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Global Mobility Insights - Frühling / Spring 2023 however, Switzerland does not tax capital gains from disposals. This means that the capital gains are still taxed at the German final withholding tax rate, which would not have occurred otherwise. Employee income In the case of employee income, in addition to days of work performed in Germany, days of work performed in third countries from a Swiss or non-German employment relationship are also affected, insofar as they are not executive employees within the meaning of Art. 15, para. 4 of the DTA D-CH. The employee income attributable to these working days, including pro rata special payments, is subject to German taxation according to the general income tax scale. Here too, Swiss income tax paid is credited against this income. Example: A taxpayer resident in Switzerland repeatedly works in Germany within the scope of his Swiss employment otherwise exercised in Switzerland: He also likes to go on holiday in Germany. He rents a flat for his stays in Germany on a long-term basis instead of staying in a hotel. Germany will tax the German working days under credit of a Swiss tax. The days worked in Switzerlandwill be taken into account within the framework of the progression proviso. Design In these constellations, it is important in tax advice to avoid permanent residences in Germany if possible, or to keep the duration of residence in Germany below the six-month limit per year. In cases of departure, the 6-month limit in the year of departure must be kept in mind. In employee cases with a Swiss or non-German employer, working days in Germany and in third countries should be avoided if possible, or at least kept to a minimum, provided that taxation is covered. Contact: Alexia Huber & Partner +49 (0) 89/1219328-00 Birketweg 21 doernbrack@steuerberaterin-huber.de 80639 München steuerberaterin-huber.de convinus.com 28
Global Mobility Insights - Frühling / Spring 2023 Possibilities for action in Austria Authors: Sieglinde Buttinger & Michael Obernberger, ARTUS (Austria) In Austria, there are the following possibilities to exercise a business activity: Through a registered branch The branch is not a legal entity in its own right, but it nevertheless enables a foreign legal entity to participate in economic life in Austria. The profits attributable to the branch must be recorded in a corporate income tax return. Any turnover tax obligations must also be taken into account. The establishment of a branch office in Austria shall be carried out as follows: Application for registration with the Commercial Court, submitting the following required documents. Registration signed by the managing director and certified by a notary public. Articles of association of the foreign company notarised and translated by a court interpreter. Resolution of the shareholders on the establishment of the branch office. Extract from the commercial register of the foreign company (or comparable proof of the legal existence of the company in the home country). Certification of the actual establishment of the branch office (rental agreement or by inspection and confirmation by the Chamber of Commerce). Specimen signatures of all persons representing the foreign company and the branch office in Austria. Confirmation of the regular business activity of the foreign company (only for non-EU companies). If applicable, a business registration and notification of the appointment of the managing director under trade law are also necessary if the business activity is subject to the trade regulations. However, the branch office may only operate under trade law if it has a corresponding trade licence. In the case of a regulated trade, a certificate of competence is also required. Furthermore, a managing director under trade law must be appointed. The managing director is liable vis-à-vis the trade owner and the district administrative authority for the proper exercise of the trade and compliance with the trade regulations. 29 convinus.com
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