Go Back   English Forum Switzerland > Help & tips > Employment
Reply
 
Thread Tools Display Modes
  #1  
Old 23.05.2018, 21:49
Newbie 1st class
 
Join Date: May 2018
Location: St. Gallen
Posts: 21
Groaned at 10 Times in 2 Posts
Thanked 0 Times in 0 Posts
StephanWigger is considered unworthyStephanWigger is considered unworthyStephanWigger is considered unworthy
Are there tax implications if you go abroad for 3 months while registered at RAV

Guten Tag,

If I take the RAV up on their offer to go abroad to look for work, are there tax implications if I go to e.g. Sweden or Germany for 3 months?

I know that if I return to Northern Ireland for example that I will have to pay tax on my earnings for the year, but that is in the UK.

What about for EU (NON-UK) or EFTA?

Vielen Dank
Reply With Quote
  #2  
Old 25.05.2018, 14:30
Newbie 1st class
 
Join Date: May 2018
Location: St. Gallen
Posts: 21
Groaned at 10 Times in 2 Posts
Thanked 0 Times in 0 Posts
StephanWigger is considered unworthyStephanWigger is considered unworthyStephanWigger is considered unworthy
Re: Are there tax implications if you go abroad for 3 months while registered at RAV

Does anyone have an idea about this please?
Reply With Quote
  #3  
Old 25.05.2018, 14:39
roegner's Avatar
Forum Legend
 
Join Date: May 2011
Location: Zurich
Posts: 6,809
Groaned at 214 Times in 186 Posts
Thanked 7,274 Times in 3,660 Posts
roegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond repute
Re: Are there tax implications if you go abroad for 3 months while registered at RAV

No idea, ask the Steueramt in St. Gallen?
Reply With Quote
  #4  
Old 25.05.2018, 14:57
aSwissInTheUS's Avatar
Forum Legend
 
Join Date: Nov 2007
Location: Zurich area
Posts: 8,470
Groaned at 69 Times in 61 Posts
Thanked 12,329 Times in 5,558 Posts
aSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond repute
Re: Are there tax implications if you go abroad for 3 months while registered at RAV

Quote:
View Post
What about for EU (NON-UK) or EFTA?

Vielen Dank
Quote:
View Post
Does anyone have an idea about this please?
Nothing to do with EU, EFTA, NAFTA, CEFTA, GAFTA, ASEAN, etc.

Each and every country has its own rules and laws under which condition a person becomes a tax resident, when tax residency ceases, and to what extend the earnings and assets are taxable (earnings only, local, worldwide, only during stay, whole tax year etc.). Additionally there a various double taxation treaties which tries to minimize the impact if one is a tax resident in more than one country. In some countries the tax year is the same as the calendar year, others have other definition.
Reply With Quote
The following 3 users would like to thank aSwissInTheUS for this useful post:
  #5  
Old 25.05.2018, 15:28
Newbie 1st class
 
Join Date: May 2018
Location: St. Gallen
Posts: 21
Groaned at 10 Times in 2 Posts
Thanked 0 Times in 0 Posts
StephanWigger is considered unworthyStephanWigger is considered unworthyStephanWigger is considered unworthy
Re: Are there tax implications if you go abroad for 3 months while registered at RAV

Thanks, on that note does anyone know the specific rules for Germany. Does going there for 3 months make me liable to pay taxes on my Swiss income?

-or any other country in Europe or EFTA excluding the UK?

Many thanks
Reply With Quote
  #6  
Old 25.05.2018, 15:42
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 16,094
Groaned at 255 Times in 216 Posts
Thanked 13,579 Times in 7,602 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: Are there tax implications if you go abroad for 3 months while registered at RAV

Quote:
View Post
Thanks, on that note does anyone know the specific rules for Germany. Does going there for 3 months make me liable to pay taxes on my Swiss income?

-or any other country in Europe or EFTA excluding the UK?

Many thanks
Malta does not tax foreign income not remitted, however at 90 days your just a tourist in many jurisdictions.
Reply With Quote
This user would like to thank fatmanfilms for this useful post:
  #7  
Old 26.05.2018, 12:02
Member
 
Join Date: Jan 2017
Location: Renens
Posts: 138
Groaned at 11 Times in 5 Posts
Thanked 75 Times in 36 Posts
Leszek has made some interesting contributions
Re: Are there tax implications if you go abroad for 3 months while registered at RAV

I cannot google out what are the tax agreements between Switzerland and other EU countries but I'm very interested.

EU failed on that point. There is no single rule across EU but there are still individual agreements between countries. The only rule which come from EU is that if in any EU country you worked for more than half of the year the country becomes your tax residence for that year.

