Withholding tax for cross-border commuters and Germany (special case)

In general, tariff codes L, M, N and P apply to cross-border commuters from neighbouring countries (whatever their nationality). As a rule, these employees return to their place of residence every day.

Exception Germany:

The condition for the application of a cross-border commuter rate limited to a maximum of 4.5% for employees from Germany is: a certificate of residence from the German tax authorities: Form "Gre-1" or the form for extensions: Form "Gre-2"
With the authorisation, a maximum of 4.5% cross-border commuter tax for cross-border commuters resident in Germany will be taxed in Switzerland if they return to their place of residence in Germany every day.

Exception for non-daily return:

Employees resident in Germany who are prevented from returning to their place of residence in Germany for work-related reasons on more than 60 working days per year (so-called non-return days) are not considered cross-border commuters and are taxed according to the ordinary withholding tax rates (tariff codes A, B, C, E and H). These work-related non-return days must be certified using an official form (Gre-3, employer's certificate of non-return days in excess of 60 days within the meaning of Article 15a paragraph 2 DTA-D and the negotiation protocol of 18 December 1991). The form must be submitted to the competent cantonal tax administration. The cantonal tax authorities, or the employer on their instructions, will recalculate the amount using the applicable rate. Under- or overpaid withholding tax will be reclaimed or refunded.