emigration
November 24, 2009 | 50,00 EUR | answered by Michael Herrmann
Hello,
I am filing my income tax return for 2007. From January to April, I was employed in Munich (also my main residence) and on 1st May 2007, I started working for an employer in Switzerland. I also moved my entire household (I now live in Switzerland)!
Do I need to inform the German tax office about how much I earned and paid taxes on (from May to December) here in Switzerland? I have attached a confirmation from the financial department confirming that I paid my taxes properly.
If yes, where do I need to enter this information on the form?
Regards, U. Gruber
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 initial consultation. The response is based on the facts presented. Missing or incorrect information about the actual circumstances can affect the legal outcome.
In the year 2007, you were considered a resident taxpayer in Germany since you had your residence in Germany until April 30, 2007. Therefore, you are generally liable for tax in Germany on all your income. The income earned in Switzerland is considered foreign income. This income is exempt from tax in Germany and is only taken into account in determining the tax rate of the income taxable in Germany under the progression clause. The income tax paid in Switzerland does not need to be declared.
Practically, this means that you should report your income from employment in Germany as usual in Annex N. The income earned in Switzerland should be reported in line 21 of Annex N.
Important: The income should be the Swiss salary minus the work-related expenses determined under German law. Line 21 requires the entry of "salary," which can be misleading.
Therefore, you can deduct work-related expenses from your gross salary in Switzerland, which you would have also declared if the employment had been in Germany. This includes primarily commuting expenses, work equipment, and other work-related expenses (business trips, training, etc.).
Moving expenses to Switzerland are also deductible. Note that lump sums under the Federal Moving Expenses Act are also deductible. In your case, the Foreign Moving Expenses Ordinance should also be considered, as higher lump sums are applied here.
The calculation of Swiss income (gross salary minus work-related expenses) should be determined on a separate sheet as there is no space provided in line 21 of Annex N for this.
Furthermore, I would like to point out that German tax offices cannot deliver tax assessments abroad. Therefore, you should designate a recipient in Germany when submitting your tax return.
I hope this information has given you an initial overview of the situation and remain
Yours sincerely,
Michael Herrmann
Graduate in Taxation (University of Applied Sciences)
Tax Consultant
