Tax for working abroad in spare time

Finance, Taxes, Banking, Insurance and Retirement
1
Hi, I'm holding a B/L visa, and I recently was contacted for a remote consulting job in US.

I planned to do the work in my spare time and not affect my official job in Switzerland.

My nationality was outside EU.

If the client transfer money to my bank in my home country, can / should Switzerland charge tax for my work?

(simply put: physically live in Switzerland, but working for US company while having jobs in Switzerland)

Thanks.

2

Sorry, but as a non-EU national you’re not allowed to work for anyone other than your employer. Your permit is tied to them and doesn’t allow you to work for anyone else.

3
Unless your permit authorises you to perform such freelance work, which would be unusual for a non EU citizen, then you will have bigger issues than taxes if you get caught. Any whether or not you get caught or someone reports you is an unknown.

And of course you should have authorisation for your employer as well.....

4
Thanks.

But even my working contract is not 100%?

My contract is actually 70% now, and does that mean I can do nothing for the rest 3.5 days in a week to get paid unless I'm authorized?

5
As far as I know, my US colleague who also has a 70% contract also do business for his own firm in the US in his spare time.

6
Your permit is most likely tied to your employer. As a non EU you just cannot start another job without approval. Because in principle for that 30% your permit is not valid, your permit is approved to work only for that company, not for another.

7

Doesn’t mean it’s legal. Depends on what type of permit he has compared to yours.

8
So what if the company is not in Switzerland...

9

Yes, it means exactly that. Your permit is tied to your employer and you can only do work for them, no one else. It’s that simple.

10

I know nothing, but with my common sense the Swiss permit is only for work within Switzerland. The work permits were designed to protect the local Swiss job market. I guess technically OP could live in Switzerland only for 70% of the time according to his Swiss work contract. Now, the possibilities to work remotely, virtually anywhere make some interesting challenges for outdated rules.

11
Your common sense means nothing to the immigration authorities and won’t help if his permit gets pulled.

12
Two wrongs don’t make a right.....

At the end of the day you have to decide if it is worth the risk of having your permit cancelled and being recorded on the Schengen System or not. You may get away with it or not, it’s something you have to decide.

13
Simple flow chart:

Is your permit tied to your employer?

Yes - you can't do it. Stop.

No - does your contract with your employer allow you to work for someone else

No - you can't do it. Stop.

Yes - you can do it.

Or - if your permit is not tied to your employer, and your contract with them allows other work, then you can take this extra work.

The tax is due where you perform the work. If you are in Switzerland, the tax is due in Switzerland. If you are paid into a foreign account, that's tax evasion which is civil offence and leads to penalties and interest. You should declare the foreign income on your tax return.

14
Exactly.

Tom

15
OK, then I'll refuse the consulting work.

Thank you everyone for the info.

16
I think you should first find out whether your work permit is tied to your employer - highly likely but given that you are on a 70% contract, you may be pleasantly surprised. Ask your employer - am sure they will not look at you askance for wanting to do something to use up the 30%.

17
Check the back of the permit for these words:

Selbst. Erwerbstätigkeit ist bewilligungspflichtig (Self. Gainful employment requires a permit)

18
Keep in mind that if working for a US company, OP will receive a W-2 wage and income statement and that means also filing US taxes. That may or may not involve paying any tax, one would have to study on the dual-taxation agreements between CH and USA.

19
True. Tax is definitely due in Switzerland, but it may also be due elsewhere. Dual taxation will ensure you don't pay tax twice on the same income.

20
it is "Stelle- und Berufswechsel bewillingungspflichtig".

Change of job and occupation requires a permit?