Should I submit a tax return in both countries as a cross-border commuter?
July 16, 2022 | 50,00 EUR | answered by Helma Fischer
Dear tax advisor,
I am Quentin Koch and I work as a cross-border commuter in Switzerland, but I live in Germany. Until now, I have only filed my taxes in Switzerland, as I thought this was sufficient. However, I have now heard that it may be more beneficial to also file a tax return in Germany.
My current situation is as follows: I have been working as a cross-border commuter for three years and have not filed a tax return in Germany. I receive all my income from my employer in Switzerland and pay my taxes there as well. However, I am now concerned that I may have to pay taxes in Germany if I do not file a tax return.
My worries are that I may have made mistakes by not filing a tax return in Germany. I do not want to have any problems with the German authorities and want to ensure that I do everything correctly.
Therefore, my question to you is: Should I, as a cross-border commuter, file a tax return in both countries? What consequences could there be if I have not done so, and what are possible solutions in my situation?
Thank you in advance for your help and support.
Sincerely,
Quentin Koch
Dear Mr. Koch,
Thank you for your inquiry regarding your tax situation as a cross-border commuter in Switzerland who resides in Germany. It is important to be informed about the tax obligations in both countries in order to avoid potential problems and ensure that everything is handled correctly.
As a cross-border commuter, you are generally required to pay taxes on your income in the country where you work. In your case, this means that you must pay taxes on your income in Switzerland. However, there are also tax agreements between Germany and Switzerland that allow for the avoidance of double taxation.
Regarding the submission of a tax return in Germany as a cross-border commuter, there are several aspects to consider. First and foremost, it is important to know that cross-border commuters who work in Switzerland and reside in Germany are required to submit a German tax return. Even if you already pay taxes on your income in Switzerland, you must disclose your income and any tax payments in Switzerland to the German tax authorities.
If you have not yet submitted a tax return in Germany, this could have consequences. You may be required to pay back taxes, as there may be taxes in Germany that have not been taken into account. In addition, late payment penalties or fines may be imposed if you have not fulfilled your tax obligations.
To avoid potential problems, I strongly recommend that you submit a tax return in Germany and disclose your income in Switzerland. This way, you can ensure that everything is handled correctly and avoid any potential tax repayments. It is advisable to seek advice from an experienced tax advisor who is familiar with the tax situation of cross-border commuters and can assist you in preparing your tax return.
I hope that my response is helpful to you and I am happy to assist you further if you have any additional questions.
Sincerely,
Helma Fischer
