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E-Magazine_CONVINUS Global Mobility SUMMIT 2022

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  • Al tamimi
  • Airinc
  • Foster llp
  • Blick rothenberg
  • Lawyer
  • Globalization partners
  • Axa
  • Wwwconvinuscom
  • Summit
  • Global
  • Schweizer
  • Employer
  • Mobility
  • Swiss
  • Mitarbeiter
  • Taxation
  • Switzerland
  • Residence
  • Schweiz
  • Permit
+++Celebrating our 20. Anniversary with you+++ 20 years ago the Global Mobility journey started for us and sooner or later you became an important part of this journey. Therefore we, CONVINUS, would like to thank you very much and personally. CONVINUS would not be your partner for challenging and complex topics if we were not always one step ahead. To ensure this, we are in constant contact with our global network and would like to introduce our strong partner network to you on the occasion of our 20th anniversary: - Free access to our Global Mobility SUMMIT 2022 (digital), i.e. two days of bundled international know-how of our CONVINUS team as well as our partners. - Benefit from our network and ask specific questions. - Share your free access with colleagues. We are looking forward to getting to know you as well.

INTERNATIONAL PROJECT

INTERNATIONAL PROJECT ASSIGNMENTS IN SWITZERLAND AND ABROAD With the income that is economically attributable to the permanent establishment, the company has a limited tax liability. For employees, the 183-day rule (see the following paragraph) can no longer be applied when deployed at a permanent establishment. As a result, the employee becomes liable to foreign pay tax as of the first day abroad. Taxes - Correct application of the 183-day rule and consideration of the economic employer In principle, earned income must be taxed in the country of residence, unless the employee is working in another country. For this purpose, it is first necessary to clearly define the country of residence and the country of activity. However, this cannot be freely chosen, but is done based on a test scheme that can be found in the respective double taxation agreement (DTA). Once the country of residence and the country of activity have been clearly defined, a check must be made as to which country receives the right of taxation for the earned income. The right of taxation can only remain in the country of residence if the following three conditions are cumulatively fulfilled: The employee does not spend more than 183 days in a 12-month-period, a calendar year, or a tax year in the country of activity; and The compensation is paid by an employer that is not a resident of the country of activity; and The compensation is not borne by a permanent establishment in the country in which the work is performed. As the "183-day rule" has established itself as a fixed term, the other two conditions often take a back seat and are not sufficiently examined. However, this can have a serious impact on the employee's tax liability and, thus, on the total cost of the international assignment. In our consulting practice, we clearly see how the 183-day-rule is steadily becoming less important for international employee assignments. For a good decade now, more and more countries have introduced the theoretical construct of the " economic employer", which overrides the 183-day rule. It must, consequently, be clarified in each individual case whether the foreign company qualifies as an economic employer and if the employee, therefore, becomes liable for tax abroad (despite the correct application of the 183-day-rule). 56 convinus.com

INTERNATIONAL PROJECT ASSIGNMENTS IN SWITZERLAND AND ABROAD Social security – The right social security coverage for international project assignments Particularly in the case of international project assignments with employees from Switzerland, it happens that employees cannot remain insured in the Swiss social security system. This is particularly the case if they are assigned to a country with which there is no social security agreement with Switzerland and if the foreign employees do not fulfill the 5-year pre-insurance period for voluntary Swiss social security. It is, therefore, of particular importance to check whether and how the employee can be insured by the social security system when assigned abroad. In individual cases, it may be advisable to engage another employee for the short-term project assignment if the employee cannot otherwise be adequately covered by social insurance. From a Swiss perspective, the introduction of the online tool ALPS has significantly simplified the application for A1 or Certificate of Coverage (CoC) forms. The time-consuming correspondence via mail has been eliminated. 57 convinus.com

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