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Double Taxation Treaty UK/Swiss

Do universities come under the definition of "government service"?

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I have a client who is a UK national, who has spent some time teaching in Switerland at a publicly funded university. 

Under the double taxation treaty, article 19, Goverment Service,

"Remuneration, other than a pension, paid by a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State"

Which suggests its all taxable in Switerland only, but is teaching at a univeristy considered a 'government service'?

They have paid local taxes.

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By Tax Dragon
14th May 2020 15:01

Do you have access to Schwarz on Tax Treaties? I know someone in here does, but it doesn't appear to be me.

I wondered if it helped, since it's mentioned at ¶171-450 of Direct Tax Reporter.

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By Tax Dragon
14th May 2020 15:02

(FWIW, my uninformed answer is "doubt it".)

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Replying to Tax Dragon:
By ireallyshouldknowthisbut
14th May 2020 18:57

I had a long chat with my technical support line i use (well 2 chats actually!). The conclusion was it was probably WAS a government service, in that this term is not defined anywhere other than the dictionary definition of it, but they thought the general rules on worldwide income (ie its taxable) override the treaty in this instance. Which seems odd to me as I thought treaty overrides were not something the UK did very much, but I am not a CTA so get a bit lost in this area.

I am not familiar with the publication you mention and it doesn't seem to be on Bloomsbury, or at least the freebie access I get with the ICAEW.

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Replying to ireallyshouldknowthisbut:
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By Tax Dragon
14th May 2020 22:43

ireallyshouldknowthisbut wrote:

They thought the general rules on worldwide income (ie its taxable) override the treaty in this instance.

I'd love to know the basis of that thought, because I agree with you- it sounds odd (to say the least).

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