Living in Agra and working in Ticino as a border worker (cross-border guide)

Context

In a nutshell

• The New Frontier Agreement was signed on 23 December 2020.
• The Italy-Switzerland double taxation agreement is dated 9 December 1976.
• The new agreement provides for exemptions for old frontier workers and exemptions for new frontier workers.

The New Frontier Agreement was signed on 23 December 2020 and will enter into force on 1 January 2024. This agreement provides new rules and benefits for Ticino border workers.

Who are the Ticino border workers?

Ticino border workers are those who reside in Italy and work in Switzerland, mainly in the Canton of Ticino. According to 2022 data, there are about 40,000 Ticino border workers working in Switzerland.

What are the new rules?

The New Frontier Agreement provides for some significant changes for Ticino border workers. The main novelty is the introduction of a maximum income exempt from income tax in Switzerland, equal to CHF 20,000 per year. This means that border crossers with an income below this amount will not have to pay income tax in Switzerland.

Exemplification

Suppose a Ticino border worker resides in Agra (BG) and works in Lugano (TI). Its annual income is CHF 35,000, of which CHF 15,000 is earned in Switzerland. Under the new agreement, the frontier worker will not have to pay income tax in Switzerland for the first CHF 20,000 of income, but will have to pay income tax in Italy for income earned in Switzerland, equal to

Operational details

Key facts

• What: New Frontier Agreement
• When: 23 December 2020
• Where: Ticino, Switzerland
• Who: Ticino border guards
• Amount: €10,000 (deductible for new frontier workers)

The new agreement provides for exemptions for old frontier workers and exemptions for new frontier workers. This means that border crossers will benefit from new rules and benefits.

Who are the frontiersmen?

Border workers are workers who reside in a country bordering Switzerland, such as Italy, France or Austria, and work in Switzerland. In particular, in the Canton of Ticino, border workers are largely native to Italy.

What does the agreement provide for?

The agreement provides for two types of exemptions for old border workers:

• Exemption from the obligation to register with the Immigration Office
• Exemption from the obligation to submit the entry and residence declaration

In addition, the agreement provides deductibles for new frontier workers:

• Deductible of €10,000 for new frontier workers who intend to work in Switzerland
• Deductible of €5,000 for new frontier workers who intend to work in Switzerland for a period of less than 90 days

Concrete examples

For example, if an Italian border worker residing in Agra (SO) intends to work in Switzerland, he will benefit from the €10,000 deductible. If you work for less than 90 days, you will be eligible for the €5,000 deductible.

Operational Checklists

To benefit from exemptions and deductibles, the

Useful tools to protect your net income

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Key points

Action

• What to do: Check your situation and apply for new exemptions or deductibles.
• Where to go: Contact the AFC/ESTV to claim the new exemptions or deductibles.
• When: Before 1 January 2024.

It is important that border crossers check their situation and apply for the new exemptions or deductibles by 1 January 2024.

Living in Agra and working in Ticino as a border worker

If you are a frontier worker living in Agra and working in Ticino, you are likely to be entitled to tax exemptions or exemptions. However, it is important to check your situation and apply for the new exemptions or deductibles by 1 January 2024.

What exemptions or deductibles are available?

The exemptions or deductibles available for frontier workers living in Agra and working in Ticino vary depending on their individual situation. However, some of the most common exemptions or deductibles include:

• Exemption from income tax (IR) for work income received in Switzerland
• Value added tax (VAT) exemption for expenses incurred in Switzerland
• Exemption from contribution to pension funds for frontier workers who are not entitled to social insurance in Switzerland

How to claim new exemptions or deductibles?

To claim the new exemptions or deductibles, you must contact the AFC/ESTV. Here are the steps to follow:

1. Check your individual situation and collect all the

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