CONVINUS Global Mobility
CONVINUS Global Mobility Insights - Frühling / Spring 2025Persons, which is applied in this example, this leads to social securitysubordination in the country in which Mr. Suter is employed. Accordingly, henot only has to insure his director's fee in Switzerland, but also the incomefrom his work as a lawyer. This will certainly not please Mr. Suter, as he wouldnot have to pay social security contributions on this income in Germany.ConclusionThe legal challenges of a member of the Board of Directors in Switzerland who isresident abroad include, in particular, duties of care, licensing, social security andtax law issues, as well as various questions relating to legal responsibilities andthe practical implementation of administrative tasks.It is important that the individual situation of the Board of Directors is regularlyreviewed in order to avoid potential conflicts and to ensure that all legalrequirements, both in Switzerland and in the country of residence, are compliedwith.Contact:CONVINUS global mobility solutionsTalstrasse 70CH-8001 ZurichSwitzerland+41 (0) 44 250 20 20info@convinus.comconvinus.com36
CONVINUS Global Mobility Insights - Frühling / Spring 2025Avoidance of liability proceedings for theemployer's wage tax deductionAuthor: Michael Yönden, Stahl | Yönden | Witt - Tax ConsultantsThe employee is liable for wage tax in accordance with § 38 (2) EStG. The employeris liable for the wage tax, which it must withhold and pay. Insofar as theemployer's liability extends, the employer and the employee are jointly andseverally liable. The permanent establishment tax office can assert the tax liabilityagainst each joint and several debtors at its discretion (see Section 42d EStG).To avoid incorrect wage tax deductions, employers and employees can requestwage tax information from the relevant local tax office. At the request of one ofthe parties involved, the tax office must provide information on whether and towhat extent the regulations on wage tax apply in the individual case (§ 42e EstG).The request for information is always free of charge, issued promptly, exempt fromliability and binding for the tax office in the wage tax deduction procedure for theindividual case. No specific form is required for the application in accordance with§ 42e EstG, but it should be made in writing. The request for information must setout specific legal issues that are relevant to the individual case (see BMF, letterdated 12 December 2017, IV C 5 - S 2388/14/10001, BStBl I 2017, 1656).A holiday with unintended (tax) consequencesFacts of the case:An international German supplier to the automotive industry has subsidiariesworldwide, including in the USA.Due to the changes in the automotive industry and the expansion of the U.S.market, the commercial employee (K) travels to the USA several times in thecalendar year 2023 on behalf of the German parent company to visit the branchesthere.K's work-related stays in the USA range from a few days to several months.Consequently, K also spent time in the USA on weekends when he was not working.37
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