When did the New Cross-Border Commuter Agreement come into force?

It was signed on 23 December 2020, ratified in Italy with Law 83 of 13 June 2023 and has been in force since 1 January 2024. 2026 is not the date of signature or the date of entry into force: the timeline indicated by the source is used for the verification of the dismissed cross-border commuter. These dates separate the year of the control from the effective date of the agreement.

How does double taxation work for earned income?

For cross-border commuters, the withholding tax on earned income takes place only in Switzerland. Italy avoids double taxation through the tax credit, which must be reported in the EC framework of 730. The rule must be kept distinct from notice and indemnity: the credit concerns tax treatment and does not establish the duration of the notice or the possible amount of an indemnity.

What exemption applies to old and new cross-border commuters?

Old cross-border commuters, who were already cross-border commuters before 17 July 2023, have an exemption of €7,500 in the 2024–2033 transitional regime. For new cross-border commuters, the source indicates a deductible of €10,000. The two categories should not be confused with a mileage threshold: the time criterion is the one reported in the verified facts.

Which Swiss contributions should I check in my payslip?

The items indicated are AHV/IV/EO at 5.3% for the employee, ALV/AC at 1.1% up to the cap of CHF 148,200, UVG from 0.7% to 1.5% and BVG from 7% to 18% for age group from the age of 25. These are Swiss contributions and not notice or benefit amounts.

What does a cross-border commuter G have to check for the KVG?

KVG is health insurance. G cross-border workers have the right of option; for adults the indicated deductibles range from CHF 300 to CHF 2,500. This verification remains separate from the calculation of the withholding tax and the AVS, LPP, AD/CA and LAINF contributions.

Cross-border commuter dismissed in 2026: rights over 20 km

Di Redazione Frontaliere Ticino · Published on 18 October 2026

Cross-border worker with work documents outside an office in Ticino

Practical guide for cross-border commuters over 20 km: CH-IT agreement, withholding tax, deductibles, AHV, BVG, KVG and post-dismissal checks.

Context

TL;DR

Agreement signed on 23 December 2020, effective from 2024
Old cross-border commuters: exemption of €7,500 until 2033
New cross-border commuters: €10,000 deductible
Income taxed at source only in Switzerland

Key facts

Signing of the New Cross-border Workers Agreement → 23 December 2020
Entry into force → 1 January 2024
Italian ratification → Law 83 of 13 June 2023
Old cross-border workers → €7,500 exemption, transitional regime 2024–2033
New cross-border commuters → €10,000 deductible
Double taxation → tax credit in the EC framework of 730
AVS/AI/IPG → 5.3% paid by the employee
KVG → right of option for cross-border commuters G

On 23 December 2020, the New Cross-Border Agreement was signed, ratified in Italy with Law 83 of 13 June 2023 and in force from 1 January 2024. For those who work in the Canton of Ticino and face dismissal in 2026, this sequence of dates serves to separate the employment relationship from the cross-border tax rules. The formula "new tax agreement 2026" does not move the effective date: the agreement is previous and its entry into force dates back to 2024.

The verifiable perimeter

The reference material does not set a numerical length of notice or an amount for severance pay. The guide therefore does not attribute to the cross-border worker beyond 20 km an automatic threshold, a sum or a deadline which does not result from the verified facts. The documented distinction instead concerns old and new cross-border workers: those who were already cross-border workers before 17 July 2023 fall within the €7,500 exemption and the 2024–2033 transitional regime; for new cross-border commuters a deductible of €10,000 is indicated.

On earned income, the rule indicated is clear: the withholding occurs only in Switzerland. Italy avoids double taxation through the tax credit to be reported in the EC framework of 730; therefore the same withholding tax does not apply in both countries. The Italy-Switzerland Double Taxation Convention was signed on 9 March 1976, while Switzerland is not a member of the EU or EEA. They are fiscal elements to be kept separate from notice and compensation in the reconstruction of the dismissal.

Even social voices require independent reading. For the employee, AVS/AI/IPG is indicated at 5.3%; AD/AC at 1.1% with cap at CHF 148'200; UVG varies from 0.7% to 1.5%; LPP ranges from 7% to 18% by age group from 25th year. Cross-border commuters with a G permit have the right to opt for KVG, health insurance, with adult deductibles from CHF 300 to CHF 2,500. Tax rates are established by federal and cantonal laws and administered by AFC/ESTV and cantonal tax administrations, not by UFAS or BFS.

