Home office before and after the pandemic (intercantonal and international situations)

Case 1: Home office of an international weekly resident abroad due to the COVID-19 pandemic

1. facts of the case

A is 38 years old, single and a German citizen. His residence for tax purposes is in Berlin. He works for an employer in the city of Bern as an online marketing specialist with a workload of 80% and lives in the city of Bern during the week as an international weekly resident. Since 2019, A has held a B residence permit. He regularly returns to his place of residence in Bern at weekends. He often spends a long weekend in Berlin if he manages to schedule his day off on Monday or Friday.

During the pandemic, A switches to the home office in Berlin for 100% of his work activity, as he is affected by the home office obligation due to his job and he can also do his work in the home office without physically visiting his workplace in Bern. He chooses the home office location in Berlin because that is where he has his centre of life and travelling from Bern to Berlin is massively more difficult due to the restrictions.

Question

To what extent is A liable to tax in Switzerland?

Case 1a: Home office of a foreign national resident in Switzerland abroad during the COVID-19 pandemic

1. facts of the case

A is 38 years old, single and a German citizen. His residence for tax purposes is in the city of Bern. He works for an employer in the city of Bern as an online marketing specialist with a workload of 80%. He has a B residence permit since 2019 and only occasionally returns to his old home in Berlin to visit his child.

During the pandemic, he switches to his home office in his parents' house in Berlin for 100% of his working hours in order to assist his ex-wife with childcare, as the daycare centres there are closed and he has to move his workplace to the home office anyway.

Questions

• Where is A's residence for tax purposes in tax year 2020?
• To what extent is A liable to pay tax?

Case 2: Calculation of non-return days during the COVID 19 pandemic

1. facts of the case

Z is a German citizen who lives in Germany with his wife, who works there, and their two minor children. He has been working for B. AG, which has its registered office in Bern, since 2015. B. AG charges Z at the cross-border rate, but Z exceeds the 60 non-return days pursuant to Art. 15a, para. 2 DBA CH-D. In the tax year 2020, he worked 115 days in the German home office due to the pandemic (confirmation from the employer is available). The signed calendar, which was also submitted, then confirms that Z worked in Germany for a further 45 of a total of 240 working days and has a total of 54 work-related non-return days. Z submits an application for the exclusion of days abroad.

Questions

• At what rate is Z to be taxed?
• How is the elimination of foreign days to be carried out?

Case 3: Weekly resident with home office in UK

1. facts of the case

X, resident in the United Kingdom (UK), works for X. AG in the canton of Bern and is a weekly resident in the city of Bern. Due to the COVID-19 pandemic, X worked exclusively from his home office in the UK from 1 March to 30 June and from 1 November 2020, as he was unable to travel between the two countries due to the restrictions and he was in the UK at the start of the measures. The X. AG settles withholding taxes with the tax administration of the Canton of Bern for the entire salary. The UK taxes X for the days worked there.

Questions

• Is X entitled to a refund of withholding taxes?
• How must he proceed?

Case 4: Transfer of a weekly resident abroad with taking up a secondary occupation

1. facts of the case

Continuation of case 1a:

A is 38 years old, single and a German citizen. His residence for tax purposes is in the city of Bern. He works for an employer in the city of Bern as an online marketing specialist with a workload of 80%. He has a B residence permit since 2019 and only occasionally returns to his old home in Berlin to visit his child.

During the pandemic, he switches to a home office at his parents' house in Berlin for 100% of his working hours in order to assist his ex-wife with childcare, as the daycare centres there are closed and he has to move his workplace to the home office anyway. He also decides to take a job as a layout artist at a newspaper in Berlin for one day a week.

After the pandemic, he works 40% in his home office in his new flat in Berlin, 40% in the office in Switzerland, and spends the weekends in Berlin as well.

Questions

• Where is A's tax residence after the pandemic?
• Which days can be taxed in Switzerland?

Case 5: Establishment of a permanent establishment through a home office abroad

1. facts of the case

B is 47 years old, married, has 2 children and lives in Weil am Rhein DE. He works as one of three employed consultants in a consulting company for SAP consulting and project management. The place of work before the pandemic is in Basel or on site with clients in Switzerland. B has held a cross-border commuter permit since 2007.

The consultancy is 100% owned by X, who is resident in Switzerland and works full time in the company. The company generates approximately CHF 2.5 million in turnover per year, which is acquired and achieved in similar proportions by the three consultants and the owner.

During the pandemic, B does 100% of his work in his home office in Weil am Rhein using remote tools. After the pandemic, he works voluntarily and without compensation from the employer one day per week and partly in the evening in the home office.

Questions

• How is B to be taxed in Switzerland during the pandemic?
• Does B's home office activity constitute a permanent establishment?

Case 6: Establishment of a permanent establishment by ANOBAG

1. facts of the case

C is 56 years old and employed by N. AG, based in Germany. N. AG specialises in selling medical products throughout the EU. C is sent to Switzerland by his employer to set up N. AG's business in Switzerland. He moves to the city of Bern, obtains a B permit and registers with the tax administration of the canton of Bern in order to settle withholding taxes for himself as an ANOBAG. C receives part of the rent from N. AG because he has to set up an office and a meeting room in his flat.

Questions

• In which procedure does C have to pay taxes?
• Is there a permanent establishment?

Case 7: Main tax domicile and permanent establishment in the intercantonal relationship

1. facts of the case

D. AG, with its registered office in Zug, is active in the IT services sector and is owned by D (60%, Chairman of the Board of Directors), resident in the Canton of Bern, and F (40%, Member of the Board of Directors), resident in the Canton of Aargau. There are no office premises in the canton of Zug (pure mailbox domicile). The IT services are mainly provided at the customers' premises, but also partly at the residences of D and F. The meetings of the Board of Directors take place remotely from the respective home offices.

Question

Where is the registered office or place(s) of business of D. AG located?