18/05/20

EUROPE: Switzerland and France conclude tax deal for cross-border 'home workers'.

As published on thelocal.fr, Friday 15 May, 2020.

Switzerland and France have concluded an agreement concerning cross-border employees working from their home in France during to the coronavirus pandemic.

According to the State Secretariat for International Financial Matters (SFI), “the tax agreements between the two countries continue to apply as before, as long as the exceptional health measures are in force”.

This means that French cross-border workers will continue to be charged taxes as if they had physically gone to their workplace in Switzerland.

Under the taxation regime currently in place, permit G holders who work in cantons other than Geneva, have their taxes collected by French authorities.

However, if their place of employment is Geneva, taxes are paid in Switzerland.

In total, about 87,000 French citizens commute to work in Switzerland daily but there are no official figures on how many of them currently work from home.

The provisions of the agreement are valid until May 31st and will be renewed from month to month until Bern and Paris end health regulations that limit or discourage the movement of people.

However, either country may cancel the arrangement by mutual agreement at any time.

The SFI said that it is also in contact with authorities in Italy, Germany and Austria for the purpose of concluding similar tax agreements, clarifying tax obligations for cross-border home workers from these countries.