How do I compute the tax credit on Swiss tax already paid? (cross-border guide)
Answered with official sources — Tax and withholding
Answer
Italian TUIR art. 165 (from 2027 art. 185 Legislative Decree 117/2026) and the CH-IT Convention of 1976 source: Fedlex SR 0.672.945.41 govern the foreign-tax credit. The new cross-border worker adds the Swiss income converted into euros to the IRPEF tax base, applies IRPEF and surtaxes, then credits the lower of (a) Swiss tax paid on a final basis and (b) the IRPEF share proportional to foreign income. There is no 80% limit on the credit: the 80% refers to the Swiss levy source: Agreement art. 3; Convention art. 24. If foreign income is only partly taxable, the foreign tax is reduced in proportion. The Swiss salary certificate and withholding receipts are the evidence. In the Redditi form the credit goes in section CE. Foreign tax above the limit is not credited in that year, but it can be carried over under the legal conditions up to the eighth period.
Official sources
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