How does the commuter allowance affect the taxation of cross-border commuters?
September 28, 2022 | 60,00 EUR | answered by Thomas Schottmann
Dear tax advisor,
I am Paul Altmayer and I work as a cross-border commuter in Switzerland. In the past, I have always benefited from the commuter lump sum and declared it in my tax return. However, recently I have heard that the regulations regarding the commuter lump sum have changed and I am unsure of how this will affect my taxation as a cross-border commuter.
So far, I have used the commuter lump sum to claim my travel expenses between my place of residence in Germany and my workplace in Switzerland for tax purposes. This has helped me reduce my tax burden and I have felt financially relieved. However, I have now heard that the commuter lump sum only applies to employees in Germany and may no longer be applicable to cross-border commuters.
I am concerned that the change in regulations regarding the commuter lump sum could suddenly result in a higher tax burden for me. I am wondering if I can still claim travel expenses between my place of residence in Germany and my workplace in Switzerland, or if I need to resort to other tax benefits to reduce my tax burden.
Can you please explain to me how the commuter lump sum affects the taxation of cross-border commuters and what alternatives there are to claim my travel expenses for tax purposes? I would be very grateful for your help and support in this matter.
Sincerely,
Paul Altmayer
Dear Mr. Altmayer,
Thank you for your inquiry regarding the commuter allowance as a cross-border commuter in Switzerland. It is understandable that you are concerned and uncertain about how the changes in the regulations regarding the commuter allowance will affect your taxation.
First and foremost, I want to assure you that the commuter allowance still applies to cross-border commuters in Germany. As a cross-border commuter, you still have the opportunity to deduct your travel expenses between your place of residence in Germany and your workplace in Switzerland for tax purposes. The commuter allowance is meant to recognize the costs of your daily commute to work for tax purposes and thus reduce your tax burden.
However, there are some specifics that you as a cross-border commuter should be aware of. Firstly, you need to make sure that the commuter allowance only applies to trips between your place of residence and your workplace in Switzerland. Costs for other trips, such as business trips or personal trips, cannot be deducted using the commuter allowance.
Another important regulation concerns the amount of the commuter allowance. Currently, it is 0.30 euros per kilometer for each full kilometer of the one-way distance between your place of residence in Germany and your workplace in Switzerland. It is crucial that you accurately document the kilometers traveled in order to correctly claim the commuter allowance in your tax return.
If you still have concerns that the commuter allowance alone may not be sufficient to adequately account for your travel expenses, there are other ways to reduce your tax burden. These may include the tax deductibility of meal expenses or the use of other work-related expenses related to your activity as a cross-border commuter.
Overall, you can continue to use the commuter allowance as a cross-border commuter in Switzerland to deduct your travel expenses for tax purposes. It is important that you carefully retain all relevant documents and prepare your tax return accordingly to benefit from the tax advantages as a cross-border commuter.
I hope that this information was helpful to you and I am available for any further questions you may have. Thank you for your trust and your inquiry.
Sincerely,
Thomas Schottmann
