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-   -   "Zwischenverdienst", freelance work question (https://www.englishforum.ch/employment/232530-zwischenverdienst-freelance-work-question.html)

garadnair 27.04.2015 19:43

"Zwischenverdienst", freelance work question
 
I have had a look through postings regarding unemployment, "Zwischenverdienst", freelance work and am still unsure about quite how this is going to work. I'm hoping that you can provide a little help.

My situation:

I am already registered with RAV, but currently still on garden leave and my employment is ending by end of April 2015. So, RAV unemployment payments is just starting from 1 May 2015 only. But as of mid of May 2015 I could work as freelancer (SAP consulting) outside of Switzerland for 6 months, but contracted with a Swiss Company, get paid in CHF and expected gross amount should be higher even than my gross salary with my employer earlier and higher than max 80% scenario RAV should pay. I am not about to leave Switzerland as my kids are attending school here, so intention to keep our life here.

Earlier I mentioned it to my RAV consultant, but last Friday I received a confirmation that I can start. I do not want to be either self -employed or set-up a company as this contract is about 6 months only.

I'm an EU citizen with B permit.

My questions:

1. Can I be in Zwischenverdienst ? or I should be totally self-employed ? (monthly amount will be higher than my old gross salary)

2. Should I put RAV on pause for the period of the contract ?

3. How do I have to pay AHV, taxes etc ?


I will meet my RAV consultant this week, but I would like to have some insights prior meeting him. I hope my problem and questions are clear enough.

I would appreciate some feedback from people who already were in similar situations.

Many thanks

fatmanfilms 27.04.2015 20:02

Re: "Zwischenverdienst", freelance work question
 
Quote:

Originally Posted by garadnair (Post 2381364)
I have had a look through postings regarding unemployment, "Zwischenverdienst", freelance work and am still unsure about quite how this is going to work. I'm hoping that you can provide a little help.

My situation:

I am already registered with RAV, but currently still on garden leave and my employment is ending by end of April 2015. So, RAV unemployment payments is just starting from 1 May 2015 only. But as of mid of May 2015 I could work as freelancer (SAP consulting) outside of Switzerland for 6 months, but contracted with a Swiss Company, get paid in CHF and expected gross amount should be higher even than my gross salary with my employer earlier and higher than max 80% scenario RAV should pay. I am not about to leave Switzerland as my kids are attending school here, so intention to keep our life here.

Earlier I mentioned it to my RAV consultant, but last Friday I received a confirmation that I can start. I do not want to be either self -employed or set-up a company as this contract is about 6 months only.

I'm an EU citizen with B permit.

My questions:

1. Can I be in Zwischenverdienst ? or I should be totally self-employed ? (monthly amount will be higher than my old gross salary)

2. Should I put RAV on pause for the period of the contract ?

3. How do I have to pay AHV, taxes etc ?


I will meet my RAV consultant this week, but I would like to have some insights prior meeting him. I hope my problem and questions are clear enough.

I would appreciate some feedback from people who already were in similar situations.

Many thanks

A freelancer in CH is an employee, that can be for an engagement of 1 day or even less. Working as a consultant for 1 company is not considered self employment as you are taking no risk. Your AHV & taxes etc will be deducted at source .

Basically you don't want a rahemnfrist to start, you can become unemployed at the end of this new 6 month contract. Once you open a rahemnfrist your unemployment insurance lasts for 2 years with 400 days of benefits in most cases, you won't have a claim at this time.

Your RAV advisor will have a limited understanding, as it can get complicated. Send a PM if you have any questions after meeting your advisor.

garadnair 29.04.2015 17:22

on "Zwischenverdienst" and freelance work in Germany - taxation issues
 
Dear All,

I have the following question:

I could get a freelance work opportunity in Germany, I am registered at RAV and clarified everything with them - I mean the process, the forms I have to fill-out, invoicing etc. There is no any issue with that so far and they are very happy with this (they / insurance company do not have to pay).

