Tax Pills

A short vademecum about the Italian tax on real estate abroad
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Ivie, the tax on the value of foreign real estates, has been introduced by the Decree n. 201 of 6 December 2011. As far from 2011 tax year, all individuals with a fiscal residence in Italy that own a real estate or have a real right on it, have to pay the tax on the value of real estate located abroad.
 
When - The deadline to pay the tax was 9th of July 2012. It can also be paid between the 10th July 2012 and the 20th August 2012, but an interest, at the rate of 0.40%, must be added. After the 20th August 2012 penalties will be applied.
 
How much - The tax is fixed at 0.76 per cent of the value of the property, calculated on the basis of the rate of possession and on the basis of its enduring (months of the year). If the amount of the tax doesn’t exceed 200 euro, the tax is not due. In fact, there is an exemption threshold for the properties whose overall value is not higher than 26.381 euro.
Italian individuals that work abroad for an international organization or for an Italian body and whose fiscal residence in Italy is defined on the basis of international agreements, pay the tax at the rate of 0.40 per cent calculated on the value of the main home and pertinences. From this tax, it is possible to deduct the amount of 200 euro in relation to the period of the year during which the house is used as main residence. In addition it is possible to deduct the amount of 50 euro for every child, until the age of 26, that lives in the property.
In any case taxpayers can deduct the tax eventually paid abroad on the property, such as Kiinteistövero/Fastighetsskatt in Finland or Impuesto sobre Bienes Inmuebles in Spain and so on.
 
How to define the value of the property - The value is represented by the cost resulting from the act of purchase or in absence of this act, by the market value identifiable in the place in which the property is located. If the real estate is located in a European Union member Country or in Norway or in Iceland the value on which the Ivie is calculated is the same used in that country to pay property tax or income tax on the real estate.

Ivie vs Imu - The difference between Ivie and Imu is that the first one affects the value of real estate located abroad owned by individuals with fiscal residence in Italy, while the second one affects the value of properties based in Italy and is also paid by companies.

(va. ib. e cl. sc.)
10/7/2012
Combating tax evasion. Defined the guidelines 2012
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The Italian Revenue Agency continues its effort to prevent tax evasion and tackle tax  dodgers. On 31st of May the Tax Administration has published the brand new guidelines for the assessment activities. The strategy for the future foresees the strengthening of some measures such as risk analysis, financial investigations and big enterprises tutoring, with the aim to focus even more at “tax evasion risk” citizens and makes the action more effective through the targeting of controls based on dimension and type of taxpayers.
 
Big enterprises - In 2012 the number of big enterprises under control raises from 2.000 to 3.200. The tutoring activity aims at promptly detecting risk factors, such as aggressive tax planning, the instrumental use of fiscal losses or different kinds of arbitrage based on exploitation of complex financial instruments. The Italian Revenue Agency’s civil servants, redacting reports about every big enterprise containing information related to risk index,  take as well into positive account all the behaviours finalized to build a cooperative relation between tax Administration and Taxpayers. 
 
Medium enterprises - For this wide category of taxpayers the Italian Revenue Agency, in cooperation with Guardia di Finanza (Financial Guard), has arranged a fiscal control plan that involves one-fifth of all medium enterprises. The taxpayers to put under control are selected based on risk analysis that take into account specific aspects, such as the local social and economic situation, the absence of controls in the last 4 years, the occurrence, for at least two tax periods, of systematic losses or of a profitability lower than the average of other companies in the same economic category. 
 
Small enterprises and independent professionals - The Tax Administration has defined a specific strategy to prevent tax evasion of these categories based on a more frequent use of financial investigations to detect not declared amounts. The criterion behind controls is always the same: addressing the assessment activities to high “tax evasion risk” taxpayers.
 
Natural persons - Tax controls on natural persons, starting from this year, are mainly focused on well-off taxpayers who own real estate properties or personal assets whose value is  higher than 5 millions of euro.
It is foreseen also an enhancement of controls regarding tax deductions and allowances reported on tax declarations, in order to prevent micro-evasion phenomena.
In this context, the anti tax avoidance measures are mainly based on tax assessment activities that compare taxpayers’ income declarations  with their spending habits in line with the new procedures introduced by Decree Law n. 78/2010.
The general aim is to check the coherence between expenses and declared income of taxpayers.

(va. ib. e cl. sc.)
18/6/2012
FiscoOggi è una pubblicazione dell'Agenzia delle Entrate - Ufficio Comunicazione
Testata registrata al Tribunale di Roma il 19.9.2001 con n. 405/2001
Direttore responsabile Claudio Borgnino