Go Back   English Forum Switzerland > Help & tips > Employment  
Reply
 
Thread Tools Display Modes
  #1  
Old 27.04.2015, 19:43
Newbie 1st class
 
Join Date: Jul 2013
Location: Zug (ZG)
Posts: 14
Groaned at 0 Times in 0 Posts
Thanked 3 Times in 3 Posts
garadnair has no particular reputation at present
"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
Reply With Quote
  #2  
Old 27.04.2015, 20:02
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 18,065
Groaned at 290 Times in 239 Posts
Thanked 15,636 Times in 8,704 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: "Zwischenverdienst", freelance work question

Quote:
View Post
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.
Reply With Quote
  #3  
Old 29.04.2015, 17:22
Newbie 1st class
 
Join Date: Jul 2013
Location: Zug (ZG)
Posts: 14
Groaned at 0 Times in 0 Posts
Thanked 3 Times in 3 Posts
garadnair has no particular reputation at present
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.
Reply With Quote
  #4  
Old 29.04.2015, 17:30
Forum Legend
 
Join Date: Jun 2008
Location: Zurich
Posts: 7,210
Groaned at 244 Times in 182 Posts
Thanked 15,312 Times in 5,328 Posts
k_and_e has a reputation beyond reputek_and_e has a reputation beyond reputek_and_e has a reputation beyond reputek_and_e has a reputation beyond reputek_and_e has a reputation beyond reputek_and_e has a reputation beyond repute
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.
Reply With Quote
  #5  
Old 29.04.2015, 17:48
Newbie 1st class
 
Join Date: Jul 2013
Location: Zug (ZG)
Posts: 14
Groaned at 0 Times in 0 Posts
Thanked 3 Times in 3 Posts
garadnair has no particular reputation at present
Re: on "Zwischenverdienst" and freelance work in Germany - taxation issues

Quote:
View Post
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 ?
Reply With Quote
  #6  
Old 31.08.2017, 18:38
Newbie
 
Join Date: Oct 2008
Location: Zurich
Posts: 5
Groaned at 0 Times in 0 Posts
Thanked 2 Times in 2 Posts
Spring Break has no particular reputation at present
"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.
Reply With Quote
  #7  
Old 31.08.2017, 19:13
Forum Veteran
 
Join Date: Dec 2012
Location: Aargau
Posts: 2,180
Groaned at 11 Times in 10 Posts
Thanked 2,796 Times in 1,284 Posts
Mullhollander has a reputation beyond reputeMullhollander has a reputation beyond reputeMullhollander has a reputation beyond reputeMullhollander has a reputation beyond reputeMullhollander has a reputation beyond repute
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."
Reply With Quote
This user would like to thank Mullhollander for this useful post:
  #8  
Old 31.08.2017, 20:33
AbFab's Avatar
Forum Legend
 
Join Date: Sep 2006
Location: Zürich
Posts: 7,398
Groaned at 314 Times in 210 Posts
Thanked 9,837 Times in 3,462 Posts
AbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond repute
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...
Reply With Quote
This user would like to thank AbFab for this useful post:
  #9  
Old 01.09.2017, 06:42
Newbie
 
Join Date: Oct 2008
Location: Zurich
Posts: 5
Groaned at 0 Times in 0 Posts
Thanked 2 Times in 2 Posts
Spring Break has no particular reputation at present
Re: "Zwischenverdienst", freelance work question

Quote:
View Post
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!
Reply With Quote
This user would like to thank Spring Break for this useful post:
  #10  
Old 01.09.2017, 06:43
Newbie
 
Join Date: Oct 2008
Location: Zurich
Posts: 5
Groaned at 0 Times in 0 Posts
Thanked 2 Times in 2 Posts
Spring Break has no particular reputation at present
Re: "Zwischenverdienst", freelance work question

Quote:
View Post
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!
Reply With Quote
This user would like to thank Spring Break for this useful post:
Reply

Tags
ahv, contract, freelance, germany, rav, zwischenverdienst




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Question on Mobility "Click and Drive" Supernova Transportation/driving 4 17.01.2013 12:42
Working as freelance for UK client with B permit "sans activite lucratif" Gema Business & entrepreneur 18 11.06.2011 14:20
Question on "vermögen" in housing application forms c123 Housing in general 5 11.07.2010 18:42
"L" vs. "B" work permit van_niel Permits/visas/government 8 11.03.2007 12:14


All times are GMT +2. The time now is 03:06.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0