On 11 June 2020, the State Secretariat for International Financial Matters SIF concluded a new consultation agreement between Switzerland and Germany on the taxation of cross-border commuters and the treatment of state support services.
The consultation agreement explains in particular how the working days are to be calculated if a cross-border worker has not been able to return to his or her State of residence as a result of the COVID-19 pandemic, i.e. the working day return to residence is assumed.
It is further agreed that the short-time work compensation paid in Switzerland as well as similar compensation which is reimbursed by the Swiss government either directly or through the employer as a result of the measures taken to combat the COVID-19 pandemic are to be qualified as compensation for employment within the meaning of Articles 15 and 15a of the Agreement and are taxed only by Switzerland.
The full consultation agreement is available here.
