TAX TREATMENT FOR WAGES PAID TO ITS SWISS-SECONDED STAFF BY AN ITALIAN COMPANY

Italian Tax Agency, with ruling no. 343 of 11 September 2020 clarified that salaries, wages and similar remuneration (including severance pay and any sums by way of redundancy incentives) paid by an Italian company to an employee resident in Switzerland and seconded to a Swiss subsidiary for activity carried out there, pursuant to Article 15 of Convention between Italy and the Swiss Confederation for the avoidance of double taxation are taxable exclusively in Switzerland.

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