Teleworking of cross-border workers in Switzerland: what taxation applies?
Question to an expert
Does the fact of teleworking change the methods of taxation of cross-border workers? In the context of Covid-19, when teleworking had suddenly developed, provisional agreements had been signed between the French and Swiss tax authorities.
They were made permanent on December 22, 2022: there is therefore now a permanent tax regime for telework between the two countries. This agreement is the first of its kind in Europe, while global reflections are currently being carried out on the taxation of telework at the level of the European Union and the Organization for Economic Cooperation and Development.
The rule is as follows: from the 1er January 2023, French employees working in Switzerland can work from home for up to 40% of their working time without jeopardizing their tax system.
What is this diet? There are two systems, depending on the canton where the French resident works.
In some cantons – Bern, Solothurn, Basel-City, Basel-Country, Vaud, Valais, Neuchâtel, Jura – the principle of taxation in the country of residence applies, under a agreement of April 11, 1983. For the other cantons, the principle is that of taxation in the country where the activity is exercised (under the tax treaty of September 9, 1966).