What are the tax implications if I do my work as a cross-border commuter in a home office?
December 21, 2022 | 60,00 EUR | answered by Selma Rosenblatt
Dear tax advisor,
My name is Anneliese Schönecker and I work as a cross-border commuter in Switzerland. Due to the current situation surrounding the Covid-19 pandemic, my employer has allowed me to work from home. However, I am concerned about the possible tax consequences that may arise from this.
My main question is: What are the tax implications of me working as a cross-border commuter in a home office? I want to make sure that I do not lose any tax benefits or find myself in a potentially problematic tax situation.
I am aware that there are special regulations regarding cross-border commuters and that working from home may have an impact on my tax status. I would like to know if I will have to pay additional taxes due to my home office work, or if my tax situation could change in any way.
It would be very helpful if you could provide me with possible solutions to minimize or avoid these tax consequences. I want to ensure that I fulfill my tax obligations properly and do not have to make any unexpected tax payments.
Thank you in advance for your support and advice.
Best regards,
Anneliese Schönecker
Dear Mrs. Schönecker,
Thank you for your inquiry regarding your tax situation as a cross-border commuter who is working from home due to the Covid-19 pandemic. It is understandable that you are concerned about potential tax consequences and want to ensure that you fulfill your tax obligations properly.
As a cross-border commuter in Switzerland, you are generally subject to the tax regulations of your country of residence, in your case Germany, and must pay taxes on your income there. Normally, taxation is governed by the so-called "place of activity principle," which means that income from employment is taxed where the work is actually performed. However, due to the current situation and the possibility of working from home, this may change.
If you regularly work from home as a cross-border commuter, this could result in a portion of your income being taxed in Switzerland, as the work is being performed there. This could have implications for your tax situation and lead to additional tax payments. It is therefore important that you review the specific regulations in your case and take any necessary measures to minimize tax consequences.
One way to avoid or minimize potential tax consequences could be to reach an agreement with your employer stating that working from home is temporary and due to the current situation. It may also be beneficial to work with a specialized tax advisor to analyze your individual tax situation and develop possible solutions.
It is advisable to inform yourself early about potential tax consequences and take appropriate measures to avoid unexpected tax payments. I am available for further questions and individual consultation.
Sincerely,
Selma Rosenblatt
Tax Advisor
