On 6 June 2024, the Protocol amending the Agreement between the Swiss Confederation and the Italian Republic on the taxation of cross-border commuters, with additional protocol, in Rome on 23 December 2020 has been published.
https://www.admin.ch/gov/de/start/dokumentation/medienmitteilungen.msg-id-101280.html
Background
The cross-border commuter agreement between Switzerland and Italy entered into force on 17 July 2023 and has been applied since 1 January 2024. A mutual agreement on teleworking for cross-border commuters under tax law had already been published in November 2023. This stipulated that old and new cross-border commuters for tax purposes can telework from home up to a maximum of 25% without any changes to taxation. Switzerland can therefore tax these teleworking days worked in Italy. The mutual agreement is only valid for a limited period and it was stipulated that the agreement for a permanent solution is only possible by amending the cross-border commuter agreement.
The publication that recently appeared is no surprise. The additional protocol has been signed by both states through their representatives and must be ratified by both countries before it can enter into force retroactively as of 1 January 2024.
In contrast to the teleworking agreement with France, this agreement with Italy only applies to genuine cross-border commuters from Italy in accordance with the cross-border commuter agreement. It can therefore only affect the cantons of Graubünden, Ticino and Valais with genuine cross-border commuters.
The agreement reached consequently does not apply to employees with an employer in Switzerland who have a cross-border commuter permit but are neither old nor new cross-border commuters for tax purposes. Companies in the cantons of Graubünden, Ticino and Valais must also check whether their genuine cross-border commuters exceed 45 work-related non-return days per year. If this is the case, they become non-genuine cross-border commuters for the year in question, which means that all days not worked in Switzerland, including teleworking days, must be excluded (withholding tax procedure or recalculation of withholding tax).
I refer to various previously published blogs on the cross-border commuter agreement with Italy.
As far as social security is concerned, Italy has signed the framework agreement on cross-border teleworking with effect from 1 January 2024. If the necessary requirements are met (including Swiss or EU nationality, etc.) and the employer submits an application to the compensation office, employees resident in Italy may telework up to < 50% in Italy. For employees under the cross-border commuter agreement for tax purposes, this is likely to be limited to 25%.
Other countries have also signed the framework agreement on cross-border teleworking:
1 May 2024 Lithuania
1 June 2024 Ireland
This can be looked up at any time at: https://socialsecurity.belgium.be/en/internationally-active/cross-border-telework-eu-eea-and-switzerland
I refer you to the various publications on the requirements for the framework agreement on teleworking.
