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Old 05.07.2021, 10:04
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How am I taxed as a non-US citizen but working part-time for a US company?

I live in Switzerland, have an official job, contracted 80% in Switzerland. (insurance etc. is covered)
I'm not a C-permit holder nor a Swiss citizen, so the withholding tax is deducted from my salary every month.

In the meantime, I work part-time as a consultant for a US company, around 10h/week.

Since I'm not a US citizen nor have I a green card, the "Double Taxation Agreement" does not apply to me and I don't need to report tax to the US government.

However, since the company will send money to my Swiss Bank Account, it seems I need to let the Swiss government know about my second job.

How should I do it and how should the tax be reported?
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Old 05.07.2021, 10:40
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Re: How am I taxed as a non-US citizen but working part-time for a US company?

I don't have any answers but, as a point of clarification, what is your contractual relationship to the US company?

Are they contracting you as an independent consultant, or are you on their payroll? If the latter, are they using an umbrella payroll company based in Switzerland or just paying you directly?
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Old 05.07.2021, 11:05
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Re: How am I taxed as a non-US citizen but working part-time for a US company?

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I don't have any answers but, as a point of clarification, what is your contractual relationship to the US company?

Are they contracting you as an independent consultant, or are you on their payroll? If the latter, are they using an umbrella payroll company based in Switzerland or just paying you directly?
I think I'm contracted as an independent consultant and they just pay me directly.
They are a start-up company that seems to prefer to keep things simple.
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Old 05.07.2021, 11:08
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Re: How am I taxed as a non-US citizen but working part-time for a US company?

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I think I'm contracted as an independent consultant and they just pay me directly.
They are a start-up company that seems to prefer to keep things simple.
In that case, I'll defer to an expert, but I would expect that you should register as "self-employed" with the Swiss authorities and complete tax returns detailing your income through that. It should then be reviewed in combination with your PAYE income.

However I'm not familiar with the Swiss system in particular, so wait for someone better informed
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Old 05.07.2021, 11:16
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Re: How am I taxed as a non-US citizen but working part-time for a US company?

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In that case, I'll defer to an expert, but I would expect that you should register as "self-employed" with the Swiss authorities and complete tax returns detailing your income through that. It should then be reviewed in combination with your PAYE income.

However I'm not familiar with the Swiss system in particular, so wait for someone better informed
Sure. Thank you for the input!
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Old 05.07.2021, 11:21
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Re: How am I taxed as a non-US citizen but working part-time for a US company?

Yes you will have to register as partly self-employed and file a tax return annually. You might want to have a tax return preparer ("mandataire") do it at least for the first few years. The free tax return preparation software provided by the cantons is not onerous but does ask for scanned proofs of everything. You may also find that the IRS wants proof of your (non-"US Person") status and that Swiss tax is being paid if they audit the client. Remittances to Switzerland over $10,000 will be reported and Swiss banks remain a red flag. I am assuming that your B status is not inconsistent with taking on a self-employment gig.
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Old 05.07.2021, 13:16
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Re: How am I taxed as a non-US citizen but working part-time for a US company?

Also check that your bank is happy to be receiving payments from the US. Most want nothing to do with Americans or anything America related when it comes to bank accounts.
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Old 05.07.2021, 22:09
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Re: How am I taxed as a non-US citizen but working part-time for a US company?

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...Since I'm not a US citizen nor have I a green card, the "Double Taxation Agreement" does not apply to me and I don't need to report tax to the US government.
This might not be entirely true. This website specifically says if you have US income you will probably need to file 1040-NR (1040 for non-residents) (emphasis mine):
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Form 1040NR Guide - Nonresident Alien Income Tax return
This guide is for anyone who is not a US citizen or Green card holder, but has a US tax filing requirement. Situations which may bring about such a requirement are:

You have income from the US (ie - US rental income, part year employment, investment income) but do not meet the substantial presence test which would require a U.S. resident tax return.
There's also the IRS site: https://www.irs.gov/individuals/inte...esident-aliens
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Old 05.07.2021, 22:29
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Re: How am I taxed as a non-US citizen but working part-time for a US company?

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This might not be entirely true. This website specifically says if you have US income you will probably need to file 1040-NR (1040 for non-residents) (emphasis mine):

There's also the IRS site: https://www.irs.gov/individuals/inte...esident-aliens
1040NR would only be relevant if OP had a “permanent establishment” in USA. For a former US citizen with a SS# it may be advantageous despite the 10% income tax (no exemption) because $6,000 could go into a Roth IRA. That works for the UK, maybe not Switzerland because the US-UK tax treaty art 17-18 is so generous (reciprocal) on pensions. In this case the OP has no 1040NR obligation if s/he doesn’t set foot in the US for work.

There is a great deal of false US tax info on the Internet. The mere fact of a nonresident alien having a US client or employer does not make you taxable by the IRS. Nor by any state if you have never lived in it.
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