Swiss Tax and social security (Wizz Air(

[Skipping Classes]

So here we go again, looks like there is no other place to discuss this topic, but pprune.

We are flying for Wizz Air which has its place of effective management in Switserland, Geneva. According to the double taxation treaties, as we work aboard an aircraft, we may pay income taxes in Switzerland.

In many countries (e.g. Italy, Austria etc) as you already paid your income tax in Switzerland this part of your income is exempt from further taxation in the country where you are resident. So far so good (if you don't live in of the "wrong" countries) and in fact seems to be completely legal too.

You do, however, have to pay the social security tax, in the country you live in. As we do not live in Switzerland Wizz Air does not have to pay social security contribution for us there. For this Wizz Air used to pay 8% extra on top of your salary so that you would pay it yourself wherever you live.

New contracts (or upgrades) however do not get the 8% on top of the salary yet have to pay the social securities in the country of residence.

The question is what will happen if you become a resident of Switzerland, will the company have to contribute to your social security?

[captplaystation]

I would say Yes, but good luck getting them to do so :hmm:

This whole "paying social security in your base country" (what the new regs demand, unless you have a Form E1 from your home country allowing you to pay there instead IF . .and only IF the base country agrees ! ) is a big scam by companies that want to look like snow white.

The question is, if the country receives contributions from you, but NOT your employer, do you actually receive any benefit associated with your contribution, or is the answer NO because no employer contribution has been paid.

If you happen to live in a country with a dysfunctional social system (I would suggest there are quite a few of them ) it is a waste of money anyhow, and your contributions would be better spent on a private plan. . . regretably, your company wants to look like "snow white", so you have to p1ss your € into the wind anyhow. :mad:

[Winnerhofer]

Best seek legal advice.
Your company should provide the answers however may not be in your best interest.
Tax codes keep chopping and changing.
Remember when you become a Swiss resident, you must be mindful of getting it right from the go.
Remember it is vital where you are a Swiss resident because you have a choice of 26 cantons with incredibly differing tax burdens from hight to low.
You must not screw up because it will open a can of worms.
Also, you have to exchange your driving licence as soon as you become a Swiss resident.
Remember that Switzerland does not have socialised medicine and it is mega-expensive so you will need private cover to make up for the shortfall.