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- Federal President Simonetta Sommaruga was received with military honors in Rome by Italian Prime Minister Giuseppe Conte.
- At their meeting, the two discussed the cross-border transportation agreement between the two countries.
- They want this to be resolved as quickly as possible.
In a joint press conference, Italy’s head of government stressed the “valuable contribution” that Italian cross-border travelers make to Ticino’s health system. “The pandemic has shown how valuable Italian workers are to Switzerland, especially Ticino.”
Conte said the pandemic had taught both states that there was no alternative to working together if citizens were to be kept safe. “The crisis has shown us how our destinies are interrelated and how much we can gain from fruitful bilateral cooperation.”
Finally, advance the cross-border transport agreement
The two heads of state reaffirmed that they had made progress in the negotiations on the tax treatment of cross-border travelers. The 2015 cross-border transport agreement should be signed before the end of the year.
Sommaruga said, “There is an intention to move very fast. That means we want to sign this agreement before the end of this year. ‘
I hope we can continue like this.
Switzerland also considers it important to keep the borders with Italy open even during the crisis, assured the federal president. “With neighboring countries, Switzerland is applying a regional approach by excluding border regions and cross-border travelers from the quarantine regime. “I hope we can continue like this,” Sommaruga said.
Cross-border commuter agreement in force since 1974
The cross-border transport agreement was negotiated in 2015. However, it has not yet been signed. It must then be ratified by the parliaments of both countries. The currently valid agreement dates from 1974 and states that cross-border travelers only pay taxes in Switzerland, and that Italy is entitled to 38.8 percent of the withholding tax. In the new agreement, cross-border travelers pay taxes in both countries.
Instead of the current 61.2, Switzerland should be allowed to collect up to 70 percent of the total withholding tax. Italy should deduct from its tax the amount already paid in Switzerland. This means that cross-border travelers will face greater financial burdens in the future.
Around 320,000 Italian citizens live in Switzerland. This makes Italians the largest community of foreigners in Switzerland. In addition, more than 70,000 cross-border travelers travel to Switzerland daily.