Withholding tax for main employment of a foreigner with limited earning capacity

Facts

The German national [X.] was employed as an employee at [A. AG] in [R.] in 2007 and was subject to withholding tax. The tax authorities obliged the employer to make a withholding tax deduction at the fixed rate of 10% according to Tariff D for secondary employment. [X.] applied for a refund of the withholding tax paid, as he was of the opinion that Tariff A0d (single without children, without church tax) should be applicable. The lower instances dismissed the application.

Considerations

The Federal Court overturns the judgment of the lower instance and remands the case for a new decision to the Administrative Court of the Canton of Lucerne. It states that the application of Tariff D for secondary employment is only justified if the appellant did not generate any other income during the…