As a cross-border commuter, can I also benefit from the tax exemptions in my country of residence?
February 22, 2022 | 60,00 EUR | answered by Paula Bauer
Dear tax advisor,
My name is Ammelie Busse and I work as a cross-border commuter in Switzerland, but I live in Germany. In my country of residence, Germany, there are certain tax exemptions that can be utilized. My question now is whether as a cross-border commuter, I can also benefit from these tax exemptions, even though I earn my income in Switzerland.
Currently, I am already paying taxes in both Switzerland and Germany, and I have heard that under certain conditions, it is possible to also receive tax relief in Germany. I am concerned that I may end up paying too much taxes due to double taxation and would like to know if there is a way to avoid this.
Could you please explain to me if and how I can benefit from the tax exemptions in my country of residence, Germany, as a cross-border commuter? Are there any special regulations or applications that I need to submit? What steps do I need to take for this and what documents are required?
I am looking forward to your assistance and thank you in advance for your support.
Sincerely,
Ammelie Busse
Dear Mrs. Busse,
Thank you for your inquiry regarding the tax allowances for cross-border commuters in Switzerland who live in Germany. As a tax advisor for cross-border commuters, I would be happy to assist you and explain how you can benefit from the tax allowances in Germany.
In general, as a cross-border commuter, it is possible to claim tax allowances in Germany even if you earn your income in Switzerland. This is usually governed by the double taxation agreement between Germany and Switzerland. This agreement prevents you from having to pay taxes on your income in both Switzerland and Germany.
In order to benefit from the tax allowances in Germany as a cross-border commuter, you typically need to file an income tax return in Germany. You can declare your income from Switzerland and also claim the taxes you have already paid in Switzerland. This may result in a tax refund or a reduction in your tax liability in Germany.
There are certain requirements that you must meet as a cross-border commuter in order to benefit from the tax allowances in Germany. This includes having your residence in Germany and working in Switzerland. Additionally, you must regularly return to Germany and have your center of life here.
To claim the tax allowances in Germany, you should consult a tax advisor or a specialist in cross-border commuter issues. They can assist you in preparing your income tax return and ensure that you provide all relevant information and documents correctly.
I hope this information has been helpful to you and I am available to answer any further questions you may have. I recommend that you contact a tax advisor promptly to optimize your tax situation as a cross-border commuter.
Kind regards,
Paula Bauer, Tax Advisor
