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Old 09.12.2011, 10:55
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Expatriate tax free amount -- Contractor

Hello.

I have been working as contractor for 2.5y now in Switzerland and for my next 2012 renewal they just told me that they cant give me anymore the "Expatriate tax free" I had before, so as a matter of fact, I am going to pay 30% instead of 28% of annual tax. They say that the authorities do not allow this for people who has been staying in Switzerland for so long, so I should try to get it back at the end of next year.

Is there normal procedure happened to any of you or is it the agency which is doing something not right?

Thanks
Giulio.
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  #2  
Old 09.12.2011, 11:03
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Re: Expatriate tax free amount -- Contractor

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Hello.

I have been working as contractor for 2.5y now in Switzerland and for my next 2012 renewal they just told me that they cant give me anymore the "Expatriate tax free" I had before, so as a matter of fact, I am going to pay 30% instead of 28% of annual tax. They say that the authorities do not allow this for people who has been staying in Switzerland for so long, so I should try to get it back at the end of next year.

Is there normal procedure happened to any of you or is it the agency which is doing something not right?

Thanks
Giulio.
If you are in Switzerland 6 months or longer, you are required to
pay income taxes, unemployment insurance, retirement insurance(AVS in French ).

Definitely declare your taxes for 2012, or you could find yourself in trouble.
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Old 09.12.2011, 14:59
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Re: Expatriate tax free amount -- Contractor

but i never got anybody asking me to fill the tax form and i just got the B permit...

so i think no more expatriate status for me, right?
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Old 09.12.2011, 16:23
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Re: Expatriate tax free amount -- Contractor

Then you have been working in Switzerland illegally without a permit....

With a B permit you will definitely have to pay taxes.
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Old 09.12.2011, 16:35
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Re: Expatriate tax free amount -- Contractor

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Then you have been working in Switzerland illegally without a permit....

With a B permit you will definitely have to pay taxes.
An EU passport holder can work for upto 90 days without a permit, however needs to register within 8 days. It would be possible to work a few days here & there without ever needing to register or needing a permit.
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Old 09.12.2011, 23:23
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Re: Expatriate tax free amount -- Contractor

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An EU passport holder can work for upto 90 days without a permit, however needs to register within 8 days. It would be possible to work a few days here & there without ever needing to register or needing a permit.
You are right, but the OP says that it has been 2.5 years.
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Old 10.12.2011, 00:01
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Re: Expatriate tax free amount -- Contractor

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Hello.

I have been working as contractor for 2.5y now in Switzerland and for my next 2012 renewal they just told me that they cant give me anymore the "Expatriate tax free" I had before, so as a matter of fact, I am going to pay 30% instead of 28% of annual tax.
If I understand the question correctly, you were already paying 28% and now will face a 2% increase? Wouldn't this have more to do with a change of salary?
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Old 10.12.2011, 00:07
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Re: Expatriate tax free amount -- Contractor

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Hello.

I have been working as contractor for 2.5y now in Switzerland and for my next 2012 renewal they just told me that they cant give me anymore the "Expatriate tax free" I had before, so as a matter of fact, I am going to pay 30% instead of 28% of annual tax. They say that the authorities do not allow this for people who has been staying in Switzerland for so long, so I should try to get it back at the end of next year.

Is there normal procedure happened to any of you or is it the agency which is doing something not right?

Thanks
Giulio.
It's not set in stone. The max you can claim it for is 5 years or until you get a house or an internal job or anything that indicates your 'here to stay'. 2.5 doesn't sound entirely unreasonable. It's not a higher overall rate of taxreally, it's that the allowance let's you have a portion of your salary tax free, which then becomes taxable.
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Old 16.12.2011, 21:24
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Re: Expatriate tax free amount -- Contractor

I have been a contractor for 12 years, i arrived in Jan 09 and in Oct 09 became permanent, was suppose to be a fixed deal but hey ho..

Anyway tax office have said my 9 months ex-pat allowance has been denied, then they said if i prove i use to be a contractor is UK they will look at it again...

I just received my final 2009 tax bill and even though i pay source tax was hit with a 6700 extra tax bill :-(

Is this the norm here, it works out about 45% extra on top of what i all ready paid ??????
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Old 16.12.2011, 23:13
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Re: Expatriate tax free amount -- Contractor

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I have been a contractor for 12 years, i arrived in Jan 09 and in Oct 09 became permanent, was suppose to be a fixed deal but hey ho..

Anyway tax office have said my 9 months ex-pat allowance has been denied, then they said if i prove i use to be a contractor is UK they will look at it again...

I just received my final 2009 tax bill and even though i pay source tax was hit with a 6700 extra tax bill :-(

Is this the norm here, it works out about 45% extra on top of what i all ready paid ??????
So your tax bill is approx 21,600, I guess your earnings are over 120K so I think you got a good deal. Make sure you have really 'left' the UK for tax purposes or the UK revenue will want loads more than 6700 chf.
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