Switzerland and France have extended the agreement enabling French cross-border workers with Swiss employers across all cantons to continue working from home whilst applying 鈥渇rontalier鈥� rules.1聽The temporary measures put in place at the beginning of the coronavirus pandemic have been extended several times, with the last deadline announced as 30 June 2022.2
Why this matters
France and Switzerland recognise that home working has evolved significantly since the start of the pandemic with a real shift in the way employees have embraced the flexibility of home and office work. Both countries appear to have agreed that now is the time to redefine the tax rules so that they reflect this new reality. The extension has therefore been put in place to give more time to both countries to agree on a permanent solution to facilitate home working across borders. They are looking to implement a regime which is 鈥渟upple, simple and fair鈥� for employees and employers alike, and one which allows for an equitable split of the tax revenues between France and Switzerland.
Context
This announcement comes after Switzerland agreed with the European Union to continue flexible application of the social security rules for remote workers until 31 December 2022.3 This means there is a misalignment of tax and social security rules, which we have already seen with previous extensions; however the authorities have committed to finding a permanent solution before the extension expires.
乐鱼（Leyu）体育官网 Note
Although this may seem to be simply another extension to the tax rules, the announcement has a different tone and message. It is clear that both France and Switzerland want to conclude a new agreement for all cross-border workers which reflects the change in working patterns.4 This agreement must also satisfy both sides in terms of preserving their respective financial positions. Both countries are committed to finding a solution before the end of October 2022, and have even stated that a timeline has been put in place to make this happen.
Contacts
Additional Resources
Footnotes
1听Ambassade de France en Suisse et au Lichtenstein, ".鈥澛�
2 For prior coverage, see聽, 5 April 2022, and聽GMS Flash Alert听2021-279, 15 November 2021. For related coverage, see聽GMS Flash Alert聽2021-184, 25 June 2021; also see聽GMS Flash Alert聽2020-492, 21 December 2020.
3 See "Travailleurs frontaliers en t茅l茅travail: flexibilit茅 prolong茅e jusqu'脿 fin 2022 pour la s茅curit茅 sociale" (20 Juin 2020) on the website of the Swiss Office Federale des Assurances Sociales at:聽听.
4 See on French Senate's website "T茅l茅travail des frontaliers exer莽ant en Suisse et pr茅sidence fran莽aise de l'Union europ茅enne" (13 July 2022) at:聽听.
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