Operational details

Comparison between scenarios

Distance does not replace qualification

For those looking for an answer on the border beyond 20 km, the practical point is not to use the distance as a shortcut to choose the deductible. In the verified facts, the distinction expressed is temporal: old cross-border worker if already such before 17 July 2023, new cross-border worker for the other category. The source does not link a notice period or compensation amount to beyond 20 km.

A first hypothetical scenario concerns those who were already cross-border workers before the indicated date and must order the 2026 data after a cessation. The number of €7'500 is the exemption provided for the transitional regime, not a severance payment. A second scenario concerns the new cross-border commuter: the value to be examined is the €10,000 deductible. In both cases, notice and any indemnity remain items of the employment relationship not to be confused with taxation.

The Italian passage then has its own structure. For IRPEF from 2026, the source indicates 23% up to €28,000, 33% from €28,001 to €50,000 and 43% over €50,000, based on Law 199/2025, art. 1 c. 3. For 2024–2025 income, the rates shown are 23%, 35% and 43%. The comparison serves to read the correct period: a previous rate is not automatically transferred to the 2026 check.

The pay slip must therefore be read in blocks. On the one hand there is withholding tax and tax credit; on the other AVS, LPP, AD/AC and LAINF. The KVG still follows a separate plan, because it concerns health insurance and the right of option for cross-border commuters G. This separation avoids presenting a contributory item as an allowance or treating the new agreement as if it were born in 2026.

Key points

Operational checklist after dismissal

1. Set the target date

Write in a form the date on which you were already a cross-border worker, the position with G permit and the date of termination. The first comparison is with 17 July 2023: it serves to orient the distinction between the exemption of €7,500 and the deductible of €10,000. In a separate line, note notice and any indemnity as they appear in the documents, without obtaining general amounts or durations not present in the verified data.

2. Rebuild the tax passage

Put together the last pay slip and the 730. Highlight the Swiss withholding tax withholding and the tax credit in the EC framework. The control must start from the rule according to which the income from work of cross-border workers is withheld only in Switzerland; double taxation is avoided in Italy through credit, not with a second withholding. Also mark whether the case falls within the 2024–2033 transitional regime.

3. Separate contributions

Create a second statement for AVS/AI/IPG, AD/AC, LAINF and LPP. Use as references 5.3% for AVS/AI/IPG, 1.1% for AD/AC with cap CHF 148'200, 0.7–1.5% for LAINF and 7–18% for LPP from the 25th year, according to the age group. These values are used to read Swiss social withholdings and not to automatically calculate notice or compensation.

4. Complete health and institutional screening

For a cross-border commuter G, enter the KVG and the right of option in the checklist, remembering the adult deductibles from CHF 300 to CHF 2,500. For tax rates, the administrative reference is AFC/ESTV together with the cantonal tax administrations. UFAS and BFS are not the bodies to be indicated to set the rates: the first concerns social security, the second statistics. The sequence of dates remains 23 December 2020, 13 June 2023 and 1 January 2024.

To translate your paycheck items and tax credit into a tidy estimate, use the calcolatore fiscale.

Frequently Asked Questions

When did the New Cross-Border Commuter Agreement come into force?: It was signed on 23 December 2020, ratified in Italy with Law 83 of 13 June 2023 and has been in force since 1 January 2024. 2026 is not the date of signature or the date of entry into force: the timeline indicated by the source is used for the verification of the dismissed cross-border commuter. These dates separate the year of the control from the effective date of the agreement.
How does double taxation work for earned income?: For cross-border commuters, the withholding tax on earned income takes place only in Switzerland. Italy avoids double taxation through the tax credit, which must be reported in the EC framework of 730. The rule must be kept distinct from notice and indemnity: the credit concerns tax treatment and does not establish the duration of the notice or the possible amount of an indemnity.
What exemption applies to old and new cross-border commuters?: Old cross-border commuters, who were already cross-border commuters before 17 July 2023, have an exemption of €7,500 in the 2024–2033 transitional regime. For new cross-border commuters, the source indicates a deductible of €10,000. The two categories should not be confused with a mileage threshold: the time criterion is the one reported in the verified facts.
Which Swiss contributions should I check in my payslip?: The items indicated are AHV/IV/EO at 5.3% for the employee, ALV/AC at 1.1% up to the cap of CHF 148,200, UVG from 0.7% to 1.5% and BVG from 7% to 18% for age group from the age of 25. These are Swiss contributions and not notice or benefit amounts.
What does a cross-border commuter G have to check for the KVG?: KVG is health insurance. G cross-border workers have the right of option; for adults the indicated deductibles range from CHF 300 to CHF 2,500. This verification remains separate from the calculation of the withholding tax and the AVS, LPP, AD/CA and LAINF contributions.