Brianza Frontiersmen ready to sue the Italian State (cross-border guide)

Context

In brief - New Frontier Agreement in force from 1 January 2024. - Italian ratification by Law 83 of 13 June 2023. - Focus on taxation and the tax credit. ## Key facts - What: Legal actions of border workers towards the Italian State - When: From 1 January 2024 (new agreement comes into force) - Where: Italy-Switzerland border, focus area Brianza - Who: Frontier workers, Revenue Agency, MEF - Amount: Deductible 10,000 euros for new border workers The issue raised by border workers residing in the Brianza area directly concerns the application of the new tax agreement between Italy and Switzerland, signed on 23 December 2020 and fully operational from 1 January 2024. This regulatory change, ratified by Italy with Law 83 of 13 June 2023, introduced substantial changes in the management of income produced in Swiss territory. The discontent arises from the perception of inequality and the fiscal impact, prompting part of the workers to evaluate legal actions against the Italian State. It is essential to remember that, for frontier workers, the source tax on labour income is withheld exclusively in Switzerland, while Italy avoids double taxation through the tax credit mechanism, which must be duly declared in the EC framework of form 730. The complexity of the system, combined with the new rules, has generated application uncertainties that many workers do not

Operational details

The practical analysis of the impact of the new agreement reveals complex scenarios for the worker who lives in Italy and works in the Canton of Ticino. The Swiss withdrawal system provides for several components, including AVS/AI/IPG contributions at 5.3% borne by the employee, AD/AC unemployment insurance at 1.1% (with a maximum ceiling calculated on an income of CHF 148,200), LAINF coverage ranging from 0.7% to 1.5%, and the LPP contribution ranging from 7% to 18% depending on the age group, applicable from 25 years onwards. The challenge for the border worker is to correctly integrate these data into the Italian tax system, where the IRPEF is structured with progressive rates: 23% up to 28,000 euros, 35% for the 28,001-50,000 euro band and 43% for the portion exceeding 50,000 euros. Many workers complain that the tax credit mechanism does not adequately compensate for the overall tax burden, especially in a period of inflation and uncertainty about the value of the currency exchange. The use of the fiscal calcolatore thus becomes an essential tool for understanding one's net position, but it does not resolve the questions of principle raised by workers regarding the legitimacy of the new agreement. It should be noted that the management of LAMal (health insurance) represents an additional point of attention: border workers with a G permit have the right of option, with deductibles ranging from CHF 300 to 2,500 for adults.

Useful tools for your case

To verify your within/over 20 km tax scenario, use the net salary calculator and the tax return guide.

Key points

For workers who intend to delve deeper into their position or assess the steps needed to manage their tax situation, a rigorous procedure must be followed. Firstly, it is crucial to keep all documents related to the Swiss pay slip, including deductions for AVS, LPP, and LAINF, as these documents form the basis for correctly filling out the tax return in Italy using the CE form of the model 730. Without precise documentation, the risk of errors in calculating the tax credit is high, with potential penalties from the Italian Revenue Agency. Anyone who believes they have suffered a tax loss or finds themselves in an unfair tax situation should gather all relevant documentation and consult with a legal expert specializing in international law or with a union that actively follows the frontier workers in border areas. It is important to constantly monitor official communications from the MEF, as any explanatory circulars may change the interpretation of some articles of the agreement. Regarding daily management, in addition to tax issues, it is crucial to monitor border crossing times, such as Brogeda, which directly affect the quality of daily work. The frontier worker must be aware that, in case of a legal dispute, the burden of proof generally falls on the taxpayer. Therefore, adopting a preventive documentary strategy is the most concrete advice for anyone who wants to assert their rights. It is strongly recommended to use the calculator available on our site to simulate the monthly net and verify the real impact of current deductions, allowing for a solid numerical base to compare with consultants or competent authorities during the eventual phase of appeal or litigation.