Tax liability in CH/D when moving residence within the year
March 9, 2012 | 30,00 EUR | answered by Michael Herrmann
Good day
Background:
As a German citizen, I worked as an employee in Germany until June 15, 2011, and paid taxes as usual. The gross salary for this period was less than EUR 30,000.
Since June 22, 2011, I have registered my residence in Switzerland - residence permit B. The registration office in Germany confirmed the deregistration of all residences in Germany from October 1, 2011, as the previous rental agreement for the old apartment was still running until then.
The new employment in Switzerland also started on June 22, 2011. Since that day, I have been exclusively in Switzerland (more than 183 days of the year). My gross earnings in Switzerland from June 22, 2011, to December 31, 2011, amounted to CHF 60,000. The withholding tax was deducted as usual.
Question:
How and where should the income be taxed / where do I have to submit the tax return (individually in each country or jointly in one country)?
Thank you very much
Best regards
Dear inquirer,
First of all, thank you for your inquiry, which I would like to answer based on the information provided and in the context of your commitment to an initial consultation. The response is based on the description of the situation. Missing or incorrect details about the actual circumstances can affect the legal outcome.
You are generally considered tax resident in the country where you have a permanent residence. In case of moving residence within the year, this applies to both countries.
Therefore, in Germany, you must file an income tax return in which you declare your total income. The income in Switzerland is to be determined according to German tax law and declared as foreign income in the annex AUS. These earnings are tax-free in Germany, but are added to the rest of your domestic income to determine the tax rate (progressive taxation).
In Switzerland, you will be assessed according to Swiss law. However, due to professional reasons, I cannot provide further information on this matter. In general, income earned in Switzerland is subject to taxation there. The extent to which German income may have an impact there cannot be clarified.
Since this involves a change of residence, the duration of your stay in each country is irrelevant. Even one day is sufficient.
I hope that with this information provided in the context of your commitment and this initial consultation, I have given you a sufficient overview of the situation and remain
Yours sincerely,
Michael Herrmann
Tax consultant
Diploma in Financial Management (University of Applied Sciences)