Poland for example has agreements with all EU countries that opt for tax exclusion. That is, you pay the tax in each country for what you have earned there which is fair. Less fair tax agreements exists, for example you may be required to report your worldwide income in your tax residence country and pay something on top of the tax you have paid abroad if the foreign tax scale was lower. This is a big problem if the cost of living are significantly different so you end up paying tax on the money you never got as it was your cost of doing business but for regular employees no such tax deductions exists.
Reply With Quote
This user would like to thank Leszek for this useful post:
  #8  
Old 26.05.2018, 12:31
aSwissInTheUS's Avatar
Forum Legend
 
Join Date: Nov 2007
Location: Zurich area
Posts: 8,470
Groaned at 69 Times in 61 Posts
Thanked 12,329 Times in 5,558 Posts
aSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond repute
Re: Are there tax implications if you go abroad for 3 months while registered at RAV

Quote:
View Post
I cannot google out what are the tax agreements between Switzerland and other EU countries but I'm very interested.
No need for Google. Just go to admin.ch and navigate to the relevant section
Voila. Here all double taxation treaties of Switzerland with other countries.
https://www.admin.ch/opc/de/classifi...0.67.html#0.67

Quote:
View Post
The only rule which come from EU is that if in any EU country you worked for more than half of the year the country becomes your tax residence for that year.
Not an EU rule but a rule of thumb which usually applies:
https://europa.eu/youreurope/citizen...d/index_en.htm
The above website also has the EU member states definition of tax residency. Take it with a huge grain of salt. In some countries the information on the official government websites are "for information" only and bear no legal binding whatsoever.
__________________
PLAYER 1 ENTER YOUR NAME:_
Reply With Quote
The following 2 users would like to thank aSwissInTheUS for this useful post:
  #9  
Old 04.06.2018, 11:12
Junior Member
 
Join Date: May 2015
Location: Zug
Posts: 58
Groaned at 0 Times in 0 Posts
Thanked 17 Times in 14 Posts
alsion has made some interesting contributions
Re: Are there tax implications if you go abroad for 3 months while registered at RAV

First place to start is the tax rules of that other country: at what point do you become taxable in country X? Second step is to see if you can get some relief from double tax (in country X or Switzerland) through one of these "double tax" agreements.

As a rule of thumb, 6 months is typically the limit before you become resident and/or tax-paying in another country, and my understanding is that this applies to Germany in particular. But you really need to check the country you are going to - many have excellent English-language Government websites these days.

However, if you find work abroad e.g. 3 month short term employment in Country X, this income is likely to be taxable in Country X (as the employment activities are taking place in Country X) even though you don't become tax resident there. On you Swiss tax return, you should get double tax relief for the tax paid in Country X, under the Swiss-X double tax agreement. This assumes you remain tax resident in Switzerland i.e. only in Country X for a short time then come back to Switzerland (depending on the exact rules in Country X...)

On the other hand, if you take up a new perm position in Country X, you will probably become immediately resident there, and may have to pay tax for all of 2018 (with relief for tax already paid on Swiss income in Switzerland). So there is some useful tax planning to take a job (say) on 1 July not 30 June, or limiting time spent in the new country to less than 183 days in a year, to avoid becoming tax resident for all of 2018. But again, this will depend on the particular rules for the countries in question (and then layering the double tax agreement on top of those rules).

Many countries have tighter rules for recent ex-residents, hence if you "return" to Northern Ireland you are likely to fall back into UK residence more quickly than a newbie, and even find that all your income in the time you were away is also taxable in the UK. (Difficult to say exactly without knowing your circumstances - may well be the 91 day limit, or which no more than 30 days working in the UK, which is probably what you have in mind).

Totally separate issues are:
- can you leave the country that long and retain rights to RAV income? I guess you are speaking to them about this.
- which country should you pay social security in? (not covered by tax agreements, but here there are some EU rules which help, and may not be an issue while you are unemployed)

Finally, note that concepts of "tax residence" are not the same as your immigration status, work/residence permit, etc.

The above is quite detailed, sorry, but to summarise:
- Simply going to another country for 3 months when you are unemployed is unlikely to make you taxable in that other country.
- However, if you end up moving to that other country, your 3 month earlier stay will probably be taken into account in determining your tax residence for the year.
- Rules differ in each country. It's a good idea to keep a travel diary in case later needed for tax.
Reply With Quote
Reply




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
If you are still at work, this is for you! McTAVGE Daily life 0 26.03.2018 18:45
RAV: Question about job hunting while abroad krlock3 Employment 23 11.10.2015 12:39
Moving abroad while drawing RAV pofg Employment 14 17.02.2015 08:53
If you go down to the RAV today… slammer Daily life 23 12.06.2013 15:55
If you are looking for an academic job in CH, or if you are looking to fill one... runner0579 Jobs wanted 1 09.06.2010 10:25


All times are GMT +2. The time now is 14:24.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2018, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0