Rules for cross-border workers working remotely: 25/45 days

Context

Rules for cross-border workers working remotely: 25/45 days

Key facts

• What: Rules for employment businesses and registration of employment businesses. - When: 1 January 2024. - Where: Switzerland. - Who: Cross-border workers. - Amount: not applicable.

Introduction

With the advent of the COVID-19 pandemic, remote working has become increasingly common and widespread. Many cross-border commuters, particularly those from Italy and France, found themselves working remotely for Swiss companies. However, Swiss law provides specific rules for companies employing cross-border workers who work remotely.

Rules for the employment company

According to Swiss law, remote cross-border commuter businesses must be registered with the Swiss Labor Office. Registration is mandatory for all employment companies whose main purpose is remote working. Employment businesses must be registered within 25 days of the start date of remote working.

Registration of employment businesses is necessary to ensure that cross-border commuters are subject to Swiss laws and regulations. Furthermore, registration allows the Swiss authorities to check that employment companies comply with work and safety regulations.

Rules for registering employment businesses

To register an employment business, cross-border commuters must submit a written request to the Swiss Labor Office. The request must contain the following documents:

• Article of incorporation: a deed of incorporation of the company which indicates the name, headquarters and corporate purpose of the company. - Share capital: a document indicating the company's share capital. - Social situation: a document indicating the social situation of the company, including the names and addresses of partners and employees. - Employment contract: an employment contract that indicates the worker's working conditions and remuneration.

Concrete examples

Here is a concrete example of registering a business:

• Company name: "Ticino SA consultancy company"
• Headquarters: "Via Maino, 12, 6500 Bellinzona"
• Article of incorporation: "article of incorporation of the company dated 1 January 2022"
• Share capital: "CHF 100,000"
• Social situation: "names and addresses of members and employees"
• Employment contract: "employment contract dated 1 January 2022"

Comparisons between practical scenarios

Here is a comparison between two practical scenarios:

• Scenario 1: a cross-border worker who works remotely for a Swiss company without registering the employment company. - Scenario 2: a cross-border worker who works remotely for a Swiss company and registers the employment company with the Swiss Labor Office.

In Scenario 1, the cross-border worker is not subject to Swiss laws and rules, and the Swiss company is not obliged to comply with labor and safety regulations. Furthermore, the cross-border worker is not protected by Swiss workers' rights.

In Scenario 2, the cross-border worker is subject to Swiss laws and rules, and the Swiss company is obliged to comply with labor and safety regulations. Furthermore, the cross-border worker is protected by Swiss workers' rights.

Conclusions

In conclusion, the rules for cross-border commuter businesses working remotely are very important to ensure that cross-border commuters are subject to Swiss laws and regulations. Employment business registration is mandatory for all employment businesses that have remote working as their main purpose. Cross-border commuters must submit a written request to the Swiss Labor Office to register the employment business.

Operational details

Cross-border workers who work remotely in Ticino must respect the rules for employment businesses and the registration of employment businesses. The Revenue Office is the competent body for registering cross-border workers' businesses.

The rules for cross-border workers working remotely are established by the Ticino law of 1 January 2018, which regulates work activity in Switzerland by foreign citizens. According to the law, cross-border workers who work remotely in Ticino must register their work activity at the Revenue Office within 25 days from the start date of the activity.

To register their work activity, cross-border workers must submit a registration application, which must contain the following data:

• Name and surname of the cross-border worker
• Residence address in Ticino
• Type of work activity (e.g. consultancy, self-employment, etc.)
• Start date of the work activity
• Duration of work activity (e.g. 6 months, 1 year, etc.)

Registration of cross-border workers' work activity is mandatory even if it is carried out remotely. The Revenue Office is responsible for verifying the regularity of the registration and requesting payment of the value added tax (VAT) if it exceeds 10,000 Swiss francs per year.

For example, if a cross-border worker named Giovanni Rossi, resident in Lugano, starts working remotely as a financial advisor on 1 January 2022, he must submit an application for registration by 25 January 2022 at the Lugano Revenue Office. The registration application must contain the above-mentioned data and must be signed by Giovanni Rossi.

Registering the work activity of cross-border workers is also important to avoid sanctions. If a cross-border worker does not register his work activity, he may be subject to fines that can range from 500 to 5,000 Swiss francs.

