We can see that limited liability causes accounting problems in the context of international agreements to prevent double taxation. We will return to this point in detail later. Finally, it is worth noting that posted workers with limited liability in Switzerland (specialists and directors) can at federal level claim the additional deductions laid down in article 2 paragraph 1 of ExpatO. These cover the cost of travelling between their home abroad and Switzerland, together with reasonable accommodation costs if the expatriate maintains a permanent home for their personal use in a foreign country. There are however restrictive conditions.
TAXATION AT SOURCE A) Taxation at source for workers resident or domiciled in Switzerland Taxation at source differs from ordinary taxation by the way it is collected. The tax is paid not by the person receiving the sum to be taxed (the employee) but by the person paying it (the employer). Those taxed at source in Switzerland include foreign workers domiciled or staying in Switzerland under a permit B or L (article 83 of LIFD). This tax collection method has two aims: firstly, it helps fight tax evasion in a situation where, for example, a short-term worker could leave Switzerland without paying their taxes, and secondly it makes life easier for new foreigners arriving in the country who have limited knowledge of Swiss laws and may not speak the national languages. Holders of settlement permits (permit C) are however taxed under the ordinary system. It is impossible to cover all the rules relating to taxation at source here. We will limit our comments to the salient points: 1) Taxation at source applies to all revenue from dependent gainful activity (salary, bonus, overtime, profit-sharing schemes, long-service bonuses, meal and transport allowances, etc.). The amount withheld is calculated based on the gross, not the net, salary. This is because social security contributions (first and second pillar), accident and loss of earnings due to illness scheme contributions, the cost of travel to work, allowances for children and other deductions are already integrated into the various tax schedules.
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