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Old 14.04.2011, 12:18
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Need to be sole trader or can I just pay taxes end of year

Hi all - have been reading up on this, found lots of information, but am still not clear on my particular cirumstance. So if someone could help that would be great.

Basically I will be working for 12-24 months in Zurich. I will be seconded working for a Swiss company, but paid by an Irish company. They have agreed an inter-company secondment basically. But I am still an employee of the Irish company.

But I am moving to Switzerland (renting out house in IRL, getting a B permit etc) as part of this for the period. So my accountant has advised that I would be eligible to pay Swiss taxes (not Irish) for the duration of my stay there.

My question is about how to do this as usually people get taxed at source I guess, but in this case I won't be. So I won't have a Swiss employer who can take out my tax as the money would be coming from an Irish company:
- INDIVIDUAL - could I just do an end of year tax declaration for the income in Switzerland where I pay my years tax liability
- SOLE TRADER - OR do I need to be a sole trader, and pay my end of year taxes as a normal sole trader does anywhere
- IRISH COMPANY - can they just take out the equivalent of my Swiss tax, like is there a mutualthing between the countries where my company take it out here, then it somehow gets passed to the source country (Swss).

Thanks a million for the help on this. Am guessing I'm looking at being paid as an individual or sole trader, but just incase is an easier way that people can think of. Thanks G



Some info:
- I am going to be working
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Old 14.04.2011, 12:48
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Re: Need to be sole trader or can I just pay taxes end of year

Surely this is down to the company to organise? If you are an employee your employer surely has to pay your insurance, social welfare etc. payments and make deductions at source either in Ireland or here?
I would imagine being self-employed or a sole trader would change all the circumstances radically?
I'm no expert, but I do know that if you are resident here you will have to pay a lot of the basics here and doubt that you would be liable to pay anything at home.
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Old 14.04.2011, 12:56
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Re: Need to be sole trader or can I just pay taxes end of year

Thanks for reply. Well is a small enough company which I work for. Also personally I want to make sure I'm making the most sensible suggestions. For example if you earn 100k CHF in a year, in Ireland you pay 40k tax, in Switzerland 19k. So is a big impact on me in terms of take home / net pay.

What I'm trying to do is fact find. Yes, it will be down to my company to make the final arrangments, but I am trying to find what is the best solution.

Whatever is decided my company will sort, but just trying to see how best to make it work, if that makes sense.
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Old 14.04.2011, 13:07
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Re: Need to be sole trader or can I just pay taxes end of year

Apologies - I might not be clear here. Sorry.

What I'm saying is.... I will be getting paid by an Irish company, but be based in Zurich. I will probably be getting paid as a contractor. So in this case, it would make sense for me to be setup as a Swiss sole trader, not an Irish sole trader. As I am residing there, and therefore would benefit from the lower tax rate.

I think I've answered my own question, sorry. basically I would need ot be a sole trader in Switzerland, and pay my annual taxes as with a usual entity at the end of the year. The Irish company would then pay me on a contract / invoice basis as normal.
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Old 14.04.2011, 13:12
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Re: Need to be sole trader or can I just pay taxes end of year

I reckon if you are only working for a year, then being an independant means you wont have to contribute into a pension scheme which would be a waste of time. in any case you will pay taxes because the company employing will declare you
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Old 14.04.2011, 13:57
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Re: Need to be sole trader or can I just pay taxes end of year

Hi gco
Just to say that based on my experience in Zug, which has lower tax than Zurich, the total deductions ( including all levies etc) may be higher than you have calculated (around 25-30 per cent, depending on your personal circumstances, of course). It will be lower than Ireland though. I don't see that you have a choice though, if you are resident in Switzerland you must pay tax here, you cannot choose to pay in Ireland. An irish company cannot employ you here , you must be employed by a swiss company or set up your own swiss company or business.
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Old 14.04.2011, 23:02
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Re: Need to be sole trader or can I just pay taxes end of year

Glad you sorted your question out for yourself!
Here the tax looks low but there are so many extras you end up paying a lot more "tax" in an indirect way...
Mind you that does favour those on huge salaries I suppose as they can only pay so much in extras whereas 40% of a huge amount is...
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