FR-CH - Taxation of cross-border commuters

As France was lagging far behind in parliamentary ratification, a friendly agreement was reached on December 17, 2024 to provide a legal framework and extend to December 31, 2025 the validity of the transitional agreement of December 22, 2022, which allows cross-border teleworking up to 40% of annual working time (including 10 “temporary mission” days) without entailing international tax apportionments. Otherwise, the transitional agreement would have ceased to apply on December 31, 2024!
The extension of the transitional agreement until December 31, 2025 has the following consequences:
- Employers and employees concerned can agree to telework up to 40% of working time in 2025, as in 2023 and 2024, with the 10-day “temporary mission” constraint in practice postponed until 2026.
- Employers are not obliged to certify the percentage of their employees teleworking in 2025, as in 2023 and 2024, as part of the automatic exchange of payroll data. However, they will still be required to provide the tax authorities if asked with an employer's certificate indicating the percentage of working time or number of days teleworked, as in 2023 and 2024, but no automatic exchange with the authorities before 2027.
- The automatic exchange of information on salary data will not apply to data for the year 2025, but for 2026 at the earliest, provided that the agreement enters into force before the end of 2025. In this case, the first exchange of information will take place in 2027!

This extension provides a welcome stability while awaiting the French parliamentary ratification and the final implementation of the mechanism.

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