CONVINUS Global Mobility Alert - Week 30.2023

S h o r t N e w s J u l y 2 7 , 2 0 2 3
Switzerland - Italy
New taxation rules for cross-border commuters as of 1 January 2024
The agreement on the taxation of cross-border commuters and the corresponding protocol of amendment between
Switzerland and Italy entered into force on 17 July 2023 and will be applicable from 1 January 2024. The agreement provides
that cross-border commuters must pay tax on their income in their country of residence. However, the country of
employment may levy 80% of the withholding tax on the earned income. Double taxation is avoided in the State of
residence as follows:
in Italy with crediting of the Swiss withholding tax
in Switzerland with the exemption of the income and only taken into account for the determination of the tax rate.
In Switzerland, the withholding tax rate for cross-border commuters from Italy will be reduced to 80% from 1 January 2024
and new tariff codes will be introduced for this purpose. According to the agreement, cross-border commuters are all
employees who live up to a maximum of 20 kilometers from the border and generally commute daily. This definition of a
cross-border commuter applies from the entry into force of the new agreement. For cross-border commuters who work or
have worked in the cantons of Graubünden, Ticino, or Valais between 31 December 2018 and the entry into force of the new
agreement (17 July 2023), a transitional period applies until the end of the 2033 tax year. Their employment income will
continue to be taxed exclusively in Switzerland.
United Kingdom
Changes as of 17 July 2023 for international students
From 17 July 2023, if international students in the UK wish to change their visa to take up employment in the UK, they will
only be able to do so after they have completed their studies. International postgraduate students in the UK can apply for
the change while they are still studying, as long as the start date of their employment is after the end of their studies. This
must be taken into account in graduate programs of companies in the UK.
Germany
EasyPass
As of 3 July 2023, the use of EasyPass has been extended. This can be used by persons with one of the following valid
electronic passports:
nationals from an EU and EFTA member state and Switzerland and at least 12 years old,
nationals from USA / Hong Kong / Korea / Taiwan with an EasyPass RTP registration and at least 18 years old
all nationals with a valid German residence permit and at least 12 years of age.
This means that when entering or leaving Germany, you no longer have to queue for a long time at the passport controls
but can do this independently with the help of the EasyPass system. So far, these automated systems are only available at
the following airports in Germany: Frankfurt am Main, Munich, Cologne/Bonn, Düsseldorf, Berlin, Brandenburg, Stuttgart,
Hanover, and Hamburg.
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