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Old 28.04.2017, 10:52
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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
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Old 28.04.2017, 11:07
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Re: Tax on relocation expenses paid by company in Basel

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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?
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Old 28.04.2017, 11:09
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Re: Tax on relocation expenses paid by company in Basel

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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.
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Old 28.04.2017, 11:10
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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".
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Old 28.04.2017, 11:16
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Re: Tax on relocation expenses paid by company in Basel

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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.
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Old 28.04.2017, 11:13
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Re: Tax on relocation expenses paid by company in Basel

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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...
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Old 28.04.2017, 11:11
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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...
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Old 12.05.2020, 02:05
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Re: Tax on relocation expenses paid by company in Basel

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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
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  #9  
Old 30.08.2021, 22:50
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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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