On 11 August 2021, the Federal Council approved the new bilateral social security treaty between Switzerland and the UK which will ensure the coordination of social security between the two countries after Brexit.
The exact content of the new agreement is not yet published but will most likely also cover again the multi-state workers scenario. The currently applicable 'old' bilateral social security treaty between Switzerland and the UK does not cover this situation and this is leading the practical issues now.
The new treaty will come into force as soon as it is approved by the parliament of both countries. We will keep you informed.
If you have any questions in the meantime, please do not hesitate to reach out to us on info@exactio.ch
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Introduction of the Economic Employer principle in Switzerland
Together with the new source tax regulations, the Circular Letter 45 issued by the Federal Tax Administration came into force on 1 January 2021, which focuses on the harmonisation of the withholding tax collection process as well as the introduction of the economic employer principle across Switzerland.
Operating in a country different from the headquarters location
What are the considerations and potential pitfalls as the employer?
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Get in touch with us and let’s talk about what we can do to make sure you and your employees are compliant!