Tremble the budgets of the municipalities: the health tax for old border workers

Context

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. 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 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. 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.

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 2024 budget law provides that the health tax for old cross-border commuters will be applied from 2024. However, Swiss experts argue that this tax is a tax and that it does not comply with international agreements.

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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.

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.

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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.