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CONVINUS Global Mobility Insights NEWSLETTER Winter 2022 / 2023

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  • Switerland
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  • Business traveller


Global Mobility Insights - Winter 2022 / 2023 within a 12-month period and whose activity is to be classified as gainful employment, obtaining a 120-day permit proves to be the more sensible way. Obtaining such a permit can take between 2-8 weeks - depending on the canton of assignment - but once obtained, it is valid either for the calendar year or for a 12- month period. The employee can enter Switzerland and work for a maximum of 120 days based on this permit. He does not have to notify the individual days in advance to another office. A situation in which an employee decides at short notice to come to Switzerland on a different day than originally planned is therefore not a problem under this permit. If there is no gainful employment, then it is possible that no steps need to be taken from a permit law perspective. However, depending on the nationality of the business traveller, a business visa / Schengen visa may be necessary. Social security Depending on the country in which the business traveller is socially insured or the nationality of the business traveller, the business traveller can be exempted from the social security obligation in Switzerland if there is a social security agreement with Switzerland. The necessary certificate would have to be obtained for this: A1 or secondment certificate. In principle, this form should already be available from day 1. It is therefore advisable to obtain it as soon as the business trip becomes known. In addition, in some countries the period of validity of these forms can be specified as e.g. 12 months or longer, so that such a form does not have to be obtained for each individual business trip. In the event that there is no social security agreement with Switzerland, the business traveller would in principle be liable for social security in Switzerland. In practice, the obligation to pay social security in Switzerland is usually waived for a period of up to 30 days. As a result, a business trip is not subject to social insurance in Switzerland. However, it is important for all business travellers to have sufficient health 28 insurance. It should be checked whether the business traveller has included

Global Mobility Insights - Winter 2022 / 2023 national cover in his or her health insurance. Taxes In most cases, a business trip to Switzerland does not impose a tax liability in Switzerland. However, there are two factors based on which a tax liability may nevertheless arise on a business trip to Switzerland. One of these is the "183-day rule". It is important to note that this rule is structured differently in the various double taxation agreements. If a business traveller stays in Switzerland for less than 183 days, either in a 12-month period, a calendar year, or a tax year, does not receive a salary in Switzerland and no costs are borne by a legal entity in Switzerland, there is no tax liability in Switzerland. Even if the three points described above are fulfilled, it must also be checked whether the Swiss entity may still qualify as a de facto employer (factual employer). If this were the case, there would be a tax liability from the first day. This would result in the Swiss entity having to account for withholding tax on the Swiss working days. According to the regulations of the double taxation agreement, double taxation can be avoided through tax credit or progression retention. Process & Administration Due to the diversity of business travel and the various legal aspects, it is important to create a policy and implement a process for gathering all information and the various tasks regarding business travels. Based on our experience, it is still the biggest challenge that all essential information of a business trip is available in time in order to be able to initiate the necessary steps. On the one hand, a process that is as uncomplicated as possible is important for this, but also the comprehensive internal flow of information within the company about the scope of the legal review and compliance with legal regulations for business trips. Contact: T: +41 44 250 20 20 CONVINUS global mobility solution E: Talstrasse 70 CH-8001 Zürich 29

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