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Forums in Geneva > Geneva > Looking to voluntarily(!) pay Swiss tax
 
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Looking to voluntarily(!) pay Swiss tax

Hi all,


Just wondering if anyone is in a similar situation to me and has any advice. I work at an international organisation so I don't pay tax in Switzerland. But I'm employed by a Norwegian institute, and in order not to pay tax in Norway I have to get a declaration from the Swiss tax authorities that says I'm resident in Switerland for tax purposes. But... since I'm not paying Swiss tax they don't have me in the system and can't give me anything. The residence certificates you can get from the population office in Onex won't do, it has to be from the tax office.


Since tax is much lower here than in Norway it would be best to voluntarily pay Swiss tax (also makes more sense since I live here), but is this actually possible with the papers I have (P permit)? How do you go about this?


Thanks for any advice!


David

The text you are quoting:

Hi all,


Just wondering if anyone is in a similar situation to me and has any advice. I work at an international organisation so I don't pay tax in Switzerland. But I'm employed by a Norwegian institute, and in order not to pay tax in Norway I have to get a declaration from the Swiss tax authorities that says I'm resident in Switerland for tax purposes. But... since I'm not paying Swiss tax they don't have me in the system and can't give me anything. The residence certificates you can get from the population office in Onex won't do, it has to be from the tax office.


Since tax is much lower here than in Norway it would be best to voluntarily pay Swiss tax (also makes more sense since I live here), but is this actually possible with the papers I have (P permit)? How do you go about this?


Thanks for any advice!


David


davidcSep 14, 2011 @ 21:37
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Re: Looking to voluntarily(!) pay Swiss tax
Post 1

When reading the title I first thought you were one these guys:


German Millionaires Volunteer to Pay 'Rich Tax

http://www.cnbc.com/id/37610762/German_Millionaires_Volunteer_to_Pay_Rich_Tax

The text you are quoting:

When reading the title I first thought you were one these guys:


German Millionaires Volunteer to Pay 'Rich Tax

http://www.cnbc.com/id/37610762/German_Millionaires_Volunteer_to_Pay_Rich_Tax


rena, Sep 14, 2011 @ 22:57
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Re: Looking to voluntarily(!) pay Swiss tax
Post 2

hehe, no I'm not a millionaire, just if I have to pay tax I'd rather do it in the country where I actually live... it just so happens that in this case that country happens to have a lower rate :)

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hehe, no I'm not a millionaire, just if I have to pay tax I'd rather do it in the country where I actually live... it just so happens that in this case that country happens to have a lower rate :)


davidc, Sep 15, 2011 @ 10:43
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Re: Looking to voluntarily(!) pay Swiss tax
Post 3

David if I were you I would ask for the specific basis under which they consider you are subject to norwegian tax, either under their tax code or in the treaty between Norway and CH..


For normal employees, income or withholding tax is based on residence and/or where duties are performed and neither of these are Norway.


The place of both the employer and where payments are made, is incidental.


 

The text you are quoting:

David if I were you I would ask for the specific basis under which they consider you are subject to norwegian tax, either under their tax code or in the treaty between Norway and CH..


For normal employees, income or withholding tax is based on residence and/or where duties are performed and neither of these are Norway.


The place of both the employer and where payments are made, is incidental.


 


wilycoyote, Sep 15, 2011 @ 10:11
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Re: Looking to voluntarily(!) pay Swiss tax
Post 4

Generally, you pay tax in the country you work - but get a tax advisor..


The Norwegian tax claim seems frivolous.

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Generally, you pay tax in the country you work - but get a tax advisor..


The Norwegian tax claim seems frivolous.


FerneyL, Sep 15, 2011 @ 10:59
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Re: Looking to voluntarily(!) pay Swiss tax
Post 5

..if you are seconded, it may be that you are tax liable to your home country.. I'd think everyone researched that prior to expatriating? ;)

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..if you are seconded, it may be that you are tax liable to your home country.. I'd think everyone researched that prior to expatriating? ;)


FerneyL, Sep 15, 2011 @ 11:01
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Re: Looking to voluntarily(!) pay Swiss tax
Post 6

To quote the reply I got from Norwegian tax office:


" the salary from Norway will be exempt from tax in Norway only if you are a resident in Switzerland in accordance to Swiss internal law and in accordance to the tax convention between Norway and Switzerland. The Certificate of Residence must be issued by the tax authorities and explicitly certify that you are a resident for tax purposes in the country in question pursuant to the tax treaty with Norway. "


.. but as I said the Swiss can't give me anything since I'm not in the system.


Over the last few months of dealing with this I've concluded that tax bureaucracy anywhere cannot deal with any situation slightly outside the norm...

The text you are quoting:

To quote the reply I got from Norwegian tax office:


" the salary from Norway will be exempt from tax in Norway only if you are a resident in Switzerland in accordance to Swiss internal law and in accordance to the tax convention between Norway and Switzerland. The Certificate of Residence must be issued by the tax authorities and explicitly certify that you are a resident for tax purposes in the country in question pursuant to the tax treaty with Norway. "


.. but as I said the Swiss can't give me anything since I'm not in the system.


Over the last few months of dealing with this I've concluded that tax bureaucracy anywhere cannot deal with any situation slightly outside the norm...


davidc, Sep 15, 2011 @ 11:24
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Re: Looking to voluntarily(!) pay Swiss tax
Post 7

If you are at risk of having to pay the high Norwegian tax, why do you deal with complex tax matter yourself, and not a tax professional?

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If you are at risk of having to pay the high Norwegian tax, why do you deal with complex tax matter yourself, and not a tax professional?


FerneyL, Sep 15, 2011 @ 11:34
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Re: Looking to voluntarily(!) pay Swiss tax
Post 8

To quote the reply I got from Norwegian tax office:

" the salary from Norway will be exempt from tax in Norway only if you are a resident in Switzerland in accordance to Swiss internal law and in accordance to the tax convention between Norway and Switzerland. The Certificate of Residence must be issued by the tax authorities and explicitly certify that you are a resident for tax purposes in the country in question pursuant to the tax treaty with Norway. "

.. but as I said the Swiss can't give me anything since I'm not in the system.

Over the last few months of dealing with this I've concluded that tax bureaucracy anywhere cannot deal with any situation slightly outside the norm...


Sep 15, 11 11:24

In respect of employment income the tax treaty is intended to avoid double taxation resulting from one country being your home country and the other being your work country.


Norway is neither so I would ask for the specific provision under which they consider you to be liable.


A tax on payments to non residents because of the duties they perform, usually only applies to directors and the obligation would be on the paying (Norwegian) company, to withhold at souirce. If youre not one of those, ask them to be precise

The text you are quoting:

In respect of employment income the tax treaty is intended to avoid double taxation resulting from one country being your home country and the other being your work country.


Norway is neither so I would ask for the specific provision under which they consider you to be liable.


A tax on payments to non residents because of the duties they perform, usually only applies to directors and the obligation would be on the paying (Norwegian) company, to withhold at souirce. If youre not one of those, ask them to be precise


wilycoyote, Sep 15, 2011 @ 11:48
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