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

The New Cross-Border Commuters' Agreement was signed on 23 December 2020. The Italian ratification is Law 83 of 13 June 2023 and the entry into force dates back to 1 January 2024. 2026 is therefore not the year of entry into force of the agreement, but the year to which the guide on the dismissal of the cross-border commuter refers.

Where is earned income tax withheld?

For the cross-border commuter's earned income, the withholding takes place only in Switzerland. Italy avoids double taxation through the tax credit reported in the EC framework of 730. The Italy-Switzerland Double Taxation Convention was signed on 9 March 1976. It should therefore not be indicated that the same income is taxed at source in both countries.

What exemptions distinguish 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 deductible is €10,000. The distinction must be made before reading the tax year and the items of the terminated relationship. This verification guides the correct treatment of the deductible in the period considered.

Which Swiss contributions are indicated for the employee?

The rates indicated for the employee are 5.3% for AHV/IV/EO, 1.1% for AD/AC with a cap of CHF 148,200, 0.7–1.5% for UVG and 7–18% for BVG depending on the age group from the age group of 25. They are contribution items separate from withholding tax and should not be read as Italian IRPEF brackets.

Border redundancy 2026: tax rights and contributions

Di Redazione Frontaliere Ticino · Published on 18 October 2026

Cross-border worker checks employment papers near the Ticino border

The New Cross-Border Commuter Agreement is valid from 1 January 2024.

Context

TL;DR

The New Frontier Agreement is valid from 1 January 2024.
Old frontier workers: exemption of €7,500 under the 2024–2033 regime.
New frontier workers: deductible of €10,000.
Income withholding takes place only in Switzerland.

Key facts

Agreement → signed on 23 December 2020; effective January 1, 2024.
Italian ratification → Law 83 of 13 June 2023.
Old cross-border commuters → already such before 17 July 2023.
New cross-border commuters → €10,000 deductible.
Italy-Switzerland Convention → signed on 9 March 1976.
Income from work → withheld only in Switzerland; credit in the EC framework of 730.
AD/AC → 1.1%, with a cap of CHF 148'200.
KVG → adult deductibles from CHF 300 to CHF 2,500.

The New Cross-border Workers Agreement came into force on 1 January 2024, signed on 23 December 2020. The Italian ratification is Law 83 of 13 June 2023. For those who work as cross-border workers in the Canton of Ticino, this chronology is the first data to be separated from 2026: the agreement did not come into force in 2026, but at the beginning of 2024.

The next distinction concerns the status acquired before 17 July 2023. Old cross-border workers, already such before that date, have an exemption of €7,500 in the transitional regime 2024–2033. For new cross-border commuters the indicated deductible is €10,000. In an audit related to the termination of the relationship, these two categories must be kept separate before reading the income of the last period.

The Convention on Double Taxation and the New Cross-Border Workers Agreement are distinct references: the first dates back to 9 March 1976, the second has been in force since 1 January 2024. For the cross-border worker, using the right date avoids moving the tax regime to 2026 without any basis in verified facts.

The verified material does not assign a number of days to notice and does not indicate a standard amount for compensation. For this reason, the dismissal of the cross-border worker in 2026 should not be completed with presumed figures: the part that can be documented here concerns tax treatment, deductibles and contributions.

The fiscal perimeter should not be confused

The Italy-Switzerland Double Taxation Convention was signed on 9 March 1976. Switzerland is not a member of the EU or EEA. For the cross-border worker's earned income, withholding tax is withheld only in Switzerland; Italy avoids double taxation with the tax credit in the EC framework of 730.

The federal and cantonal tax rates derive from the respective laws and are managed, at the federal level, by AFC/ESTV and, at the cantonal level, by the cantonal tax administrations. UFAS, responsible for social security, and BFS, which collects statistical data, do not set these rates. When reading the pay slip of a cross-border worker with G permit, therefore, the role of the tax administration should not be confused with that of a social security or statistical body.

