60-Day Rule Switzerland - Germany - Questions
October 11, 2014 | 60,00 EUR | answered by StB Patrick Färber
Dear Sir or Madam,
I will be working in Switzerland starting from 01.01.2015. My employer is located over 150km from my German place of residence. Since I will be commuting partially and staying in Switzerland partially, I would like to make use of the 60-day rule and pay taxes in Switzerland. I have the following questions regarding this:
1. What evidence do I need in order to definitively avoid any additional payments in Germany? Would it be easier to rent an apartment as a weekly commuter?
2. I will be receiving a company car. Can I also pay taxes on this, and therefore the monetary benefit, in Switzerland? Since my official commute is 150km, what costs should I expect (vehicle distance approximately 150km)?
3. Which tax rate is applicable, that of the cross-border commuter or that of the respective canton?
4. Is it correct that I still need to file an income tax return in Germany for 2015?
Thank you for your advice.
Best regards,
Carolin Grab
Dear inquirer,
Regarding your questions, I would like to provide the following statements, with one question to clarify in Switzerland.
You have a residence in Germany and will be working in Switzerland, with a commuting distance of 150 km. You will be taking up residence in Switzerland, which means you will also have a residence in Switzerland (otherwise the whole thing will not work).
In principle, it is not initially important whether you decide to stay in Switzerland during the week or on weekends. The 60-day rule only applies to a professionally-related unreasonableness of daily commuting to the place of residence (so-called non-return days), due to work, not for private reasons. This typically includes a business trip to a third country, but not simply because you worked late in the evening and therefore cannot return to Germany.
In your case, it is relatively straightforward, as you (and the tax office) can clearly prove that the distance is 150 km. You are no longer considered a cross-border commuter (in Switzerland you are an international weekly resident) and can be fully subject to source taxation in Switzerland. If you do not have any other income in Germany, you will be exempt from German taxation.
Based on the interpretation rules of the tax authorities, it is generally assumed that the return is unreasonable.
This leads to the following answers to your questions:
1. No special proof is required, just state the distance. Unfortunately, I do not understand the question about the apartment and the weekly resident.
2. Taxation is based on Swiss law, assuming a Swiss employer. This is subject to Swiss tax law, please inquire there.
3. The full source tax rate of the canton applies, as you are not considered a cross-border commuter. (Note: recently in Switzerland, instead of the B-permit, the G-permit is also issued, which conceptually refers to "cross-border commuters" in the strict sense. However, it has no tax implications.)
4. Only applicable if you have additional sources of income in Germany, as you are still unrestrictedly tax liable due to your residence. For example, if you had business trips outside of Switzerland, you would strictly have to tax the days you physically worked outside of Switzerland in Germany, while they would be exempt in Switzerland.
Otherwise, you have done the right thing by starting on January 1st, as the usual "progression clause" does not apply. For example, if you were to start in Switzerland on November 30th and had income from Germany before, the two months of income in Switzerland would still be considered at a higher tax rate for your German income. This is not the case for you.
I hope this information is helpful.
Best regards,
Patrick Färber, Tax Consultant
