Tax Pills

The 2017 Budget Law No 232 of 2016 (paragraph 152) introduced a special scheme reserved for individuals transferring tax residence to Italy. Such persons may benefit from a flat-rate substitute tax of EUR 100 thousand for each tax period for which they are charged on income generated abroad. It should be noted that it is not strictly a flat tax with a fixed rate, since it is a flat-rate substitute tax, but is generally included as a flat tax. Secondly, this special fiscal regime is strictly applied only on foreign income, while for earnings raised in Italy it has applied the ordinary Irpef fiscal law.

The rule also applies to close relatives - This flat-rate scheme may also be extended to one or more eligible family members, by means of a specific indication in the tax return relating to the tax period in which the family member transfers his/her tax residence to Italy or the subsequent tax period. In this case, the substitute tax shall be EUR 25 thousand for each of the family members to whom the effects of the same option are extended.

General conditions to benefit of the special tax regime - To qualify for the preferential regime, taxpayers must not have been tax residents in Italy for a time at least equal to nine tax periods during the ten preceding the beginning of the period of validity of the option.

Data trends in details - Regarding the "new residents" fiscal incentive from the declarations for 2021 result being 690 subjects who filled out the "NR - New Residents" section of the tax return. Particularly, 46% of these individuals produced in Italy a total income of 106 million euros represented mainly by income from employment (accounting for 67% of the total).

The lasting period of the tax incentive - The option is revocable and in any case ceases to be effective fifteen years after the first tax period of validity and cannot be combined with the fiscal incentives designed to favour the return in Italy of "teachers and researchers", or highly skilled Italian professionals abroad, and the so-called "impatriates". As already said, all income produced in Italy are taxed under the ordinary provisions, therefore being taxed as common income.
 

Stefano Latini

Starting from this afternoon, the fiscal declarations already completed by the Revenue Agency will be available for consultation, while from Thursday, May 11, it will be possible to accept, modify and send both the 730 and the “Redditi” forms. Particularly, tax returns this year will be even easier to access and consult thanks to the new chance available to delegate a trusted person either online or via video-call.

More than 1 billion data already available on millions of pre-filled returns - There has been a further growth in data transmitted to the Agency and reported within the prepopulated tax returns. Indeed, facts and information exceed 1 billion 300 million this year (up 8 percent from 2022). Of these, more than one billion (80 percent of the total) are related to healthcare expenses, as usual the most productive of fact checking. This is followed by insurance premiums (99 million), unique certifications of employees and the self-employed (73 million), mortgage interest expense data (8.5 million), and educational expenses (6.5 million). New data have also fund space: post-diploma courses at State institutes of higher education and specialization in art and music, rental expenses and brokerage expenses for the purchase of real estate used as a first home.

The close-end of the 2023 fiscal season - The declaration season will close on Oct. 2 for those who submit the 730 directly through the web application and on Nov. 30 for those who instead use the pre-filled “Redditi” model.

The 2023 new entry – Starting this year, is possible to request via web or video-call to "delegate" trusted persons. This new service will consent to access the restricted area on the Agency's website to authorize a family member or trusted person to manage one's pre-filed return (view it, accept or modify it, send it) and to use the other online services in one's interest. The innovation is designed to meet the needs of those who, despite having the credentials to access the restricted area - Spid, Electronic Identity Card (Cie) or National Service Card (Cns) - are unfamiliar with web features or cannot manage them themselves. Alternatively, one can also authorize the trusted person through a video call with an Revenue official.

How to access the precompiled - To view and download the fiscal declaration, taxpayers must access one's reserved area via Spid, Electronic Identity Card (Cie) or National Services Card (Cns). Generally, the prefilled 730 look to taxpayers who received, for the previous tax year, income from employment and/or assimilated income. As of today, the following documents will be available: prefilled tax returns referring to the previous tax year; list of information pertaining to the prefilled 730 return available by the Revenue Service, with separate indication of the data entered and not entered and their information sources. The prefilled 730 must be submitted by Oct. 2, 2023, while the “Redditi” form (and the 730 corrective Redditi form) by Nov. 30, 2023.

Stefano Latini