Operational details

The useful comparison on the pay slip

A cross-border worker who finds himself in a hypothetical dismissal scenario can separate three plans: withholding tax, Swiss contributions and health insurance. The separation avoids exchanging a contribution withholding for an allowance or adding the Swiss and Italian withdrawals. The source establishes the first point: income from work is withheld for tax purposes only in Switzerland, while in Italy the tax credit of the EC 730 framework operates.

Comparison between fiscal years

For 2026 the Italian IRPEF is indicated at 23% up to €28,000, 33% from €28,001 to €50,000 and 43% above €50,000. The reference is Law 199/2025, article 1, paragraph 3. For 2024–2025 incomes, the brackets reported are 23%, 35% and 43%. A post-termination audit must therefore distinguish the tax year instead of automatically applying the 2026 figure to prior periods.

The KVG remains a separate plan: it is health insurance, not a health tax. Cross-border commuters with a G permit have the right to choose and the deductibles for adults range from CHF 300 to CHF 2,500. This information serves to avoid mixing an insurance choice with the calculation of withholding tax.

The scenario remains deliberately hypothetical. The AVS, AD, LAINF and LPP percentages are contributory items and must be kept separate from any sum connected to the termination of the relationship; the control must maintain distinct taxation, social security and insurance.

Key points

Operational checklist for cross-border workers

The verification can be done in five steps, without inventing days of notice or amounts of compensation. The starting point is the sequence of dates and the arrival point is the separation between tax, contributions and KVG.

Five steps

1. Set the date of the regime. Note whether the worker was already a cross-border worker before 17 July 2023. Then separate the transitional period 2024–2033 from the status of new cross-border workers. The first carries the exemption of €7,500; for new ones the deductible is €10,000.

2. Rebuild the history of the agreement. The New Cross-Border Agreement 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 the year of reading, not the date of entry into force.

3. Separate tax withholding from contributions. For income from work the withholding is only Swiss. In the Italian part, the credit to avoid double taxation passes from the EC framework of 730. Alongside, read AVS/AI/IPG at 5.3% dependent, AD/AC at 1.1% with cap CHF 148'200, LAINF at 0.7–1.5% and LPP at 7–18% for age group from the 25th year.

4. Check the Italian tax year. From 2026 the IRPEF brackets indicated are 23% up to €28,000, 33% from €28,001 to €50,000 and 43% over €50,000. For 2024–2025 the reported picture is 23%, 35%, 43%. Don't use the second group to read the first.

5. Keep your health separate. A cross-border commuter with a G permit is covered by the KVG option; the indicated adult deductible ranges from CHF 300 to CHF 2,500. For tax rates, the administrative reference is AFC/ESTV and they are cantonal tax administrations; not UFAS and not BFS.

This checklist clarifies which items to look for when checking the terminated relationship, but does not create a notice discipline. The same applies to the allowance: the verified material does not assign a standard amount. The useful information is not to confuse the contribution percentages with a severance sum and not to present as Italian a withholding that the source places only in Switzerland.

For an initial check of withholding tax, brackets and contributions, use calcolatore fiscale.

Frequently Asked Questions

When did the New Cross-Border Commuter Agreement come into force?: The New Cross-Border Commuters' Agreement was signed on 23 December 2020. The Italian ratification is Law 83 of 13 June 2023 and the entry into force dates back to 1 January 2024. 2026 is therefore not the year of entry into force of the agreement, but the year to which the guide on the dismissal of the cross-border commuter refers.
Where is earned income tax withheld?: For the cross-border commuter's earned income, the withholding takes place only in Switzerland. Italy avoids double taxation through the tax credit reported in the EC framework of 730. The Italy-Switzerland Double Taxation Convention was signed on 9 March 1976. It should therefore not be indicated that the same income is taxed at source in both countries.
What exemptions distinguish 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 deductible is €10,000. The distinction must be made before reading the tax year and the items of the terminated relationship. This verification guides the correct treatment of the deductible in the period considered.
Which Swiss contributions are indicated for the employee?: The rates indicated for the employee are 5.3% for AHV/IV/EO, 1.1% for AD/AC with a cap of CHF 148,200, 0.7–1.5% for UVG and 7–18% for BVG depending on the age group from the age group of 25. They are contribution items separate from withholding tax and should not be read as Italian IRPEF brackets.