Swiss Tax – The One Pager

Facts

The new amendment to the 1966 double tax convention between Switzerland and France has been in force since 1 January 2026. The key change for cross-border workers in Geneva is the introduction of a 40% limit on remote working, including 10 days of temporary assignments. The automatic exchange of information on salaries also came into force this year.

Telework refers to any professional activity that could be carried out on the employer’s premises but is performed by an employee remotely from their country of residence. This new form of work relies on the use of information and communication technologies. The concept of telework includes temporary assignments during which the employee undertakes a business trip on behalf of their employer, either within their country of residence or in a third country.

Competent tax authority

Depending on the proportion of teleworking and the number of days spent on temporary assignments, the competent authority to tax the employment income of a cross-border worker employed by a Swiss employer may lie with Geneva, France or, on a pro rata basis, both countries. The following four scenarios are possible:

• If a cross-border worker in Geneva teleworks for a maximum of 40%, including a maximum of 10 days of temporary assignments per year in France and/or a third country, the entire income is taxable in Switzerland.
• If remote working does not exceed 40% and the employee undertakes a maximum of 10 days of temporary assignments, but the combined total of the two exceeds 40%, France will have jurisdiction to tax the days of temporary assignments that exceed 40%. The remaining working days will be taxed by Switzerland.
• If remote working does not exceed 40% but the employee undertakes more than 10 days of temporary assignments, Switzerland will tax the days of remote working as well as the first 10 days of temporary assignments, and France will have jurisdiction over the remainder.
• If teleworking exceeds 40% of working time, France will tax all teleworking days (from the 1st day onwards), as well as all days spent on temporary assignments. In such a case, the loss of cross-border worker status also results in a transfer of social security liability to France. For part-time jobs, the same rules apply on a pro rata basis. The daily organisation of remote working is flexible, provided that the threshold is not exceeded over the course of the year. If the employee resigns during the year, the threshold taken into account may suddenly change.

Employer obligations

Until the end of 2025, it was possible to certify the remote working rate of cross-border employees in Geneva by providing their employment contract. From 2026 onwards, employers are required to track the days of remote working and temporary assignments carried out by each cross-border employee. This data must then be submitted to the tax authorities in January of each year for the previous year.

Key Takeaways

• The amendment to the double tax convention between Switzerland and France offers Geneva-based cross-border workers a degree of flexibility, but exceeding the threshold exposes both the employer and the employee to significant risks.
• The tax consequences of exceeding the threshold include a correction of the tax at source by Geneva, an overall increase in taxation due to different tax scales, and greater complexity in the annual tax return.