How is my income divided as a cross-border commuter between the two countries?
December 26, 2022 | 50,00 EUR | answered by Helma Fischer
Dear tax advisor,
my name is Ammelie Seiler and I work as a cross-border commuter between Germany and Switzerland. I am unsure how my income is divided between the two countries and what tax implications this has for me.
Currently, I work in Switzerland and have my residence there. I commute daily from Germany to Switzerland for work. However, my employer pays my salary into a German account. I am not sure how I have to declare my income for tax purposes and whether I have to pay taxes in both countries.
My concern is that I may be double taxed or that I may not be able to optimize my tax benefits. Therefore, I would like to learn from you how my income as a cross-border commuter between the two countries is divided and what tax consequences this has for me.
Can you show me possible solutions on how I can optimize the taxation of my income and what tax aspects I should consider as a cross-border commuter? I look forward to your expertise and thank you in advance for your support.
Sincerely,
Ammelie Seiler
Dear Mrs. Seiler,
Thank you for your inquiry regarding the tax situation as a cross-border commuter between Germany and Switzerland. It is understandable that you are concerned about the tax treatment of your income, as the regulations for cross-border commuters are often complex.
As a cross-border commuter between Germany and Switzerland, you are generally subject to the double taxation agreement between the two countries. This means that you only need to pay taxes on your income in one of the two countries to avoid double taxation. In your case, since you work in Switzerland and have your residence there, you will need to pay taxes on your income in Switzerland.
It is important to note that your income earned in Switzerland will be taxed in Switzerland. You should make sure to accurately report all income from your activities in Switzerland in your tax return. If your employer transfers your salary to a German account, this does not affect your tax obligations in Switzerland.
In Germany, you must declare your worldwide income, but due to the double taxation agreement, your income taxed in Switzerland will be credited in Germany. There are regulations in place to ensure that you are not taxed twice.
To optimize the taxation of your income as a cross-border commuter, I recommend seeking advice from a tax advisor with experience in cross-border commuter taxation. An expert can help you consider all tax aspects and identify possible tax benefits.
It is important to have all relevant documents and information ready for a thorough examination of your tax situation. If you are unsure whether you are considering all tax aspects as a cross-border commuter, it is advisable to seek professional help.
I hope that this information has been helpful to you. If you have any further questions or would like individual advice, I am at your disposal.
Sincerely,
Helma Fischer
Tax Advisor
