Switzerland and France have reached an agreement on the imposition of telework for cross-border workers. From January 1, teleworking will be possible up to 40% of the activity rate per year, without tax impact. The canton of Geneva welcomes this decision.
The development of teleworking during the health crisis constitutes “a change that will last”, indicated Thursday the State Secretariat for International Financial Matters (SFI).
Bern and Paris had signed an amicable agreement on May 13, 2020 to guarantee that the measures to combat Covid-19 – such as teleworking – would not modify the tax regime for cross-border workers. This agreement, already renewed several times, had been extended until the end of the year. Bern and Paris were looking for a long-term solution.
Status not questioned
If he respects the limit of 40% of the working time, the exercise of the “home office” will not call into question either the status of cross-border worker, nor the rules of taxation at the residence of the income which result from it, indicates the SFI in a press release. These provisions will be specified by an amicable agreement taking effect from January 1, 2023.
An agreement has also been reached for other workers, who fall under the double taxation agreement between Switzerland and France. It provides for maintaining taxation in the State where the employer is located, if the teleworking carried out from the country of residence does not exceed 40% of the working time.
However, “adequate” compensation is provided for the employee’s State of residence. The agreement will be modified by an addendum which must still be signed and then ratified by the two countries. In the meantime, the two countries will apply it by amicable agreement.
Geneva interests preserved
For the SFI, the negotiated solution constitutes “a balanced result reflecting the budgetary interests” of the two States, the communities and the cantons concerned”. It is in particular provided that the financial interests of Geneva are “preserved thanks to the participation of the Confederation “, underlines the SFI and the Geneva Minister of Finance Nathalie Fontanet.
In a press release, the Geneva State Council welcomes this solution, which meets the needs and demands of the companies and border staff concerned. The agreement initialed Thursday also takes into consideration environmental concerns related to commuter traffic, he notes.
In the third quarter of this year 2022, Switzerland had more than 208,500 cross-border workers domiciled in France, according to figures published on the website of the Federal Statistical Office (OFS). They represent just over half of the total cross-border workforce (55.7%).
This article has been published automatically. Source: ats
