Full-time job in Germany + side job in Switzerland
December 1, 2010 | 35,00 EUR | answered by Dipl.BW/SB Ulrich Stiller
Hello,
I work full-time in Germany as a software developer. A few days ago, I received an offer from Switzerland where I can also work as a software developer remotely, part-time. I think it would be a maximum of 10 hours per week.
However, I do not know how to tax the new income. I would also like to know how much I can earn in the side job without heavily impacting my tax payments - it should simply be worth it.
Detailed information:
Tax class I
Gross: 2666 euros
Net: 1677 euros
Single
In summary:
a) how can I tax the income
b) how much can I earn at most to make it worth it
c) what would my net income look like if I, for example, earn an additional 400 euros (gross = net in this case?)
Thank you
Dear inquirer,
Thank you for your inquiry, which I would like to answer based on the information provided and in the context of your involvement in a first consultation as follows:
From an income tax perspective, the following applies:
Since you are a resident of Germany and carrying out activities for the Swiss client from Germany, you are subject to unlimited income tax liability in Germany on your entire income.
As you are not working as an employee for the Swiss client, you are either generating income from a commercial business (§ 15 EStG) or from self-employment (§ 18 EStG). In both cases, you determine the profit according to § 4 Abs. 3 EStG by comparing business income with business expenses. The difference is either a profit or a loss, which is offset against your income from non-self-employment activities.
For example, if you generate a profit of 5,000 euros, you would approximately incur an income tax burden of around 1,250 euros, leaving you with approximately 3,750 euros net income for the year.
To avoid any labor law issues, you should check your employment contract to see if this activity requires approval from your employer. You should clarify this with your employer if necessary.
I hope that my explanations have been helpful to you.
Best regards,
Ulrich Stiller
Tax consultant/Dipl. Business Economist
