Switzerland: COVID-19 temporary derogation with respect to individual tax and social security agreements for frontier workers finally extended until December 31, 2020

Submitted by siha on Wed, 09/02/2020 - 13:23
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RSM Switzerland (28.08.2020)With the current worsening of the sanitary situation, further intense discussions, France and Switzerland finally agreed on a new extension of both social security and tax derogation schemes until December 31, 2020, to enable frontier workforce to keep high volume of home office and hence contribute to the fight against virus spread.

measures summary

In the view of current worsening of the sanitary situation, the Swiss Federal Social Security Office confirmed on August 17, 2020 that an agreement has been reached with France to extend flexible approach until December 31, 2020. In application, disregarding the number of working days spent on the French soil at home from March 14, 2020, frontier workers will keep enrollment to the Swiss social security scheme without being at risk at any point until year end.

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SOCIAL SECURITY | FLEXIBLE APPROACH ON ENROLLMENT RULES EXTENDED UNTIL DECEMBER 31, 2020 AS WELL.

  • During the health crisis, the overriding rule was that the social insurance liability should not change due to the restrictions on COVID-19 and that a person remained considered to be working in Switzerland even if he/she was prevented from physically exercising his/her activity out there. This flexible interpretation, which took into account the situation of “force majeure”, also corresponds to the EU recommendations on the application of the European coordination law.
  • As for tax matter, derogation was supposed to end up at the end of August. In the view of current worsening of the sanitary situation, the Swiss Federal Social Security Office confirmed on August 17, 2020 that an agreement has been reached with France to extend flexible approach until December 31, 2020.

In application, disregarding the number of working days spent on the French soil at home from March 14, 2020, frontier workers will keep enrollment to the Swiss social security scheme without being at risk at any point until year end