Client lives in Switzerland, pays tax in CH, but also receives LA income in SA which is duly taxed. Client spends 14 days a year in SA. Does the client need to file a tax return including Swiss income, when Swiss income is already taxed in Switzerland? He
Important:
This answer is based on tax law for the tax year ending 28 February 2020.
Answer:
You need to confirm the facts, or obtain further information, before you can provide assistance to your client here.
The first one is what is meant by the “client lives in Switzerland, pays tax in CH”. We have no idea what “LA income means”. For purposes of the guidance that follows, we accept that the individual is a person who is deemed to be exclusively a resident of Switzerland for purposes of the application of any agreement entered into between the governments of the RSA and Switzerland for the avoidance of double taxation.
As such, there will only be ‘gross income’, or an inclusion in ‘gross income’, for the person (in the RSA), if the source of the receipt or accrual, is in the RSA. The right, of there RSA, to tax ‘income’ (or amounts) with a source in the RSA is then determined with reference to the treaty referred to above.