Meaning of "unlimited tax liability in any other country"

Coffee
1

Hi everyone,

While checking some papers when trying to enrol to some investement services, I came across this sentence:

you must be a resident of Switzerland. You must also be liable for tax in Switzerland and not be subject to unlimited tax liability in any other country. Partial tax liability (e.g. due to property ownership abroad) is possible, but unlimited tax liability must be limited to Switzerland. Furthermore, you must be at least 18 years old and must not be a US person.

The term subject to unlimited/partial tax liabillity, is not fully clear to me (or I have some doubts on how to correctly intepret it). In essence, unlimited is equal to the tax residency to my knowledge.

In my case, I’m Italian (Permit-C), work and live in CH. I pay my income tax in CH only, I do have a property in IT, so I should be entitled to open this account.

Is my understanding correct?

Thank you in advance for your feedback.
Best,
Cap

2

That’s correct

1 Like
3

Limited tax liability means you are only liable for Italian tax on incomes made in Italy (work income, sales, other proceeds), while as a Swiss resident you are liable for taxation of anything not governed by double taxation avoidance agreements. In practice it’s a necessarily complicated way to say “your tax domicile”.

4 Likes
4

In practice as a Swiss resident, only US people would be impacted I guess. (edit: maybe also some diplomatic personal or people working at international institutions)

2 Likes
5

Hi Guillaume,

Thanks for your inputs :slight_smile:

6

Thank you, Mirager :slight_smile:

7

Thank you, Nabalzbhf :slight_smile: