2022-04-05-KPMG_Global-Switzerland_–_Ending_Flexible_Social_Security,_Tax_Rules_for_Cross-Border_Workers_5页_154kb

Summary of Swiss Cross-Border Social Security and Tax Rules Update

Background

In response to COVID-19 restrictions, Switzerland and its neighboring countries implemented flexible social security and tax rules to prevent changes in employee status for cross-border workers. These temporary measures are now winding down as restrictions ease.

Key Details

• Social Security Flexibility: Most agreements are ending by 30 June 2022. For instance, Switzerland and Liechtenstein mutually end their application on 1 April 2022. Switzerland and France's extension also ends on 30 June 2022 for some countries.
• Tax Flexibility: Similar timelines apply, with various agreements due to conclude soon. For example, German tax rules may extend to 30 June 2022 or earlier, while French and Italian agreements involve specific end dates or automatic extensions.
• Implications: These flexibilities were temporary and designed to maintain pre-pandemic administrative states. Employers should prepare for the resumption of standard compliance obligations.

Conclusion

The end of these temporary rules marks a return to normalcy, requiring employers to adhere to routine cross-border administrative requirements starting from their respective expiration dates.