Tremble the budgets of the municipalities: the health tax for old border workers (cross-border guide)

Context

In short - The health tax is a health contribution introduced by the Italian Parliament in the 2024 budget law - The conclusion of the Swiss experts is that the measure represents in all respects a tax and, if applied by the Regions, would violate international agreements The health tax for old frontier workers is a health contribution introduced by the Italian Parliament in the 2024 budget law. The conclusion of the Swiss experts is that the measure represents in all respects a tax and, if applied by the Regions, would violate international agreements. Tremble the budgets of municipalities: the health tax for old border workers On 1 January 2024, the Italian budget law comes into force, introducing the health tax for old border workers. This health contribution is intended to cover health expenses for Italian citizens who have resided in the country for more than 10 years, but who have not yet reached retirement. However, the conclusion of the Swiss experts is that the measure represents in all respects a tax and, if applied by the Regions, would violate international agreements. Swiss experts argue that the health tax is not a simple health contribution, but a tax that would violate international agreements. In particular, the 1954 Hague Convention, which regulates the protection of cultural property in the event of conflict, does not provide for the possibility of * If the health tax for old border workers will not be applied, the municipality of Bern, Switzerland, will not have to calculate the tax based on the taxpayer's income and will not have to apply it from 1 January 2024. "The health tax for old border workers is a health contribution that will be applied by the Italian Regions from 1 January 2024. Its application is intended for Italian citizens who have resided in the country for more than 10 years, but who have not yet reached retirement." >Giovanni Legnini, expert in international law The health tax for old border workers is a health contribution that will be applied by the Italian Regions from 1 January 2024. Its application is intended for Italian citizens who have resided in the country for more than 10 years, but who have not yet reached retirement. The tax will be calculated based on the taxpayer's income and will be applied to Regions that have not yet reached the health expenditure targets provided for by the Budget Law 2024.

Operational details

Key Facts

• What: Health tax for old cross-border commuters
• When: 2024
• Where: Italy
• Who: Italian Parliament
• Amount: not yet specified

The health tax for old cross-border commuters is a health contribution introduced by the Italian Parliament in the 2024 budget law. This measure has been criticized by Swiss experts, who consider this tax a tax and, if applied by the Regions, would violate international agreements.

The health tax for old cross-border commuters affects Swiss citizens who have lived in Italy for more than 10 years and are over 65 years old. According to the law, they will have to pay a monthly health contribution, which will be used to cover the costs of their health care. However, Swiss experts argue that this tax is a tax and that it does not comply with international agreements.

In the Canton of Ticino, for example, there are about 30,000 Swiss citizens who have been living in Italy for more than 10 years. If the health tax for old cross-border commuters were to be applied, this could lead to an increase in living costs for these citizens, who could be forced to reduce their expenses in order to pay the health contribution.

In addition, the health tax for old cross-border commuters could also have negative repercussions for Swiss municipalities, which could suffer an increase in money flows to Italy. According to experts, this could lead to increased operating costs for Swiss municipalities and could also negatively affect their ability to offer public services.

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Key points

Practical Implications

• If the health tax is applied by the Regions, it may violate international agreements.
• The Council of State of the Republic and Canton of Ticino has announced the results of a legal report on the so-called 'health tax'.

The health tax for old border workers is a health contribution introduced by the Italian Parliament in the 2024 budget law. The conclusion of the Swiss experts is that the measure represents in all respects a tax and, if applied by the Regions, would violate international agreements.

On 7 December 2023, the Council of State of the Republic and Canton of Ticino announced the results of a legal report on the so-called 'health tax'. According to the expert, the Italian measure would violate international agreements, in particular Articles 3 and 4 of the Agreement between Switzerland and the European Union of 26 October 2004. These articles state that EU Member States may not impose taxes or contributions on Swiss citizens residing in the country.

The health tax for old border workers is a health contribution of 150 euros per year for each beneficiary. According to the expert opinion, this contribution is not a simple health contribution, but a tax that would violate international agreements if applied by the Regions.

Concrete examples

• A Swiss citizen aged 65 who resides in the Canton of Ticino and who has an annual income of 50,000 euros

Check tax deadlines for cross-border workers: returns, Swiss declarations, rebates — all dates in one interactive calendar.

Source: ilgiorno.it