| Dear Madam or Sir, In autumn 2020, Europe finds itself in the middle of the COVID-19 pandemic’s second wave. Thus, remote working is still a reality for many of us. The future potential of working remotely in a post-COVID-19 world is a reason to also examine the challenges – which arise above all in cross-border employment situations – more closely. Working remotely abroad for more than one day a week poses severe compliance risks regarding taxation and social security contributions. These risks should be addressed appropriately since the amical agreements between Switzerland and its neighboring countries currently in place are running out. This being such an important subject, we dedicated two articles to it: The first one points out the topics which have to be considered in cross-border employment situations and the second one illustrates the potential risks with the example of France. Although the pandemic is dominating the news, there have been other relevant tax developments. As Transfer Pricing (TP) and VAT are intrinsically connected, the new TP case law also has crucial VAT implications. It is strongly recommended that TP adjustments are examined regarding their VAT impact as well. With the appeal period having expired on 13 October 2020, the tax reform in Nidwalden enters into force on 1 January 2021. The reform abolishes the tax privileges for holding, domicile, and mixed companies, implements transitional rules and reduces the corporate income tax rate to 11.97% (incl. direct federal taxes). The abolished tax privileges will be replaced with OECD-compliant measures such as the patent box and the R&D super deduction. Speaking of the patent box and R&D super deductions: We analyzed how those two innovation-based tax incentives fit into the digital economy. As software is not patentable in Switzerland, benefits of the patent box do not apply. The possibility of an R&D super deduction on software development depends on whether it meets the scientific definition of research and development (Frascati Manual). As always, these contributions and many others are available on our New Reality Blog. The blog offers facts, stories, insights, and personal opinions on tax and a broad range of other topics. For your convenience, we will consolidate the tax blog contributions and provide them to you in this newsletter on a regular basis. We look forward to continuing the dialogue with you. Stay safe, | 