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On Tue, 27 May 97 18:31:40 -0600, dpassage wrote:

I'm currently considering taking the opportunity to work for a year in a presitigious neutral European country. If I do live in Switzerland for a

year, does my income from American investments become subject to Swiss tax?

Where would I go to find out more information about this? Can I protect

myself by putting all my money in 'safe' places so I can avoid incurring

a capital gain while I'm overseas?>>

Well, you would have to check with the Swiss government to see what their position would be as to your residency status, and your associated tax status with them.

I'm no specialist in international taxation, but depending upon your residency status, you MAY be subject to Swiss taxes on non-Swiss income, although I would doubt it. But you'll have to check the Swiss tax laws in order to make that determination. The recuiting firm that you are working with may be able to provide you with some information on the tax laws. You might also want to check out your situation with one of the Big 6 international accounting firms. Since they deal with these issues all of the time, and also have offices all over Europe, they may know this answer immediately, and may also be able to provide you with some planning tips that would assis you in sheltering your income from both Swiss and US Taxes.

And since you are considering being out of the country for over a year, you should be aware that, if all of the rules are followed, you may be able to exclude up to $70k of your foreign earned income from US taxation. Check out IRS Form 2555 and the instructions, and also IRS Publication 54 dealing with these issues. It could be a very valuable exclusion.

But will these funds be taxed by the Swiss? Only somebody that knows the Swiss tax system will be able to give you that information.

Hope this helps...
TMF Taxes
Roy Lewis
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