On June 27, 2023, an additional agreement to the bilateral DTA was signed in Paris, which contains new and permanent taxation rules for home office income.
This additional agreement allows employers and employees throughout Switzerland to arrange cross-border home office up to 40% of the working time per year. Within this limit, remuneration in connection with home office is taxed in the contracting state in which the employer is located. The State of the employer transfers to the State of residence of the employee 40% of the taxes levied on the remuneration from home office in the State of residence. An automatic exchange of information on salary data is provided for.
The supplementary agreement also updates other DTA provisions (alignment with OECD BEPS initiative). Entry into force is still pending. Until then, Switzerland and France have agreed to apply the provisions of the supplementary agreement, based on the temporary mutual agreement of December 22, 2022, in principle until December 31, 2024.
The media release including the text of the agreement and Q&A are available here.