If foreign countries second employees for short deployments in Switzerland, it is a challenge for them to comply with employment law requirements.

At its session held on 4 September 2024, the Federal Council decided to introduce the Income Inclusion Rule (IIR) from 1 January 2025. The IIR is to all intents and purposes part of the OECD/G20 project on minimum taxation of 15% for corporate groups with international operations.

Who is liable for withholding tax in Switzerland? How is the rate determined? Do any special rules apply? Some employers ask these questions, in particular when registering new employees.