Consultation agreement with Germany on the taxation of cross-border workers and state support services

The consultation agreement explains in particular how the working days are to be calculated if a frontier worker has not been able to return to his Contracting State as a result of the COVID-19 pandemic, i.e. the working day return to residence is assumed.

It is further agreed that the short-time work compensation paid in Switzerland as well as similar compensation which is reimbursed by the Swiss government either directly or through the employer as a result of the measures taken to combat the COVID-19 pandemic are to be qualified as compensation for employment within the meaning of Articles 15 and 15a of the Agreement and are taxed only by Switzerland.

The full consultation agreement is available here.