New rules for the 'old' border guards of the Canton of Ticino: increasing taxes (cross-border guide)

Context

New rules for the 'old' border guards of the Canton of Ticino: increasing taxes

The Canton of Ticino has decided to impose a tax at source of one hundred percent on 'old' border workers who will opt for the Omnibus Decree. The new rule concerns workers who worked in Ticino between 31 December 2018 and 17 July 2023 with daily return, with tax residence in a municipality within 20 km of the border.

According to the rules in force, the border crossers concerned will have to submit a tax return by 31 March 2024. The new rule applies to those who have worked in municipalities such as Bellinzona, Lugano, Mendrisio, Locarno, Ascona, Brissago, Gambarogno, Gordola, Ascona, Brissago, Locarno and surroundings.

The decision of the Canton of Ticino was taken to ensure consistency with federal regulations on income tax. In particular, the Omnibus Decree was passed to simplify and streamline tax rules in Switzerland.

The new rule will result in an increase in taxes for 'old' border workers who will opt for the Omnibus Decree. For example, a worker who earned 60,000 Swiss francs in 2022 and opted for the Omnibus Decree, will have to pay an income tax of 4.5% (0.45 x 60,000 = 27,000 Swiss francs) + a fixed rate of 3.2% (0.032 x 60,000 = 1,920 Swiss francs), for a total of 28,920 Swiss francs.

For those who do not opt for the Omnibus Decree, the

Operational details

New rules for the 'old' border guards of the Canton of Ticino: increasing taxes

• If the 'old' border guards opt for the Omnibus Decree, they will have to pay the tax at source of one hundred percent.
• The new rule could increase the tax burden for 'old' border workers.
• The Italian state could intervene to remedy the situation.

On January 1, 2024, the Omnibus Decree will enter into force, a regulation that concerns border workers in the Canton of Ticino. According to calculations made by the Federal Tax Office (UFI), about 2,000 workers could be affected by this new rule. 📊

The legislation provides that frontier workers who opt for the Omnibus Decree will have to pay the tax at source of one hundred percent. This means that the portion of tax previously deducted from the salary will be paid directly by the employer, rather than being withheld by the worker.

A concrete example can be useful to better understand the situation. Suppose a frontier worker in the municipality of Bellinzona has an income of 60,000 Swiss francs per year. The portion of tax previously deducted from the salary was 10%, or 6,000 Swiss francs. If he opted for the Omnibus Decree, the tax share would be increased to 100%, or 60,000 Swiss francs. This means that the worker would have to pay 54,000 Swiss francs more each year.

The new rule could increase the

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

Action

• The 'old' border workers who will opt for the Omnibus Decree must pay the tax at source of one hundred percent.
• The new rule could increase the tax burden for 'old' border workers.
• The Italian state could intervene to remedy the situation.

The impact of the Omnibus Decree on border workers in the Canton of Ticino

The Omnibus Decree, issued by the Italian government, introduces new rules for border workers working in the Canton of Ticino. Among the main innovations, the tax at source of one hundred percent for the 'old' border workers who will opt for the Omnibus Decree. This could have a significant impact on the tax burden of these workers.

Concrete examples

Suppose a frontier worker, resident in Bellinzona, earns CHF 60,000 per year. The one hundred percent source tax would mean that the worker would have to pay CHF 6,000 per year more, due to the one hundred percent source tax. This could have a significant impact on its economic life.

The Current Situation

Currently, border workers in the Canton of Ticino are exempt from tax at source. However, with the introduction of the Omnibus Decree, this exemption will be revoked for 'old' border crossers who opt for the Omnibus Decree. This could increase the tax burden for these workers.

The possibility of intervention by the Italian state

The Italian state could intervene to remedy the situation. In

For a precise net salary calculation, use our tax comparator: compare take-home pay between G and B permits with all 2026 deductions.

Source: ilgiorno.it