BEST PRACTICE Board of Directors from Germany The withholding tax for the Board of Directors' fee is as follows: Zurich Financial Advice Ltd will issue him with a corresponding certificate at the end of the year, so that this income will only be taken into account in his tax return to be submitted in Germany for the calculation of the German tax rate. From a social security law perspective, the situation is not quite so simple, as according to the applicable regulations, persons working across borders are subject to social security contributions in the country in which they are employed. If a dependent activity is carried out in both the country of residence and the other country, it is checked whether the person works more than 25% in the country of residence. The activity as a member of the Board of Directors is categorised as a dependent activity in Switzerland, while the activity as a lawyer in Germany is a self-employed activity. Consequently, Zurich Financial Advice AG must deduct Swiss social security contributions from the Board of Directors' fee and the Board of Directors must subject its other income as a lawyer, which it earns in Germany, to Swiss social security contributions in Switzerland. The Swiss social security contributions are not insignificant, so the German Board of Directors is certainly not happy about this. The Swiss social security obligation can only be prevented if he would also be gainfully employed in Germany. If this were the case, Zurich Financial Advice Ltd would have to subject the Board member's fee to the German social security obligation. This would mean increased expense for Zurich Financial Advice Ltd. This results in corresponding additional costs for both variants. Under work permit law, either the days must be reported in the registration procedure or a 120-day permit must be obtained. 8 convinus.com
BEST PRACTICE Conclusion For these groups of people, the withholding tax regulations are simple in comparison to "normal employees", but there are some secondary aspects, such as social security or work permit requirements, which also need to be taken into account. SERIES - Selected withholding tax topics in Switzerland Part 1: Withholding tax liability even without a legal employer in Switzerland Part 2: Withholding tax on cross-border commuters in Switzerland Part 3: Artists, athletes, speakers and board members not resident in Switzerland Part 4: The relationship between withholding tax and tax returns Part 5 - Monthly Special: Withholding tax on various remuneration elements (bonus payments, secondment allowances, employee participation, crypto payments) 9 convinus.com
Laden...
Laden...
Copyright © 2002 bis 2020 CONVINUS
google8089d691feca9268.html
LinkedIn
Youtube
Instagram
Email