provincia di: Tutte

Seguici:

Home page

According to Regulations n. 987 del 2009 and n. 883 del 2004, the term ‘cross-border worker’ indicates any worker who pursues his/her occupation in the territory of one Member State and resides in the territory of another, to which, as a rule, he/she returns daily or at least once a week.

Cross-border workers are required to pay social security contributions in the country where they work.

In Italy, the flow of cross-border workers is to and from Switzerland, France, Croatia, Austria, Slovenia, the Principality of Monaco and the Republic of San Marino.

While the aforesaid regulations regarding social security apply to all the Member States of the EEA, the Principality of Monaco and the Republic of San Marino refer to specific bilateral agreements.

As far as social protection is concerned, cross-border workers have the right to equal treatment with other types of workers:
  • they pay social security contributions in the country they work in
  • they are entitled to family allowances, even for family members resident in another Member State
they receive a separate pension from each Member State in which they were insured for a period of at least one year.

Sickness and unemployment benefits are determined by a special regulation:
  • in case of sickness (and work injury) cross-border workers can choose to receive medical treatment in their country of residence or in the one in which they work
  • since 2009, retired cross-border workers retain the right to receive healthcare in the country in which they used to work
  • unemployed cross-border workers can only claim unemployment benefit from their country of residence and, despite not having paid any contributions in that country, their entitlement is the same as if they had paid contributions during the last period of employment
If the rate of unemployment benefit is calculated on the basis of the previous income, the institution delivering the service should determine the amount of benefit on the basis of amounts actually received by the worker in the Member State in which he/she worked.

If a person intends looking for a job in a country they used to work in, or in their country of residence, they can register with the local employment offices there but will, as a consequence, have to comply with the requirements of both Member States. However, meeting the requirements of the country of residence is most important as benefits could be affected if they do not.

In accordance with Regulation 883, in the case of partial or intermittent unemployment, the Member State in which the person works is responsible for providing unemployment benefits, regardless of the country of residence.
Given the absence of a specific Community competence, the tax arrangements to which frontier workers are subject are entirely dependent on bilateral taxation agreements signed by the European States with the aim of avoiding double taxation of trans-national income, widely standardized in accordance with the OECD model convention.

Every year in the Financial Act, the Italian State provides for a tax bonus, of varying amounts, in favour of frontier workers.

While the general rule laid down in the OECD model is that of taxation in the country of employment, the specific provisions concerning cross-border work in bilateral double taxation treaties mostly grant the right of taxation to the country of residence, rather than the country of employment, when the following conditions coexist:
  • The worker lives in the frontier region of one State and works in the frontier region of another
  • The worker regularly returns home
If the period of employment is less than 180 days, it is the country of residence that is entitled to tax the income.
AUSTRIA
Under the Convention between Italy and Austria (art. 15), it is the country of residence that has the right to tax the income.

CROATIA
Under the Convention between Italy and Croatia (art. 15), it is the country of employment that has the right to tax the income.
At present the term ‘cross-border worker’ has no legal definition.

FRANCE
Under the Convention between Italy and France (art. 15), the cross-border area in France is defined by the border regions, in Italy by the Regions Liguria, Piedmont and Valle d’Aosta.
In the case of private sector workers, it is the country of residence that has the right to tax the income; in the case of civil servants, workers are taxed in the country in which they work.

THE REPUBLIC OF SAN MARINO
Under the Protocol between Italy and the Republic of San Marino (art. 15), it is the country of employment that has the right to tax the income. At present, also the country of residence has the right to tax the same income.

SLOVENIA
Under the Convention between Italy and Slovenia (art. 15), the country of the employment has the right to tax income.
At present the term ‘cross-border worker’ has no legal definition.

SWITZERLAND
Under the Convention between Italy and Switzerland (art. 15), the border region is limited to the 20 km border.
The tax regime applicable to income received by a frontier worker is regulated by the Agreement between Italy and Switzerland related to the taxation of cross-border workers and to the financial compensation in favour of the Italian border municipalities of 3 October 1974, the articles 1 to 5 of which constitute an integral part of the present Convention.

Copia il contenuto: Stampa il contenuto: