The double taxation treaty concluded between Austria and
Germany contains a special provision deviating from the OECD Model
Convention on the tax treatment of remunerations for employees
living and working across the border (so-called frontier workers).
Certain open questions have now been jointly addressed by the
Austrian and German competent authorities.
In general, the double taxation treaty concluded between Austria
and Germany ("DTT Germany")
provides that salaries, wages and other similar remuneration
derived by an employee who is a resident of one contracting state
and who exercises their employment in the other contracting state,
shall be taxable in both states. However, in case of so-called
frontier workers, only the state of residence shall have the
taxation right regarding such income. Frontier workers are defined
as persons (i) residing in the frontier zone of one contracting
state; (ii) exercising their employment in the frontier zone of the
other
