HI there,

If you are Swiss resident then you pay Swiss taxes on your worldwide income and this must be declared in your annual income return. Since Swiss taxes and AVS rates are lower than most other countries, it is usually beneficial.

You mention an agency as an intermediary and this opens a can of worms with regards to employment law.

I can recommend a very good fiduciare (accountant) who speaks English. Contact Francesco Zagato on 079 647 85 87 for advice on Swiss taxes.

Regards,

Ian Stanton

Wow Red, that's a very specific question you're asking. I think you'll need a real tax expert to answer this, not just someone with a passing knowledge of tax.

I have a friend who works with the tax folks, let me ask him for contacts and I'll revert.

Nir

Hi,

In order to determine how you might be taxed and which social charge system would apply, you really have to sort out the nature of your relationship with the agency and your status under the supply contract.

As a non eu national the b permit would have been granted in respect of your cv and skills, for a specific job, but without an automatic right to professional mobility. So the agency would have to agree to engage you as an employee, and sponsor the transfer of your work permit.

Having secured the continuation of your right to be resident in Switzerland, you can also be considered trax resident and benefit from protection under the Swiss-S Africa tax treaty.

If you will be transferred to the S Africa client under a project contract.then you can remain in the Swiss social charge system and making payments to the LPP of the agency. You will only pay tax in Switzerland providing you work in SA for less than 183 days in a given tax year, in practice that means until June 2011.

However, if you are to be to hired-out, ie put at the dsposal of the SA client with employment rights transferred to them, then as Ian suggested this opens a very different can of worms and really you should ask your agency what arrangements they have in place and if they are licensed to hire out staff in SA. At the very least they should be working with a decent management company to resolve compliance and tax planning issues.

In either case however your agency should be able to negotiate a very reasonable tax free per diem whilst you are on site.

Good luck

Phillip

Hi Phillip, many thanks for your advice.

Firstly, I have a UK passport (hence am European national). Second, am working in Gabon not SA (hence no DTA). Not sure if this impacts your advice?

Are you saying that if a fee is paid, I can become swiss non-resident and then, once contract is over, I can regain my Permis B? 

If I remain as employee of the swiss agency, does this mean, provided I work the next six months in Gabon, I don't pay any swiss tax?

It seems that you recommend I remain employee of - or at least bound to - the swiss agency rather than being tied to the African client?

Yes, all good with Per Diems

cheers

Daniel

F.Y.