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Headline Verdana BoldGlobal Employer Services webinar: Human Capital ConnectCOVID-19 developments on Immigration, Tax and Social SecurityApril 2020


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Webinars purpose

GES webcast: COVID-19 developments on Immigration, Tax and Social Security

Create a platform to exchange ideas, learnings and questions on Talent implications of COVID-19

Platform to connect

Curate short and relevant content from Switzerland and around the

globe, in alignment with your most pressing questions

Curated content

Focus on meaningful conversations between all peers,

to allow new ideas to emerge

Meaningful conversations

Overall creating a community of care to support each other in

these difficult times

Community of care


Speakers

With you today

Veronica is a Partner with 24 years of

consulting experience at Deloitte. She is

currently the leader of the Human Capital

Practice in Switzerland. Previously, she was

the Americas Human Capital Leader. She

has more than 20 years of experience

leading large scale global transformation

programs, advising business leaders on how

to transform the way their business works

and prepare them for the future of work.

Veronica MelianPartner, Human Capital Consulting

Leader Switzerland

David has 20 years of experience in the area

of international corporate and individual

taxation planning. He specialises in

addressing the complex compliance needs of

a cross-border workforce with varied

elements of compensation.

David WigersmaPartner,

Global Employer Services

Julia is an Immigration Senior Manager at

Deloitte in Switzerland. She has been

supporting both global companies as well as

medium and small sized enterprises with

their immigration needs for more than 10

years. Julia puts her focus on immigration

advisory services, advising clients on best

practice and coordinating complex

interdisciplinary requests with the tax and

social security teams.

Julia StutzerSenior Manager,

Immigration


Tabea is a recognised expert in the fields of

international tax and social security planning.

She is the co-lead of our international social

security team in Switzerland. Over her career,

she has acquired experience in a number of

other areas of reward and mobility, including:

global employment taxes, rewards, equity

based compensation and pensions. Moreover,

she has considerable experience in managing

global mobility projects for multinational

companies across a broad range of industries.

Tabea NyfelerSenior Manager,


Speakers

With you today

Andreas is a Senior Manager in the Global

Employer Services (GES) practice of Deloitte

in Zurich. He has broad experience as Swiss

tax advisor with focus on Swiss individual

taxation and international executive

taxation, salary withholding tax, social

security tax including pension fund as well

as compensation and benefits and design

and implementation of Tax/IA policies.

Andreas TschannenSenior Manager,


Dara has worked as a Global Mobility

professional for more than a decade. She

started her career in Global Mobility with

Siemens in NJ,USA and later transition into

the financial services industry with many

years of experience at UBS Wealth

Management. After relocating to Zurich,

Switzerland, she spent many years as the

Head of Global Mobility at Bank Julius Baer

before taking on her current role at Takeda

Pharmaceuticals International AG. Dara

holds a BA from Wheaton College, MA, USA.

Dara StuckiInternational Mobility Manager,

Takeda Pharmaceuticals International

7Global Employer Services webinar: Human Capital Connect© 2020 Deloitte Consulting AG. All rights reserved.

Immigration


Travel restrictions

Immigration

As of 24 March, the federal council has extended the travel restrictions at all Swiss borders to all nationalities (including all EU/EFTA countries).

Non-Swiss nationals can only cross the border with:

Until 15 June 2020 Switzerland will no longer issue Schengen visas and will only issue national visa in exceptional circumstances, for example to family members of Swiss citizens with the right to reside in the country who require a visa and to specialists in the health care sector.

Swiss work/residence permit (G, L, B Permit or online notification)

Business visa C or with a visa D

Confirmation of the residence permit (Zusicherung der

Aufenthaltsbewilligung)


Practical implications

Immigration

Start dates in Switzerland need to be postponed in most cases

Initial applications for non-EU/EFTA nationals

(local hire and assignment)

• No visas will be issued until 15 June 2020

• Pending cases: will be set on hold or cancelled in most cantons

• Applications for people already residing in Switzerland (conversion): still possible

De-registrations

• Should be announced to the authorities last minute or only once employee has reached the destination country

Initial applications for EU/EFTA nationals

(local hire)

• Not able to cross the border without work permit or online notification

• Online registration: only possible in exceptional cases (health sector)

• Cross border permit: no new permits are issued

• Local registration: Only possible (if at all) for persons already residing in Switzerland

Extensions (all permits)

• Still possible, delays might apply


Tax update


Tax Update

Concerns related to cross border workers

So-called “cross border workers” resident in Germany, France, Italy, Liechtenstein and Austria: It is unlikely that the COVID-19 situation will affect the determination of the tax status of such individuals.

Concern: Creation of a permanent establishment (PE)

It is unlikely that the COVID-19 situation will create any changes to a PE determination. The exceptional

and temporary change of the location where employees exercise their employment because of the COVID-19 crisis, such as working from home, should

not create new PEs for the employer.

