Key administrative requirements for cross-border remote work

The protocol governing the taxation of remote work under the Switzerland–France tax treaty entered into force on 24 July 2025. It establishes a permanent framework for the taxation of remote work income, effective from 1 January 2026.

This amendment follows the agreement reached at the end of 2022 regarding the tax treatment of remote work. It stipulates that, provided remote work does not exceed 40% of an employee’s total working time during a calendar year, the corresponding remuneration remains taxable in the country where the employer is located.

Furthermore, the country in which the employer is located will transfer 40% of the tax collected on income attributable to remote working days to the employee’s country of residence.

To ensure the correct application of these provisions, an automatic exchange of information on employment income will be implemented between the two countries. It is therefore essential for employers to understand how this mechanism operates, whether they are becoming familiar with it for the first time or simply refreshing their knowledge.

Employer reporting requirements

For employees residing in France and working for a Swiss employer, it is essential that the employer accurately calculates and reports the percentage of remote work performed and certifies this information to the cantonal tax authorities. This calculation must take into account the rule limiting temporary assignments in France or in a third country to a maximum of 10 days per calendar year.

The reported percentage of remote work is used to determine the compensatory payment made by Switzerland to France (except for employees covered by the Agreement of 11 April 1983 concerning the taxation of cross-border workers’ remuneration) and is transmitted through the automatic exchange of information.

To ensure the effective implementation of these international arrangements, employment income and remote work data must be accurately certified. Employers are therefore required to provide the tax authorities with the necessary supporting documentation, even where the employee has not performed any remote work in their country of residence.

Administrative procedure and exchange of information

Each year, the country in which the employer is located must transmit the following information to the employee’s country of residence. The information must be submitted in the format prescribed by the relevant canton and within the deadlines established by the cantonal tax authorities:

• Employee’s identification details  
• The calendar year in which the income was earned
• Number of days or percentage of remote working carried out in the country of residence
• Total amount of gross remuneration paid.

This information is subject to automatic exchange between the two countries.

To facilitate the implementation of these requirements, the Federal Tax Administration (FTA), in collaboration with Swissdec and the cantonal authorities, has introduced a new certificate specifically for employees residing in France and subject to the provisions of the Switzerland–France tax treaty. This certificate should only be used where payroll data is not submitted electronically by the employer.

In certain cantons, such as Geneva and Vaud, only the official cantonal form is accepted. The certificate is intended solely for the exchange of information between employers and the tax authorities and must not be modified in any way, as this could compromise its compatibility with cantonal digital processing systems.

As of 1 January 2026, the use of this certificate will be mandatory unless the employer already submits payroll data electronically (e.g. via ELM or a cantonal portal) or a specific cantonal form is available. In such cases, the standard certificate must not be used.

What this means for employers

The introduction of this mandatory cross-border information exchange mechanism increases transparency regarding employees’ working arrangements and tax status. Any departure from the remote work conditions set out in the applicable agreements may result in a change in the allocation of taxing rights or, in some cases, taxation of the employment income in both countries in accordance with the relevant double taxation agreement.

In addition, non-compliance with the permitted remote work thresholds may have social security implications, potentially leading to a change in the employee’s social security affiliation.

Our recommendations

As we regularly emphasise, it is essential to clearly define the role of remote work within your organisation. This includes establishing a formal framework through either a remote work policy, a dedicated remote work agreement, or an addendum to the employment contract.

It is also advisable to determine precisely which tax regime applies to each cross-border employee. This requires close monitoring of the employee’s actual place of work, including the maintenance of a travel log, regular tracking of the proportion of time spent working remotely, and verification of the number of days spent on business assignments both abroad and in the employee’s country of residence.

Employers should ensure that all required forms and certificates are completed accurately and submitted to the cantonal tax authorities within the prescribed deadlines, in accordance with the rules governing the automatic exchange of salary information.

Finally, we would be pleased to assist your teams in reviewing the circumstances of your cross-border employees, identifying situations that may present an increased tax or social security risk, and implementing appropriate measures to ensure the sustainable, compliant, and effective management of your obligations as an employer.

Author: Murielle Kammermann