The Swiss National Council unanimously approves new legislation on the taxation of teleworking for cross-border commuters.

During its special session on Monday, the National Council approved a federal law on the taxation of teleworking by cross-border commuters by 183 votes to 0.

There are state treaty regulations for working from home from abroad. The law forms the basis of national tax law.

Double taxation agreements exist with France and Italy in particular. Accordingly, cross-border commuters in France can work up to 40% of their time at home, and 25% in Italy. As a rule, income is taxed in the country where work is carried out.

If cross-border commuters switch to working from home, their income would therefore be taxed in the country in which they live. The provisions on the taxation of teleworking are given a domestic tax base for teleworking that is carried out in a neighbouring country for a Swiss employer.

One point of contention in the National Council was the taxation of seafarers on ocean-going vessels. The Federal Council wanted to continue the exemption from withholding tax for seafarers on ocean-going vessels flying the Swiss flag and enshrine this in law.

The majority of the Committee for Economic Affairs and Taxation supported the current regulation, but did not want to specifically stipulate it. One canton had also extended the tax exemption to foreign flags.

The minority stated that the partial exemption of crews flying foreign flags had created uncertainty and that it was now necessary to provide clarity. Finance Minister Karin Keller-Sutter explained that the tax exemption for crews flying the Swiss flag would not change either way.

The Council agreed with the minority by 92 votes to 90. In the overall vote, it approved the Teleworking Act by 183 votes to 0. The bill will now go to the Council of States.

©Keystone/SDA