Global Mobility Insights NEWSLETTER Frühling / Spring 2024

Global Mobility Insights - Frühling / Spring 2024
Processing a tax equalisation is admini-stratively complex for payroll accounting
and not always easy, but can be handled well with a well-structured process.
Social security
As a rule, you want the employee to be insured under the Swiss social security
system for a posting of two years, provided this is legally possible. The insurance
cover or scope of insurance is also a key point for most employees when
negotiating an assignment.
There is a social security agreement between Switzerland and Brazil, although this
only covers AHV/IV. The existence of the social security agreement helps to ensure
that every employee - regardless of nationality - can continue to be insured in
Switzerland for an assignment to Brazil, provided that they were subject to the
Swiss social security system for at least one month prior to the assignment in
Brazil. In order to continue Swiss social insurance for the period of the assignment,
the employee must maintain their Swiss health insurance. This is one of the key
conditions.
In Switzerland, the employee can then remain insured in all branches of insurance
(AHV/IV/EO, unemployment insurance, pension fund, accident insurance, daily
sickness benefits insurance and health insurance).
However, the social security agreement does not cover all branches of insurance.
This means that the employee cannot be exempted from compulsory insurance in
Brazil for the branches of insurance that are not covered. It now depends on which
additional contributions have to be paid in Brazil in accordance with Brazilian
social security law. These costs are often borne by the employer, as these
contributions would otherwise have to be paid in addition to the existing Swiss
social security contributions. However, the assumption of the employer's
contributions represents a salary component under tax and social security law,
which must also be extrapolated.
From an administrative point of view and as confirmation of Swiss social security
coverage, a certificate of coverage (CoC) must be applied for via the ALPS platform.
The certificate received must then also be submitted to the employee and the
Brazilian company of assignment.
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