When does a person become tax eligible from the first day in Switzerland?

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A short stay in Switzerland, for example, for one week, doesn’t mean that it falls under the 183 days rule and is automatically tax exempt. Short stays for work in Switzerland are only tax exempt when all the following questions can be answered by a NO:

  • Does the nature of the service / work rendered constitute an integral part of the business activities of the Swiss enterprise?
  • Does the Swiss company bear the responsibility and risk for the performance of the posted employee (or does the foreign company have a warranty obligation in connection with the result of the work)?
  • Does the Swiss company exercise the authority of instruction? To what extent is an integration into the operational organization of the Swiss company followed (e.g. management of the business establishment, provision of premises and work equipment, decisions on the nature and scope of the daily work of the posted employees)?
  • Does the Swiss company effectively carry the wage costs? Which doesn’t mean that the payroll has to be in Switzerland, but for example when the salary costs are charged to the Swiss company through an intercompany system this already means that the Swiss company carries the wage costs. IMPORTANT for foreign Companies with Swiss customers; there should appear on the invoice the executed work, never the name of the person being lent. Try also to avoid names of employees who performed work / project.

Please don’t hesitate to contact International HR Services Ltd. with further questions concerning this tax subject or Global Mobility in general.