ANobAG or self-employed? A guide to working across borders.

I couldn’t help but wonder … can you be in a committed relationship without realising it?

Perhaps you’ve unintentionally ended up in a long-distance relationship. If you’re not seeing anyone else, you speak almost every day and let them know as soon as you’re ill, then it’s probably happened: your harmless holiday flirtation has turned into a real relationship! While this is unlikely in private life, it happens more often on a professional level in Switzerland. Many people believe they are self-employed freelancers – even though they are in a work relationship with their employer abroad as ANobAGs. And that is a risky endeavour for both sides!

As an ANobAG, you have to take care of certain things yourself. Here you can find out whether, in Switzerland’s eyes, you are truly self-employed. Or if, as an employer, you are unintentionally employing an ANobAG. And we help you navigate the rules and regulations.

Define ‘relationship’: What is an ANobAG in Switzerland?

When exactly ‘casual dating’ turns into a committed relationship: that’s up for debate! However, it's clear how Switzerland defines an employment relationship. That’s why you can quickly turn into an ANobAG, which is short for 'Arbeitnehmer ohne beitragspflichtigen Arbeitgeber', and means ‘employee without an employer liable for social security contributions’.

Unfortunately, what’s written in your contract isn’t the deciding factor. Many people think they are self-employed ‘freelancers’ or ‘contractors’. Yet from a Swiss perspective, this actually qualifies as gainful employment across borders. Perhaps Switzerland is simply too romantic not to believe in true love and commitment!

Are you an ANobAG? Here’s what points to a ‘long-distance relationship’:

So what are the signs that you might unintentionally be stuck in a long-term relationship with your foreign employer? If you answer ‘yes’ to the following questions, there is a strong likelihood that you are an ANobAG:

• Do you work for only one company?

• Do you receive a fixed monthly salary?

• Are you part of an organisation – even if you work remotely?

• Are you bound to follow the instructions of your superiors at work?

• Do you not bear any business risks yourself?

A ‘yes’ to the first question is an important warning sign already. But it doesn’t necessarily mean anything yet. However, the more often you found yourself nodding as you read, the more likely it is that you’re an ANobAG. But don’t worry: we’ll explain in a moment what the best course of action is. But first, we’ll get your employer on board, since you’ve got a reliable partner by your side!

Do you employ an ANobAG? The employer's perspective:

As a foreign employer, you should also ensure that you are not employing an ANobAG in Switzerland without even knowing. Simply ask yourself: Are you really treating this ‘freelancer’ like a genuine freelancer, or more like one of your own employees – just based abroad in Switzerland?

If you are the sole client, pay a fixed monthly fee and treat the person as a permanent member of the team, then they are likely to be one! At least, that is how it is viewed in Switzerland. A freelance contract is not enough to turn an employed role into a self-employed one.

Officially together? Here’s what you need to bear in mind as an ANobAG!

So, have you realised that you’ve ended up in a long-distance relationship with your employer? That makes your work situation a bit more complicated – but not impossible to manage! There are a few things you’ll need to sort out yourself. And you’ll need to do that as soon as possible, because unfortunately it won’t happen automatically:

• You must register as an ANobAG with the relevant compensation office in your place of residence.

• You must arrange other insurance coverage, in particular compulsory accident insurance (UVG).

• You may also (have to) join a pension fund. Not every pension fund accepts ANobAG members, but there are workable solutions!

• You must pay all outstanding contributions and collect the employer's share. You should not be covering the employer's contribution, but only your own.

• You must calculate your taxable income and declare it on your Swiss tax return – even without a Swiss salary statement!

When it comes to filing your tax return, it’s a good idea to seek help. After all, ensuring everything is in order is particularly important here. We at taxum AG are happy to assist you. Because cross-border matters – in tax and in love – are our passion! Just book your first appointment.

By the way: You should also send this article to your employer, since we will now cover their responsibilities – after all, a relationship always involves (at least) two people.

What's important for employers of an ANobAG

Have you discovered that you are employing an ANobAG in Switzerland? That's not a bad thing, since it doesn't really require administrative work on your part. There are just two key points to ensure that all risks to your business are eliminated:

• As an employer, you are required to pay the employer’s share of social security contributions. This must be taken into account in addition to the net salary. However, you will normally pay this to the Swiss employee rather than directly to the social security provider.

• More seriously, a representative office of your firm in Switzerland might be assumed. This can happen, for example, if an ANobAG does significant work for your company. In that case, you may also be liable for company taxes – in addition to social security contributions!

Make sure you check carefully whether your company might be liable for tax in Switzerland. We’d be happy to help you find out. After all, we understand how the Swiss tax system works – and how it interacts with foreign tax systems. Simply arrange a first consultation with us.

Better to be officially official than falsely self-employed!

At first, a long-distance relationship is wonderfully exciting, but it can soon become rather nerve-wracking. As an ANobAG, it’s exactly the opposite: you have to take care of some things at the beginning, but then they run like clockwork. Provided you’ve done everything right! In any case, get your employer on board – because, as we said: it takes at least two to make a relationship. And ideally even more, because we at taxum AG are happy to support you. That way, the long-distance working relationship can continue, and even Switzerland will give you its ‘blessing!’

And just like that … as an ANobAG, you’re officially tied to your employer – even across borders!

Key questions and answers about ANobAG – in a nutshell:

The Swiss tax system can be complicated. We have summarised the most important facts for you here.

What is an ANobAG in Switzerland?

An ‘employee without an employer liable for social security contributions’: usually someone with a foreign employer and often on a ‘freelance’ contract, which is not automatically considered self-employment in Switzerland!

What distinguishes ANobAGs from genuinely self-employed people?

Self-employed people work for several clients, take on entrepreneurial risk and operate under their own name. If you don't do this and are also integrated into a company, you are probably not self-employed.

What do you need to bear in mind as an ANobAG?

You must register with the relevant insurance funds, pay the contributions and declare your income on your tax return even without a Swiss payslip. You are also responsible for transferring the employer’s contributions, although these are paid by the employer!

What is important for foreign employers?

In addition to the net salary, there are the employer’s contributions to social security, which must be covered by the employer. Furthermore, there is a risk that a permanent establishment may be deemed to exist in Switzerland – in which case company taxes might also be due.

Who can help an ANobAG?

As a Swiss tax boutique, we at taxum AG know exactly what ANobAG and their employers need to consider. Simply contact us, and we’ll sort it out together!