I want to know how much and what kind of taxes I will have to pay the US government in the situation where I would live in Switzerland working remotely from my home as an independent contractor (1099) to a US company and I would be paid to a US bank account. If possible, I would also like to know what taxes I would have to pay to the Swiss government.
United States - 6 Answers
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1 :
Yes Uncle Sam needs your money! It would be a good idea to check with your banker.
2 :
You pay no US taxes unless your total earnings equals more than 70,000 USD for a tax year and you live at least 3/4 th's of a year out of the US. At the American embassy they will have a special 1040 form and attachments for guys like you and me. Swiss taxes? If you are paid directly then your company has to organize that, at least in most countries. American embassy could clue you in on local policy, too.
3 :
As a US citizen, you will be taxed by the US on your worldwide income. I am not familiar with Swiss Tax law, but I am sure that if you are a resident there, they will tax you as well. The upside to this is that you will be able to take a tax credit (not a deduction) on your US tax return for the taxes paid to a foreign country. Credits are better than deductions because they reduce your tax dollar for dollar, while a deduction reduces your taxable income. Enjoy Switzerland, you lucky....!
4 :
As an independent contractor you are responsible for all us taxes federal & state. As for what youhave to pay to the Swiss I don't think anyting. But I would check with a financial advisor, maybe one from the company you work for.
5 :
You haven't said whether you are a US citizen (I assume you are not a green-card holder). If you are not a citizen, then income you earn from performing services outside the US is not taxable by the US. If you are a citizen you may still qualify as a resident of Switzerland under the US-Switzerland income tax treaty; I would have to look that up. In that case, you may be exempt from US income tax, but might have to pay self-employment tax; there are a couple of unknown factors that would need to be investigated there, too. Finally, if you are a citizen and are not eligible for any other exemption, you may be eligible for the foreign earned income exclusion mentioned above. You should consult a qualified tax advisor for definitive advice as well as for advice as to your Swiss tax obligations. These vary from canton to canton.
6 :
I assume you are already living in Switzerland or have the immigration sorted out. According to my knowledge of the international tax rules, you would not be taxed in the US, although as a US citizen you still would have to fill out some US tax forms. In Switzerland, services offered are due to the Swiss VAT of 7,6% if the turnover is above CHF 75000 per year (only from the second year on). The net self-employed income (expenses deducted) is due to the Swiss social tax called AHV (8-10%, depending on turnover) plus then there are the normal income taxes which very much depend on the place you live in Switzerland - and of course the amount of money you earn totally. The highest income tax rates (applicable at income of around CHF 150'000 and above, for the exceeding amount) are between 22% and 42% - that's the range between the different places to live!!! With more information about the place you are living and your other income I could offer you some more detailed information. Ask anything you like by e-mail. BTW: It does not matter at all, where the bank account is... Greetings from Switzerland
