How do you convert Swiss tax into euros for the EC framework?

The Revenue Agency provides the official annual average exchange rate CHF/EUR used for tax purposes. Multiply the amount in CHF paid of tax at source by the annual average change of the year of income in question. The CE box contains the dedicated cells where to enter the gross amount in CHF, the Swiss tax in CHF and the applied exchange rate, automatically generating the equivalent in EUR. No discretionary change is allowed: only that of the Agency is valid.

If I am a new frontier worker with €10,000 deductible, but I pay CHF 15,000 Swiss tax, how much recovery in Italy?

Italian income tax is calculated on total income net of deductible (€10,000). On that basis, the Agency shall apply the progressive rate. The credit equals how much Italy will recalculate after the deductible, not the entire CHF 15,000. If the recalculated IRPEF is CHF 9,000 (EUR equivalent), the credit is worth CHF 9,000 EUR, not CHF 15,000.

What changes in 2026 compared to 2025 for the tax credit?

The basic rules remain the same: Swiss source tax withdrawn during the year, exemption for the applicable regime (old vs new border crossing), compilation of the EC framework in the form 730 in the spring. The New Frontier Agreement, in force since 1 January 2024, is now stable. Possible updates to the nominal deductible amounts will be communicated by the tax authorities (Agenzia delle Entrate, AFC) if approved by both governments.

Above 20 km, is the tax credit procedure different?

No. The distance (over 20 km from the Swiss border) only determines the application of the transitional regime (old/new frontier workers) and the benefits related to the deductible. The procedure for compiling the credit in the CE framework of 730 remains identical regardless of the distance. The Italian-Swiss Convention of 9 December 1976 applies uniformly to all border workers resident in Italy who work in Switzerland.

If I do not declare the EC framework in 730, do I lose the right to the tax credit?

Yes, without the EC framework, the Revenue Agency has no information on the tax paid in Switzerland and does not recognise the credit. The result is full Italian taxation on foreign income without compensation, resulting in effective double taxation: the border worker pays both in Switzerland (withholding tax) and in Italy (personal income tax), without recovery. For this reason it is essential to fill in the EC framework correctly every year.

2026 tax credit: over 20 km, calculation and 730 (cross-border guide)

Di Marco Ferrari · Published on 20 August 2026

Cross-border worker typing on laptop with tax forms and fiscal documents, Ticino landscape visible through window.

How to recover the Swiss withholding tax using the CE framework in the 730 model. New and old frontier workers: exemptions in comparison, step-by-step procedure.

Context

In a nutshell

Source tax withdrawn only in Switzerland, then recovered via tax credit in Italy
New Frontier Agreement in force from 1 January 2024 with two regimes: old (€7,500) and new (€10,000)
Italian EC framework declaration of 730 is the tool to recover Swiss taxation

Key facts

What: Tax credit to avoid double taxation on cross-border work income
When: Annual declaration at 730, standard Italian regulatory deadline
Where: Switzerland (tax withdrawal), Italy (recovery through EC framework)
Who: Border workers resident in Italy who work in Switzerland
Legal basis: Italian-Swiss Convention of 9 December 1976, New Agreement 23 December 2020 (effective from 1 January 2024)

The taxation system for border workers Ticino-Italy is based on a fundamental principle: the income tax at source is levied exclusively in Switzerland. It is not a simultaneous double taxation, but a sequential management where Italy intervenes subsequently to avoid overcharges through the tax credit. This regulatory fix is at the heart of the mechanism that makes cross-border work tax-efficient compared to scenarios without double taxation protection.

The Convention between Italy and Switzerland signed on 9 December 1976 has governed this mechanism for half a century. However, the landscape has been modernised by the New Deal

Operational details

Calculation Scenarios: How the Tax Credit Changes the Net Payroll

For the border worker, the tax credit is one of the most relevant factors in the annual financial statements. The Swiss withholding takes place monthly on the paycheck, while the Italian compensation is resolved only with the tax return, in the spring of the following year. This creates a liquidity differential over the course of the year: the frontier worker pays gradually in Switzerland, but recovers the credit only on declaration.

