Partial deduction on cross-border worker allowances may break Rome deal

Context

Deduction from cross-border worker rebates contrary to agreements with Rome

The Federal Council has responded to a question from National Councillor Piero Marchesi (SVP/TI) regarding the significance of this Italian health contribution for cross-border workers. The Government notes that the health tax has not yet been introduced.

The so-called health tax is the contribution to the Italian National Health Service set by Law 213/2023 (Art. 1, paragraphs 237-239): from 3% to 6% of the net salary earned in Switzerland, with a minimum of 30 and a maximum of 200 euros for each month worked, set each year by the region of residence.

Operational details

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Source: swissinfo.ch

Article 1(237–238) of Italian Law No. 213/2023 does not apply indiscriminately to all cross-border workers. It covers: (a) Italian residents who work and stay in Switzerland and use the Italian SSN; (b) frontier workers under Article 9(1) of the Italy–Switzerland Agreement whose income is taxable only in Switzerland and who exercised the legal right to choose health insurance; and (c) dependants of those two categories. Paragraph 238 sets a progressive 3–6% share of net Swiss salary, with a €30 minimum and an ordinary €200 maximum for each month worked from 2024. The cap may be doubled in cases of omitted payment or omitted communication specified in Article 1(100) of Law No. 207/2024. The Region of residence sets the rates and procedure each year.

What the reply clarifies

The Federal Council reply reported by the source concerns the status of the measure; it does not introduce a new rule for cross-border workers. The Italian health contribution is distinct from tax refunds: the former is the participation in the national health service described by the cited law, while the latter are institutional payments linked to the agreement between Switzerland and Italy. Saying that a deduction would conflict with the agreements describes the parliamentary question, not a judgment or an already applied ban. While the measure has not been introduced, this article cannot calculate an individual amount or promise a refund. Personal cases require the current Italian and Swiss notices, the region of residence and the actual tax situation.