Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
View Poll Results: If she is working for foreign employer and gets salary via Paypal, then...
She does not have to file taxes if she has B permit. 0 0%
Only she must file taxes each year, in spite of her B permit. 0 0%
Both she and her husband must file joint tax return, in spite of their B permits. 3 75.00%
She has to file taxes, but should not do it because nobody knows what she receives via Paypal 1 25.00%
It's hard to tell. Ask tax advisor! 0 0%
Voters: 4. You may not vote on this poll

Reply
 
Thread Tools Display Modes
  #1  
Old 09.05.2019, 22:57
Newbie
 
Join Date: Mar 2019
Location: CH
Posts: 7
Groaned at 7 Times in 2 Posts
Thanked 0 Times in 0 Posts
albireo has become a little unpopularalbireo has become a little unpopular
Taxation when working for foreign employer (salary via Paypal)

Hello everybody,


If I understand correctly, a person with B permit (Non-EU) who is working in Switzerland is under no obligation to file Swiss taxes, because taxes will be withheld at the source (by employer).


But what happens if that person with B permit works in Switzerland for foreign employer (for example as a company representative), and earnings are paid to her Paypal account?

Her foreign employer of course will not withhold any Swiss taxes.


So these are my questions:
1. Should that person pay Swiss taxes on such income?

2. If yes, how can she file taxes if B permit holders are exempt from filing Swiss taxes each year?
3. Married couples in Switzerland are taxed together (joint tax return). If this person is married, and if her husband also has B permit and should not file taxes (because all taxes are automatically withheld by his Swiss employer), then how can they file together a joint tax return?
















Reply With Quote
  #2  
Old 09.05.2019, 23:29
Forum Legend
 
Join Date: Jun 2008
Location: Switzerland
Posts: 9,691
Groaned at 354 Times in 273 Posts
Thanked 22,025 Times in 7,808 Posts
k_and_e has a reputation beyond reputek_and_e has a reputation beyond reputek_and_e has a reputation beyond reputek_and_e has a reputation beyond reputek_and_e has a reputation beyond reputek_and_e has a reputation beyond repute
Re: Taxation when working for foreign employer (salary via Paypal)

As you are a resident, you'll be taxed on your world wide income.
And paying via paypal is ridiculous.
Reply With Quote
This user would like to thank k_and_e for this useful post:
  #3  
Old 09.05.2019, 23:34
Newbie
 
Join Date: Mar 2019
Location: CH
Posts: 7
Groaned at 7 Times in 2 Posts
Thanked 0 Times in 0 Posts
albireo has become a little unpopularalbireo has become a little unpopular
Re: Taxation when working for foreign employer (salary via Paypal)

Thanks for your reply. So, if the taxes should be filed, then should she file taxes alone, or together with her husband (who is also B permit holder, and who did not filed Swiss taxes so far)?


And getting paid via Paypal was the only option offered by employer, unfortunately...



Reply With Quote
  #4  
Old 09.05.2019, 23:53
Guest
 
Posts: n/a
Re: Taxation when working for foreign employer (salary via Paypal)

Quote:
View Post
But what happens if that person with B permit works in Switzerland for foreign employer (for example as a company representative), and earnings are paid to her Paypal account?
Just give the local tax agency a call or pay them a visit, they'll be more than happy to provide you with the proper forms. Wether you are paid cash, through paypall or to a Swiss bank account is irrelevant, income is income.
Reply With Quote
This user would like to thank for this useful post:
  #5  
Old 10.05.2019, 00:02
Newbie
 
Join Date: Mar 2019
Location: CH
Posts: 7
Groaned at 7 Times in 2 Posts
Thanked 0 Times in 0 Posts
albireo has become a little unpopularalbireo has become a little unpopular
Re: Taxation when working for foreign employer (salary via Paypal)

Thanks for your reply, Edwin.



Maybe it would be best to visit local tax agency. Unfortunately, last time I was there, I asked several employees but nobody spoke English language (although many foreigners live in this part of Switzerland).

If I go there again, it seems that I should hire a translator first...



Reply With Quote
  #6  
Old 10.05.2019, 05:20
roegner's Avatar
Moderately Dutch
 
Join Date: May 2011
Location: Zurich
Posts: 13,084
Groaned at 415 Times in 353 Posts
Thanked 17,674 Times in 8,070 Posts
roegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond repute
Re: Taxation when working for foreign employer (salary via Paypal)

Quote:
View Post
Maybe it would be best to visit local tax agency. Unfortunately, last time I was there, I asked several employees but nobody spoke English language (although many foreigners live in this part of Switzerland).

If I go there again, it seems that I should hire a translator first...
Not surprising as it is not one of the official languages of Switzerland. You can try and find a translator by checking "rent a rentner" or contact forum member Mulhollander.
Reply With Quote
This user would like to thank roegner for this useful post:
  #7  
Old 10.05.2019, 09:18
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 21,365
Groaned at 461 Times in 352 Posts
Thanked 23,091 Times in 11,824 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Taxation when working for foreign employer (salary via Paypal)

First the OP will need to register for part time self employment & pay at least min 475 AVH. If total earnings in a year are only about 2k then this can be ignored.
Reply With Quote
  #8  
Old 10.05.2019, 10:26
NotAllThere's Avatar
Modulo 2
 
Join Date: Oct 2008
Location: Baselland
Posts: 16,523
Groaned at 355 Times in 308 Posts
Thanked 26,093 Times in 10,648 Posts
NotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond repute
Re: Taxation when working for foreign employer (salary via Paypal)

Quote:
View Post
If I understand correctly, a person with B permit (Non-EU) who is working in Switzerland is under no obligation to file Swiss taxes, because taxes will be withheld at the source (by employer).
You don't understand correctly, which explains your other questions. A person on tax-at-source who earns under 120K (IIRC) usually does not have to file a tax return. However, they may want to and/or may be required to if they fulfill certain criteria - e.g. owning a house.

