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-   -   EU expat contract + religious tax (https://www.englishforum.ch/finance-banking-taxation/18091-eu-expat-contract-religious-tax.html)

29.01.2008 23:19

EU expat contract + religious tax
 
Hi all,

here is another one of these "just arrived and trying to figure out how it really works" question. :msnblush:

So, my partner (German) got transferred to Switzerland from a Danish company, who is keeping him on the Danish system, meaning that his pension is staying in Denmark, and he is not paying any social security taxes here in Switzerland. The contract is valid for 3 years.

The question is: if the situation arose, would he be able to claim unemployment? Or has he opted out of any support from the Swiss government for not contributing to their taxes/pension fund? On the same train of thought, what does it mean for him to be on what is essentially an EU expat contract?

The other question is regarding religious tax: does anybody have experience in getting out of this after having announced to be protestant? [Edit: found the answer for that one on another thread... Will get him to run to the Kreisburo tomorrow morning!!]

Many thanks to all of you for your help. I really really appreciate.

-d

Richard 30.01.2008 01:16

Re: EU expat contract + religious tax
 
Quote:

Originally Posted by debydebo (Post 164607)
Hi all,

here is another one of these "just arrived and trying to figure out how it really works" question. :msnblush:

So, my partner (German) got transferred to Switzerland from a Danish company, who is keeping him on the Danish system, meaning that his pension is staying in Denmark, and he is not paying any social security taxes here in Switzerland. The contract is valid for 3 years.

The question is: if the situation arose, would he be able to claim unemployment? Or has he opted out of any support from the Swiss government for not contributing to their taxes/pension fund? On the same train of thought, what does it mean for him to be on what is essentially an EU expat contract?

The other question is regarding religious tax: does anybody have experience in getting out of this after having announced to be protestant? [Edit: found the answer for that one on another thread... Will get him to run to the Kreisburo tomorrow morning!!]

Many thanks to all of you for your help. I really really appreciate.

-d

There is no point beating around the bush on this one. Generally a requirement of receiving unemployment benefit is to be integrated into the Swiss economy. In the context of your partner he is here short term and his permit and right to stay disappears with his contract of employment - ie no integration. If he wanted to stay he would need to physically take his old permit to the local commune and ask for a new one which as an EU citizen he would get but he would not have any right to any support from the Swiss.

30.01.2008 10:58

Re: EU expat contract + religious tax
 
Thanks a lot Richard. That's what we thought. I guess another solution would be to get his company to switch to a local contract. Their HR department is not exactly helpful in many ways - turns out my company does much more for me than his for him, although mine's a brand new contract...

30.01.2008 11:39

Re: EU expat contract + religious tax
 
Quote:

Originally Posted by debydebo (Post 164763)
Thanks a lot Richard. That's what we thought. I guess another solution would be to get his company to switch to a local contract. Their HR department is not exactly helpful in many ways - turns out my company does much more for me than his for him, although mine's a brand new contract...

Be careful here. If your partner were to switch to a local contract he may find himself losing any length of service entitlements in Denmark. In other words, once the current contract is up, would he find himself starting again with that company in Denmark as a brand new employee? This can mean big bucks if redundancy payments are involved further down the line.

On the same theme, he needs to consider what would happen if he is made redundant six months from now, whichever route he takes.

30.01.2008 12:04

Re: EU expat contract + religious tax
 
Quote:

Originally Posted by JVC (Post 164796)
Be careful here. If your partner were to switch to a local contract he may find himself losing any length of service entitlements in Denmark. In other words, once the current contract is up, would he find himself starting again with that company in Denmark as a brand new employee? This can mean big bucks if redundancy payments are involved further down the line.

Well, the situation is a bit circumvoluted, as his employer is Swiss, but was recently bought up by the company he transferred from. So technically he's still employed by the Danes, ie they are paying his social contributions to the Danish government, pension and social security. But he is on the payroll of the Swiss one and paying income tax here.

Length of entitlement benefits... hum... well, switching to the Swiss social laws took care of most (8 weeks holidays, paternity leave, free healthcare, don't you love the Scandinavian social system!). But you're right, he should probably do some research on that one.

Quote:

Originally Posted by JVC (Post 164796)
On the same theme, he needs to consider what would happen if he is made redundant six months from now, whichever route he takes.

:confused: Maybe he would get some sort of expat unemployment benefits from the Danish government??

:msnmad: Wishing HR knew what they're doing!!


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