CONVINUS Global Mobility Alert - Week 8.2024

BY NORMA REYNOV, CONVINUS
For the occasional Swiss working days, the A1 certificate for social security subordination in
Germany must be obtained. It should be noted that the competent German authority may refuse to
issue an A1 certificate due to insufficient activities by the Swiss employer in Germany.
In such cases, it is advisable to obtain another confirmation of social security status in the German
social security system, which can be submitted to the Swiss authorities instead of the A1 in order to
obtain formal exemption from Swiss social security contributions for the occasional working days
in Switzerland.
Income taxes
The Swiss company is also responsible for calculating and paying German income taxes. This
responsibility cannot be delegated to the employee (any more). Therefore, the German payroll
provider also handles the German payroll taxes.
For any Swiss working days, Swiss withholding taxes are owed, which must be calculated, remitted,
and deducted from the employee.
Permanent establishment
The Swiss company does not wish to establish a permanent establishment in Germany. It is,
therefore, advantageous to exercise appropriate caution when drawing up the employment
contract and to prohibit the employee from negotiating and / or signing contracts for the company
in Germany. In addition, he should not be given power of attorney.
Payroll
The involvement of a German payroll provider is essential. The payroll provider will prepare the
monthly payroll and handle any communication with the German tax and social security
authorities. He will also be responsible for various other administrative tasks, such as insurance
with the relevant employers' accident insurance association “Berufsgenossenschaft”.
Work permit
The German employee does not need a work permit for Germany. For the occasional Swiss working
days, however, a permit is mandatory. The best (and often the only) option here is the registration
procedure (“Meldeverfahren”).
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