What role does the double taxation agreement play for cross-border commuters?
July 24, 2023 | 65,00 EUR | answered by Thomas Schottmann
Dear Tax Advisor,
My name is Jonas Fuchs and I work as a cross-border commuter in Switzerland. In the past, I have noticed that I have to pay taxes in both Germany and Switzerland. I am aware that there is a double taxation agreement between the two countries, but I am unsure of the role this agreement plays for me as a cross-border commuter.
Currently, I am in a very complex tax situation as I earn income in both Switzerland and Germany. I am worried that I could lose a significant portion of my income due to double taxation. Furthermore, I am not sure if I have correctly understood all the relevant tax regulations and agreements.
Therefore, my question to you as a tax advisor is: What role does the double taxation agreement play for cross-border commuters like me? Are there ways to avoid or at least reduce double taxation? What steps should I take as a cross-border commuter to optimize my tax situation and avoid potential financial losses?
I am very grateful for your expertise and support on this complex topic. Thank you in advance for your help.
Sincerely,
Jonas Fuchs
Dear Jonas Fuchs,
Thank you for your inquiry regarding your tax situation as a cross-border commuter between Germany and Switzerland. As a tax advisor specializing in cross-border commuter issues, I am happy to assist you and provide you with important information regarding your concerns.
The double taxation agreement between Germany and Switzerland plays a crucial role for cross-border commuters like yourself. This agreement is designed to ensure that you are not taxed twice, both in Germany and Switzerland. In general, the agreement determines which country has the right to tax certain income and regulates the possibility of crediting taxes already paid in one of the two countries.
To avoid or reduce double taxation, there are various options that you as a cross-border commuter can consider. An important measure is the correct and complete application and completion of the relevant forms for the taxation of cross-border commuters in both countries. It is important to disclose all income and tax-relevant information in order to ensure correct taxation.
Furthermore, it may be beneficial to seek advice from a specialized tax advisor who is familiar with the tax situation of cross-border commuters. An expert can help you understand all relevant tax regulations and agreements correctly and provide you with individual solutions for tax optimization.
To optimize your tax situation and avoid potential financial losses, I recommend that you get in touch with a tax advisor early on and thoroughly review your tax matters. Through professional advice, you can ensure that you make use of all tax possibilities and manage your financial situation optimally.
I hope this information is helpful to you and I am available for any further questions. Thank you for your trust and inquiry.
Best regards,
Thomas Schottmann
