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Old 19.02.2017, 21:20
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Tax Obligations - Ireland / Switzerland

Hi everyone

Please excuse the length of this post in advance!!
I've found some really useful stuff on this forum I would just like a 2nd opinion on a few areas re: my tax obligations in Ireland and Switzerland.

To set the scene ...

- I'm Irish and moved to Switzerland with my wife at the beginning of January.
- I work for a multi-national company and I've been seconded to their Swiss subsidiary from their Irish subsidiary. It's initially a year contract (01.01.17 - 31.12.17) but may be extended.
- The secondment is structured so that I have a local, Swiss contract and I am paid directly by the Swiss company into a private CHF Swiss bank a/c.
- I'm on an L permit.

Now for the questions ... !

1. I've been advised by HR that I am Swiss resident for tax purposes. So AEI forms etc list Switzerland only ... due to the DTA between Ireland and Switzerland (personal & economic relations are in Switzerland / central of vital interests is here). So based on this - Irish tax residency rules are trumped by Switzerland.

Would the amount of days I spend in Ireland in 2017 have any effect on the above? As in, I will be in Switzerland for > 180 days in 2017 - but if I am > 30 days in Ireland ... I'm wondering if this would cause complications?

2. I'm assuming that I can transfer income from my Swiss bank account to my Irish bank account without incurring any tax liability in Ireland (remittance rules etc)?

3. A further complication is that I will be due a bonus payment from the Irish company in relation to 2016 in a few months ... it's not 100% clear to me whether I will need to
(a) declare it on an Irish tax return for 2017 and pay Irish tax on it or
(b) include the bonus in my 'worldwide income' and pay Swiss tax on it

I'll likely need further tax advice on Q3 but would be interested to know if anyone else had dealt with a similar issue before.

4. Similar to 3, I will receive a small amount of dividend income into my Irish bank a/c relating to UK shares over 2017 ... would these be included on an Irish or Swiss tax return for 2017?

If any of you have come across any of the above before I would appreciate your thoughts!

Thanks a lot
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Old 19.02.2017, 21:44
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Re: Tax Obligations - Ireland / Switzerland

As a Swiss resident, you are taxed in Switzerland from the date your residency starts to the date you leave the country for good.

The Swiss tax you on global income and global wealth, so it matters not where you earn your money or where you keep your money.

The Swiss tax you on what arrived in yout bank account from 01.01 to 31.12 of the same year, regardless of when you actualy worked for the money.

The double tax agreement with Ireland means that any Irish taxes paid are refunded to you in Switzerland, up to the limit set in the DTA.
This ensures you are not taxed twice.

Most people in your situation are likely to be taxed at source, but if you are a high earner you may benefit from a tax return as well.
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Old 19.02.2017, 23:01
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Re: Tax Obligations - Ireland / Switzerland

Let me start by saying you shoud get proper professional advice and you should be careful of the generalisations made on this forum because Irish tax law and code of parctice between the Swiss and Irish authorities are not similar to the situaiton of the UK or it's formor dominions.

Residency is a key factor in determining your liability both in Ireland and Switzerland. In the normal case when you move to Switzerland you are considered ordinarily resident and are taxed on global income. But from what you have said I thing there is a possibility that you may be considered resident but not ordinarily resident, in which case you would be taxed in Switzerland on Swiss income plus remittances from Ireland and in Ireland on global income less Swiss income and remittances. In any case your world wide income will be used to determine the rate of tax applied in Switzerland.

A lot will depend on how the Irish Revenue react to the bonus payment.

Best to get proper tax advice.
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Old 22.02.2017, 15:49
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Re: Tax Obligations - Ireland / Switzerland

Thank you both for your feedback.

I will for sure be seeking further advice on these points.
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