Edition 1/2026

In late 2025, the OECD published an update to the OECD Model Tax Convention, which sets out in detail the conditions under which working from home can constitute a permanent establishment. The OECD introduces a new concept of the company’s deemed control over employees’ homes. Based on the legal framework and existing Federal Supreme Court case law, this article analyzes whether Swiss practice regarding the home office as a permanent establishment should be adjusted in light of this new concept and the experience gained from several years of remote work.

The EU directive on Faster and Safer Tax Relief of Excess Withholding Taxes (FASTER) was formally approved at the end of 2024. The purpose of the directive is to make the refund procedure of withholding tax in the EU more efficient for investors and more secure for tax authorities. Member States will have to transpose the directive into national legislation by 31 December 2028 and these rules will become applicable from 1 January 2030. But what are the implications for Swiss-based financial institutions (FI)?