Tax Liability

[stevenshaw]

Hi Chaps

I will shortly be conducting a short IT project where the sourced income will be Switzerland. I am free to conduct the project remotely.

My situation is as follows, Im a UK resident, but not tax resident? as I was working in the Netherlands for over 2 years on another contract. The contract expired 3 months ago and since then I have been staying on holiday in Asia.

I wish to conduct the project in Singapore where will my tax liability reside? I know that in Singapore all foreign sourced income received by a non-resident is not liable. Would I then require a work permit?

Thanks in advance

[Emigre]

Hi Chaps

I will shortly be conducting a short IT project where the sourced income will be Switzerland. I am free to conduct the project remotely.

My situation is as follows, Im a UK resident, but not tax resident? as I was working in the Netherlands for over 2 years on another contract. The contract expired 3 months ago and since then I have been staying on holiday in Asia.

I wish to conduct the project in Singapore where will my tax liability reside? I know that in Singapore all foreign sourced income received by a non-resident is not liable. Would I then require a work permit?

Thanks in advance

I suggest you get proper tax advice on this one from an international firm. I am not a tax lawyer but it looks to me as if you could fall into the class of "perpetual traveller" that has no tax residency but clearly you need to know that first so you don't end up worse off.

[Menelaus]

I suggest you get proper tax advice on this one from an international firm. I am not a tax lawyer but it looks to me as if you could fall into the class of "perpetual traveller" that has no tax residency but clearly you need to know that first so you don't end up worse off.

WHS - seriously, you need to get some good advice and pay the going rate for it. Did you specifically tell HMRC that you were leaving UK?

[stevenshaw]

I was actually tax resident in the Netherlands, so tax returns for 2007 and 2008 for the UK were not valid, however I will need to fill one in for 2009 at some point as I will reside in the UK during the next few months. Is it legal to conduct work in Singapore or will I require some sort of 'Work Visa'?

[Fred Bloggs]

And if that's your real name, I'd ask CUK admin to change it asap.

[expat]

Hi Chaps

I will shortly be conducting a short IT project where the sourced income will be Switzerland. I am free to conduct the project remotely.

My situation is as follows, Im a UK resident, but not tax resident? as I was working in the Netherlands for over 2 years on another contract. The contract expired 3 months ago and since then I have been staying on holiday in Asia.

I wish to conduct the project in Singapore where will my tax liability reside? I know that in Singapore all foreign sourced income received by a non-resident is not liable. Would I then require a work permit?

Thanks in advance

I was under the impression that if you are UK resident, then you are UK tax resident. You might also have been resident in NL, or you might have been UK-resident bur taxed in NL and not in the UK under the treaty; but neither of these would mean that you were not UK tax resident.

Are you sure that you are not UK tax resident?

[pzz76077]

Switzerland have some of the toughest laws on this kind of thing and if you are contracting through a Swiss agency then they have a legal obligation to ensure all relevant taxes are paid or they end up being liable themselves. Many Swiss agents will pay you gross under any circumstances (one of the primary reasons that I have never worked there) for this reason.

============================================

At: http://www.contractoruk.com/overseas...Money_Tax.html

It sais: Non-residents are taxable on income arising on permanent establishments and real estate located in Switzerland, but the rate of tax is based on the individual's world-wide income.

and

All individuals working in Switzerland on an “L” or “B” permit will automatically be taxed at source (similar to PAYE). Any expenses may be offset on the yearly tax return if applicable and will be refunded if accepted.

==============================

Generally it would depend on where your contract is written. If its written with respect to Swiss tax law, then you will get stung, but for how much you would need to speak with a Swiss taxation expert. Your agent should be able to suggest someone they have worked with in the past.

Hope this helps.

PZZ

[pzz76077]

OPPs getting late!

Switzerland have some of the toughest laws on this kind of thing and if you are contracting through a Swiss agency then they have a legal obligation to ensure all relevant taxes are paid or they end up being liable themselves. Many Swiss agents will not pay you gross under any circumstances (one of the primary reasons that I have never worked there) for this reason.

============================================

At: http://www.contractoruk.com/overseas...Money_Tax.html

It sais: Non-residents are taxable on income arising on permanent establishments and real estate located in Switzerland, but the rate of tax is based on the individual's world-wide income.

and

All individuals working in Switzerland on an “L” or “B” permit will automatically be taxed at source (similar to PAYE). Any expenses may be offset on the yearly tax return if applicable and will be refunded if accepted.

==============================
You would also need to establish your eligibility to obtain work in Switzerland as they have quite strict rules in this area also.

Generally it would depend on where your contract is written. If its written with respect to Swiss tax law, then you will get stung, but for how much you would need to speak with a Swiss taxation expert. Your agent should be able to suggest someone they have worked with in the past.

Hope this helps.

PZZ

[pzz76077]

Also I have just noticed here http://www.iras.gov.sg/irasHome/page04.aspx?id=244

that the tax rate for those deemed non-resident is 20% of worldwide income so you may want to check this out with an expert also.

PZZ

[NotAllThere]

..
You would also need to establish your eligibility to obtain work in Switzerland as they have quite strict rules in this area also. ...

If he's an EU citizen then there isn't a problem. EU citizens have a right to take up work in CH, if offered. No quotas any more.