Fees for services provided by natural persons domiciled in Switzerland and abroad (outside the EU/EFTA/UK) must be subject to the deduction of the AVS/AI/APG/AC if they are not self-employed.
The work must be done from Switzerland.
These may include services from external providers in the field of education (lecturers, experts) as well as other services such as consulting, translation and event management.
Note: The hiring of consultants for administrative, technical, IT, or management functions on a temporary, urgent, or on-call basis, who do not have self-employed status, must be processed via the Helvetic Payroll process. (Link)
EPFL staff who invite, hire, and set the remuneration conditions for external service providers must inform them that their fees will be subject to Swiss social security contributions and taxes.
Before signing a contract or assigning work to a person residing abroad for activities to be performed from abroad, you are invited to contact Human Resources ([email protected]) to agree on the terms.
According to international conventions, remote work from abroad may not be possible.
In detail
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Fees less than or equal to CHF 2,500 per year are paid without social security deductions.
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If the person is a foreign national residing in Switzerland, a copy of their work permit must be attached to the request.
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Withholding tax is deducted if applicable.
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Payment requests must be recorded in ServiceNow > Finance > Payment Order with the required documents. Please refer to KB0017869.
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Payment requests will be transferred directly to the payroll team for processing in accordance with legislation.
Les bases légales reposent sur les Loi fédérale et Règlement sur l’assurance-vieillesse et survivants (LAVS RS 831.10 et RAVS RS 831.101).
The main elements to remember are as follows:
- Persons insured under section 1 of the AHV/AVS Act:
- Natural persons domiciled in Switzerland.
- Natural persons engage in gainful employment in Switzerland.
- Exception for small incidental income according to Art. 8bis of the AHV Regulations.
- By extension, any fee subject to AHV is also subject to other social insurances.
The Agreement on the Free Movement of Persons between Switzerland and the European Community provides that a person shall be covered by social insurance in only one country at a time.
Therefore, any individual of EU/EFTA nationality and domiciled in an EU or EFTA country must declare income earned at EPFL.
Practically, they must request the European A1 form from their country’s authorities and pay the required contributions to their social insurance body (except for those subject to French legislation).
EPFL will only pay invoices/fees to individuals once the A1 form is in its possession. Only withholding tax will be deducted from the salary.
The social security agreement between Switzerland and the UK provides that a person is covered by social insurance in only one country at a time.
Thus, any individual residing in the UK must declare income earned at EPFL in the UK.
Practically, they must request a certificate of coverage from their country’s authorities and pay the required contributions to their social insurance body.
EPFL will only pay invoices/fees to individuals once the certificate of coverage is in its possession. Only withholding tax will be deducted from the salary.
The legal bases are based on the Federal Direct Tax Act, articles 86-100 and 136-139, and the Cantonal Direct Tax Act, articles 130-149 and 190-197.
For any natural person domiciled abroad, the IS is levied according to the single rate (Tariff A) applicable according to the canton of employment.
- Persons who are self-employed contribute themselves to their social benefits in their country of residence. They must prove this status by providing a certificate of independence from their AVS compensation fund (valid for Switzerland) or a similar foreign body.
- For individuals residing in Switzerland, teaching or lecturer activities are, by definition, dependent activities subject to social security contributions.
Contact Information
To send us your questions or suggestions, please contact either the finance support at [email protected] or the human ressources support at [email protected]