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ConclusionVI
“roads and bridges” engineer for 60 days. Company X recruits and contracts T, tax resident in Greece, through a local contract and sends her to Switzerland. Beyond the fact that this contradicts the ban on foreign labour-leasing companies leasing staff to Swiss companies (article 12, paragraph 2 of the LSE), article 15, paragraph 2 of the DTA with Greece does not apply because the service that T is providing corresponds to the business activities of company Z, and not company X which is purported to employ her. Her real employer is company Z. Once again, the worker should be taxed at source.
CONCLUSION
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As we have seen, tax liability for posted workers and short-term staff in Switzerland is complex. This is especially important in that a misjudgement can have unfortunate consequences not only for the worker but also for their employer. For example, a company that incorrectly concludes that their employee does not need to be taxed at source in Switzerland may end up having to pay twice. It is important to examine each case on its own merits and avoid making assumptions. Both internal tax law and double-taxation agreements need to be analysed in detail. Also, workers must ensure they provide their employers with full details of their personal and family situations.
If you need any advice on this issue, please contact us.
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