For employees who live in areas close to the border in Germany and work abroad (out-commuters) or who live abroad and work in Germany (in-commuters), there are special regulations for national income tax and in the Tax treaty intended.
Non-resident taxpayers who earn their income (almost) exclusively in Germany cannot take personal circumstances into account either in their country of employment (in Germany) or in their country of residence, e.g. B. Annual income tax adjustment, Splitting, family and child allowances. On the one hand, only objective criteria are used for the limited tax liability; on the other hand, there is no taxable amount in the country of residence. According to the so-called “Schumacker judgment” of the European Court of Justice of 14 February 1995, “limited taxable” cross-border commuters, regardless of their nationality, are, under certain conditions, treated as tax residents (Europeanization).
Natural persons can apply for unlimited tax liability (Section 1 III EStG) if they have neither domicile nor habitual abode in Germany and have more than 90 % domestic income i. S. d. 49 EStG (or less than € 6,136 income abroad). For citizens of the EU or the EEA there is also the option, in accordance with Section 1 a of the Income Tax Act, to apply more extensive family status-related tax benefits, even if the spouse or children are not resident in Germany, e. B. Splitting procedure (so-called fictitious unrestricted tax liability).
The special regulations in the German tax treaties with Belgium, France, Austria, Switzerland and the Netherlands have been repealed due to national tax law. The Europeanized tax law partially supplements the treaty law.