The tax agreement between France and Switzerland regarding cross-border workers mentions that employer certification is necessary for cross-border workers to be taxed in their country of employment (Switzerland), despite working from home in France during the COVID-19 crisis.
The agreement between France and Switzerland regarding taxation of cross-border workers is valid until 31 December 2020 (unless another extension is agreed). Based on this agreement, the tax authorities will apply to cross-border workers working from home the same tax treatment as when they physically crossed the border to their usual place of work.
According to the agreement, individuals who work from home, and who would have crossed the border daily to work in the other country in the absence of specific COVID-19 measures, should be in a position to provide an employer certification as well as proof of taxation in the country of employment (Switzerland) in order to have their professional income exempt from taxation in France.
It should be noted that cross-border workers who used to regularly work from home prior to the COVID-19 crisis and who used to be taxed in France on income linked to non-Swiss workdays, would be taxed in line with their usual work patterns and the employer certificate should reflect this as well.
Deloitte can support
Swiss employers will need to issue year-end certificates to their cross-border workers in order to validate their cross-border tax status.
This is an example of how the COVID-19 crisis is triggering additional employer year-end requirements. We recommend that employers also provide guidance as to the reason for the attestation and how it should be used.
Deloitte can support employers of cross-borders employees with this exercise.
Should you need any assistance with respect to this new requirement, please do not hesitate to contact us.