Tax & Legal

The Swiss Federal Tax Administration is currently preparing an amendment to the Swiss VAT Act as of 1 January 2025 regarding the VAT treatment of the supply of goods via online platforms. In addition, and in order to finance the local pension system, the standard VAT rate shall increase further.

The Supreme Tax Court has refused leave to appeal against a lower court decision that an employee of a Liechtenstein company living in Switzerland was resident in Germany where his family home was and to which he returned at weekends.

An ECJ advocate general has suggested the court rule that there is no conflict between the discrimination prohibition of the EU/Swiss free movement agreement and the Swiss/German double tax treaty provision for the continued German taxation of German source income of a former resident.

The Supreme Tax Court has held that hospital staff commuters to Switzerland do not “stay away” from home by reason of their remaining on stand-by following their regular shift.

The finance ministry has issued a decree allowing the spouse living in Switzerland but with no Swiss income to opt for unrestricted German taxation.

The cabinet has resolved a bill to be laid before Parliament in order to enact the recently revised treaty with Switzerland to legalise the position of German tax evaders without revealing their identity.

Agreement has been reached with the Swiss finance ministry that a taxpayer on whom information is sought may be identified other than by name and address.

The finance ministry has published the text of a treaty signed with Switzerland to ensure German level withholding tax on investment income, whilst protecting those who choose to move their undeclared funds to a third country. Germany continues  to broadly accept Swiss banking secrecy.

The Supreme Tax Court has held that a German resident employee of a Swiss company can lose his status as a commuter, if seconded to a third country in the interests of his Swiss employer.