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Old 26.04.2019, 13:47
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Tax savings when IT contracting

How to optimize for 50.000-300.000/y IT contractor. Can swing from year to year and would like to even out payed out salary to avoid top tax brackets on good years. Main idea is to use a one man company in whatever form is best. Gmbh seems to offer best conditions.

Question #1
Many Swiss contracting/payrolling agencies don’t offer to pay directly to a gmbh. Why is it like this? And is there an alternative?

Question #2
If you earn gross 200.000chf a year how much tax could you save by getting payed to a gmbh? What is there to gain with ideal setup.

Question #3
How can you reduce the amount of Ahv, alh, nbu, ktg, bvg you pay. This is all around 10% tax that you only partly get back (bad return).

I assume this is done with c-visa or Swiss visa. Plan to retire early and manage pension myself. My living expenses is only 2000chf a month. I have no luxury needs.


Thank you!

Last edited by timpeterson; 26.04.2019 at 14:15. Reason: Extra question
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Old 26.04.2019, 14:05
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Re: Tax savings when IT contracting

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Question #3
How can you reduce the amount of Ahv, alh, nbu, ktg, bvg you pay. This is all around 10% tax that you only partly get back (bad return).

I assume this is done with c-visa or Swiss visa.

You don´t. You´ll profit from it later in life
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Old 26.04.2019, 16:07
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Re: Tax savings when IT contracting

BDO discusses when best to pay a salary vs. a dividend from an owner-operated legal entity at this link. It also discusses the desirability of living in Schwyz for low taxation :

https://www.bdo.ch/getmedia/adf7499d...nde-1.pdf.aspx
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Old 26.04.2019, 20:34
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Re: Tax savings when IT contracting

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Question #1
Many Swiss contracting/payrolling agencies don’t offer to pay directly to a gmbh. Why is it like this? And is there an alternative?
One slice for the agent, one for corporate taxes, one for income taxes, one for the accountant to do your taxes....

Question #2
If you earn gross 200.000chf a year how much tax could you save by getting payed to a gmbh? What is there to gain with ideal setup.
[/QUOTE]

You mean apart from the fact that it is not ideal... If you are a put a salary through a gmbh, you are simply giving a slice to someone else... the savings are not going to be enough to make it worth while, unless you are going to do other business through it.

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Question #3
How can you reduce the amount of Ahv, alh, nbu, ktg, bvg you pay. This is all around 10% tax that you only partly get back (bad return).
- You are covered for loose of income for about two years depending on age
- You are covered for incapacity for live
- You are provided with an OAP
Try getting that kind of cover in the private sector and see how it goes...

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Plan to retire early and manage pension myself.
You are joking right? Spend some time look and the research on self directed pensions and the net results obtained - you'll find that you will be luck to come out with the money you started with. Ironically the best trick to save significant taxes with a gmbh is the pension fund!
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Old 26.04.2019, 21:31
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Re: Tax savings when IT contracting

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You are joking right? Spend some time look and the research on self directed pensions and the net results obtained - you'll find that you will be luck to come out with the money you started with. Ironically the best trick to save significant taxes with a gmbh is the pension fund!
Swiss pension investment performance is a Joke, very pleased I put all my pension funds in www.fundsmith.co.uk 4.5 years ago & it's more than doubled since v virtually any change in value other than additional funds added.
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