Coffee & Consulting: Cross-border commuter - The risk of permanent establishment

Sample – Cross border employee
SITUATION
• Reto Swiss (Swiss national) lives in Switzerland and is employed at Drinks AG in Vienna (Austria) as the CFO.
• He would like to still continue to work 3 days in the office and 2 days from home.
What are the legal implications?
Switzerland
• Labour law: Switzerland / Austria
• Social security: in Switzerland enrolled, A1 to be
requested
• Tax: tax return procedure with effectively taxing the 2
days; the income taxed in Austria will be considered
with exemption by progression
• Payroll: Shadow-Payroll for Swiss social security
Austria
• Labour law: Switzerland / Austria
• Immigration: Application registration certificate
(“Anmeldebescheinigung”) within 4 months of
the entry in case of a domicile in AT, free access
to work
• Social security: Switzerland, A1 in AT
• Tax: Income attributable to working days in AT
taxable in AT, income attributable to working
days in CH tax-exempt in AT
• Payroll: In AT, income attributable to CH can be
considered tax exempt
C r o s s - b o r d e r c o m m u t e r - T h e r i s k o f p e r m a n e n t e s t a b l i s h m e n t , S e p t e m b e r 5 , 2 022
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