The COVID-19 friendly agreement signed in June 2020 between Switzerland and Italy on the topic of smart working, i.e. (tele)working from the home of the frontier worker will expire at the end of January 2023.

Failure to renew this agreement will bring with it consequences which must be taken into account and which were confirmed in a very recent ruling by the Revenue Agency (n. 171/2023), which confirmed the Italian position, i.e. the according to which even just 1 day of telework carried out after 1 February 2023 will cause the benefits referred to in art. 15 CDI: the frontier worker will therefore have to declare in full the income earned in Switzerland and subject himself entirely to Italian taxation.

The concept of frontier worker therefore presupposes, and imperatively, that the worker carries out his work in Switzerland, going through customs every day. Any teleworking performed in part, i.e. in the morning in presence and in the afternoon in smart working does not exempt from risks and lends itself to possible disputes.

Furthermore, the disapplication of the benefit reserved for cross-border commuters will also affect the tax monitoring obligations for financial assets held abroad, i.e. the obligation to complete the RW framework as well as the forfait of €7,500 for annual income abatement. (€10’000 since the new agreement will be in force – presumably from 2024).

Finally, it remains to mention the potential risk for the Swiss employer of being attracted to Italy by a personal permanent establishment, with all the consequences of the case.


Related news

Other news


Do you want more information about Arifida’s services?

Request a consultation

Get advice from the experts

Our collaborators are at your disposal, do not hesitate to contact us!