During its meeting on June 7, 2024 the Federal Council initiated the consultation on a Federal Act on the International Automatic Exchange of Information on Salary Data. The Federal Council is thus laying the legal foundations for implementing the exchange of information as laid down in agreements with France and Italy. The consultation period runs until September 27, 2024.

In December 2020 Switzerland and Italy agreed on new rules for the taxation of cross-border commuters. The agreement, which has applied since January 1, 2024 envisages an automatic and reciprocal exchange of the information needed for taxing cross-border commuters in their country of residence.

In June 2023 Switzerland and France signed an agreement governing the taxation of remote working. The agreement introduces an automatic and reciprocal exchange of the information needed for taxing employees who reside in one contracting state and work for an employer in the other. This agreement is currently being debated by Parliament.

To implement the agreement, the Swiss Federal Council is proposing a new act governing the automatic exchange of information on salary data in tax matters between Switzerland and a partner state with which it has a corresponding treaty. This applies particularly to the transmission of information between the Swiss cantonal tax authorities and the Federal Tax Administration (FTA). The exchange of information between the FTA and the foreign authorities is governed by the treaties themselves.

In a dispatch of March 1, 2024 on the Federal Act on the Taxation of Remote Working in an International Context, the Swiss Federal Council already specified that, for each tax period, employers must provide the relevant tax authorities with a record of salary data for employees who do not reside in Switzerland, if the exchange is provided for in an international agreement. The law proposal is currently being debated by Parliament.

• The text of the law proposal can be found here in the German, French or Italian language;
• The explanatory document can be found here in the German, French or Italian language;
• The text of the letter to the cantons can be found here in the German, French or Italian language;
• The text of the letter to the organizations can be found here in the German, French or Italian language; and
• Click here be forwarded to the list of addressees.

Click here to be forwarded to our article of June 7, 2024 on the protocol that Switzerland and Italy signed to amend their existing cross-border commuter agreement.

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