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Expat tax status and severance package
Maybe some fellow xpat has been in this situation: If you have the expat status (RSI, non-resident) and you get laid off, do you pay normal tax on your indemnity or "non-resident" tax.
What I know is that if you change employers, you become resident but that year you are taxed as non-resident for your former employer and resident for the new, but I don't know in which category falls the money you might get in a severance package.
There is no such thing as a "non-resident tax". The non-resident tax regime just allows you to deduct more items, such as cost of living differential, certain living and housing allowances etc. the rates of tax you pay are the same as everyone else, you just pay it on less income. Any money you get in a severance package is treated as income in the year you receive it, so will be taxed with your income (less any deductions) of this year.
