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Article written by Julia Lovett, ITECS. (2006) Cantons in Switzerland Switzerland is divided into 26 federated states, of which 20 are cantons and 6 are half-cantons. The canton acts as the local administrative office and all registration formalities are carried out here. Procedures, regulations and even taxation rates vary from canton to canton. Claiming Expenses in Switzerland The expenses that you can claim whilst working for clients in Switzerland depend on which Canton you are living in. A fairly good level of expertise is required when arranging expenses in Switzerland, as certain types need to be included on the employment contract in order to be valid. There is, however, a standard CHF 1500 Expatriate allowance that is usually available in all Swiss cantons. Finding a Licensed Employer Companies wishing to hire contractors in Switzerland are required to hold a labour license. If you have problems finding a licensed employer, or a client without a license offers you a contract, you could consider using a licensed management company who offer an employer-based solution which counteracts this obstacle. Tax Returns Unlike most countries in the EU, tax returns are not normally required in Switzerland. The Swiss tax authorities reason that as long as you’re on a local payroll, the PAYE taxation system is handled sufficiently enough through the monthly payroll. Social Security Despite the fact that Switzerland is not in the EU, they have agreed to the European treaties on Social Security. Therefore, assuming your employer can obtain one for you, an E101 can be used in Switzerland to allow you to remain paying Social Security contributions in your home country. Be sure to contact a European accountant or management company in order to work through the intricacies of the Swiss tax system before embarking on a contract abroad. This should help to avoid any unnecessary pitfalls and could also provide more tax-efficient ways of working whilst contracting in Switzerland. ITECSis a payroll management company assisting Expatriates with their contracts abroad. To receive a personalised breakdown on how ITECS can help you, call +31 10 205 1660 (The Netherlands) +32 3 400 6363 (Belgium) or +44 208 863 2589 (UK). Previous Page
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