Cross-border commuters commuting from Switzerland to Germany:
If an employee resident in Switzerland qualifies as a cross-border commuter, his or her wages will be taxed in Switzerland and only a wage tax deduction limited to 4.5% of the gross wage will be made in Germany. In order to take account of the withholding tax in Switzerland, only 80 % of the salary is subject to taxation.
However, the German employer can only refrain from withholding the full wage tax if he has a certificate of residence from the Swiss cross-border worker. The cross-border commuter must apply for the certificate of residence in triplicate to the competent cantonal tax office using form Gre-1. The cantonal tax office confirms residency and retains the third copy of the form. It sends the two remaining certificates back to the cross-border worker, who gives the first copy to his employer and keeps the other.
This residence certificate is valid for one year at a time. The certificate is issued to the cross-border worker by the competent authority for the following year without the need to apply for it (form Gre-2). It should be noted, however, that a new residence certificate must be applied for in the event of a change of employer. The situation may be different if the place of residence has been transferred from Germany to Switzerland.
Cross-border commuters commuting from Germany to Switzerland:
Taxpayers who are taking up cross-border commuting in Switzerland for the first time can find information on the taxation procedure in the information sheet.