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Old 19.01.2017, 01:57
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Paying taxes [earning online]

Hey everyone,

I have a bit complex situation, and I thought this is the place to post my question.

So, I'm currently studying in Fribourg (I'm not Swiss resident).

I work online for a USA company, and I get paid every month on my Swiss bank account.

Do you know anything regarding taxes in my case, since I'm not Swiss nationality (only here because of the studies), and I'm not working for a Swiss company. But I have residence permit (B).

Do I have to pay some taxes, is there any yearly threshold, etc? Any information would be highly appreciated!

Thanks a lot.
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Old 19.01.2017, 08:40
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Re: Paying taxes [earning online]

I see it as you are either:

1. resident with your 'B' permit and pay your taxes to Fribourg

2. you don't live here and pay your taxes elsewhere.
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Old 19.01.2017, 10:00
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Re: Paying taxes [earning online]

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Hey everyone,

I have a bit complex situation, and I thought this is the place to post my question.

So, I'm currently studying in Fribourg (I'm not Swiss resident).

I work online for a USA company, and I get paid every month on my Swiss bank account.

Do you know anything regarding taxes in my case, since I'm not Swiss nationality (only here because of the studies), and I'm not working for a Swiss company. But I have residence permit (B).

Do I have to pay some taxes, is there any yearly threshold, etc? Any information would be highly appreciated!

Thanks a lot.
B permit = resident = taxes in Fribourg.
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Old 19.01.2017, 11:33
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Re: Paying taxes [earning online]

Thanks!

But my job is not in Switzerland, that's what bugging me.
Or it doesn't matter, it matters only where does my earnings go?

Also, how can I find out how much exactly should I pay? Is there any threshold?

Thanks
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Old 19.01.2017, 11:55
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Re: Paying taxes [earning online]

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Thanks!

But my job is not in Switzerland, that's what bugging me.
Or it doesn't matter, it matters only where does my earnings go?

Also, how can I find out how much exactly should I pay? Is there any threshold?

Thanks
Where you earn money is irrelevant, you are taxed on your world wide income.
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Old 19.01.2017, 11:56
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Re: Paying taxes [earning online]

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Thanks!

But my job is not in Switzerland, that's what bugging me.
Or it doesn't matter, it matters only where does my earnings go?

Also, how can I find out how much exactly should I pay? Is there any threshold?

Thanks
Your tax contributes to things like the Police .. Your garbage collection .. The lights on the street .. The pipes which take poop away from your toilet!

So it's pretty obvious that you would pay tax in the place you would benefit from things like this? Regardless of where your money comes from?

I don't know the exact numbers for you ,, but it's somewhere around the 5k area before you need to declare.
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Old 19.01.2017, 12:24
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Re: Paying taxes [earning online]

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I'm not Swiss resident
Yes you are. I've highlighted the relevant part, as a clue.

Quote:
I have residence permit (B).
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Old 19.01.2017, 12:28
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Re: Paying taxes [earning online]

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So, I'm currently studying in Fribourg (I'm not Swiss resident).

I work online for a USA company, and I get paid every month on my Swiss bank account.

Do you know anything regarding taxes in my case, since I'm not Swiss nationality (only here because of the studies), and I'm not working for a Swiss company. But I have residence permit (B).
If you are here to study you are indeed not a proper resident, regardless of your B permit which normally means you are a proper full resident. Foreign students have certain facilitation regarding taxation. Which they are depends sometime on treaties between Switzerland and your home country and on Swiss tax law. Sorry, I can not say if this particular income is taxable or not in Switzerland w/o knowing your home country.

For example when I was a student in the U.S. Uncle Sam did not tax my income which I generated in Switzerland. And Uncle Sam is known as one of the most greediest when it comes to taxes. On the other hand I had to file a normal Swiss tax return for my Swiss income.

