Switzerland and Italy sign tax rules for cross-border commuters
Almost 80,000 Italian workers cross the Swiss border into the canton of Ticino every day.
Ti-Press
Switzerland and Italy have agreed on permanent tax rules for cross-border commuters working from home, the State Secretariat for International Financial Matters (SIF) announced on Thursday.
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Swiss Finance Minister Karin Keller-Sutter and Italy’s Minister of Economy and Finance Giancarlo Giorgetti signed an amendment to the existing cross-border commuters agreement, according to SIF.
A statement said the amendment replaced the understanding agreement. However, it did not change the key points of the existing regulation.
Since the beginning of the year, cross-border commuters have been able to work from home for a quarter of their working hours. Working from home has no effect on the state that taxes the income or on the status of cross-border commuters, the statement continued.
According to the cross-border commuter agreement that came into force in July 2023, Switzerland retains 80% of the withholding tax levied on the income of Italian cross-border commuters. New cross-border commuters will also be subject to regular taxation in their country of residence, which is intended to eliminate double taxation.
According to the Federal Statistical Office, almost 80,000 Italian workers cross the Swiss border into canton Ticino every day, the majority from Lombardy. More than 90,000 cross-border commuters come from Italy in total.
Adapted from German by DeepL/kp
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