Global Employer Services in Tax and Legal blog
- Select a blog category
The International Tax Review (ITR), is a world recognised authority and publisher for tax professionals in industry, government, private practice and research and have just awarded Deloitte Switzerland with the accolades of being the Swiss Tax Firm of the Year and the Swiss Transfer Pricing Firm of the Year for the 9th time.
On 11th August 2021, the Swiss Federal Council adopted the dispatch on the new frontier workers` agreement between Switzerland and Italy. The agreement significantly improves the current regulation on the taxation of frontier workers. It also contributes to maintaining good bilateral relations between the two countries and resolves a political impasse which lasted more than five years.
Brexit: A new social security agreement between Switzerland and the United Kingdom is approved by the Swiss government
On 11 August 2021 the Swiss Federal Council approved a new social security agreement between Switzerland and the United Kingdom. This new agreement is important for ensuring and simplifying the coordination of social security systems of both states due to the UK's withdrawal from the EU.
Whether your employees have been “working at home”, “remote working” or setting up a “home office”, significant challenges have arisen from the new working norms.
As of 26 June 2021, the rules on entering Switzerland have been relaxed. The entry restrictions and health-related measures at the border now focus on individuals who are not fully vaccinated.
Anyone who can provide evidence that they have been fully vaccinated can enter Switzerland, when coming from a country mentioned on the list of SEM risk countries. In addition, individuals entering Switzerland from a country that is not on the FOPH-List (the list of countries with a variant of concern provided by the Federal Office of Public Health) are no longer required to quarantine. Only people arriving by plane are still required to take a test, but even this requirement does not apply to anyone who has been fully vaccinated or who has recovered from a previous COVID-19 infection.
The future of remote working: Remote work / Cross border commuters - Extension of flexible Social Security approach until 31 December 2021, expansion to all European Economic Area countries and Switzerland
The Swiss social security administration has communicated that the current “flexible approach” in regards to maintaining ordinary cross-border commuters (who have been having to work from home) in the Swiss social security and pension system will continue to be valid until the 31 December 2021. Further, the social security authorities of the European Economic Area confirmed the expansion of this approach to all the EEA countries and Switzerland.
The future of remote working: Remote work / Cross border commuters - Extension of flexible Social Security approach until 31 December 2021
The Swiss social security administration has communicated that the current “flexible approach” in regards to maintaining ordinary cross-border commuters (who have been having to work from home) in the Swiss social security and pension system will continue to be valid until the 31 December 2021.
As per our latest tax blog the general rule is that anyone who has been in a country or area with an increased risk of infection must go into quarantine in Switzerland. However, various groups of people are exempt from the quarantine requirement as well as the obligation to present a negative test result at the Swiss border.
After passing the $1.9 trillion COVID-19 relief package through Congress, President Biden’s attention has now shifted to his tax legislative agenda. During the election campaign, President Biden proposed that tax revenue should increase by $2.65 trillion over the next decade with 6.5% less after-tax income for the top 1% of taxpayers. The focus was on raising taxes on labour, investment and business income for those earning over $400,000 and an increased payroll tax for the wealthy. With Democrats now controlling the House and Senate, President Biden recently proposed the American Jobs Plan and the American Families Plan which target investments in children, families and the economic future of the USA. The full revenue proposals released by the Department of the Treasury can be found at: General Explanations of the Administration's Fiscal Year 2022 Revenue Proposals (treasury.gov). President Biden would need to fund these proposals, so what financial impact could this have on U.S. individuals, employers and businesses?
On 27 April, the Swiss government announced that the Provisional Agreement of 11 June 2020 between Switzerland and Germany regarding the taxation of cross-border employees during the COVID-19 pandemic has been further extended until at least 30 June 2021. Additionally, the agreement states that working from home because of the pandemic does not automatically imply the creation of a permanent establishment.