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Working from home may spark rethink for cross-border worker tax

National News // June 8, 2020

The Organization for Economic Cooperation and Development says if home working becomes more common after the pandemic, then there will have to be a rethinking of the rules for cross-border workers. 

Photo by Corinne Kutz on Unsplash Working from home may spark rethink for cross-border worker tax

Currently, the rules state you pay tax where you live and social security contributions where you work. 

There is also an agreement with the 37 member states, which includes Switzerland, that workers should only be taxed in one country. 

But cross-border home working is threatening the traditional rules. 

During the lockdown, French authorities have agreed to turn a blind eye to those living in France and working in Switzerland. But if such practices become commonplace, it poses a problem.

The organization says it’s working urgently on the issue and has published a guide which it hopes will clarify several points. It’s also working on how those who may have been trapped in a country which is not their normal residence should report their tax status. 

The OECD says the pandemic is a period of major change and all issues will be debated. 


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