UK Ltd Company - Switzerland - Tax in country?

UK Ltd Company contracted to Switzerland - Tax and Invoicing?

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Hiya

I have a client who has been asked to work in Switzerland for 6 months, he has a UK Ltd Company and wants to invoice and hold the contract through the company.  As the invoice will be from a UK Ltd company does this mean he can avoid having to pay switzerland tax as well?  I know that after 3 months he has to apply for a visa but does that effect tax status?

The British Embassy are being as much use a chocolate fire guard!!

Many thanks all

Clara 

Replies (2)

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By Tim Vane
21st Sep 2018 16:42

Your last paragraph confuses me. Why would he expect the British Embassy to be handing out tax advice?

That aside, you need to go back to basics. If he is moving to Switzerland will the company be deemed to have a permanent establishment there (place of control etc) and if so how does that affect the Swiss tax view. Start by reading the DTT and see what it says. Visa status is almost certainly irrelevant but read the DTT to be sure.

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By Matrix
21st Sep 2018 17:08

I would start with the domestic law position first before looking at the treaty. Per above you will need to find out if there is a PE so your client will need to engage a local adviser to address this and the indirect tax implications. The rules for consultants with personal service companies may well be different in Switzerland.

The consultant should take this advice before agreeing the contact rate since Swiss taxes may be higher.

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