ARTICLE · 30 JULY 2023

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The agreement on the taxation of cross-border commuters and the corresponding protocol of amendment between Switzerland and Italy entered into force on 17 July 2023 and will be applicable from 1 January 2024.

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Short News July 27, 2023

Switzerland - Italy

New taxation rules for cross-border commuters as of 1 January 2024

The agreement on the taxation of cross-border commuters and the corresponding protocol of amendment between Switzerland and Italy entered into force on 17 July 2023 and will be applicable from 1 January 2024. The agreement provides that cross-border commuters must pay tax on their income in their country of residence. However, the country of employment may levy 80% of the withholding tax on the earned income. Double taxation is avoided in the State of residence as follows:

in Italy with crediting of the Swiss withholding tax
in Switzerland with the exemption of the income and only taken into account for the determination of the tax rate.

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