Teleworking for border workers: the Government approves the bill (cross-border guide)

Context

Teleworking for border workers: the Government approves the bill

The Italian Council of Ministers approved the bill to ratify the Protocol amending the Agreement with Switzerland on the taxation of frontier workers. This step will have a significant impact for frontier workers working in the teleworking sector, allowing them to work up to 25% of the time from their domicile in the State of residence, without altering the tax status of frontier workers.

The Protocol permanently regulates the taxation of teleworking for frontier workers, providing greater flexibility and legal certainty for this type of work. This is good news for frontier workers working in the telecommuting industry, such as those working as software developers or financial consultants.

Teleworking is a growing sector in the canton of Ticino, where many companies have their headquarters. According to 2022 statistics, 70% of companies in the IT sector in Ticino offer the possibility of teleworking to their employees. This trend is set to continue, and the Protocol amending the Agreement with Switzerland on the taxation of frontier workers represents an important step in supporting the growth of this sector.

The bill approved by the Italian Council of Ministers provides that frontier workers can work up to

Operational details

Key facts

• The Protocol amending the Agreement with Switzerland on the Taxation of Frontier Workers was signed on 23 December 2020.
• Ratification of the Protocol is required to enter into force.
• Teleworking for frontier workers is allowed up to 25% of the time from their domicile in the State of residence.

Teleworking for border workers: the Government approves the bill

The Government of the Canton of Ticino has approved the bill regulating teleworking for frontier workers. The text provides that border workers can work remotely up to 25% of the time from their home in the State of residence. This measure is aimed at facilitating the lives of frontier workers, who often face long journeys to reach their place of work.

The bill also provides that border workers are required to declare their working presence in the Canton of Ticino. This will allow the Government to monitor the situation and possibly make changes to the text. In addition, the bill provides for the creation of a register of border workers working remotely, which will be kept updated by the Government.

Concrete examples

For example, a frontier worker who resides in Bellinzona and works remotely two days a week may benefit from this measure. In this case, the worker will be able to work remotely two days a week and travel on Fridays to reach their place

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Key points

Action

The bill for teleworking for border workers in the Canton of Ticino is an important step towards the modernisation of cross-border work. However, the path to its implementation is still long and complex. The bill has yet to be ratified by the Italian and Swiss parliaments, both of which must give their consent for it to enter into force.

Only after the conclusion of these internal approval procedures in both countries will the new provisions become operational. Border workers may continue to work from their domicile in the State of residence without altering the tax status of border workers.

Concrete examples

To better illustrate the context, let's take the example of a cross-border worker who resides in Bellinzona and works as a software developer for an Italian company based in Milan. Currently, the worker must go daily to the office in Milan, regardless of traffic and long hours of travel. With the legal timber design, the worker could continue to work from their home in Bellinzona, without altering the tax status of border worker.

Regulations and dates

The bill was presented to the Italian parliament in June 2022 and to the Swiss parliament in January 2023. Ratification by the two parliaments is expected by the end of the year 2023. Once ratified, the bill will become

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Source: rsi.ch