On June 9, 2023, the Federal Council submitted a revision of national tax law for consultation, according to which earned income from the home office abroad should be taxable in Switzerland, provided that the right of taxation is assigned to Switzerland by treaty.
At the end of 2022, Switzerland and France agreed in a supplementary agreement to the double taxation treaty that cross-border commuters will pay withholding tax on all earned income in Switzerland from January 1, 2023, provided they do not work more than 40 percent of their working hours from home. The agreement will be definitively signed on June 30, 2023.
The consultation draft incorporates the principle of the supplementary agreement into national tax law so that withholding tax on the employment income of employees residing abroad is guaranteed even without physical presence in Switzerland.
The media release and further documents are available here .
