Lump-Sum Taxation - Revitrag Treuhand AG
Transcription
Lump-Sum Taxation - Revitrag Treuhand AG
______________________________________________________________________________________ Lump-Sum Taxation An overview Foreigners moving to Switzerland for the first time without remunerative employment here are offered the opportunity to agree with the tax authorities on a permanent lump-sum tax, which as a rule will represent only a fraction of the taxes that would otherwise be payable on their worldwide income. The lump-sum tax is applicable with both federal and cantonal taxes. Some Cantons differ in the period of the right to be taxed on a lump-sum basis. The taxation is based on a person's annual living expenses which are charged at the normal tax rates. The living expenses must be equal to five times the rent a taxpayer pays for the apartment or the house he lives in, respectively five times the rental value of his property if he lives in his own house or apartment; for taxpayers who do not have their own household, the minimum is twice the price they pay for accommodation and full board. In practice, a lump-sum is initially agreed upon by the taxpayer and the tax authorities which will hardly be challenged and is left unchanged for several years. In most Cantons there are no wealth taxes for persons taxed under these rules. However, at least the income from Swiss sources (and foreign sources for which double taxation treaties are claimed) is taxed in full. Foreigners under the lump-sum regime may reclaim withholding taxes. The double taxation treaties of Belgium, Germany, Italy, Canada, Norway, Austria and the USA allow this form of taxation only when income deriving from these countries are taxed separately. France accepts the lump-sum taxation only when the taxable income is higher than five times of the rent. Swiss citizens may ask for taxation under the lump-sum taxation regime during the first year of their return from abroad after being for at least ten years outside of Switzerland. Exempt from lump-sum taxation are persons who take up personal professional activities in Switzerland, e.g. artists, scientists, inventors and athletes. Criterion is the place of work. The lump-sum taxation may entail substantial tax savings compared to the regular taxation regime. Wealthy EU citizens who continue gainful employment outside Switzerland may benefit from extremely attractive taxation models if they choose to move to Switzerland. Revitrag Treuhand AG Metallstrasse 9a CH-6304 Zug Tel. +41 41 726 09 00 Fax +41 41 726 09 01 Email: [email protected]