The case

Yesterday, the Federal Council passed the Federal Act on the Taxation of Teleworking in International Relations, which will enter into force on 1 January 2025. The law regulates the taxation of cross-border commuters who telework in a country other than their country of residence.

Source: FTA

The commentary

The background of this legislative amendment is the growing trend towards teleworking, particularly since the COVID-19 pandemic, which has raised new international tax issues, in particular with cross-border commuters who work in one country but live in a different country. These people have been affected by the previous tax regulations, which often do not specify how teleworking abroad should be treated.

The new law creates a legal basis to ensure that cross-border commuters can be taxed in Switzerland, even if they perform some or all of their work from abroad. The new framework provides clarity and legal certainty, both for the employees concerned as well as for employers.

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