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Old 25.06.2009, 15:26
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revised double taxation agreement with the US

For the Americans among us ... (and all the other lucky ones who get a greeting card from the IRS every year..)

Switzerland initials revised double taxation agreement with the USA
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Old 26.06.2009, 17:13
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Re: revised double taxation agreement with the US

Details yet unknown. May yet be challenged in a Swiss referendum.
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Old 26.06.2009, 18:14
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Re: revised double taxation agreement with the US

I think I'm being thick headed here. Since this is my first year in Switzerland - I haven't had an opportunity yet to deal with taxes here or back in the US. Can anyone break this down for me as to its meaning.

thanks

Thickheaded in Schaffhausen
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Old 26.06.2009, 23:38
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Re: revised double taxation agreement with the US

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I think I'm being thick headed here. Since this is my first year in Switzerland - I haven't had an opportunity yet to deal with taxes here or back in the US. Can anyone break this down for me as to its meaning.

thanks

Thickheaded in Schaffhausen
not sure from a quick read, but my guess is if you are not extremely wealthy, it probably won't make a bean of difference to you. You will go along the regulary route of filing and paying Swiss taxes and using tax credits to eliminate most your US tax liability. I could be wrong though.
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Old 27.06.2009, 00:00
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Re: revised double taxation agreement with the US

I like the sound of that -- unfortunately not so simple for me. I still need to consult the Canton - but I'm actually self employed and my business is based in the US. I process all of my transactions through my host in Dallas (travel agency) and then pay myself in the US. So technically I don't earn any money here in Switzerland - only in the US - yet I now live here - even though I still have a residence in the US. All crazy confusing. I finally was able to estabilish a wire link from the US so now I need to find out what my liabilites are here and hope that they offset my US taxes.

ack - ack - ack
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Old 12.07.2009, 19:42
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Re: revised double taxation agreement with the US

I will be coming to Switzerland for an assignment and my company will pay for all the extra tax. My husband will come with me - he has a job in US that allows him to work remotely, and salary pays to his US bank account. In this case, does he have to pay any tax in Switzerland? I believe that he still has to pay US tax since it is a US job. I am concerned that he will be double-taxed.
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Old 12.07.2009, 20:03
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Re: revised double taxation agreement with the US

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I will be coming to Switzerland for an assignment and my company will pay for all the extra tax. My husband will come with me - he has a job in US that allows him to work remotely, and salary pays to his US bank account. In this case, does he have to pay any tax in Switzerland? I believe that he still has to pay US tax since it is a US job. I am concerned that he will be double-taxed.
Swiss residents are taxable on all global assets and all global income. You and your husband must file a joint tax declaration in Switzerland showing both US and Swiss income.

The CH/US tax treaty should prevent some of the double taxation.
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Old 12.07.2009, 20:32
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Re: revised double taxation agreement with the US

Thanks for the quick reply!!

Am I correct that under the following 3 scenarios for my husband we will have to pay US and Swiss tax while we are living in Switzerland:
1) a job with an US company
2) a job with a Switzerland company
3) a job in US, another job in Switzerland

I am assuming that he has to apply for resident permit even under scenario (1) if he is going to stay with me (the assignment is 2 years), correct?
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Old 12.07.2009, 23:09
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Re: revised double taxation agreement with the US

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Thanks for the quick reply!!

Am I correct that under the following 3 scenarios for my husband we will have to pay US and Swiss tax while we are living in Switzerland:
1) a job with an US company
2) a job with a Switzerland company
3) a job in US, another job in Switzerland

I am assuming that he has to apply for resident permit even under scenario (1) if he is going to stay with me (the assignment is 2 years), correct?
All foreigners must get a residence permit. That is fairly simple for EU nationals. Everyone else must have their applications processed.

All residents in Switzerland must pay Swiss taxes on all their worldwide income and worldwide assets. Job location, company location, nationality of resident, etc. are all irrelevant. When you reside here you are taxed on all of it. No ifs and buts.

Couples must file a joint Swiss tax return. Hence, income of husband and wife are aggregated. This can catapult you into the highest tax slab.

I am ignorant about US taxation. Presumably you are US citizens and are liable to US taxes too.

Ask your employer to recommend an expert on CH and US taxation.
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