Telework for border workers: what they need to know and how to manage it (cross-border guide)

Context

In short - Teleworking for border workers is subject to new rules and procedures. - It is important to understand tax and social security rules to avoid problems. - The New Frontier Agreement was signed on 23 December 2020 and is in force from 1 January 2024. ## Key facts - What: Telework for border workers. - When: 1 January 2024. - Where: Switzerland and Italy. - Who: Frontier. - Amount: Not specified. Teleworking for border workers is subject to new rules and procedures. It's important to understand tax and social security rules to avoid problems. The New Frontier Agreement was signed on 23 December 2020 and is in force from 1 January 2024. ## Teleworking for frontier workers: what they need to know and how to manage it Teleworking for frontier workers is a growing phenomenon in Ticino, especially following the establishment of the New Frontier Agreement. This agreement introduced new rules and procedures for border workers wishing to work in Switzerland and return to Italy. It is essential to understand these new rules to avoid tax and social security problems. Tax rules Tax rules for frontier workers have changed with the establishment of the New Frontier Agreement. Now, frontier workers must declare the income earned in Switzerland to the Italian Revenue Agency. It is important to note that income earned in Switzerland is subject to taxation in Italy, but only if it was earned by employees. I * The website of the Canton of Graubünden. Teleworking for frontier workers is a growing phenomenon in Ticino. It is important to understand the new tax and social security rules to avoid problems. The New Frontier Agreement was signed on 23 December 2020 and is in force from 1 January 2024. Border workers must declare the income earned in Switzerland to the Italian Revenue Agency and pay the related taxes. It is also important to pay social security contributions in Italy and apply for a pension in Italy after working in Switzerland.

Operational details

Teleworking for border workers requires precise management of taxes and social security. It's important to understand tax and social security rules to avoid problems. The New Frontier Agreement introduced new rules and procedures for border workers working in Switzerland but residing in Italy.

According to the New Frontier Agreement, Italians working in Switzerland but residing in Italy must file tax returns both in Italy and in Switzerland. In Italy, they must file their tax return by April 30, while in Switzerland they must file their tax return by July 31.

📊 Here is a concrete example:

• A frontier worker resides in Bellinzona and works in Lugano. In 2022, he earned CHF 60,000 working for a company in Lugano. In Italy, you must declare your income by 30 April and pay the relevant taxes. - In Switzerland, you must file your tax return by 31 July and pay the relevant taxes.

The frontier worker must be aware that income taxation is different between Italy and Switzerland. In Italy, taxation is 23%, while in Switzerland it is 11.9% (for incomes up to CHF 20,000) and 31.5% (for incomes above CHF 20,000).

⚠️ Caution: If the frontier worker does not declare income in both countries, he/she may incur tax penalties.

The New Frontier Agreement also introduced new rules for pensions. Frontier workers must be registered

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Key points

Teleworking has become a daily reality for many border workers working in the Canton of Ticino. However, managing telecommuting can be complex and requires attention to detail to avoid problems with tax and social security authorities. In this article, we will explore the procedures to be followed to manage teleworking correctly and provide concrete examples to help border workers better understand the rules.

Submission of the tax return

The presentation of the tax return is a fundamental step for border workers working in Ticino. The return must be filed by March 31 of the year following the year in which the income was received. It is important to note that the tax return must be filed even if the income was received in only one month.

For example, if a frontier worker received an income of CHF 10,000 in January 2023, the tax return must be filed by 31 March 2024. It is also important to note that the tax return must be filed even if the income was received in only one month.

Tax management

Tax management is another important issue for border workers working in Ticino. Taxes must be paid by March 31 of the year following the year in which they were collected. It is important to note that taxes must be paid even if income has been

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