TN 17 (06-97)
RS 02001.175 Coverage Rule for Self-Employment Under the U.S. - Swiss Agreement
The agreement provides that a person who is self-employed in either the United States or Switzerland and who is a resident of one of the two countries will be covered only by the country in which he or she resides.
Since this rule applies only to U.S. or Swiss residents, it would not affect a dually covered worker who resides in a third country (e.g., a self-employed U.S. citizen who works in Switzerland but resides in France). For this reason, the special exception provision of the agreement will be used to eliminate dual coverage for such a worker (see RS 02001.180).
A self-employed U.S. citizen, who is subject only to Swiss coverage under the agreement and is exempt from paying SECA tax, must still file a U.S. tax return every year. When preparing the schedule SE to determine the amount of the SECA tax, the worker indicates that the earnings are exempt under the agreement and attaches a photocopy of the certificate of coverage issued by Switzerland (see RS 02001.195) as proof of the exemption.
Special exceptions to the coverage rules, RS 02001.180