Tax returns when working in Switzerland

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cbruen1

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Hi, I moved to Switzerland on August 1st last year for a 12 month contract working in IT. I registered with the revenue for split year treatment before I went - I rang them with my details and told them I'm moving abroad for 12 months, so they're aware of it since then.

The contract will be extended to the end of this year i.e. December 2012 and I plan to spend less that 30 days in Ireland this year, so I'm thinking when it comes to do a tax return for 2012 that I'll be classed as non-resident. Some questions:

- For 2011 I worked in Ireland from Jan 1st to end of May 31st, then in Switzerland from Aug 1st. I'm told there's an agreement between Ireland and Switzerland so I don't expect to be taxed twice, and I've already registered for split year treatment. When doing my tax return for 2011 do I need to declare my income from Switzerland?
- As I own a house here I'm entitled to an ex-pat allowance in Switzerland of 1,500 Swiss francs per month. Will this have any affect or complicate my tax return?

If anyone has any tax hints or tips such as allowances or can point out anything else I might be missing about the ins and outs of tax when working abroad I'd be glad to hear them.

TIA
 
Are/were you self-employed?

Split year residence relief applies to employment income only. You would be deemed resident in Ireland up to the end of May 2011 and taxed in Ireland on any income earned up to that date. From 1 June 2011 onwards you would be deemed non-resident and wouldn't be liable to Irish tax on employment income earned outside of Ireland.

It could be more complicated if you're self-employed.
 
Hi Smeharg yes I've been self-employed for years as an IT contractor - does this make it a lot more complicated?
 
In a word, yes!

If you're self assessed, and left Ireland on 1 June 2011, and didn't come back at all, then you'd only have been resident here for about 150-odd days. This is less than the 183 day general rule.

If you aren't resident under this test, the 2nd test that applies is to see whether you were resident here for 280 days in that year and the preceding year combined. I presume you were here for more than 1 month in 2010, so that means that you pass the 280 day residency test for 2011 - i.e. you ARE resident and assessable to tax in Ireland in 2011.

And that's just the start of the complication - so you may get yourself a decent tax advisor to sort the rest of it out...
 
Hi Mandelbrot, yes I was resident for 2011 as I didn't leave till late July and was back a couple of times in October and xmas. I plan to be in Ireland less than 30 days this year, which means I'll be non-resident for 2012.

What I want to know is when doing my tax return for 2011 do I need to include/declare income earned in Switzerland, given that I've already paid tax in Switzerland and I'm registered for split year treatment? Also what's does non-resident actually mean in terms of tax...does it mean not having to do a tax return or being fully exempt from tax on earnings from abroad?
 
For starters, you should have a read of this: http://www.revenue.ie/en/tax/it/leaflets/res1.html

For 2011, you are tax resident, so the following is relevant:

"Tax Resident Individuals
An individual who is tax resident in the State for a tax year is liable to Irish tax on his or her worldwide income and gains for that tax year. Where appropriate, a credit against Irish tax may be due under the terms of a double taxation agreement in respect of foreign tax paid on foreign source income and gains that are assessable here."

For 2012, you say you will be non-resident, but because you have not been gone for 3 years you would be "ordinarily resident" in Ireland, so the following is relevant:

"Individual who is non-resident but is ordinarily resident in the State for the tax year in respect of which tax liability is to be calculated



Such an individual is, for that tax year –
  1. treated in the same way as an individual who is tax resident (see Tax Resident Individuals above); but
  2. will not be taxable on -
    1. the income derived from a trade or profession no part of which is carried on in the State;
    2. the income derived from a non-public office or a non-public employment all of the duties (except incidental duties) of which are performed outside the State (but see Non-resident directors of Irish incorporated companies below re Irish public offices);
    3. other foreign income (e.g. investment income) which, in the tax year, does not exceed €3,810.
Where such an individual has income chargeable to Irish tax, he / she may be entitled to any reliefs (including credit for foreign tax paid) that may be due under the terms of a double taxation agreement.
A non-resident individual is taxable on specified gains only - see Individual who is non-resident, non-ordinarily resident and not domiciled in the State for the tax year in respect of which tax liability is to be calculated below."

That's the basics of it, but it's a complex area, so I reiterate, get yourself a tax advisor who knows their stuff. The simple answer is, yes you will have to include your Swiss income on your 2011 Irish tax return. As was pointed out earlier split year treatment only applies to PAYE income.
 
any recommendations -if allowed?

"That's the basics of it, but it's a complex area, so I reiterate, get yourself a tax advisor who knows their stuff. The simple answer is, yes you will have to include your Swiss income on your 2011 Irish tax return. As was pointed out earlier split year treatment only applies to PAYE income"

There are lots of tax advisors but do any specialise in advising emigrants/expats?? If allowed any recommendations welcome
 
Last edited:
drrkpd said:
There are lots of tax advisors but do any specialise in advising emigrants/expats?? If allowed any recommendations welcome
Click to expand...

Ya would also appreciate some recommendations if allowed, specifically advisers specialising in residency, foreign tax, etc.
 
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