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Old 30.07.2010, 16:08
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Monthly Expatriate Expense Allowance

Hi All,
I just came across this relatively 'new' tax term that I haven't heard earlier - Monthly Expatriate Expense Allowance.

The exact description mentions:
The standard federal expense allowance for salary considered exempt from tax and social deductions is CHF 1500.00 pcm, for up to 5 years from the time of entry to Switzerland. A higher expense allowance may be possible to claim against submission of receipts for exceptional costs.

Here's the site where I noticed this -
http://212.90.216.117/revenueestimate/mainForm.jsp

Any pointers would be welcome. As obviously I haven't seen this exemption on my salary slip yet

Cheers,
Abhi
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Old 30.07.2010, 16:11
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Re: Monthly Expatriate Expense Allowance

most places wont give you this as standard, as if you underpay and then leave they are responsible for your tax. you'll have to fill in a tax return and wait.
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Old 30.07.2010, 16:23
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Re: Monthly Expatriate Expense Allowance

This ain't new - it was there when we arrived in 2002.

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A higher expense allowance may be possible to claim against submission of receipts for exceptional costs
I don't think so. It is hard enough in Kanton Zuirch just to claim the CHF 1500 a month - a few friends were denied.

Employee get a standard allowance for travel to work and food, so don't bother collecting receipts.
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Old 30.07.2010, 16:25
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Re: Monthly Expatriate Expense Allowance

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This ain't new - it was there when we arrived in 2002.



I don't think so. It is hard enough in Kanton Zuirch just to claim the CHF 1500 a month - a few friends were denied.

Employee get a standard allowance for travel to work and food, so don't bother collecting receipts.

1st year we where here Zurich gave us the allowance no problem, 2nd year fine, 3rd year they said no, so we appealed and got it again, 4th year no issue again.
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Old 30.07.2010, 16:32
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Re: Monthly Expatriate Expense Allowance

I never understood this term either.

So you get 1500 a month extra? or 1500 that is tax free.
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Old 30.07.2010, 16:37
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Re: Monthly Expatriate Expense Allowance

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I never understood this term either.

So you get 1500 a month extra? or 1500 that is tax free.
It's 1500 tax free. you should talk to the payroll department of your company, or agent. Unless they have changed the rules since i had it, it is a right
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Old 31.07.2010, 23:14
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Re: Monthly Expatriate Expense Allowance

Hi

Is this applicable for people for whom quellensteur is deducted.
can you send the link which has this legislation.

thanks in advance.
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Old 01.08.2010, 08:34
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Re: Monthly Expatriate Expense Allowance

I got it for the first three years here. 18'000CHF per year. Very nice. It was my accountant who put the claim in for us - but I was earning sufficient that I had to fill in a tax return, despite being on quellensteuer. I understand that it's supposed to cover additional costs incurred by being over here and still maintaining a home over there. My accountant said he wasn't 100% sure it was applicable to us, but that the tax people could knock it back if they didn't like it.

If you don't have to fill in a tax return, you could ask for one - there's been varying degrees of success for this - but bear in mind that you might end up paying more tax than with sticking with simple tax at source.
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Old 01.08.2010, 08:49
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Re: Monthly Expatriate Expense Allowance

There are rules, and what I say may not be exact, but

- You're maintaining a home abroad
- Can claim for upto 5 years
- Applies for first employment only

It isn't magical no-questions-asked free money.

Of course, if you're maintaining a home abroad then you need to declare it (value, mortgage, interest paid, nominal income etc) if want to claim this allowance... it's cuts both ways...
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Old 01.08.2010, 09:00
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Re: Monthly Expatriate Expense Allowance

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- Applies for first employment only
Ah. I did wonder why I only got it for three years.
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Old 01.08.2010, 09:53
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Re: Monthly Expatriate Expense Allowance

[QUOTE=gbn;894513]There are rules, and what I say may not be exact, but

- Applies for first employment only


1.This is applicable if you have contract job (for a limited period).
2.This is not applicable to permi(indefinite period).
3.Once you take a permi job , you cannot claim it even if you switch to contract again.
4.This also applies to all the body shopping job for companies registered outside swiss.
5.Valid for the first 5 years.
6.There is no requirement to maintain a home abroad (no receipts required)
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Old 16.08.2010, 13:55
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Re: Monthly Expatriate Expense Allowance

I received it as a freelance, albeit paid employee, of several agencies, over a number of years. Five as I recall.
Perhaps it applies to first employment in a permanent role, but not contract positions.
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Old 16.08.2010, 14:12
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Re: Monthly Expatriate Expense Allowance

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I received it as a freelance, albeit paid employee, of several agencies, over a number of years. Five as I recall.
Perhaps it applies to first employment in a permanent role, but not contract positions.
Same with me as a contractor but, and it's a nasty but, I was informed a years after the end of that lovely period that it was a mistake and I should have lost the privilege after just 2 years when my family moved over (makes sense). Not my fault, nor my accountants I think, but I had to pay backdated tax and interest. It hurt.
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Old 16.08.2010, 14:31
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Re: Monthly Expatriate Expense Allowance

This page linked from the Swiss Greek Chamber of Commerce website seems to have a lot of useful information/ unofficial translations of the relevant laws in a number of popular cantons:

http://www.s-g-c-e.org/index2.php?op...do_pdf=1&id=52

Unfortunately it also categorically excludes my case from eligibility for this allowance - bummer.
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Old 16.08.2010, 14:55
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Re: Monthly Expatriate Expense Allowance

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Same with me as a contractor but, and it's a nasty but, I was informed a years after the end of that lovely period that it was a mistake and I should have lost the privilege after just 2 years when my family moved over (makes sense). Not my fault, nor my accountants I think, but I had to pay backdated tax and interest. It hurt.
I was still "technically" married, and my family didn't join me, my divorce wasn't until some time after I stopped receiving it.

But Bob, did you still maintain a property in the UK, as I was doing, regardless of your family's location?
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Old 16.08.2010, 15:22
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Re: Monthly Expatriate Expense Allowance

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I was still "technically" married, and my family didn't join me, my divorce wasn't until some time after I stopped receiving it.

But Bob, did you still maintain a property in the UK, as I was doing, regardless of your family's location?
Nope, burnt all the bridges . Good job I ike it here.
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Old 20.08.2010, 18:09
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Re: Monthly Expatriate Expense Allowance

so no chance for a expat under 120k, single, in first job, taxed at soruce, lives in kanton zurich, doesn't maintain a house abroad and is on a permi contract?
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Old 11.04.2011, 17:06
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Re: Monthly Expatriate Expense Allowance

One question:

The documents refers to expats (employees for an international company that are relocated for a fillial or for a project).

I think that first job is not in expat category.

First or second. If you are applying for a job in Switerzland on your own you are not a expat.

Only if relocated by your company.

Am i right?
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