Taxation of employees in the case of cross-border work in the home office
Sarah Bühler, René Matteotti and Peter Vogt address the taxation of international employees and their home office activities. They provide an overview of the existing regulations and pay particular attention to the cross-border commuter agreements with Switzerland's neighboring countries.
Implications of the home office for cross-border commuters between Switzerland and Germany
Working from home has become much more important due to the Corona pandemic. Many employers have found that working from home has proven successful and have introduced regulations that enable mobile working. This also affects cross-border commuters between Germany and Switzerland. A variety of tax regulations, especially in the DTA D-CH, as well as consequences under social security law must be taken into account.
Home office and the cross-border commuter agreement with Italy
Today, around 85,000 Italian residents work in the border cantons of Ticino, Grisons and Valais. The cross-border commuter agreement concluded with Italy is of great importance especially for the canton of Ticino with its approximately 75,000 cross-border commuters, of which around 66,000 are considered cross-border commuters within the meaning of the agreement.
Cross-border commuter regulation Switzerland-Liechtenstein
The double taxation agreement between Switzerland and Liechtenstein contains a special rule for cross-border commuters, according to which the income from employment earned in the State of activity is allocated to the State of residence for taxation. If, on the other hand, an employee in a cross-border context does not meet the criteria established for cross-border commuters, the earned income is allocated for taxation to the State of activity and the State of residence on a pro rata basis in accordance with the general principles. Against this background, employers who employ cross-border commuters from Liechtenstein or Switzerland have different clarification and declaration obligations.
.jpg)
.jpg)
Taxes in the cost-plus method - FTA publishes statement on the ruling of the Federal Supreme Court 9C_37/2023
In its ruling 9C_37/2023 of June 11, 2024 (see our article), the Federal Supreme Court addressed, among other things, the question of whether or not the tax expense should be taken into account in the cost base when applying the cost-plus method in the context of Art. 58 para. 3 DBG.
International supplementary tax IIR to come into force in 2025
At its meeting on September 4, 2024, the Federal Council decided to bring the Income Inclusion Rule (IIR) into force on January 1, 2025. In addition to the QDMTT, which was already introduced on January 1, 2024, this rule is intended to ensure that tax revenue remains in Switzerland.
Federal Council opens consultation on determining the partner states for the AEOI on crypto assets
At its meeting on August 14, 2024, the Federal Council opened the consultation on determining the partner states for the automatic exchange of information on crypto assets (AEOI on crypto assets). With this proposal, the Federal Council wants to determine when Switzerland should automatically exchange information on crypto assets with which partner states.
Switzerland and Hungary sign protocol of amendment to double taxation agreement
On July 12, 2024, Switzerland and Hungary signed a protocol of amendment to the DTA.
Switzerland and the USA agree on mutual exchange of information on financial data
Switzerland and the USA signed a new FATCA agreement in Bern on June 27, 2024. Switzerland currently provides information on financial accounts to the USA unilaterally. In future, it will also receive corresponding information from the USA as part of an automatic exchange of information. The model change is expected to apply from 2027.
Federal Council adopts dispatch on DTA with Angola
The Federal Council adopted the dispatch on the DTA with Angola on June 14, 2024.
Switzerland and Italy sign permanent tax rules for working from home
On June 6, 2024, Switzerland and Italy signed a protocol of amendment to the existing cross-border commuters agreement, which permanently regulates the issue of taxation of home offices. The protocol of amendment will enter into force as soon as the corresponding approval processes in both countries have been completed and will apply retroactively from January 1, 2024.
Federal Council opens consultation on the new Federal Act on the International Automatic Exchange of Information on Salary Data
The Federal Council opened the consultation procedure at its meeting on June 7, 2024. It is proposing a new law that regulates the automatic exchange of information on salary data in tax matters between Switzerland and a partner state with which an international treaty exists.
.jpg)
