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-   -   Tax on relocation expenses paid by company in Basel (https://www.englishforum.ch/finance-banking-taxation/269343-tax-relocation-expenses-paid-company-basel.html)

Naynam 28.04.2017 10:52

Tax on relocation expenses paid by company in Basel
 
Dear all,

I am a Non EU and joining a company in Basel.

I have a few questions regarding taxation if anyone here could help from their experience.

1. The company is paying me relocation allowance in cash as well as accomodation for 3 months. I understand this is taxable income.

2. The company is also arranging movement and storage of my personal belongings through an agent. They will pay to the agent directly. Is this also my taxable income?

3. The company will reimburse the cost of my flight ticket to Basel. Is this a taxable income for me?

Many thanks for your help.

Regards,

N

ch2013 28.04.2017 11:07

Re: Tax on relocation expenses paid by company in Basel
 
Quote:

Originally Posted by Naynam (Post 2778593)
Dear all,

I am a Non EU and joining a company in Basel.

I have a few questions regarding taxation if anyone here could help from their experience.

1. The company is paying me relocation allowance in cash as well as accomodation for 3 months. I understand this is taxable income.

2. The company is also arranging movement and storage of my personal belongings through an agent. They will pay to the agent directly. Is this also my taxable income?

3. The company will reimburse the cost of my flight ticket to Basel. Is this a taxable income for me?

Many thanks for your help.

Regards,

N

It may depend on the canton but when I moved to CH I received all of the above and none was considered taxable income.

The relocation allowance in cash was referred to as "curtain money" and was not taxable. Basically, the tax authorities accept that there will be many out of pocket expenses when you move and the relocation allowance covers costs like putting new fixtures and fittings in your new place.

What does your new company HR department say?

eyebeebe 28.04.2017 11:09

Re: Tax on relocation expenses paid by company in Basel
 
Quote:

Originally Posted by ch2013 (Post 2778601)
It may depend on the canton but when I moved to CH I received all of the above and none was considered taxable income.

The relocation allowance in cash was referred to as "curtain money" and was not taxable. Basically, the tax authorities accept that there will be many out of pocket expenses when you move and the relocation allowance covers costs like putting new fixtures and fittings in your new place.

What does your new company HR department say?

I had the opposite experience in 2009 in Zurich. The cash given to me was treated as income and taxed, everything else was invoiced through the company and I wasn't taxed on it.

Naynam 28.04.2017 11:10

Re: Tax on relocation expenses paid by company in Basel
 
Another point - I have a local contract, I am not an expat moving to Basel.

The contract says "may be taxable depending upon your place of residence".

meloncollie 28.04.2017 11:11

Re: Tax on relocation expenses paid by company in Basel
 
To give another anecdote, canton ZH, albeit any years ago:

All the above was considered taxable income except 2.), fees paid directly to a third party provider.

Company used a 'gross up' formula to offset additional tax... but of course the gross up amount is taxable too.

Death and taxes, death and taxes...

ch2013 28.04.2017 11:13

Re: Tax on relocation expenses paid by company in Basel
 
Quote:

Originally Posted by eyebeebe (Post 2778604)
I had the opposite experience in 2009 in Zurich. The cash given to me was treated as income and taxed, everything else was invoiced through the company and I wasn't taxed on it.

As I said it may depend on the canton and certainly the amount.

OP should check this page from the Basel tax offices. There is a help line for questions concerning expatriates on +41 61 267 90 43

Give them a call...

ch2013 28.04.2017 11:16

Re: Tax on relocation expenses paid by company in Basel
 
Quote:

Originally Posted by Naynam (Post 2778607)
Another point - I have a local contract, I am not an expat moving to Basel.

The contract says "may be taxable depending upon your place of residence".

I also moved on a local hire contract. This was in the canton of Neuchâtel.

I know everything was legit as my company also paid Coopers & Lybrand (at the time) to file all my tax returns for the first 2 years.

jozuki 12.05.2020 02:05

Re: Tax on relocation expenses paid by company in Basel
 
Quote:

Originally Posted by Naynam (Post 2778593)
Dear all,

I am a Non EU and joining a company in Basel.

I have a few questions regarding taxation if anyone here could help from their experience.

1. The company is paying me relocation allowance in cash as well as accomodation for 3 months. I understand this is taxable income.

2. The company is also arranging movement and storage of my personal belongings through an agent. They will pay to the agent directly. Is this also my taxable income?

3. The company will reimburse the cost of my flight ticket to Basel. Is this a taxable income for me?

Many thanks for your help.

Regards,

N

Dear Naynam,

Good to meet you here. I have received a similar relocation offer, which might be the same company as yours. Could you please share with me your experience? At the end, how was the relocation package taxable?
The company told me about CHF 80K value of relocation package (including everything you mention). Does it mean that I will have to pay about 20% or CHF 16K additional tax? Thank you so much.

Regards,
Jozuki

sakusangu 30.08.2021 22:50

Re: Tax on relocation expenses paid by company in Basel
 
Hi Jozuki,

I am in the same boat as you and Naynam.

Would really appreciate if you could share how were these elements of the relocation package taxed at the end.

Thanks,
Saku


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