Senate ratifies Italy-Switzerland deal on frontier workers

(ANSA) - ROME, MAY 31 - Italy's Senate on Wednesday gave definitive backing to a bill ratifying the new cross-border commuter agreement between Switzerland and Italy.
    The deal that is mainly intended to avoid double taxation of frontier workers was approved unanimously in its third reading with 120 votes in favour.
    The Lower House approved the agreement on May 4.
    Unlike the previous 1974 agreement governing only Italian cross-border workers employed in Switzerland, the new deal also concerns the treatment of Swiss frontier workers employed in Italy.
    The agreement establishes the principle of concurrent taxation, which gives taxing rights to both the cross-border worker's country of residence and of employment.
    Specifically, wages are taxable in the country of employment up to a maximum of 80% of what is owed under national personal income tax law.
    The country of residence then applies its own income taxes and eliminates double taxation with respect to taxes levied in the country of employment.
    In addition, in the second reading of the bill the Lower House included a transitional provision on remote working. (ANSA).