Posted: 04 Dec. 2020

Provisional cross-border COVID tax agreements with France and Germany extended until 31 March 2021

Recognising the extraordinary nature of the pandemic and in order to encourage cross-border commuters to work from home to fight the spread of the virus, Switzerland concluded with France a bilateral amicable agreement on 13 May 2020 whereby daily cross-border commuters would continue to pay their taxes on their employment income in the same way as before the pandemic, irrespective of their actual place of work.

This agreement was extended until 31 August 2020 and then again until 31 December 2020.

A similar agreement was concluded with Germany on 11 June 2020 and was also extended until 31 December 2020.

Despite a downward trend in the number of cases and hospitalisations, the Swiss authorities announced on 3 December that both agreements have been extended until 31 March 2021.

Deloitte's view:

This is a sensible decision by the French, German and Swiss authorities. However, there may be some disappointment that this cross-border agreement extension for taxes was not aligned to the same date as similar provisional COVID social security COVID agreements, (which were extended to the 30 June 2021).

If you would like to discuss this topic, please reach out to our key contacts below.

Visit our Swiss Tax & Legal specific Covid-19 webpage to get the latest update.

Key contacts

David Wigersma

Partner, Global Employer Services

Richard Goodwin

Partner, Global Employer Services

Tabea Nyfeler

Senior Manager, Global Employer Services

Jake Higgitt

Director, Global Employer Services

Séverine Morel

Manager, Global Employer Services