Aufrufe
vor 9 Monaten

CONVINUS Global Mobility Alert - Week 23.2024

  • Text
  • Wwwconvinuscom
  • Mobility
  • Global
  • Website
  • Steuern
  • Taxes
  • Permits
  • Applications
  • Arbeitsbewilligungen
  • Brexit
  • Convinus
  • Schweiz
  • Switzerland

BEST PRACTICE MIND THE

BEST PRACTICE MIND THE GAP - CHALLENGES OF BREXIT IN SWITZERLAND PART 1 - INTRODUCTION AND BACKGROUND NORMA REYNOV, CONVINUS Part 1: Introduction and background What was it all about Brexit - and what impact is it having on business travel and employee assignments between Switzerland and the UK today? We shed some light on this. In the first part of our 5-part series, we look at the general background and implications of Brexit for HR departments and internationally mobile employees. In parts 2-4, we look at the aspects of social security, taxes, and work permits from a Swiss perspective in connection with Brexit. In our "Monthly Special" (Part 5), we use a specific case study to illustrate the consequences of Brexit in relation to the above-mentioned aspects. Background Eight years ago (i.e. in June 2016), a narrow majority of British citizens voted in a referendum for the United Kingdom (UK) to leave the EU. The withdrawal finally took place on January 31, 2020, marking the start of the transition period provided for in the Withdrawal Agreement, which ran until the end of 2020. The "Mind the Gap" strategy between Switzerland and the United Kingdom led to a trade agreement between the two countries, which came into force on January 1, 2021. This trade agreement is based on several provisions between the EU and Switzerland (including the 1972 Free Trade Agreement). Anyone who had only been following Brexit in passing is likely to be confused for good. Which regulations apply now? Are they similar or the same as the EU regulations? What special features and transition periods are there? Especially during the transition years, it was difficult to keep track of the current changes and even today it is not easy to navigate the regulations between Switzerland and the UK. The numerous transitional regulations and special provisions have done their bit to confuse the interested reader and drive some HR managers with employees from and in the UK to despair. 6 convinus.com

BEST PRACTICE Added to this is the self-image that UK nationals cannot be 3rd citizens! - Or can they? Or perhaps with the one or other special arrangement? The negotiations with the UK may have come to an end for the time being, but the saga continues. In the following, we briefly discuss the most important legal aspects from a Swiss perspective that need to be considered in connection with international employee assignments to and from the UK. More on this in parts 2-5 of our series. Social security The Agreement on the Free Movement of Persons between Switzerland and the EU was no longer applicable to the relationship between Switzerland and the UK following the UK's exit from the EU. Switzerland and the UK have, therefore, concluded a new agreement on social security, which is essentially based on the principles of the Agreement on the Free Movement of Persons. This new agreement has already been provisionally applied since November 1, 2021 and has been in force definitively since October 1, 2023. Income Taxes With regard to income taxes on international employee assignments and business trips between Switzerland and the UK, there are few to no changes following the Brexit. The main provisions were already set out in the double taxation agreement between Switzerland and the UK, so no adjustments were necessary in this regard. Work permits The most significant changes are probably in the area of work permits for UK nationals who want to work in Switzerland for the first time since January 1, 2021. Since leaving the EU, British citizens are generally considered third-country nationals. It has, therefore, become much more difficult and costly for them to work in Switzerland. 7 convinus.com

Global Mobility Alert

Newsletter

Presentations

Copyright © 2002 bis 2020 CONVINUS

google8089d691feca9268.html
[removed][removed]