How does the 183-day rule affect cross-border commuters?
January 24, 2023 | 50,00 EUR | answered by Thomas Schottmann
Dear tax advisor,
I am a cross-border commuter and work in Germany, but live in Switzerland. In the past, I have often heard about the 183-day rule, but I am not sure how this rule specifically applies to me.
Currently, I have been working in Germany for several months and regularly commute across the border to my residence in Switzerland. I have heard that cross-border commuters who work less than 183 days a year in Germany are entitled to tax benefits.
My concern is that I may exceed the 183-day limit and thereby complicate my tax situation. I would like to know how to count my workdays and what happens if I exceed the limit. Are there ways to avoid this and how can I best prepare for my tax situation as a cross-border commuter?
Thank you in advance for your help and advice.
Best regards,
Erika Becker
Dear Ms. Becker,
Thank you for your question regarding your tax situation as a cross-border commuter. The 183-day rule is indeed an important aspect that cross-border commuters must consider in order to benefit from tax advantages. Let me explain to you in more detail how this rule works and how you can count your workdays.
The 183-day rule states that cross-border commuters who work less than 183 days in another country in a year are usually taxed in their country of residence. This means that as a cross-border commuter working in Germany but residing in Switzerland, you will generally pay your income tax in Switzerland.
To count your workdays, you must consider all the days you actually work in Germany, including vacation days, sick days, etc. It is important that you keep accurate records of your workdays to ensure that you do not inadvertently exceed the 183-day limit.
If you exceed the 183-day limit, it could result in having to pay taxes in both countries. In this case, it is important to seek advice from an experienced tax advisor to clarify your tax situation and avoid potential double taxation.
To avoid exceeding the 183-day limit, I recommend carefully documenting your workdays and adjusting your working hours if necessary to stay within the limit. It may also be helpful to speak with your employer to potentially arrange flexible working models that allow you to comply with the 183-day limit.
In conclusion, I strongly recommend addressing your tax situation as a cross-border commuter early on and seeking advice from an experienced tax advisor to avoid any issues. I am available for a personal consultation and will support you in optimizing your tax situation.
Best regards,
Thomas Schottmann
Tax Advisor
