Quasi-residency and comparable circumstances

Case 1: Quasi-residency

1. facts of the case

Ms A is a German citizen and lives in Düsseldorf with her non-working husband and their two minor children. As of 1 January 2021, she was promoted to the management of Z AG, which has its registered office in Zurich, and has since had a local, permanent employment contract with this company. With the promotion, she was entered in the Swiss Commercial Register as a member of the executive board of Z AG and her place of work is in Zurich.

Due to the family situation, A has decided to keep her residence in Germany and commute between Düsseldorf and Zurich. Due to the long distance between the two cities, she commutes on a weekly basis. On average, she works 2-3 days per week (approx. 50%) in Zurich. 1-2 days per week (circa 30%) she works from her home office in Düsseldorf, while the rest of the time she is on business trips in Switzerland and abroad. When A is in Switzerland, she stays in hotels, which results in costs of approximately 7,000 per year. The flight costs for travelling between Switzerland and Germany amount to CHF 8,000 per year. She bears all these costs herself. Due to the fact that A physically carries out more than 25% of her work in Germany, she is subject to the German social security system.

A's annual base salary is CHF 500,000 gross. In 2021 she will also receive a bonus of CHF 100,000, which relates to her work in 2020 when she was still employed and working at the German subsidiary of Z AG. In addition, A and her husband have private securities and interest income of CHF 20,000 per year and an owner-occupied home with a market value of CHF 1,000,000. The home is subject to a mortgage of CHF 500,000 with an annual interest charge of CHF 5,000. As a househusband, the husband does not earn any income from gainful employment.

Questions

• In which canton is A liable to withholding tax?
• Does A qualify as a quassi-resident in 2021?
• Does A qualify as a quasi-resident in 2022?
• If A does not qualify as a quasi-resident, can she apply for recalculation of withholding tax? If so, what can she claim in this
  application?
• If A qualifies as a quasi-resident, is it worthwhile for her to apply for
  subsequent ordinary assessment?
• What changes to the situation if A decides to rent a 2-1/2 room flat in Wollerau on 1 September 2021, where she stays when she is in Switzerland on business?

Case 2: Subsequent ordinary assessment

1. facts of the case

C is married and lives in France with his non-working wife and their three minor children. As of 1 January 2021, he took up a local and permanent position with V AG in Biel. Due to the pandemic and his personal situation, he decided to keep his residence in France for the time being and to commute to Switzerland as often as possible. However, due to the distance between his place of residence in France and his place of work in Biel, he cannot commute daily, but at most weekly. In Switzerland, he always stays in hotels.

C is thinking of moving to Switzerland. While looking for a flat, he finds a nice flat in Grenchen/SO. After the end of the school year, C and his family move to Grenchen on 1 September 2021.

C's gross salary is CHF 150,000. The family has additional income from securities and credit balances of CHF 5,000 and has no other income.

Questions

• Is C subject to the retrospective ordinary assessment? If so, for which period?
• Can C apply for voluntary retrospective ordinary assessment for the remaining period? If so, in which canton?
• Alternative facts: The flat in Grenchen cannot be occupied until 1 November 2021. C therefore decides to initially only use the flat alone when he stays overnight in Switzerland. The family will not move to Switzerland until 1 April 2022. What effects does this decision have on any subsequent ordinary assessment (compulsory or voluntary) in Switzerland?

Case 3: Subsequent ordinary assessment

1. facts of the case

B lives with his family in France. Since 1 January 2021, he has been employed by Z AG, which has its registered office in the canton of Bern. Due to the long distance between his place of residence in France and his place of work in Switzerland, it is not possible for him to commute daily between the two places. As a rule, A arrives in Switzerland on Monday morning and stays here until Thursday evening. On Fridays, B usually works in his home office in France.

B decides to buy a 2 1⁄2 room flat in the city of Bern for his weekly stay.

Alternative facts: Instead of a flat in the city of Bern, B buys a holiday chalet in the canton of Valais.

Questions

• Under what conditions could B apply for a subsequent ordinary assessment?
• Can the canton of Bern order a mandatory retrospective ordinary assessment?
• What about a mandatory retrospective ordinary assessment in the alternative facts?