Ask a tax advisor on the topic of Cross-border commuter

60-day rule Switzerland

June 8, 2016 | 70,00 EUR | answered by StB Patrick Färber

Good day,

I have been employed in a Swiss company since February 2014 and I also have an apartment in Frankfurt, Germany. During the week, I reside in a rented room in Switzerland, and I often travel back to Frankfurt on weekends. I have now submitted my tax declaration in Germany using the 60-day rule. I have not yet received a tax assessment from Germany, as this process tends to take some time. Therefore, I do not know if the 60-day rule (and thus full taxation in Switzerland) will be applicable/accepted in my case. I have submitted the corresponding form Gre-3 with a total of 170 days during which I did not return to Germany.

My question is:

1.) To what extent should I expect to provide further evidence of my stay in Switzerland (such as electricity bills, fuel receipts, etc.)?

2.) Since I am unable to provide such evidence (as I was not aware that I might need to keep these documents) and can only provide proof from my employer (form Gre-3) and a rental contract for my room in Switzerland as "evidence" - what would happen in the worst-case scenario if the 60-day rule is not accepted for me (due to lack of "evidence" of my stay in Switzerland)?

a) Is this a criminal offense? (like "he tried to pay lower taxes in Switzerland, but his claims are not true = attempted tax evasion")
b) Or would I simply have to pay the unpaid taxes in Germany?
c) Is the amount of my salary relevant when requesting further evidence of my actual stay? (currently 9200 CHF gross) Like "There are a lot of taxes to claim, let's take a closer look"?

Thank you very much and best regards.

StB Patrick Färber

Dear questioner,

In your situation, you have done everything correctly:

Your residence is in Germany due to the apartment in Frankfurt, and your work is in Switzerland.

Due to the considerable distance between Frankfurt and Switzerland, daily return trips are unreasonable, meaning you fall under the 60-day rule.

If you are "single" (no family), the question may arise regarding the "center of your life," meaning where is your social environment, family, friends, etc. If this is still in Germany, then you are also considered "resident" in Germany (term of the D-CH double taxation agreement). With a spouse/family, this would be assumed to be in Germany.

If you work in Switzerland all year round, with no business trips to Germany or other countries, then full taxation in Switzerland is entirely correct, meaning tax exemption in Germany with the application of the progression clause. The latter does not apply if you have no other income domestically.

In most cases, proof is provided by the employment contract and the rental agreement for the apartment in Switzerland. The form N-Gre is even more suitable as proof, but the tax office in Frankfurt may not be able to make use of it due to lack of expertise.

Switzerland considers you as an "international weekly commuter."

Therefore, based on the information provided by you, there is no doubt that the taxation of your salary in Switzerland is correct.

Best regards,
Färber (Tax Advisor)