Frontier and remote: the tax implications (cross-border guide)

Context

In a nutshell

• The new legislation on remote work of border workers came into force on 1 January 2024.
• Border workers working remotely from a third country during a holiday in Switzerland are subject to a special tax and insurance regime.
• The new legislation has changed the tax and insurance rules for border workers working remotely from a third country during a holiday in Switzerland.

Key facts

• What: The new legislation on remote work of border workers.
• When: From 1 January 2024.
• Where: Switzerland.
• Who: Frontiersmen.
• Amount: Not applicable.

The new tax agreement between Switzerland and Italy introduced a special tax regime for border workers working remotely from a third country during a holiday in Switzerland. This regime is based on the Italy-Switzerland Double Taxation Convention of 9 December 1976.

The new special tax regime for frontier workers working remotely from a third country during a holiday in Switzerland is based on source taxation in Switzerland. This means that frontier workers working remotely from a third country during a holiday in Switzerland are subject to a tax at source in Switzerland.

The new legislation has also introduced a special insurance scheme for frontier workers working remotely from a third country during a holiday in Switzerland. This scheme is based on LAMal (health insurance) and LPP (disability pension).

I

Operational details

Implications for frontier workers

Border workers working remotely from a third country during a holiday in Switzerland should be aware of the new tax and insurance rules. Border workers must file an annual tax return in Switzerland and submit an application for a residence permit in Switzerland.

Border workers must also check whether they are subject to a tax exemption regime in Switzerland. The verification of subjectivity to taxation must be carried out by 31 March of the year following the year in which the work was carried out.

Frontier workers working remotely from a third country during a holiday in Switzerland should also be aware of the duty-free regime and refunds. Border workers must submit an application for a residence permit in Switzerland and submit an annual tax return in Switzerland.

The new legislation also introduced a tax exemption regime for border workers working remotely from a third country during a holiday in Switzerland. Border workers must submit an application for exemption from taxation by 31 March of the year following the year in which the work was carried out.

Frontier workers working remotely from a third country during a holiday in Switzerland should also be aware of the duty-free regime and refunds. Border workers must submit an application for a residence permit in

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Key points

Action

Border workers working remotely from a third country during a holiday in Switzerland must file an annual tax return in Switzerland and submit an application for a residence permit in Switzerland.

Border workers must also check whether they are subject to a tax exemption regime in Switzerland. The verification of subjectivity to taxation must be carried out by 31 March of the year following the year in which the work was carried out.

Frontier workers working remotely from a third country during a holiday in Switzerland should also be aware of the duty-free regime and refunds. Border workers must submit an application for a residence permit in Switzerland and submit an annual tax return in Switzerland.

The border worker must submit an application for exemption from taxation by 31 March of the year following the year in which the work was carried out.

The border worker must also submit an application for a residence permit in Switzerland by 31 December of the year preceding the year in which the stay is scheduled.

The border worker must also file an annual tax return in Switzerland by 31 March of the year following the year in which the work was performed.

The border worker must also check whether he is subject to a deductible and refunds regime.

The frontier worker must submit an application for relief and

Check tax deadlines for cross-border workers: returns, Swiss declarations, rebates — all dates in one interactive calendar.