Living in Beregazzo with Figliaro 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 Italian-Swiss Double Taxation Convention was signed on 9 December 1976.
• Border workers are subject to tax at source in Switzerland and can benefit from the tax credit in Italy.

Key facts

• What: Border crossers are subject to tax at source in Switzerland.
• When: From 1 January 2024.
• Where: Ticino.
• Who: Frontiersmen.
• Amount: Not yet specified.

The New Frontier Agreement was signed on 23 December 2020 and will be in force from 1 January 2024. This agreement changes the tax rules for border workers working in Switzerland and residing in Italy. Border workers are subject to tax at source in Switzerland and can benefit from the tax credit in Italy.

How does source tax work in Switzerland?

Source tax in Switzerland is a system of taxation that applies to the incomes of frontier workers. Switzerland applies a direct tax on the incomes of frontier workers, which is then withheld by the employer. The amount of tax withheld depends on the worker's income and the type of income.

Tax credit in Italy

Border workers working in Switzerland and residing in Italy can benefit from the tax credit. The tax credit is a tax benefit that allows border crossers to subtract a certain amount from their Italian taxes. The credit

Operational details

The impact of the New Frontier Agreement on frontier workers is significant. Border workers will be subject to tax at source in Switzerland, but will be able to benefit from the tax credit in Italy. This means that frontier workers will have to pay the tax at source in Switzerland, but they will be able to subtract the tax credit from their income in Italy. This can help reduce the tax burden on border workers. Switzerland is one of the largest countries in the world, but Ticino is one of the smallest. However, the New Frontier Agreement could change things for frontier workers who live in Beregazzo with Figliaro and work in Ticino. On 1 January 2020, Italy and Switzerland signed a new agreement to regulate relations between border workers. This agreement could help border workers reduce their tax burden and save money. The tax burden on border workers is a serious problem. According to statistics, border workers in Switzerland pay on average 20% more taxes than Swiss citizens. This can be due to many things, such as the difference in income, the difference in taxes, or the difference in tax breaks. However, the New Frontier Agreement could help reduce this tax burden. This is how the New Frontier Agreement works: frontier workers will be subject to tax at source in Switzerland, but will be able to benefit from the tax credit in Italy. This means that border crossers - Agreement between Italy and Switzerland of 1 January 2020 (Source: Italian Government) - Tax Law in Switzerland of 1 January 2020 (Source: Swiss Government) - Regulation on the tax credit in Italy of 1 January 2020 (Source: Italian Government) The New Frontier Agreement could change things for border workers living in Beregazzo with Figliaro and working in Ticino. It is important to be aware of the new rules and new tax breaks. If you are a frontier worker, it is important to check if you are subject to tax at source in Switzerland and if you are entitled to the tax credit in Italy. Here are some comparisons between practical scenarios: - If a frontier worker earns CHF 50,000 in Switzerland and pays the 10% source tax, he will have to pay CHF 5,000 in taxes. However, if the frontier worker has an income of EUR 30,000 in Italy and has a 20% tax credit, he/she will be able to subtract EUR 6,000 from his/her income in Italy. - If a frontier worker earns 30,000 EUR in Italy and pays the 20% tax, he will have to pay 6,000 EUR in taxes. However, if the frontier worker has an income of CHF 40,000 in Switzerland and pays the 15% source tax, he will be able to deduct EUR 8,000 from his income in Italy thanks to the tax credit.

Key points

If you decide to work in Ticino as a border worker, it is important to know the tax rules relating to the tax credit in Italy. In this article, we will delve into the information related to this topic, providing concrete examples and practical advice for border workers living in Beregazzo with Figliaro.

To take advantage of the tax credit in Italy, border workers must submit a tax return in Italy and indicate the tax credit due. In addition, frontier workers must keep evidence of the payment of the tax at source in Switzerland and the tax credit due in Italy. It is important for frontier workers to consult a tax professional to ensure they are following tax rules correctly.

According to Italian law, the tax credit is due to border workers who have stayed in Italy for a period of at least 183 days during the calendar year. The tax credit is calculated on the basis of the tax paid in Switzerland and can range from a minimum of 19% to 11% depending on income. For example, if a border worker has paid 10,000 Swiss francs of tax in Switzerland and has an income of 40,000 euros in Italy, the tax credit due could be 4,200 euros (19% of 22,000 euros of income in Italy).

It is important to note that the tax credit is not automatic and must be requested within the deadline for filing a tax return in Italy. Frontier workers will have to present a

Check tax deadlines for cross-border workers: returns, Swiss declarations, rebates — all dates in one interactive calendar.