Memorandum of Understanding
The State Secretariat for International Financial Matters (SIF) announced on 1 May 2026 that a new agreement had been concluded on 29 April 2026 between Switzerland and France on the taxation of cross-border telework.
What are the implications for employers?
The agreement is necessary because one of the previous agreements, dated 30 June 2023, was only valid until the end of 2025.
There was agreement that these provisions should remain in force. The new agreement has closed this gap.
With regard to the specific terms of temporary assignments, a clarification has been made setting a maximum limit of ten days. This is in conjunction with the 40% teleworking provisions. In addition, an information sheet has once again been made available to provide further details (in German).
Miscellaneous (International social security)
In recent days, various pieces of information have been published regarding a possible amendment to EU Regulation 883/2004. This regulation forms part of the Agreement on the Free Movement of Persons between Switzerland and the European Union. The document setting out the amendment to the regulation comprises 92 pages.
According to reports from the European Parliament, the following issues are relevant:
If confirmed, the provisional agreement would update EU rules on unemployment benefits for mobile workers and on the export of unemployment benefits for jobseekers moving to another EU country. In addition, the rules on long-term care and family benefits would be clarified, and the rules on the coordination and enforcement of social security for posted workers (i.e. workers temporarily posted to another EU country by their employer) would be strengthened.
The process is not yet complete. Any amendment to the Regulation would not apply directly in Switzerland.
Should the revision be formally adopted, it would be the European Union’s responsibility to place it on the agenda of the Switzerland-EU AFMP Joint Committee. The adoption of the revision or the updating of Regulation 883/2004, as listed in the Annex to the AFMP, can only take place once the usual domestic approval procedure has been completed. This means that the express consent of Swiss legislature body is required.
On 1 July 2026, a training session on the topic of ‘Employees resident in France’ will take place from 3.00 pm to 5.00 pm in German. During this session, the latest developments arising from the new Memorandum of Understanding will be presented.
Link to seminar registration: https://www.zulaufgmbh.ch/kurse/mitarbeitende-mit-wohnsitz-frankreich-herausforderungen-quellensteuern-und-reporting-9/
I will also be closely monitoring the approval process and any potential amendments to EU Regulation 883/2004, and will incorporate these into my training sessions as a possible future scenario.
