CONVINUS Global Mobility Insights - Sommer / Summer 2024 It should be noted that the A1 certificate must be obtained from the very first day. In Switzerland, the existence of an A1 certificate is usually checked as part of labour market controls or, if the assignment is within the company's own group, as part of AHV audits. 5) Taxes A double taxation agreement is in force between Switzerland and Germany, which may apply. According to Art. 15 para. 2 of the DTA Switzerland - Germany, taxation in Switzerland can be avoided for Mr Müller if the following points are met: Stay in Switzerland for less than 183 days No salary payment from Switzerland No onward charging of costs to a permanent establishment or branch in Switzerland In this practical example, Mr Müller only comes to Switzerland to work for 80 days, he continues to receive his salary from Germany and the costs are not borne by a permanent establishment or branch in Switzerland. As a result, he must pay tax on the earned income accrued on the Swiss working days in Germany. There is therefore no change here either. All the same, Mr Müller receives a wage supplement for the Swiss working days, which must also be taxed in Germany. Even if the wage supplement is a gross amount, it still increases his taxable income and, accordingly, the tax rate applicable to his total income. In this case and in general, Strategic Consulting AG should consider the extent to which it wishes to assume this additional tax burden and, if so, how it wishes to organise this within the company. In Switzerland, in addition to the three points from the double taxation agreement mentioned above, which must be fulfilled cumulatively (if you want to avoid tax liability in the country of assignment - in this case Switzerland), the so-called de facto employer must also be examined. This does not apply in Mr Müller's case, as the company he works for in Switzerland is a client of Strategic Consulting AG. Be that as it may, if the assignment were at a Swiss branch of Strategic Consulting AG, this aspect would also have to be examined. 36
CONVINUS Global Mobility Insights - Sommer / Summer 2024 6) Payroll Mr Müller continues to receive his salary from Strategic Consulting AG in Munich (DE). No adjustments need to be made in the German payroll accounting system, except for the payment of the salary difference for the Swiss working days. There will be no adjustments, as Mr Müller will remain fully insured in Germany and no additional Swiss social security contributions will be incurred, meaning that he will continue to be fully liable for tax in Germany. 37
Expat policy 
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