France and Switzerland consider new rules allowing cross-border workers to continue teleworking

Even though the health-related state of emergency is over, the expiry date for a derogatory agreement between France and Switzerland, concluded on 13 May 2020, that allowed border and cross-border workers to work from home during the Covid-19 pandemic without having to alter their taxation regime, has been extended from 30 June 2022 to 31 October 2022. As teleworking is expected to continue beyond the health crisis period, both countries agreed in a joint statement published on 29 June on “the importance of defining new sustainable taxation rules for telework in order to support this change.” Until the relevant competent French and Swiss authorities agree on “a mutually satisfactory permanent regime” that is “flexible, simple and fair for the workers and employers concerned”, the derogation mechanisms contained in the 13 May 2020 agreement will continue to apply until the end of October. A work schedule has already been set to reach a “long-term solution”, that will then become applicable.