Legal Precision - Petra Ribbens
31 août 2023
Switzerland – France: Social security status home office / telework abroad: on May 1, 2023, Switzerland has adjusted the regulatory framework for cross-border workers
The new regulatory framework affects cross border workers’ tax and social security status:
a. Income tax regime: at the end of June 2023, Switzerland and France have signed a supplement to the bilateral double taxation agreement, allowing cross-border workers to telework up to 40% of the time without jeopardizing their tax regime.
b. Social security affiliation: on July 2, 2023, France declared its participation in a new multilateral framework agreement with Switzerland (and other EU and EFTA countries), allowing their cross-border workers to telework less than 50% without affecting their social security subordination.
Does your business duly identify the working locations of your employees, to allow you to manage tax withholding in a compliant manner? This article covers the situation for French cross-border-workers, but do know that other cross-border workers may be subject to the new rules as well.
It is good practice to have telework policies or contracts in place with your employees, and to create awareness about these rules and repercussions.
To learn more: https://www.kmu.admin.ch/kmu/en/home/New/news/2023/new-agreements-facilitate-teleworking-for-cross-border-workers.html