What happens if I become unemployed during my cross-border commuter activity?
February 20, 2022 | 60,00 EUR | answered by Paula Bauer
Dear tax advisor,
My name is Fanni Krausmüller and I work as a cross-border commuter in Switzerland. Unfortunately, I have learned that my employment will be terminated next month, leaving me unemployed. This unforeseen situation is causing me great concern, as I am unsure of the implications this will have on my tax situation as a cross-border commuter.
So far, I have been paying taxes on my income in Switzerland and was only subject to limited tax liability in Germany. But what happens when I become unemployed? Do I still have to pay taxes in Switzerland, even though I no longer have income from that job? Or will I automatically become subject to tax in Germany, as I have my residence there?
Furthermore, I am also wondering if I will still be eligible for unemployment benefits in Switzerland and if there are any specific requirements I need to meet in order to receive benefits. Are there possibly any tax incentives or support for cross-border commuters who become unemployed?
I would greatly appreciate it if you could help me with these questions and provide me with possible solutions to clarify my tax situation as a cross-border commuter in case of unemployment.
Sincerely,
Fanni Krausmüller
Dear Mrs. Krausmüller,
Thank you for your inquiry regarding your tax situation as a cross-border commuter in Switzerland in case of unemployment. This unforeseen situation can certainly raise many questions, but I will do my best to assist you.
If you become unemployed as a cross-border commuter in Switzerland, your tax situation does not automatically change. You will still remain taxable in Switzerland, even if you no longer receive income from this activity. This means that you will still have to file your tax return in Switzerland and may have to pay taxes on savings or other income.
However, it is possible that you may also become taxable in Germany, as you have your residence there. In this case, you should check if there is a double taxation agreement between Germany and Switzerland to avoid double taxation. It might be possible for you to apply for a credit of the taxes paid in Switzerland in Germany.
Regarding unemployment benefits in Switzerland, cross-border commuters generally have the right to receive unemployment benefits as long as they meet the necessary requirements. This includes, among other things, having worked in Switzerland for at least 12 months in the last 12 months and registering as unemployed with the Swiss Employment Office. Therefore, you should contact the relevant office as soon as possible to assess your entitlement.
There are also tax advantages and support available for cross-border commuters who become unemployed. For example, you may be eligible for short-time work benefits or other social benefits. It is advisable to consult a tax advisor or a specialist lawyer in cross-border commuter law to discuss your individual situation and work out possible solutions.
I hope this information is helpful to you and I am happy to assist you with any further questions.
Yours sincerely,
Paula Bauer
Tax advisor
