Who is covered by the cross-border commuter regulation (CH)?

The cross-border commuter regulation for Switzerland applies to anyone who lives in Germany and regularly commutes to their workplace in Switzerland. The following regulations apply:

• The taxpayer must not return to their place of residence on more than 60 working days per year.
• The distance between home and workplace is irrelevant.
• Switzerland may levy a payroll tax of up to 4.5% on wages. Allowances and work-related expenses are not taken into account.
• The employee must prove their place of residence to the employer with a so-called certificate of residence from their local tax office (form Gre-1).
• The employer will issue a payroll tax certificate upon request for the withheld payroll tax.
• When taxed in the country of residence, Germany, the payroll tax withheld in Switzerland is credited against German income tax.

Please note that there are special features and equitable regulations for cross-border commuters due to the COVID-19 pandemic, as daily commuting was often not possible. Further information can be found on the Federal Ministry of Finance website.

In addition, double taxation agreements are now being amended, or so-called amending protocols have been agreed, whereby home office days are increasingly considered harmless. In individual cases, it should be carefully checked where the taxation right lies.