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Old 28.08.2015, 11:10
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UK LTD company assets & dividend taxation in Switzerland

Hi All

I've done extensive searching but haven't been able to find any thread related to my situation but I'm not I'm not the only one.

I've been a contractor through my UK company for many years and a few years ago took a job in Switzerland working for a big company through a Swiss payroll company (i.e. not through my UK company.) Since being here I've paid a dividend from my UK company to myself in the UK, declared it in the UK in my non-UK-resident tax return, and also left some other money in the company.

Now I have to do Swiss tax declaration. For the dividend it would seem there's a double taxation agreement in place. In general I assume the 10% tax credit received in the UK also can count as a deduction of tax due on the dividend in Switzerland but I see also such a thing as lump-sum deductions (pauschale Steueranrechnung) and can't work out what this means exactly. I've also seen things in "Welcome to Switzerland" type documents that says dividends from such a company would only be taxed at 60% of the (gross/net?) dividend. I also see things such as directors fees and "income derived from services" and these are not be taxable in Switzerland. I'm guessing a dividend can't in fact be classed under these? There must be someone out there who's been through a similar thing?

The second thing is the guy in the payroll company who will prepare my tax return says that I have to declare the value (the amount in the bank) and income (which is almost 0) of my UK limited company as it's counted as me owning shares and these are "movable assets". In theory yes I have 100% of the shares in my UK company but is this correct? If it were a partnership or self-employed then I could understand it but usually in England LTD companies are separate entities.

I'm very convinced that the tax guy in the payroll company has no idea about someone in my situation. He's just said I will have to declare and pay tax on everything and I can't claim any rebate for dividends or other tax paid in the UK.

The other thing is he says it's ok to submit for the UK financial year Apr-Apr instead of the Swiss one Jan-Dec as I have the tax certificates for this period. Does anyone else do this? What then about income in the first quarter of the first year I was here?

Many thanks for reading!

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