Switzerland is a confederation in which each canton is a state that has retained many powers including that of taxation. Thus, depending on the canton’s fiscal situation, taxation of workers living in the French border can vary. Some cantons, including Geneva, chose to impose the frontier worker at source on income from activities in Switzerland. The tax is based on a tax schedule that considers the Geneva salary and family situation. For most of the other cantons, the tax is in France on the basis of salary that is assigned a Swiss coefficient of exchange established annually by the French tax authorities. The tax return is then exactly the same as for a person working in France.
The imposition of the tax home of a frontier worker can take many forms:
1 – The frontier worker is domiciled in France and works in the Canton of Geneva: and is taxed at source in Geneva.
2 – The frontier worker is domiciled in France, works in a district other than the Geneva border and returns daily to his home in France. Concsequently, he is taxed in France (the Swiss cantons of Vaud, Valais, Bern, Solothurn, Basel Stadt, Basel Landschaft, Neuchâtel and Jura).
3 – The frontier worker is domiciled in France, works in a district other than the Geneva border, lives during the week in Switzerland and returns once a week to his home in France. He is taxed in Switzerland. He must advise the Swiss town of his residence.
4 – The frontier worker is domiciled in France, works in the Canton of Geneva and her husband works in France. They are taxed on income from Geneva in Geneva and France for the French or income from other communes on the basis of aggregate income.
5 – A self-employed person doing business in a Swiss cantons border region, but resident in France, is taxed in Switzerland. If that person has a spouse employed in Switzerland, the couple will be taxed in Switzerland.
6 – A retired Swiss dual national, resident in France, receiving a pension from a pension fund under public law, is taxed at source in Switzerland. The AVS pension is taxable in France.
7 – A retired border worker or Swiss dual national, resident in France, receiving an annuity AVS and / or a pension fund of a private law (BVG) is taxed in France. All income received in Switzerland must be integrated into the recipient’s French tax base. To avoid double taxation, France grants a tax credit to taxpayers who report income subject to tax in Switzerland. The tax credit is equal to the amount of French tax attributable to such foreign income.
CAUTION: In all cases, the frontier worker must file a tax return in France