On an annual gross income from employment, after the Swiss withholding tax, the border worker receives a net paycheck. On that part taxed in Switzerland, Italy does not apply additional IRPEF thanks to the credit, as long as the declaration is correctly completed in the EC framework.

Italian IRPEF is progressive in stages:

Up to €28,000: rate 23%
From €28,001 to €50,000: 35% rate
Over €50,000: 43% rate

If the border worker falls into the deductible (old border workers €7,500, new €10,000), that fee is not taxed in Italy even as a minimum. Above the deductible, the Italian tax applies, but the Swiss credit compensates for it. A new frontier with €10,000 deductible and gross income of €40,000 has an Italian tax base of €30,000 (€40,000 – €10,000), on which the IRPEF is charged by combining the brackets: 23% on €2,000 (up to €28,000) and 35% on €2,000 (from €28,001 to

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

How to complete the EC framework and recover the tax credit in 2026

The procedure is structured in precise steps. The border worker must:

1. Collect Swiss documentation First of all, obtain from the database of the Swiss tax system (managed by AFC - Federal Tax Administration) the tax certificate paid during the year. This document shows: federal rate (common to all), cantonal rate (varies by canton of residence of the company, often Ticino), municipal rate, monthly withholdings at source, annual total. It is the key document for filling in the EC framework.

2. Complete the CE framework in the model 730 The CE framework contains sections dedicated to gross income from foreign employment (Switzerland), tax paid in Switzerland (amount in CHF, then converted into EUR at the Agency's annual average exchange rate), applied deductible (Old border brand expiring in 2033 or New border brand from 2024), calculation of the credit carried out semi-automatically by the 730 software or by the Agency itself.

3. Send the declaration by the Italian regulatory deadline The 730 relating to 2025 income (completed in 2026) has an ordinary expiry date according to the Revenue Agency calendar. For 2024 incomes, the deadline was set at spring 2025. Safety margin: anticipate the declaration by May. Many border workers rely on accountants specialising in cross-border taxation to avoid mistakes.

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

Frequently Asked Questions

How do you convert Swiss tax into euros for the EC framework?: The Revenue Agency provides the official annual average exchange rate CHF/EUR used for tax purposes. Multiply the amount in CHF paid of tax at source by the annual average change of the year of income in question. The CE box contains the dedicated cells where to enter the gross amount in CHF, the Swiss tax in CHF and the applied exchange rate, automatically generating the equivalent in EUR. No discretionary change is allowed: only that of the Agency is valid.
If I am a new frontier worker with €10,000 deductible, but I pay CHF 15,000 Swiss tax, how much recovery in Italy?: Italian income tax is calculated on total income net of deductible (€10,000). On that basis, the Agency shall apply the progressive rate. The credit equals how much Italy will recalculate after the deductible, not the entire CHF 15,000. If the recalculated IRPEF is CHF 9,000 (EUR equivalent), the credit is worth CHF 9,000 EUR, not CHF 15,000.
What changes in 2026 compared to 2025 for the tax credit?: The basic rules remain the same: Swiss source tax withdrawn during the year, exemption for the applicable regime (old vs new border crossing), compilation of the EC framework in the form 730 in the spring. The New Frontier Agreement, in force since 1 January 2024, is now stable. Possible updates to the nominal deductible amounts will be communicated by the tax authorities (Agenzia delle Entrate, AFC) if approved by both governments.
Above 20 km, is the tax credit procedure different?: No. The distance (over 20 km from the Swiss border) only determines the application of the transitional regime (old/new frontier workers) and the benefits related to the deductible. The procedure for compiling the credit in the CE framework of 730 remains identical regardless of the distance. The Italian-Swiss Convention of 9 December 1976 applies uniformly to all border workers resident in Italy who work in Switzerland.
If I do not declare the EC framework in 730, do I lose the right to the tax credit?: Yes, without the EC framework, the Revenue Agency has no information on the tax paid in Switzerland and does not recognise the credit. The result is full Italian taxation on foreign income without compensation, resulting in effective double taxation: the border worker pays both in Switzerland (withholding tax) and in Italy (personal income tax), without recovery. For this reason it is essential to fill in the EC framework correctly every year.