Quote:
So these are my questions:
1. Should that person pay Swiss taxes on such income?
Yes, tax is due on worldwide income

Quote:
2. If yes, how can she file taxes if B permit holders are exempt from filing Swiss taxes each year?
3. Married couples in Switzerland are taxed together (joint tax return). If this person is married, and if her husband also has B permit and should not file taxes (because all taxes are automatically withheld by his Swiss employer), then how can they file together a joint tax return?
Explain to the tax office that the couple have a significant source of other income and so need to file a tax return. Being on tax-at-source does not preclude filing your taxes. They may turn around and tell you not to bother, if the sums she earns are minor.

Note, if her income is high enough, she'll probably be due to pay employers and employees social contribution from her fee.

I am not a tax lawyer, things vary from canton to canton, and I've offered a simple explanation that does not cover every possible scenario. (It's a Friday, people like to nitpick).
__________________
Down with racism. Long live miscegenation!
Reply With Quote
The following 4 users would like to thank NotAllThere for this useful post:
  #9  
Old 10.05.2019, 10:47
Forum Veteran
 
Join Date: Nov 2011
Location: Mies
Posts: 1,158
Groaned at 19 Times in 15 Posts
Thanked 852 Times in 485 Posts
catandmouse has an excellent reputationcatandmouse has an excellent reputationcatandmouse has an excellent reputationcatandmouse has an excellent reputation
Re: Taxation when working for foreign employer (salary via Paypal)

It looks to me as though the employer isn't registered as a Swiss company. Are deductions for AHV, pension schemes, unemployment being taken on the salary? Are they able to deliver a Swiss salary certificate for tax purposes? If not it looks to me as though you're more closely to being self-employed and probably ought to be declared as such.
Reply With Quote
This user would like to thank catandmouse for this useful post:
  #10  
Old 10.05.2019, 12:15
Forum Legend
 
Join Date: Oct 2014
Location: SG
Posts: 10,760
Groaned at 678 Times in 495 Posts
Thanked 14,619 Times in 7,648 Posts
Urs Max has a reputation beyond reputeUrs Max has a reputation beyond reputeUrs Max has a reputation beyond reputeUrs Max has a reputation beyond reputeUrs Max has a reputation beyond reputeUrs Max has a reputation beyond repute
Re: Taxation when working for foreign employer (salary via Paypal)

Quote:
View Post
It looks to me as though the employer isn't registered as a Swiss company. Are deductions for AHV, pension schemes, unemployment being taken on the salary? Are they able to deliver a Swiss salary certificate for tax purposes? If not it looks to me as though you're more closely to being self-employed and probably ought to be declared as such.
AFAIK self-employment usually requires at least three custormers to be accepted.

So OP may be in for a very expensive surprise as someone will probably have to pay the social security contributions.
Reply With Quote
The following 2 users would like to thank Urs Max for this useful post:
  #11  
Old 10.05.2019, 13:08
Newbie
 
Join Date: Mar 2019
Location: CH
Posts: 7
Groaned at 7 Times in 2 Posts
Thanked 0 Times in 0 Posts
albireo has become a little unpopularalbireo has become a little unpopular
Re: Taxation when working for foreign employer (salary via Paypal)

Quote:
View Post
First the OP will need to register for part time self employment & pay at least min 475 AVH.
Quote:
View Post
AFAIK self-employment usually requires at least three custormers to be accepted.
I think Urs Max is right: she can not be self-employed in Switzerland. Here is the quote from the official Swiss SME portal (www.kmu.admin.ch): "What does being self-employed mean? In terms of social insurance, persons working for and on their own behalf, who are independent in their work and who assume the financial risk are self-employed. They decide on their organization, their method of working and outsourcing work to third parties. They work for more than one client."

She does not work on her on behalf (she works on behalf of foreign company), she is not independent (she depends on that company), she does not assumes financial risk, she does not decide on her organization, she does not choose method of working, she can not outsource her work, and she works only for one client.

Quote:
View Post
It looks to me as though the employer isn't registered as a Swiss company. Are deductions for AHV, pension schemes, unemployment being taken on the salary? Are they able to deliver a Swiss salary certificate for tax purposes? If not it looks to me as though you're more closely to being self-employed and probably ought to be declared as such.
Yes, the foreign company is not registered in Switzerland, and as far as I know no Swiss deductions are taken from the salary. Their position is - settling tax obligations in your country is your problem, we pay you agreed amount per hour, and you will have to figure out by yourself if you have to pay some taxes and how much.

I know that someone has to pay these Swiss deductions, so obviously in this case she will have to pay it.




Reply With Quote
Reply

Tags
tax foreign paypal salary




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Taxation when living in Italy but working in Lugano RASZ Finance/banking/taxation 1 22.04.2019 10:58
Non-EU working for foreign employer, living in CH M. Ploymi Permits/visas/government 7 11.10.2016 20:28
Working part time for both a Swiss employer and a US employer separately gtrob Employment 0 14.09.2014 17:14
Taxation and foreign real estate + foreign mortgage belgian beer lover Finance/banking/taxation 27 06.01.2011 01:31
Swiss taxation for foreign residents bobschoos Finance/banking/taxation 24 27.10.2009 18:27


All times are GMT +2. The time now is 14:27.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2023, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0