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Tax in Switzerland

Tax in Switzerland


My client has just asked the following question:

He is resident in the UK but now has significant self employment generated in Switzerland. He has been granted permission to stay/work in Switzerland for up to 250 days a year (though I don't think he will always use this allowance to the full extent). He will remain a resident in the UK despite the number of days away I believe, as he has Self employment income here and significant ties to the UK. One of the aspects of his self employment in Switzerland is that he is granted the use of an apartment while he is in Switzerland, though it will not be in his name but rather in the name of the group he is working for. 

Can you please shed any light on special considerations I need to be aware of?

I anticipate declaring his full Swiss income on his UK tax return and claiming credit for the Swiss tax paid at source. I don't think I need to concern myself with the use of the apartment business but is that correct?

Many thanks,


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06th Aug 2012 13:58

sounds like he might be Swiss tax resident too

DT18156 - Switzerland: double taxation agreement, Article 7: Business profits

(1) The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other State but only so much of them as is attributable to that permanent establishment.

(2) Subject to the provisions of paragraph (3), where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributable to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment.

(3) In determining the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the permanent establishment, including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere.

Sounds to me like he might be Swiss resident [ I am definitely not a Swiss tax adviser] for tax and so this needs careful attention.    You should be talking to Swiss adviser or exactly exploring the source of the self-employed income.


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