At its meeting on 11 August 2021, the Federal Council adopted the dispatch on the new cross-border commuter agreement between Switzerland and Italy.
With the new agreement, Switzerland retains 80% of the withholding tax on the income of cross-border commuters who newly work in Switzerland (from the entry into force of the new agreement), whereby they are also taxed properly in Italy and Italy eliminates double taxation.
Individuals who worked in the cantons of Graubünden, Ticino or Valais between 31 December 2018 and the entry into force of the new agreement will continue to be taxed exclusively in Switzerland, with the Italian border municipalities receiving financial compensation amounting to 40% of the withholding tax levied in Switzerland until the end of 2033.
The message and additional documents are available here.
