What tax obligations do I have as a cross-border commuter that I absolutely must be aware of?
May 2, 2024 | 60,00 EUR | answered by Paula Bauer
Dear Tax Advisor,
My name is Wolfgang Krause and I work as a cross-border commuter in Switzerland. Lately, I have been wondering about the tax obligations that I need to be aware of as a cross-border worker. I am currently unsure if I am complying with all relevant tax regulations and want to make sure that I do not make any mistakes that could lead to unpleasant consequences.
Currently, I live in Germany and work in Switzerland on a daily basis. I have heard that cross-border commuters can benefit from certain tax advantages, but also have specific obligations to fulfill. However, I am not sure what these specific obligations are and how to correctly fulfill them.
My biggest concern is inadvertently violating existing tax laws and potentially facing high back payments or other penalties. That's why I am reaching out to you for clarification on my tax obligations as a cross-border worker and to learn about possible solutions.
Could you please explain in detail what tax obligations cross-border commuters have and what specific steps I need to take to fulfill these obligations correctly? Are there any specific forms or documents that I need to regularly fill out? And what documents do I need to submit for tax returns in both countries?
Thank you in advance for your help and support.
Best regards,
Wolfgang Krause
Dear Mr. Krause,
Thank you for your inquiry regarding your tax obligations as a cross-border commuter in Switzerland. As a tax advisor with expertise in the field of cross-border commuter issues, I would be happy to assist you and provide you with the necessary information.
As a cross-border commuter living in Germany and working in Switzerland, you are generally subject to the tax laws of both countries. There are certain tax benefits that cross-border commuters can enjoy, but also specific obligations that you must adhere to in order to avoid any potential consequences.
Some of the key tax obligations for cross-border commuters include correctly paying taxes in Switzerland and filing tax returns in Germany. As a cross-border commuter, you must ensure that you declare and pay your income tax in Switzerland properly. This is usually done through withholding tax, which is deducted directly from your salary. Additionally, you must submit a tax return in Germany, in which you declare your worldwide income and potentially claim taxes paid in Switzerland.
To fulfill your tax obligations as a cross-border commuter correctly, it is important to regularly document your income and expenses. You must also carefully fill out and submit the necessary forms and documents for tax returns in both countries. In Switzerland, for example, you need to fill out the "Lohnausweis" and "Quellensteuererklärung" forms, while in Germany you use the "Anlage N-AUS" for cross-border commuters.
For tax returns in both countries, you will need to provide various documents, including your salary slips, receipts for business expenses, contributions to pension insurance, and other relevant documents. It is advisable to seek assistance from an experienced tax advisor to ensure that you submit all the necessary documents correctly and can benefit from the tax advantages as a cross-border commuter.
I hope that this information will assist you in fulfilling your tax obligations as a cross-border commuter. If you have any further questions or need assistance, please do not hesitate to contact me.
Best regards,
Paula Bauer, Tax Advisor
