The Italian Chamber of Deputies has approved the new cross-border commuter agreement between Switzerland and Italy. The ratified deal replaces the previous agreement of 1974 and is mainly intended to avoid double taxation.
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Italia ratifica el acuerdo sobre la fiscalidad de los trabajadores transfronterizos
The Chamber of Deputies approved the agreement unanimously on Thursday. However, because of some amendments it has to go back to the Senate, the smaller of the two chambers of the Italian parliament, which had already approved the agreement at the beginning of February. The Swiss parliament approved it in March 2022.
According to the agreement, Switzerland is to retain 80% of the withholding taxes levied on the income of Italian cross-border commuters in future. The new cross-border commuters are also to be taxed properly in their country of residence, and the country of residence is to eliminate any double taxation.
The agreement defines cross-border commuters as people who live within a 20-kilometre radius of the border and, in principle, return to their place of residence every day. This new definition applies to all cross-border workers from the entry into force of the agreement.
Around 77,000 Italian workers cross the Swiss border into canton Ticino every day. The majority come from Lombardy.
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