Frontier workers, the new Agreement is law!

And at last the moment has arrived, with Law 13/06/2023 no. 83, which came into force on 1 July 2023, the long process leading to the ratification of the new Agreement on Frontier Workers, superseding the old 1974 Agreement, has been concluded.

Let's take a look at the main changes:

- For frontier workers (so-called "current frontier workers") who had an employment contract between 31/12/2018 and the date of entry into force of the new Agreement, nothing changes. The old rules will continue to apply and cross-border commuters will only be subject to taxation at source in Switzerland.

- The “new frontier workers”, i.e., those who have applied for a G permit after the effective date of the new agreement (01/07/2023) will be subject to concurrent taxation. That is, taxation at source in Switzerland and taxation in Italy, which will guarantee a tax credit for what has already been paid in Switzerland.

- An exemption (no tax area) for 'new frontier workers' of Euro 10,000 is guaranteed in Italy.

- Social security contributions paid by workers will be considered as deductible from income for Italian taxes.

- Family allowances paid by Switzerland will be considered as non-taxable.