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the swiss times

Switzerland and Italy sign tax rules for cross-border commuters

Switzerland and Italy sign tax rules for cross-border commuters

Do, Jun 6th 2024

Switzerland and Italy have established permanent tax rules for cross-border commuters working from home.

KEYSTONE/Karl Mathis

The State Secretariat for International Financial Matters (SIF) announced this Thursday. Federal Councillor Karin Keller Sutter and the Italian Minister of Economy and Finance Giancarlo Giorgetti signed the protocol amending the existing cross-border commuters agreement.

The amendment replaces the previous agreement on understanding but does 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 without affecting the state that taxes the income or the status of cross-border commuters.

Under 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 are also appropriately taxed in their country of residence, eliminating double taxation.

According to the Federal Statistical Office (FSO), almost 80,000 Italian workers cross the Swiss border into the canton of Ticino every day, mainly from Lombardy. In total, over 90,000 cross-border commuters come from Italy.

©Keystone/SDA

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