Posted Dec 23 2022 at 11:13Updated 23 Dec. 2022 at 12:45
There was not yet fire at the lake, as we say on both sides of the Franco-Swiss border, but this agreement, after long months of negotiations, was still highly anticipated: it concerns more than 200,000 people.
Switzerland and France have indeed reached an agreement concerning the imposition of telework for cross-border workers, Bercy said in a press release on Thursday evening, as well as the Swiss authorities.
40% of working time
“As of January 1, 2023, teleworking will be possible up to 40% of working time per year without calling into question the state taxation of income from salaried activity, in particular for border staff”, declared Bercy and the State Secretariat for International Financial Matters (SFI), emphasizing that the teleworking which developed during the health crisis constitutes “a change that is destined to last. This negotiated solution was presented by France and Switzerland as “a balanced result reflecting the budgetary interests of the two States, the communities and the cantons concerned”.
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%).
In the midst of the Covid pandemic, Bern and Paris signed an amicable agreement on May 13, 2020 to guarantee that health measures to combat the disease – such as teleworking – would not modify the tax regime for cross-border workers. This agreement had been renewed several times, but Paris and were looking for a long-term solution.
If it respects the limit of 40% of working time, working from home will not call into question either the status of cross-border commuter or the rules for taxing the residence of the resulting income. This component concerns in particular the cantons of Bern, Solothurn, Basel-City, Basel-Country, Vaud, Valais, Neuchâtel and Jura. These provisions will be specified by an amicable agreement taking effect from January 1, 2023.
Compensation for the State of residence
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.
This part of the agreement concerns Geneva in particular, where there are many cross-border workers and they play a crucial role, particularly in health structures. 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.