Furthermore, the registration of cross-border workers' work activity is also important for taxation. If a cross-border worker does not register his work activity, he may not be able to benefit from certain tax advantages.

Here is an operational checklist for cross-border workers working remotely in Ticino:

• Check whether you are subject to the employment business and employment business registration rules
• Submit the registration application within 25 days from the start date of the work activity
• Check whether you are obliged to pay VAT if it exceeds 10,000 Swiss francs per year
• Check if you are subject to sanctions if you do not register your work activity
• Check if you can benefit from some tax advantages if you register your business.

In summary, cross-border workers working remotely in Ticino must respect the rules for employment businesses and the registration of employment businesses. The Revenue Office is the competent body for registering cross-border workers' businesses. Registering the work activity of cross-border workers is also important to avoid sanctions and benefit from certain tax advantages.

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Key points

To register the employment business, cross-border commuters must submit an application to the Revenue Office within 8 working days from the date of entry into Switzerland. Once the employment company has been registered, cross-border workers can start working remotely.

However, it is important to note that cross-border workers must comply with the rules relating to border work, which stipulate a maximum duration of 25 working days in a 4-week period. If cross-border workers exceed this threshold, they may be considered seasonal workers and will have to register with the Revenue Office as seasonal workers.

Concrete example: a cross-border worker arrives in Switzerland on January 1st and starts working remotely on January 2nd. Work 20 consecutive days without a break, therefore do not exceed the threshold of 25 working days. However, if he works 30 consecutive days without a break, he would exceed the threshold and would have to register as a seasonal worker.

Once registered as seasonal workers, cross-border workers must comply with the rules relating to seasonal work, which provide for a maximum duration of 45 working days in a 4-week period. If cross-border workers exceed this threshold, they may be considered permanent seasonal workers and will have to comply with the rules relating to permanent seasonal workers.

Concrete example: a cross-border worker arrives in Switzerland on 1 June and starts working remotely on 2 June. Work 40 consecutive days without a break, therefore exceeding the 45 working day threshold. You should register as a permanent seasonal worker and comply with the rules relating to permanent seasonal workers.

To avoid exceeding the 25 and 45 working day thresholds, cross-border workers can use the "50% rule". According to this rule, if cross-border workers work less than 50% of the maximum expected duration, they will not be considered seasonal workers. For example, if a cross-border worker works 25 days in a 4-week period, he does not exceed the threshold of 25 working days and is not considered a seasonal worker.

Concrete example: a cross-border worker arrives in Switzerland on January 1st and starts working remotely on January 2nd. Work 25 consecutive days without a break, so do not exceed the 25 working day threshold. Using the "50% rule", he is not considered a seasonal worker.

To register as seasonal workers, cross-border workers must submit an application to the Revenue Office within 8 working days from the date of entry into Switzerland. The application must be accompanied by a copy of the identity card and a document certifying the date of entry into Switzerland.

You should submit an application to the Revenue Office within 8 working days, accompanied by a copy of your identity card and a document certifying the date of entry into Switzerland.

The application for registration as a seasonal worker must be submitted within 8 working days from the date of entry into Switzerland. If the application is not submitted within this deadline, the cross-border worker could be considered a permanent seasonal worker and will have to comply with the rules relating to permanent seasonal workers.

If you do not submit the application for registration as a seasonal worker within 8 working days, you could then be considered a permanent seasonal worker and will have to comply with the rules relating to permanent seasonal workers.

To avoid being considered permanent seasonal workers, cross-border workers can use the "50% rule". According to this rule, if cross-border workers work less than 50% of the maximum expected duration, they will not be considered permanent seasonal workers.

Work 25 consecutive days without a break, so do not exceed the 25 working day threshold. Using the "50% rule", he is not considered a permanent seasonal worker.

Registration as a seasonal worker is mandatory for all cross-border workers working remotely in Switzerland. Cross-border workers who do not register as seasonal workers may be considered permanent seasonal workers and will have to comply with the rules relating to permanent seasonal workers.

You are not registered as a seasonal worker, so you may be considered a permanent seasonal worker and will need to comply with the rules relating to permanent seasonal workers.

Registering as a seasonal worker is free for all cross-border workers working remotely in Switzerland. However, cross-border workers who do not register as seasonal workers may be subject to administrative sanctions.

You do not register as a seasonal worker, so you may be subject to administrative sanctions.

Operational checklist

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