Taxation in Switzerland

Memorandum from the HR and FI Departments and the Legal Service concerning the new internal taxation provisions of the Staff Rules and Regulations, the annual internal taxation certificate for 2007 and the 2007 income tax declaration forms sent out by the cantonal tax administrations.

I - New provisions of the Staff Rules and Regulations concerning internal taxation

Following the revision of the Staff Rules and Regulations (see CERN Bulletin Nos. 16 and 17 of 16 and 23 April 2007), the provisions relating to internal taxation are now set out in Articles S V 2.01 of the Staff Rules and in Articles R V 2.01 to R V 2.05 of the Staff Regulations, in force since 1st January 2007 (11th edition).

Pursuant to Article S V 2.01 of the Staff Rules, each year the Organization levies an internal tax on the financial and family benefits it pays to the members of the personnel. The Finance Committee has laid down the provisions governing the application of internal taxation in the Staff Regulations (see Articles R V 2.01 to R V 2.05). Some technical amendments and drafting changes have been made to the provisions that were applicable previously.

Article R V 2.01 states that the internal tax base comprises all financial and family benefits paid by the Organization, excluding certain expenses and indemnities and allowances.

Pursuant to Article R V 2.02, the taxable amount is obtained by deducting from the internal tax base certain financial benefits as well as any family benefits to which the member of the personnel concerned may have been entitled during the previous financial year. The Finance Committee has decided that contributions to the health and accident and old-age and disability insurance schemes will no longer be deducted from the internal tax base used to calculate the taxable amount.

Article R V 2.03 stipulates that the amount of internal tax is obtained by applying a scale, periodically adjusted by the Director-General, to the taxable amount. This scale has been modified compared to the previous year to take account of the new method of calculating the taxable amount and of the annual salary adjustment. The 2007 scale can be consulted on the Human Resources Department’s website at the following address:

https://cern.ch/hr-services/Ben/tax/Docs/BaremeImpot_2007_gb.pdf

As in previous years, internal tax is levied at source (see Article R V 2.04).

Finally, pursuant to Article R V 2.05, each member of the personnel is issued with an annual internal taxation certificate, which is intended exclusively for the tax authorities. The 2007 certificate has been drawn up to take account of the amendments to the Staff Rules and Regulations. It indicates the internal tax base, the taxable amount and the amount of internal tax levied. As last year, it also mentions for information the amount of financial and family benefits to be deducted from the internal tax base to obtain the taxable amount.

The amendments to the Staff Rules and Regulations and to the scale have no impact on the net salary paid to the member of the personnel.

II - Annual internal taxation certificate for 2007

The annual internal taxation certificate for 2007, issued by the Finance Department, will be available by 14 March 2008.

  1. If you are currently a member of the CERN personnel you will receive an e-mail containing a link to your annual certificate, which you can print out if necessary. You can also access your annual certificate via http://hrt.cern.ch (open "My Payslips" at the bottom of the main menu.)
  2. If you are no longer a member of the CERN personnel or are unable to access your annual certificate as indicated above, you will find information explaining how to obtain a certificate at the following link:

    https://cern.ch/hr-services/services-Ben/tax/attest.asp

III - 2007 income tax declaration forms sent out by the Swiss cantonal tax administrations

The 2007 income tax declaration form must be completed in accordance with the instructions provided by the Swiss authorities, as set out below, then signed and returned to the competent tax office.

All members of the personnel are exempt from federal, cantonal and communal taxation on salaries and emoluments paid by CERN. Swiss members of the personnel have been exempt since the introduction of internal taxation on 1st January 2005.

1 – General remarks for Swiss and non-Swiss members of the personnel domiciled in Switzerland

a) Swiss members of the personnel must indicate the amount of salary and emoluments paid by CERN, i.e. the total amount specified under Section A of the 2007 annual internal taxation certificate, and must attach this certificate to their declaration. They must also indicate the amount of any other income and assets, in accordance with the instructions accompanying the declaration form.

NB. Swiss members of the personnel who have already submitted their declaration but did not attach the above-mentioned certificate to it must send the certificate to their tax office.

b) Non-Swiss members of the personnel are not required to complete an income tax declaration form except in certain cases, in particular if they own real-estate or are in other gainful employment in Switzerland or if their spouse owns real-estate, is in gainful employment or has movable assets or related income in Switzerland. However, they must not indicate the salary and emoluments paid by CERN nor attach the annual internal taxation certificate.

In all cases, both Swiss and non-Swiss members of the personnel are advised to state, either in the "Observations" section at the end of the income declaration form or on a separate sheet of paper if the form does not contain such a section, that they are "membre du personnel du CERN assujetti à l’impôt interne du CERN depuis le 1er janvier 2005 et donc exonéré d’impôt sur les traitements et émoluments versés par le CERN" (a member of the CERN personnel subject to internal CERN taxation since 1st January 2005 and therefore exempt from taxation on the salary and emoluments paid by CERN).

2 – Swiss members of the personnel domiciled in France

Swiss members of the personnel domiciled in France will receive the 2007 income declaration form only if they have retained a financial tie with Switzerland (for example, if they own real estate in a Swiss canton). In this case, they must complete and return the form in accordance with the instructions in part 1 a) above.

If you are sent the form erroneously, you must return it to the competent tax office explaining that you are "membre du personnel du CERN, assujetti à l’impôt interne du CERN depuis le 1er janvier 2005 et sans lien de rattachement économique avec la Suisse".

IF YOU HAVE ANY SPECIFIC QUESTIONS, PLEASE CONTACT YOUR TAX OFFICE DIRECTLY.

This information does not concern CERN pensioners, as they are no longer members of the CERN personnel and are therefore subject to the standard national legal provisions relating to taxation.

HR Department
Contact: 73903

by HR Department