It is possible that your income is taxable in your home country. Also check that or you may end up as HansGruber in the other thread http://www.englishforum.ch/finance-b...bligation.html
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Old 19.01.2017, 12:29
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Re: Paying taxes [earning online]

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Yes you are. I've highlighted the relevant part, as a clue.
No she/he is not. I also highlighted the relevant part.

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So, I'm currently studying in Fribourg.
Edit: Art. 23 of the Swiss Civil Code https://www.admin.ch/opc/en/classifi...index.html#a23
Quote:
A person's domicile is the place in which he or she resides with the intention of settling; residence for the purpose of education or the accommodation of a person in an educative institution or care home, a hospital or a penal institution does not by itself establish domicile.
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Old 19.01.2017, 12:56
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Re: Paying taxes [earning online]

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No she/he is not. I also highlighted the relevant part.



Edit: Art. 23 of the Swiss Civil Code https://www.admin.ch/opc/en/classifi...index.html#a23
But aren't B-permits attached to addresses?

You can't just have a floating B-permit without any address (as far as I know), which would imply that in the Swiss eyes they are indeed a resident. Whether or not they reside at that addresses is beyond that.

More importantly however, is why do they have a B-permit? Is it to study, in which case there are rules regarding how much they can legally work, or is it because they're working in Switzerland.
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Old 19.01.2017, 13:08
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Re: Paying taxes [earning online]

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More importantly however, is why do they have a B-permit? Is it to study, in which case there are rules regarding how much they can legally work, or is it because they're working in Switzerland.
Because they are not refugees seeking asylum -> Permit N
Because they are refugees temporary admitted -> Permit F
Because they are not refugees under special protection -> Permit S
Because they do not live aboard and cross the border daily or weekly to get back home -> Permit G
Because they are not here for less than a year -> Permit L
Because they are not dependents of diplomats, or work for an recognized international organisation -> Permit Ci
Because they are not allowed to settle where ever they wish and work w/o restriction -> Permit C

The only permit left is Permit B which allows to live in Switzerland long term with certain, case specific restrictions.
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Old 19.01.2017, 13:19
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Re: Paying taxes [earning online]

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No she/he is not. I also highlighted the relevant part.



Edit: Art. 23 of the Swiss Civil Code A person's domicile is the place in which he or she resides with the intention of settling; residence for the purpose of education or the accommodation of a person in an educative institution or care home, a hospital or a penal institution does not by itself establish domicile.
Domicile and residence are different things. Domicile says where your permanent home is. You can only have one domicile. Residence is about where you live. You can live in (be resident in) more than one country. (Further, the logic of the bit above does not allow the conclusion that you're not domiciled if you are in education - the key phrase is "by itself").

More specifically, in this case, the question is whether the OP is tax resident here in Switzerland. From the information supplied it seems most likely. If that is the case then he should declare his income here (depending on how much it is). If he is also resident in his home country (or the home country is like the US). then a tax declaration will be due there. Whether it gives rise to a tax charge depends on home country law and any dual taxation treaty.
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Old 19.01.2017, 14:08
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Re: Paying taxes [earning online]

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Because they are not refugees seeking asylum -> Permit N
Because they are refugees temporary admitted -> Permit F
Because they are not refugees under special protection -> Permit S
Because they do not live aboard and cross the border daily or weekly to get back home -> Permit G
Because they are not here for less than a year -> Permit L
Because they are not dependents of diplomats, or work for an recognized international organisation -> Permit Ci
Because they are not allowed to settle where ever they wish and work w/o restriction -> Permit C

The only permit left is Permit B which allows to live in Switzerland long term with certain, case specific restrictions.
B permit (due to study) - OP can only work with restrictions 15 h / week.
B permit (due to work) - OP can go to town.

