The additional agreement signed with France on 27 June 2023 regulates the taxation of cross-border remote working of up to 40% of annual working hours. Within the limits, the agreement makes provision for remuneration in connection with remote working to be taxed in the contracting state in which the employer is located. The agreement also envisages that the country of the employer will transfer to the employee's country of residence 40% of the tax which it has levied on the remuneration from remote working in the country of residence. In order to ensure that the new rules are applied, an automatic exchange of salary data is planned.
The additional agreement also updates other provisions in the double taxation agreement between Switzerland and France. In particular, it brings the double taxation agreement into line with the results of the OECD's efforts to combat base erosion and profit shifting.
Furthermore, the Federal Council dispatch makes provision for the federal government to contribute around CHF 50 million per year to the equalization payments made annually by the canton of Geneva to two French departments. This will achieve a certain degree of equal treatment with other cantons that have federal rules for the taxation of cross-border commuters.
The cantons and interested business sectors have welcomed the conclusion of the additional agreement. It still has to be approved by the legislator in both countries before it can come into force.
Botschaft zur Genehmigung und Umsetzung eines Zusatzabkommens zum DBA zwischen der Schweiz und Frankreich(pdf, 196kb)
Zusatzabkommen zum DBA zwischen der Schweiz und Frankreich(pdf, 145kb)
Bundesbeschluss über die Genehmigung und die Umsetzung eines Zusatzabkommens zum DBA zwischen der Schweiz und Frankreich(pdf, 115kb)
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