imposition a la source (art 23 LISP) concernant les revenus de l'annee 2018":

https://www.ge.ch/document/applicati...18/telecharger

https://www.ge.ch/document/applicati...-2018/annexe/0

The explanation part goes as follow:
"If you do not wish to apply for tax rectification, do not return the rectification application form.
> Otherwise, that form must be returned mandatorily, completed, dated and signed, not later than 31 March 2019 (postmark as proof)."

"Income from foreign sources is not taxable in Switzerland, but it may be taken into account for determining the tax rate, which is why you have been asked to report and document any such income."


I am a bit confused: "you do not wish to apply ..., do not return the rectification form". Free will?

(for the context, I have income over 2018 in other EU countries, and salary income in December 2018).

Any suggestions?
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