I am confused by how I should fill out the 2021 tax return by Steueramt demend.
From Steueramt I was given a code and I should fill in the data online in ZHprivateTax and I am confused by the fact that this application asks for net salary and not gross as in Germany (I mean the Lohnsteuerbescheinigung info).
And we are a case with both withholding tax.
But the fact that the ZHprivateTax application asks for the net salary instead of brutto is deeply confusing me because:
- Wife employed in Switzerland for 7 months paid Quellensteuer 14.7% on an approximate calculation, so her net salary was significantly reduced.
- I came in September continuing the contractual relationship from Germany - there they changed my tax class to 1 and taxed me hardcore, considering me Unbeschränkt Steuerpflicht for the whole year 2021. Maybe I complicated my situation but I thought is not fair to leave these moneys in DE instead of CH and to avoid a later taxation in CH.
I know that according to the German-Swiss convention the gross amount of remuneration is reduced by one fifth when determining the assessment basis ( in der Schweiz wird der Bruttobetrag der Vergütungen bei der Ermittlung der Bemessungsgrundlage um ein Fünftel herabgesetzt ).
So, I have to file now tax declaration in CH as well. Therefore, I wonder if I can really use the ZHprivateTax app recommended by Steueramt.
Or it must be something like Quellensteuerrückerstattung ? But if so, I’m really not clear what it is… because I couldn’t find a clear reference to the term.
I was browsing more on the forum and I found some similar comments that are making sense:
Now, being my first tax declaration in CH, I am still not sure if this is enough. I saw somewhere comments regarding additional information provided to Steueramt (ex. detailed information within a document).
Any recommendation in this regard? Thank you in advance.
As Mullhollander replied in the other thread, the term Nettolohn has a different meaning in CH and implies income after social security and pension (2nd pillar) deductions. It does not mean income after tax.
This amount is clearly stated on the Lohnausweis in line 11.
As for your status, it will most depend on what you convince German tax authorities about. If they accept you were no longer tax resident in Germany from September on, they should/could/might refund some of the taxes.
From Swiss perspective, if you registered in CH as of September, you became subject to worldwide taxation in Switzerland for those 4 months.
Depending on your work set up, you may either potentially qualify as cross-border worker, in which only limited tax is due to Germany and main tax liability in CH.
If they do not accept it as cross border commuter you may be subject to taxation in line with the DTA between DE and CH.
Thank you for the info. It makes sense.
I took a look in the How to Fill Your Tax Return.pdf and I have to admit is not that clear.
Well, it's not about acceptance, but about respecting the low, the CH-DE convention.
Once becoming Swiss resident, you should be limited tax responsible in Germany. I understood from a Steuerberater that the Finanzamt application is not prepared for cases when people are moving and still remaining bound to DE, appearing by default in the system the whole year as Unbeschränkt Steuerpflicht.
I already did the tax declaration and they calculated this way. When I did the objection (Einspruch) they decided to suspend their decision and asked me for the Swiss tax declaration, so I ended up approaching Steueramt that asked me for tax declaration, too. According to the same Steuerberater, if they did the Bescheid suspension after Einspruch they are aware I shouldn't be that charged as I was for those almost 4 months.
The dilemma that remains is how to calculate the Nettolohn in my case for that period... because I don't have kind of line 11 in Lohnsteuerbescheinigung.
LE: On the Einspruch the tax advisor has specified a Reduktionsbetrag for Germany. Looks like being the Brutto amount for the period I came in Switzerland.
Still, I think it's not in my competence to say what is the Nettolohn based on the DTA between DE and CH. But if somebody has some hints, they are highly appreciated.
"Acceptance" in such cases is what the tax authorities determine as their interpretation of the situation.
You would be better off if they accepted either cross-border commuter status or no tax status in Germany at all. I am afraid that is not likely.
If they accept that you severed your ties to Germany and have no more tax liability there, that would be your best case scenario.
If they accept the cross-border status, your main tax liability will be in CH - which for 2021 is a bit late.
Finally, if they do not agree this is a true cross-border commuter (which normally requires adequate proportion of time spent in Germany), the DTA applies, which means you effectively pay German tax - to be precise, first Swiss tax and then top it up to the German tax level ...
Your Nettolohn: I would submit your income statement for that period to CH authorities. They should accept deductions for social security and/or pension paid in Germany but not the taxes withheld there. That way, it would be an approximate equivalent of line 11 on the Lohnausweis.
As mentioned, Finanzamt has suspended their Bescheid based on Unbeschränkt Steuerpflicht once with the objection. To me, it sounds kind of acceptance.
Additionally, back in 2022, I had the cross-border commuter status.
Indeed. For the moment, for 2021, my German company paid everything to Germany (22% according to St.K1) and Finanzamt wanted more (due to a progressive approach). As I cannot be double-taxed at all, there has to exist a regulation.
It makes sense. By income statement paid in DE do you mean: Brutto - (social security + pension)?
Or income statement = Netto + Steuer paid in DE?
Regarding my questions, I wrote to Steueramt for clarifications and I got the next information might be useful for others as well:
The withholding tax cannot be deducted for tax purposes in the tax return and is generally credited against the final invoices. Please note that Art. 15a DTA applies to cross-border commuters. According to the consultation agreement with Germany on the tax treatment of wages and state benefits to employed persons during the measures to combat the COVID-19 pandemic (valid until 30.06.2022), working days spent at the place of residence are in principle to be regarded as days spent in the contracting state and thus to be declared at 80%. Cheers!