Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #1  
Old 21.10.2011, 16:50
Newbie
 
Join Date: Oct 2011
Location: Basel
Posts: 2
Groaned at 0 Times in 0 Posts
Thanked 0 Times in 0 Posts
Nehp has no particular reputation at present
Why am I not getting charged witholding tax?

Hello all, newbie here so go easy. I have trawled the various links on tax but have not found a response to my specific questions.

I have been contracting in Basel since the middle of this year and as of yet I have not paid any witholding tax. My contract is with a UK based agency who charge the client here in Basel. The agency pay my daily rate directly into my account and basically say tax is my problem as I am a contractor and not an employee.

I have read (here and on other tax related sites) that any company contracting staff out to Swiss companies needs to be registered in Switzerland and needs to withold tax from the ex-pat contractors. My permit which I have not received yet, but for which I have seen proof of the decision by Basel authorities to grant me a permit, lists the agency as my 'employer', which for me makes them liable for the witholding tax?

From what I have read also, I must file a tax return if I am on a foreign payroll and resident here and I do not pay tax witholding.

Do I need to set a company for myself here, should I go back to the agency and tell them to sort it out, or what other alternative do I have?

One piece of information I forgot to mention is that I am resident here, i.e. I have moved everything here and intend to stay here for the next 2/3 years (pending contract extension).

Thanks for any help you can give me, if I have left out important details then please let me know.

Reply With Quote
  #2  
Old 21.10.2011, 17:00
Phil_MCR's Avatar
Forum Legend
 
Join Date: Oct 2009
Location: Basel
Posts: 14,626
Groaned at 281 Times in 187 Posts
Thanked 18,467 Times in 7,749 Posts
Phil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond repute
Sounds like they are treating you as self employed. Not paying tax sounds cool to me
Reply With Quote
  #3  
Old 21.10.2011, 17:11
Senior Member
 
Join Date: May 2011
Location: Zurich
Posts: 482
Groaned at 1 Time in 1 Post
Thanked 267 Times in 168 Posts
gourmet is considered knowledgeablegourmet is considered knowledgeablegourmet is considered knowledgeable
Re: Why am I not getting charged witholding tax?

i hate to say this but how did you apply for your work permit? I am not talking about resident permit. When I was thinking of contracting in Geneva, my agent put an "umbrella" company in touch with me. They are going to handle all the paperwork (i.e. resident/work permit) and any tax etc. I will be their "employee" so as to get all paperwork done for a small fee. did they not suggested that to you? If not, you best look for one quickly! I might be able to find the one I got quotes from... PM if you need it.
Reply With Quote
  #4  
Old 21.10.2011, 17:43
Junior Member
 
Join Date: Dec 2009
Location: Basel
Posts: 41
Groaned at 0 Times in 0 Posts
Thanked 7 Times in 6 Posts
clickuk has no particular reputation at present
Re: Why am I not getting charged witholding tax?

So are you getting paid in directly into your UK company or personal account?

If so you would be liable to pay UK Tax on your self assessment or corporation tax depending on how you received the income.
Reply With Quote
  #5  
Old 21.10.2011, 17:56
Sbrinz's Avatar
RIP
 
Join Date: Oct 2011
Location: Murten - Morat
Posts: 11,866
Groaned at 563 Times in 354 Posts
Thanked 11,548 Times in 5,941 Posts
Sbrinz has a reputation beyond reputeSbrinz has a reputation beyond reputeSbrinz has a reputation beyond reputeSbrinz has a reputation beyond reputeSbrinz has a reputation beyond reputeSbrinz has a reputation beyond repute
Re: Why am I not getting charged witholding tax?

I don't think you are resident here. Do you have any documents from Swiss agencies? A permit B or L? If you are a resident here then you should not be working without the permit.

It looks to me as though you are working here for a UK company as self employed contractor, and you will be paying UK tax on your money. Keep all your receipts for your hotel here, and your travelling expenses!
Reply With Quote
  #6  
Old 25.10.2011, 15:23
Newbie
 
Join Date: Oct 2011
Location: Basel
Posts: 2
Groaned at 0 Times in 0 Posts
Thanked 0 Times in 0 Posts
Nehp has no particular reputation at present
Re: Why am I not getting charged witholding tax?

Quote:
View Post
i hate to say this but how did you apply for your work permit? I am not talking about resident permit. When I was thinking of contracting in Geneva, my agent put an "umbrella" company in touch with me. They are going to handle all the paperwork (i.e. resident/work permit) and any tax etc. I will be their "employee" so as to get all paperwork done for a small fee. did they not suggested that to you? If not, you best look for one quickly! I might be able to find the one I got quotes from... PM if you need it.

I did not apply for a permit. The agency in the UK applied for it and it somehow got messed up back when I started (staff departures in the agency). Anyway they have e-mailed me proof that Basel authorities have made a positive decision on my residency permit (type was not given). The hard copy should arrive in 2 to 3 weeks I was told.
Reply With Quote
  #7  
Old 25.10.2011, 15:37
NotAllThere's Avatar
Mod x2
 
Join Date: Oct 2008
Location: Baselland
Posts: 13,885
Groaned at 245 Times in 216 Posts
Thanked 20,504 Times in 8,331 Posts
NotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond repute
Re: Why am I not getting charged witholding tax?

As I understand it a UK based agency can only apply for a work permit on your behalf, if they've a base in Switzerland. Are you an EU citizen?
Reply With Quote
  #8  
Old 28.10.2011, 20:54
Newbie
 
Join Date: Jul 2011
Location: basel
Posts: 5
Groaned at 0 Times in 0 Posts
Thanked 0 Times in 0 Posts
snice has no particular reputation at present
Re: Why am I not getting charged witholding tax?

Quote:
View Post
I don't think you are resident here. Do you have any documents from Swiss agencies? A permit B or L? If you are a resident here then you should not be working without the permit.

It looks to me as though you are working here for a UK company as self employed contractor, and you will be paying UK tax on your money. Keep all your receipts for your hotel here, and your travelling expenses!
Definitely not tax resident in UK, have been working in various countries for more than 6 years and actually did not do any work this year (travelling) before coming to Basel. I have realised that actually the agency have received my work permit but residency is something else.
Reply With Quote
  #9  
Old 28.10.2011, 22:02
Sbrinz's Avatar
RIP
 
Join Date: Oct 2011
Location: Murten - Morat
Posts: 11,866
Groaned at 563 Times in 354 Posts
Thanked 11,548 Times in 5,941 Posts
Sbrinz has a reputation beyond reputeSbrinz has a reputation beyond reputeSbrinz has a reputation beyond reputeSbrinz has a reputation beyond reputeSbrinz has a reputation beyond reputeSbrinz has a reputation beyond repute
Re: Why am I not getting charged witholding tax?

Unless you have the beige piece of paper with your photo and signature, you are working illegally. You would be deported fairly quickly, and banned from coming back for at least a year.

So maybe you can go to Basel Fremdenpolizei and ask them for the permit fairly soon. In the meantime fingers crossed nobody finds you working.
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
why i am not able to post in Sale/wanted? raminbox Forum support 3 14.10.2011 10:18
Reclaiming Foreign Witholding Tax thodge78 Finance/banking/taxation 1 19.07.2011 19:13
Running - why am i getting sore shins now ? grimmus Sports / Fitness / Beauty / Wellness 29 22.03.2010 13:03
Editing posts [Why am I not allowed to?] Swiss Cheddar Forum support 14 31.07.2008 11:54


All times are GMT +2. The time now is 14:59.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2021, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0