Ticino considers withholding cross-border workers' tax

Context

In brief

• The State Council has until the end of June to decide on the blocking of the refunds
• Parties are open to the idea but demand concrete actions
• The Lega proposes an emergency fund to finance the health insurance initiatives

Key facts

• What: Possible blocking of the refunds
• When: Decision by the end of June 2026
• Where: Canton of Ticino
• Who: State Council, political parties
• Amount: 120 million francs

The hypothesis of blocking the refunds is becoming more and more concrete. After Christian Vitta and Norman Gobbi, Claudio Zali also advocated the idea in the columns of the Mattino della Domenica. The State Council has until the end of June to decide whether to withhold the 120 million francs of withholding tax from cross-border workers. Just like fifteen years ago, the infamous blocking of the refunds is once again making headlines and sparking public debate. This time, the breaking point - in an already tense climate - is the health tax, a contribution that Lombardy intends to request from the old cross-border workers, those still benefiting from the refund regime.

Parties' opinions

The issue of reciprocity The problem had already been raised by Christian Vitta a few weeks ago. It's about reciprocity towards Italy, explains the PLR president Alessandro Speziali. 'It's also about maintaining a certain active pressure on Bern, because we know - and this is not whining - that our Canton faces difficulties as a border Canton. I think this is a correct pressure tool to then restore a respectful political environment for everyone.'

Reaching the goal Maurizio Agustoni, head of the Centro group, emphasizes that it is up to the Government to understand whether the block can help obtain better conditions in the distribution of the tax burden that weighs on cross-border workers. 'It is important that if this measure is taken, the State Council is then willing to achieve the goal it wishes to obtain. Blocking the refunds and then unblocking them a few months later without having achieved anything would only expose us to embarrassment in front of the Confederation and the Ticino population itself.'

A serious discussion The socialist vice-president Danilo Forini specifies that the block should not be used for electoral campaign purposes: 'The blocking of the refunds is a very serious issue that must be addressed in legal and juridical terms, in collaboration with Bern, and therefore pressure must be put on Bern. We do not agree that it is addressed only as an electoral banner to enter the electoral campaign year, and I have the doubt that this is being done. Let's discuss it, discuss it seriously and do it with Bern.'

Concrete facts are needed Finally, the Lega coordinator Daniele Piccaluga: 'We know that within national equalization, the calculation of the refunds of cross-border workers is calculated and for Ticino it is a penalizing calculation. Therefore, we have always sought to fight and we welcome Zali's statement. However, we hope that the Government does not just talk, but proceeds with concrete facts.'

Ticino is at its limit In the evening - on the subject - a note from the Lega also arrived, which once again asks for the blocking of the refunds and proposes the establishment of an 'emergency fund' destined, at least for one year, to finance the two health insurance initiatives voted in September: 'That money must be used to finance the maximum ceiling of 10% for health insurance premiums and the full deduction of policies', writes the movement. 'Ticino is at its limit. While the middle class and families are literally 'plucked' by health insurance premiums that are growing at unsustainable rates, the politics of 'goodists' continues to look the other way. But the solution is in front of everyone, and it's time to have the courage to apply it', it is also read. The Lega therefore officially asks to block the transfer of funds to Italy: 'It is no longer tolerable that tens of millions of francs leave our coffers to fill the coffers of the border communes, while the Ticinese have to choose between paying the rent or the health insurance bills. That money must stay in Ticino to give oxygen to our citizens.'

Operational details

Implications for cross-border workers

The possible blocking of refunds could have a significant impact on cross-border workers employed in Ticino. Refunds represent an important part of the income for many cross-border workers, and a block could lead to a reduction in their purchasing power. Furthermore, the health tax required by Lombardy could add an additional tax burden for cross-border workers.

Possible Scenarios

If the State Council decided to block the refunds, cross-border workers could find themselves in a situation of tax uncertainty. It is important that cross-border workers inform themselves about the possible implications and prepare for any changes. Additionally, cross-border workers might want to consider other tax options, such as tax residence in Switzerland, to mitigate the impact of the blocking of refunds.

Comparison with the previous situation

Before the possible blocking of refunds, cross-border workers enjoyed a favorable tax regime that allowed them to benefit from the refunds. With the block, this situation could change, and cross-border workers might have to face a heavier tax burden. It is important that cross-border workers are aware of these possible changes and prepare accordingly.

Concrete Procedures

If the blocking of refunds were to be implemented, cross-border workers should follow some concrete procedures to manage the situation. First of all, it is important that cross-border workers inform themselves about the new tax regulations and prepare for any changes. Additionally, cross-border workers might want to consult a tax advisor to better understand the implications of the blocking of refunds and plan accordingly.

Useful Tools

To help cross-border workers manage the situation, there are several tools available. For example, the tax calculator can help cross-border workers estimate the impact of the blocking of refunds on their income. Additionally, the health insurance comparator can help cross-border workers find the health coverage most suitable for their needs.

Conclusion

The possible blocking of refunds represents a challenge for cross-border workers employed in Ticino. It is important that cross-border workers inform themselves about the possible implications and prepare for any changes. Additionally, cross-border workers might want to consider other tax options to mitigate the impact of the blocking of refunds. With the right information and tools, cross-border workers can face this situation with greater security and preparation.

Recommended tools

For an updated estimate, use the net salary calculator and the CHF-EUR exchange comparator.

Key points

What to do now

If you are a cross-border worker in Ticino, it's important that you inform yourself about the possible implications of the withholding tax block. You can start by visiting the tax calculator to estimate the impact of the block on your income. Additionally, you can consult a tax advisor to better understand your options and plan accordingly.

Deadlines and procedures

If the withholding tax block is implemented, it's important that you follow the appropriate procedures to manage the situation. Make sure you are informed about the new tax regulations and follow the appropriate deadlines for filing your tax return and paying your taxes.

Tools and resources

To help you manage the situation, there are several tools and resources available. You can use the tax calculator to estimate the impact of the withholding tax block on your income. Additionally, you can consult the health insurance comparator to find the health coverage that best suits your needs.

Conclusion

The possible withholding tax block represents a challenge for cross-border workers in Ticino. However, with the right information and tools, you can face this situation with greater security and preparation. Make sure to inform yourself about the possible implications and follow the appropriate procedures to manage the situation. If you have questions or need further information, do not hesitate to consult a tax advisor or visit our website for additional resources and tools.

Source: ticinonews.ch