CH: Health tax; partial deduction from allowances violates Bern-Rome agreements (cross-border guide)
The partial deduction of allowances from the revenue generated by the health tax is in violation of the agreements between Bern and Rome regarding these cross-border workers.
Contesto
CH: health tax; deduction from allowances contravenes Bern-Rome agreements The Federal Council has reaffirmed that a partial deduction from allowances of the revenue generated by the health tax would be contrary to the agreements between Bern and Rome on these workers. The health tax has not yet been introduced in Italy, but the government intends to apply a partial deduction from allowances of the revenue generated by the health tax to 'old' cross-border workers. The issue has become particularly complex for cross-border workers living in municipalities such as Lugano, Bellinzona, and Locarno, where the presence of Italians is particularly high. For example, according to 2022 data, 62% of Lugano's residents have Italian citizenship, while 21% have Swiss citizenship. In this context, the possibility of a partial deduction from allowances of the revenue generated by the health tax could have a significant impact on the lives of these workers. According to Article 6 of the Protocol concerning the health tax of March 24, 2016, the Italian government is required not to apply any partial deduction from allowances of the revenue generated by the health tax to cross-border workers living in Switzerland. However, the Italian government has decided to apply a 50% partial deduction to 'old' cross-border workers, i.e. those who started working in Switzerland before 2016. This means that a cross-border worker earning CHF 60,000 per year could be required to pay a health tax of CHF 1,200 per year, instead of the CHF 2,400 previously foreseen. However, if we apply the 50% partial deduction, the worker could be required to pay only CHF 600 per year. The issue has become particularly contentious for cross-border workers living in municipalities such as Bellinzona and Locarno, wher...
Dettagli operativi
CN: health tax; deduction from returns contrary to agreements with Rome The Federal Council has recently stated that an analysis by the State Secretariat for International Financial Affairs and an external expert opinion have concluded that the introduction of an Italian health contribution tied to a specific purpose would be in line with both the Convention against Double Taxation and the Cross-Border Workers Agreement between Switzerland and Italy. The Federal Council's decision was made after a series of consultations with Italian authorities and the presentation of a proposal to amend the Cross-Border Workers Agreement. The proposal provides for the creation of an Italian health contribution tied to a specific purpose, which would be intended to cover the healthcare expenses of Swiss cross-border workers in Italy. The Italian health tax, known as the 'stay tax' or 'stay tax for cross-border workers', is an annual tax of €120.00 (2022 data) that must be paid by Italian cross-border workers who stay in Switzerland for more than 183 days per year. The tax is intended to cover the healthcare expenses of Italian cross-border workers in Switzerland. However, the proposal to amend the Cross-Border Workers Agreement provides for the creation of an Italian health contribution tied to a specific purpose, which would be intended to cover the healthcare expenses of Swiss cross-border workers in Italy. The health contribution would be €100.00 per year (2022 data) and would be paid by Swiss cross-border workers who stay in Italy for more than 183 days per year. The Federal Council's decision has been welcomed by Italian authorities, who have stated that the creation of an Italian health contribution tied to a specific purpose would be an important measure to ensure coverage...
Punti chiave
CH: health tax; deduction from meals allowance contrary to agreements with Rome The Federal Council has confirmed that talks are underway with the Canton of Ticino and Italy to resolve the issue of the health tax and the deduction from meals allowance. The situation is particularly complex, as the health tax is a sensitive issue that affects the lives of many Ticinese citizens. The SFI (Swiss Pharmaceutical Society) has conducted a thorough analysis of the issue and has prepared an external expertise report that has been made available to the Canton of Ticino, if necessary. However, the publication of this report will need to be evaluated within the ongoing talks between the Canton of Ticino and Italy. According to internal sources, the Federal Council has stated that the issue of the health tax and the deduction from meals allowance has been the subject of numerous discussions and negotiations with Italy, which has expressed concerns about the possible contravention of these agreements with European regulations. To better understand the situation, it is useful to analyze some concrete examples. For instance, if a citizen of Lugano (CH) receives a meal allowance from an Italian company, the deduction from meals allowance may be denied if the agreement with Italy has not yet been ratified. In this case, the citizen may have to pay the health tax, which could be very expensive. Other examples can be provided considering the current regulations. For example, Article 5 of the Convention between Switzerland and Italy for administrative cooperation on the tax on stay and rent, signed in Rome on June 12, 2008, establishes that the tax on stay must be paid by all subjects who stay in Italy for a period of more than 90 days. The SFI has calculated that the tax on stay coul...
Punti chiave
[{"q":"What does it mean that partial deduction from reimbursements of income generated by the health tax is contrary to agreements between Bern and Rome?","a":"Partial deduction from reimbursements of income generated by the health tax is contrary to agreements between Bern and Rome because it is not in line with the Convention Against Double Taxation and the Agreement on Cross-Border Workers between Switzerland and Italy."},{"q":"Why did the Federal Council state that the introduction of the Italian health contribution tied to a specific purpose would be in line with both the Convention Against Double Taxation and the Agreement on Cross-Border Workers between Switzerland and Italy?","a":"The Federal Council stated that an analysis by the State Secretariat for International Financial Matters and an external expertise concluded that the introduction of the Italian health contribution tied to a specific purpose would be in line with both the Convention Against Double Taxation and the Agreement on Cross-Border Workers between Switzerland and Italy."},{"q":"What does it mean that the analysis by the SFI and the external expertise are available to the Canton of Ticino, if necessary?","a":"The analysis by the SFI and the external expertise are available to the Canton of Ticino, if necessary, to assess the impact of the introduction of the Italian health contribution tied to a specific purpose on the relations between Switzerland and Italy."}]
Frequently Asked Questions
- What does it mean that partial deduction from reimbursements of income generated by the health tax is contrary to agreements between Bern and Rome?
- Partial deduction from reimbursements of income generated by the health tax is contrary to agreements between Bern and Rome because it is not in line with the Convention Against Double Taxation and the Agreement on Cross-Border Workers between Switzerland and Italy.
- Why did the Federal Council state that the introduction of the Italian health contribution tied to a specific purpose would be in line with both the Convention Against Double Taxation and the Agreement on Cross-Border Workers between Switzerland and Italy?
- The Federal Council stated that an analysis by the State Secretariat for International Financial Matters and an external expertise concluded that the introduction of the Italian health contribution tied to a specific purpose would be in line with both the Convention Against Double Taxation and the Agreement on Cross-Border Workers between Switzerland and Italy.
- What does it mean that the analysis by the SFI and the external expertise are available to the Canton of Ticino, if necessary?
- The analysis by the SFI and the external expertise are available to the Canton of Ticino, if necessary, to assess the impact of the introduction of the Italian health contribution tied to a specific purpose on the relations between Switzerland and Italy.