Frontier workers, fiscal tension with Ticino: trade unions call for intervention (cross-border guide)

Context

In a nutshell

CSIR Ticino, Lombardy and Piedmont reported a new interpretation of the tax authority at the source of the Canton of Ticino, which could have serious consequences for frontier workers. The new interpretation applies full taxation on some categories of frontier workers, ignoring recent Italian legislation. This situation could penalise frontier workers and create tensions between Switzerland and Italy.

Key facts

The CSIR requested the intervention of the Italian Government and the Lombardy Region to resolve the situation of border workers. The new interpretation could have significant effects on the pockets of frontier workers, who could see higher taxation applied than that provided for by Italian legislation. The CSIR also requested that Italian law be respected and that Switzerland abide by international rules on taxation.

The situation is particularly critical for frontier workers who reside in the Canton of Ticino and who are employed in companies located in the Lombardy Region. According to CSIR estimates, around 10,000 frontier workers could be affected by this new interpretation. The taxation applied could even be 20-30% higher than that provided for by Italian legislation.

The CSIR also called for compliance with the Italian-Swiss Tax Convention, signed in 1999, which

Operational details

The CSIR sent a letter to the Italian Government and the Lombardy Region to urge urgent action to resolve the situation of border workers. The new interpretation of the tax legislation could penalize frontier workers, who are now over 40,000 working in Switzerland.

The situation is particularly critical for frontier workers who reside in Lombardy and work in Switzerland. Many of them have been affected by the new interpretation of tax legislation, which could lead to an increase in social security contributions and other expenses. According to CSIR calculations, border workers may have to pay up to 1,500 euros more per year for social security contributions.

The CSIR calls on the Italian Government and the Lombardy Region to intervene to clarify the situation and ensure that border crossers are not penalised. The union argues that the new interpretation of tax legislation is discriminatory and could result in serious injustice for frontier workers.

The situation is particularly critical for border workers who reside in cities such as Como, Lecco and Bergamo, which are close to the borders with Switzerland. Many of them have been affected by the new interpretation of tax legislation and fear having to pay more social security contributions and other expenses.

According to CSIR calculations, border workers may have to pay up to 1,500 euros more per year for social security contributions.

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Key points

The situation of border workers working in the Canton of Ticino is becoming increasingly complex. Tax tension is skyrocketing and those interested can contact trade unions to find out how to proceed. It is important to note that the situation is still developing and that trade unions are working to solve the problem.

According to estimates, there are over 150,000 border workers working in the Canton of Ticino, most of whom come from countries such as Italy and Slovenia. However, the global economic crisis and rising unemployment have made it increasingly difficult for these workers to maintain a decent income.

The issue was already addressed in 2020, when the federal law on border guards was amended to include a safeguard clause for cantons wishing to reduce the presence of border guards. However, the Canton of Ticino has decided not to apply this clause, stating that there is no need for a reduction in the presence of border workers.

According to the regulations in force, border workers must pay a tax of 20% on their annual income. However, in 2020, the Canton of Ticino decided to increase the tax to 30% for border workers who do not have an established employment contract. This increase has been criticized by many trade union organizations, who have said that it is a discriminatory measure and that it does not respect the rights of border workers.

Unions are

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Source: primalavaltellina.it