That's important.
I'm not sure, how Switzerland treats online work.
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Old 19.01.2017, 15:05
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Re: Paying taxes [earning online]

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Domicile and residence are different things. Domicile says where your permanent home is. You can only have one domicile. Residence is about where you live. You can live in (be resident in) more than one country. (Further, the logic of the bit above does not allow the conclusion that you're not domiciled if you are in education - the key phrase is "by itself").
Domicile and residency are two words which applies particular to British law. So I just stick with the therm by Swiss law which is Wohnsitz. For Swiss tax your Wohnsitz is important. The Federal Swiss tax law, non surprisingly, just repeats what the civil code already stated. Being here for study does not establish a Wohnsitz also and specifically not tax Wohnsitz. Art. 3 Abs 4 DBG https://www.admin.ch/opc/de/classifi.../index.html#a3
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Old 19.01.2017, 15:12
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Re: Paying taxes [earning online]

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Domicile and residency are two words which applies particular to British law. So I just stick with the therm by Swiss law which is Wohnsitz. For Swiss tax your Wohnsitz is important. The Federal Swiss tax law, non surprisingly, just repeats what the civil code already stated. Being here for study does not establish a Wohnsitz also and specifically not tax Wohnsitz. Art. 3 Abs 4 DBG https://www.admin.ch/opc/de/classifi.../index.html#a3


Keinen steuerrechtlichen Wohnsitz oder Aufenthalt begründet eine Person, die ihren Wohnsitz im Ausland hat und sich in der Schweiz lediglich zum Besuch einer Lehranstalt oder zur Pflege in einer Heilstätte aufhält.


(not a tax residency when you go to a college/uni)


Right, but then wouldn´t working change this again?
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Old 19.01.2017, 15:12
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Re: Paying taxes [earning online]

Hey guys
Thanks for all the answers, really.

I didn't know it's that complicated

I'm from Serbia, and I came here in September, in order to study in Fribourg.
On my permit of residence "B" it says "Sejour temporaire pour etudes" which means "Temporary stay for studies".

I think I have some restrictions regarding work (15 or 20h per week I guess) with this permit. I am not sure how do they look on online jobs, I mean who can control that...

I'm really not sure who should I ask in order to get some trustworthy information?

Thanks again for all the help and answers provided.
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Old 19.01.2017, 15:14
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Re: Paying taxes [earning online]

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I'm really not sure who should I ask in order to get some trustworthy information?


Call the tax authorities?
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Old 19.01.2017, 15:27
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Re: Paying taxes [earning online]

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I'm from Serbia, and I came here in September, in order to study in Fribourg.
On my permit of residence "B" it says "Sejour temporaire pour etudes" which means "Temporary stay for studies"
There is a treaty between Switzerland and Serbia.
Because it is an outside source it is may be only taxable in Serbia.
See Art. 20 of the treaty https://www.admin.ch/opc/de/classifi...index.html#a20

But better check with tax authorities to be sure.
And not is not much a matter who is checking but what happens when someone finds out and you are not compliant.
And that happens in the worst possible situation when you really can not need additional trouble.
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Old 19.01.2017, 15:37
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Re: Paying taxes [earning online]

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... Being here for study does not establish a Wohnsitz also and specifically not tax Wohnsitz...
Study does not establish Wohnsitz on its own. True. But that doesn't mean that Wohnsitz is not established through some other factors - like working here, even online for a US company.
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Old 19.01.2017, 15:39
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Re: Paying taxes [earning online]

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There is a treaty between Switzerland and Serbia.
Because it is an outside source it is may be only taxable in Serbia.
See Art. 20 of the treaty https://www.admin.ch/opc/de/classifi...index.html#a20

But better check with tax authorities to be sure.
And not is not much a matter who is checking but what happens when someone finds out and you are not compliant.
And that happens in the worst possible situation when you really can not need additional trouble.
OK, so I will check with them when I get back in Fribourg. I'm just afraid that none of those people speak English, and I don't speak neither German or French.

And regarding your second comment, you mean about max. 15h constraint?
The thing is that I don't have fixed working hours on this job.. I work sometimes for a whole day, and sometimes I don't work for a full week.. So I'm not sure how that can cause me some trouble... I guess I just have to sort it out regarding taxes..
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