Taxation
August 13, 2010 | 20,00 EUR | answered by Matthias Wander
Good morning, Assuming a German company pays me a larger sum for my life's work, which I transfer to Switzerland. I myself will relocate my place of residence to Switzerland AFTERWARDS (sometime this year), do I have to pay taxes on this income in Germany or is it better to move to Switzerland beforehand?
Best regards, J.B.
Dear inquirer,
Thank you for your inquiry, which I would like to answer based on the information provided and in the context of your situation within an initial consultation.
Unfortunately, your question cannot be conclusively answered based on the information provided.
First and foremost, it would need to be clarified whether the payment for your life's work is even taxable and if so, to which category of income it belongs.
If it is taxable income and you are a resident in Germany, then these incomes are subject to taxation in Germany.
If you move your residence to Switzerland, then it needs to be determined based on the Double Taxation Agreement (DTA Switzerland) whether Germany still has the right to tax these incomes. However, it depends on the type of income involved.
Furthermore, it should be noted that if in a calendar year there is both unlimited and limited income tax liability, only one (unlimited) income tax return should be filed. The German incomes earned during the limited income tax liability are included in the unlimited income tax liability.
As mentioned earlier, your question cannot be conclusively answered based on the information provided.
Nevertheless, I hope to have provided you with an initial overview.
Kind regards,
Wander
Tax consultant
