Cross-border worker refunds: UDC Ticino proposes a solution (cross-border guide)
UDC Ticino calls for the Grand Council to address Initiative 507, which provides social deductions only for children residing in Switzerland, with a potential of 20 million francs per year.
Contesto
In brief - The UDC Ticino proposes Initiative 507 to limit social deductions to children residing in Switzerland - Potential for 20 million francs per year in additional revenue for the Canton - The Council of State has not presented a credible strategy on blocking cross-border worker permit refunds - The Italian health tax could reduce unfair competition against workers residing in Ticino ## Key facts - What: Initiative 507 to limit social deductions to children residing in Switzerland - When: Submitted in 2018 - Where: Canton Ticino - Who: UDC Ticino, Paolo Pamini - Amount: 20 million francs per year The Ticino Council of State has raised expectations regarding the blocking of cross-border worker permit refunds, but has not presented a credible strategy. The UDC Ticino has decided to take the initiative, requesting that Initiative 507, drafted by Paolo Pamini and submitted in 2018, be added to the agenda of the Grand Council. This initiative introduces a simple rule: social deductions for children are only granted if the children reside in Switzerland. According to estimates cited publicly at the SUPSI conference "The Taxation of Tomorrow" on May 4, 2026, Initiative 507 could bring in around 20 million francs per year in additional revenue for the Canton. This represents a concrete and immediate solution, far more than the 7-9 million francs envisaged by the Council of State in the amendment to the financial equalization ordinance. ### The position of the Federal Council The Federal Council's response to interpellations 26.3205, submitted by Lorenzo Quadri on May 21, 2026, is unequivocal: no unilateral cuts, no deductions from refunds. This confirms what the Ticino Delegation to the Federal Chambers had already indicated: that path was politically strong but legal...
Dettagli operativi
The initiative 507 of the UDC Ticino represents a concrete solution to correct an existing distortion: even those living abroad can benefit in Ticino from deductions thought for the cost of living in Switzerland. This situation creates a disparity in treatment that the initiative wants to eliminate, ensuring that social deductions are granted only to those who actually reside in Switzerland. ## Recommended tools For an updated estimate, use the net salary calculator and the CHF-EUR exchange comparator.
Punti chiave
For cross-border workers, it is important to understand the implications of Initiative 507 and how it could affect their social deductions. Here is a practical guide on what to do and what to expect. ### What to do now 1. Verify your children's residence: If your children reside abroad, you may be affected by the changes proposed by Initiative 507. 2. Consult a tax expert: To fully understand the impact of the changes on your social deductions, it is advisable to consult a tax expert. 3. Stay informed: Follow the developments of Initiative 507 and the decisions of the Grand Council to stay updated on the latest news. ### Deadlines and procedures Currently, Initiative 507 is under discussion by the Grand Council. There are no immediate deadlines, but it is important to stay informed about future developments. If the initiative is approved, the new rules will come into effect on a later date, which will be officially communicated. ### Useful tools To help you better understand the impact of the tax changes, you can use the tax calculator available on our website. This tool will allow you to simulate your social deductions and better understand how the changes could affect your tax situation. ### Conclusion Initiative 507 by the UDC Ticino represents a concrete solution to correct a current distortion in the social deductions system. For cross-border workers, it is important to stay informed and consult a tax expert to fully understand the impact of the changes. Use the tools available on our website to simulate your social deductions and prepare for any potential changes. Source: tio.ch
Punti chiave
[{"q":"What does Initiative 507 entail?","a":"Initiative 507 provides that social deductions for children are only granted if the children reside in Switzerland. This aims to correct a current distortion where even those living abroad can benefit from deductions intended for the cost of living in Switzerland."},{"q":"What is the potential for additional revenue for the Canton?","a":"According to estimates, Initiative 507 could bring in around 20 million francs per year in additional revenue for the Canton of Ticino."},{"q":"How could this affect cross-border workers?","a":"For cross-border workers with children residing abroad, this initiative could mean a reduction in social deductions. However, it aims to create a fairer system where deductions are based on the actual cost of living in Switzerland."}]
Frequently Asked Questions
- What does Initiative 507 entail?
- Initiative 507 provides that social deductions for children are only granted if the children reside in Switzerland. This aims to correct a current distortion where even those living abroad can benefit from deductions intended for the cost of living in Switzerland.
- What is the potential for additional revenue for the Canton?
- According to estimates, Initiative 507 could bring in around 20 million francs per year in additional revenue for the Canton of Ticino.
- How could this affect cross-border workers?
- For cross-border workers with children residing abroad, this initiative could mean a reduction in social deductions. However, it aims to create a fairer system where deductions are based on the actual cost of living in Switzerland.