– Why the tax deal is just a stage victory
The solution negotiated in December between Bern and Paris solves only part of the problem. It might be called into question this summer if an agreement on social security is not found.
For thousands of cross-border workers in Switzerland, the news was a relief. On December 22, 2022, Switzerland and France announced that they had concluded a long-term agreement on the taxation of telework for cross-border workers.
In concrete terms, the solution negotiated between Bern and Paris authorizes them, since 1is January 2023, to work from their home in France for up to 40% of their annual working time without having to pay income tax to the French tax authorities. This obviously only concerns employees whose employment can technically be carried out remotely, and provided that the employer allows this mode of work.
It should be remembered that, until this date, the taxation of teleworking of European cross-border workers domiciled in France and employed by a company located in Switzerland was regulated by a transitional derogatory agreement. This was concluded between the two countries in May 2020, to deal with the consequences of the movement restriction measures due to the Covid-19 health crisis. This amicable solution was then renewed several times. The last extension dated from the end of October and ran until December 31.