Concerns related to international commuters

So-called “international weekly commuters” resident in another State and working in Switzerland: It is unlikely that the COVID-19 situation will affect the determination of the tax residence status of such

individuals but may have an impact on the international allocation of the income.

Concerns related to tax deductions

It is not to be expected that employees who are forced to work in their home office can claim additional tax deductions to lower the taxable

income.

Concerns related to tax paymentsNo interest is charged during the period 1 March to 31 December 2020 on all Federal tax invoices with a due date in before-mentioned period. This temporary waiver of late payment interest applies to tax claims for the 2020 tax year as well as for previous years

provided that the due date of the provisional or final invoice is in before-mentioned period.

Concern: Tax return filing deadlines

Tax return filing deadlines have been automatically extended in most of the Cantons until 31 May 2020 at least. However, this deadline extension does not

apply for so-called source tax adjustment applications. They were due until 31 March 2020 and

only few Cantons (e.g. Zug) have granted a new deadline until 30 June 2020.


Social Security


Swiss social security

Possible actions for Social Security and Pension for employers during the COVID-19 pandemic

Swiss Social Security – federal measures

Swiss pension

Interest-free deferral of payment of contributions

Since 19 March 2020, the social security authorities have

waived the calculation of interest on partial payments for 6 months. This applies to contributions to AHV/IV/EO

and family allowances.

Until the end of June 2020, the social security authorities will

also stop sending reminders for unpaid contributions. The legal standstill from 19 March to and including 19 April 2020 for debt

collection also applies to the debt collection of the social

security authorities.

Adjustment of pre-payments

In cases where the total wage is reduced due to

hiring freezes or dismissals, the new estimated total

annual wage can be communicated to the social security authority to adjust

the pre-payments.

Instalment plan

Possibility to discuss a payment in instalments with

the social security authorities.

The Federal Council has decided that starting March 26th employers may temporarily use the employer contribution reserves they have set up to pay employee contributions to occupational pensions for a period of 6 months. The employer has to inform the pension fund in writing of his intention.

This measure is intended to make it easier for employers to overcome liquidity bottlenecks.

For the employees, the measure has no effect: the employer deducts their contribution part from their salary as in normal circumstances and all contributions are credited to them by the pension fund.


International Social Security

• Individual lives in France and has a Swiss work contract starting 1 May 2020

• Individual will start working from home until all bans are lifted

– Social Security affiliation?

– Health Insurance affiliation?

• EU/EFTA Cross-border workers/multi-state workers

• Home office work due to the coronavirus outbreak will not change the applicable social security affiliation within the EU/EFTA


Interview


Tabea NyfelerSenior Manager,


Dara StuckiInternational Mobility Manager,Takeda Pharmaceuticals International

Tabea is a recognised expert in the fields of international tax and social security planning. She is the co-lead of our international social security team in Switzerland. Over her career, she has acquired experience in a number of other areas of reward and mobility, including: global employment taxes, rewards, equity based compensation and pensions. Moreover, she has considerable experience in managing global mobility projects for multinational companies across a broad range of industries.

Dara has worked as a Global Mobility professional for more than a decade. She started her career in Global Mobility with Siemens in NJ,USA and later transition into the financial services industry with many years of experience at UBS Wealth Management. After relocating to Zurich, Switzerland, she spent many years as the Head of Global Mobility at Bank Julius Baer before taking on her current role at Takeda Pharmaceuticals International AG. Dara holds a BA from Wheaton College, MA, USA.


Q&A


Join us next week!

Upcoming Human Capital Connect WebinarsU

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inar

Date

COVID-19 developments on Immigration, Tax and Social

Security

Getting smarter on how we work virtually

21 April: 15.00 – 15.45 23 April: 17.00 – 17:45

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Global Employer Services webinar: Human Capital Connect© 2020 Deloitte Consulting AG. All rights reserved. 1919Global Employer Services webinar: Human Capital Connect© 2020 Deloitte Consulting AG. All rights reserved.

Thank you for joining us and see you next time!

This publication has been written in general terms and we recommend that you obtain professional advice before acting or refraining from action on any of the contents of this publication. Deloitte Consulting AG accepts no liability for any loss occasioned to any person acting or refraining from action as a result of any material in this publication.

Deloitte Consulting AG is an affiliate of Deloitte NSE LLP, a member firm of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”). DTTL and each of its member firms are legally separate and independent entities. DTTL and Deloitte NSE LLP do not provide services to clients. Please see www.deloitte.com/ch/about to learn more about our global network of member firms.

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Welcome to the Human Capital Connect webinar! · Create a platform to exchange ideas, learnings and questions on Talent implications of COVID-19 Platform to connect Curate short and