How does short-time work or working from home affect the taxation of cross-border commuters?
November 21, 2022 | 60,00 EUR | answered by Thomas Schottmann
Dear Mr./Mrs. Tax Advisor,
I am Dora Widmann, a cross-border commuter between Germany and Switzerland. Due to the current situation with the COVID-19 pandemic, short-time work has been introduced in my company and I now mainly work from home. I am concerned about how these changes could affect my taxation as a cross-border commuter.
Currently, I usually work three days a week in Switzerland and two days in Germany. However, due to short-time work and working from home, I now mainly work from home and my working hours have been reduced. I am wondering if these changes could affect my tax liability in Switzerland or in Germany and if I could potentially have tax disadvantages as a result.
I would like to know if I need to fill out my tax return differently due to short-time work or working from home, or if my tax class could change. Are there ways to ensure that I continue to be optimally taxed, despite the current circumstances? I am unsure of how to proceed in this situation and would like to seek your professional advice.
Thank you in advance for your help and support.
Sincerely,
Dora Widmann
Dear Ms. Widmann,
Thank you for your inquiry regarding your taxation as a cross-border commuter in the current situation with the COVID-19 pandemic. It is understandable that you are concerned about how short-time work and home office could affect your tax situation.
First and foremost, it is important to know that as a cross-border commuter between Germany and Switzerland, the provisions of the double taxation agreement between the two countries apply to you. This means that you generally pay taxes in the country where you are a resident, which is Germany. Income earned in Switzerland is usually subject to withholding taxes, which are credited against the tax liability in Germany.
In terms of short-time work and home office, there are some tax aspects to consider. By reducing your working hours and working from home, your focus of activity may shift. This could have implications for taxation, especially if you predominantly work in Germany and only occasionally work in Switzerland. In this case, your tax liability may be shifted to Germany and you may no longer be considered a cross-border commuter.
Therefore, it is important that you carefully document your new work situation and gather all relevant documents to accurately present your tax situation. You may need to fill out your tax return differently to account for these changes. It is advisable to seek advice from an experienced tax advisor to ensure that you are taxed optimally.
It is also possible that your tax class may change due to short-time work, which could affect your tax burden. Again, professional advice is recommended to avoid potential tax disadvantages and make any necessary adjustments.
Overall, it is important to regularly review and adjust your tax situation to avoid tax disadvantages and benefit from the best possible tax advantages. I am happy to provide detailed advice and assist you in optimizing your tax situation in the current circumstances.
Sincerely,
Thomas Schottmann
Tax advisor and expert for cross-border commuters.