Now, I would like to make the contract with my contracting partner. The work location is in Germany, the consulting company I would make the contract with has subsidiary in CH and also in Germany. I can make a contract with the CH entity, RAV has no any issue with that.

A here comes the problem: There is an agency also involved into this (who introduced me to the client) and they want me to be set-up as a freelancer is Germany. It would mean that I should pay all of the social contributions, insurances everything in Germany. I think it is completely not needed since I am on RAV payroll, so basically I am already employed here and all social contribution is paid. May be I am wrong, but this is at least my simple understanding.

Could anyone share some experience what kind of possibilities I have and last, but not least how much I have to pay as income tax in Germany ?
Do I have to pay income tax at all ? I assume I will have to.

I want to keep our life in CH, this is a project would be great to do.

many thanks. Robert.

k_and_e 29.04.2015 17:30

Re: on "Zwischenverdienst" and freelance work in Germany - taxation issues
 
google around a bit with keywords Doppelbesteuerung Schweiz Deutschland and you will find what you need.

And yes, you need to pay German social security and taxes.

garadnair 29.04.2015 17:48

Re: on "Zwischenverdienst" and freelance work in Germany - taxation issues
 
Quote:

Originally Posted by k_and_e (Post 2382586)
google around a bit with keywords Doppelbesteuerung Schweiz Deutschland and you will find what you need.

And yes, you need to pay German social security and taxes.

many thanks. I will check.

but social security is also paid in CH ? is this correct ?

Spring Break 31.08.2017 18:38

"Zwischenverdienst", freelance work follow-up question
 
Hi All - hope you can help?

I am registered and receiving unemployment benefits with RAV.

I did some limited advisory work for an individual (not a company), for which I received a once-off payment of less than CHF2k. I intend to declare the payment as income (less expenses) on the 'Bescheinigung über Zwischenverdienst' under einkommen as selbstständiger erwerbstätiket for full transparency.

Upon informing my RAV officer, he seems to believe that I need to pay AHV/IV on the payment - as if I am a company (which I am not). For me, at this point in time, it's a freelance gig as I am continuing my job search.

In the meantime, my RAV officer has asked me to check out solutions with UNIA, SVA, ALK, AWA... :-)))

Before I do, does anyone have experience with this or tips?

Many thanks in advance.

Mullhollander 31.08.2017 19:13

Re: "Zwischenverdienst", freelance work question
 
This AHV brochure might assist you in determining whether you would need to register as self-employed and file self-employment payroll taxes (English):

https://www.ahv-iv.ch/p/2.02.e

This sentence in the brochure might be relevant to your situation on p. 6:

"If you are engaged in self-employed work as a secondary occupation and your annual earnings amount to 2 300 francs or less, contributions will only be collected at your request."

AbFab 31.08.2017 20:33

Re: "Zwischenverdienst", freelance work question
 
If you receive income for work, you should be registered as self employed and pay your social (AHV etc) obligations (and declare the income in your tax declaration).

The danger is that if you don't pay the AHV etc, the person who paid you will be asked to pay it if you exceed the limit above...

Spring Break 01.09.2017 06:42

Re: "Zwischenverdienst", freelance work question
 
Quote:

Originally Posted by AbFab (Post 2840239)
If you receive income for work, you should be registered as self employed and pay your social (AHV etc) obligations (and declare the income in your tax declaration).

The danger is that if you don't pay the AHV etc, the person who paid you will be asked to pay it if you exceed the limit above...

thanks for the tip! :msngrin:

Spring Break 01.09.2017 06:43

Re: "Zwischenverdienst", freelance work question
 
Quote:

Originally Posted by Mullhollander (Post 2840207)
This AHV brochure might assist you in determining whether you would need to register as self-employed and file self-employment payroll taxes (English):

https://www.ahv-iv.ch/p/2.02.e

This sentence in the brochure might be relevant to your situation on p. 6:

"If you are engaged in self-employed work as a secondary occupation and your annual earnings amount to 2 300 francs or less, contributions will only be collected at your request."


appreciate the info! :msngrin:


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