Executive Performance and Compensation

7.1 Executive Roles and Titles Italian companies typically appoint executives such as: Amministratore Delegato (CEO) – Chief executive with delegated powers Direttore Generale – General manager overseeing operations Chief Financial Officer (CFO) – Responsible for financial strategy and reporting Board Chair (Presidente) – Leads board meetings and governance oversight.  Titles and roles vary by company […]

Accounting and Reporting

6.1 Accounting Standards Italian companies generally follow the Italian GAAP (OIC) for statutory reporting. Listed companies and large groups must use IFRS as adopted by the EU. The choice of standards depends on company type, size, and listing status. 6.2 Bookkeeping Requirements All companies must maintain accurate books, including: Journal (Libro giornale) Inventory book (Libro […]

Directors and Management

4.1 Appointment and Eligibility Directors are appointed by shareholders and must meet basic eligibility criteria: Be at least 18 years old Hold a valid Italian tax code (codice fiscale) Not be disqualified or bankrupt Additional requirements apply to directors of companies regulated such as certain financial sector entities. Foreign nationals may serve as directors, subject […]

Black List Countries

Presumption of Tax Residence Article 2, paragraph 2-bis of the Italian Income Tax Code (TUIR – Presidential Decree No. 917/1986) contains a specific anti-tax avoidance provision concerning the tax residency of Italian citizens. Reversing the Burden of Proof: This provision establishes a rebuttable presumption that an Italian citizen who transfers their residence to a country […]

Payments on Account

Introduction By 30 June and 30 November of each year, Italian taxpayers must make payment on account (acconto) of their tax liability for the current year.  The amount to be paid by way of first and second account payments is primarily based on the tax due as shown in the tax return for the previous […]

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Withholding Tax Rates Under Italy’s Double Taxation Agreements (DTAs)

Tax to be Withheld on Payments to Non Residents Italy has an extensive series of rules requiring Italian tax resident businesses and professionals to make withholding of tax on certain payments of various types of income,  both where the recipient is tax resident in Italy and non tax resident. Italy has an extensive network of […]

Italian Taxes for Corporations

An Overview of Italian Taxes Due By Corporate Bodies Carrying on Business in Italy Italian resident corporations and foreign companies operating in Italy through an Italian branch/permanent establishment, as well as a number of other entities that are treated as corporations  are subject to two principal forms of taxation: Imposta sul Reddito delle Società (IRES) […]

Italian Tax on Foreign Pensions

If your pension is liable to tax in Italy (which will be the general position absent exemption under a DTA) then you need to follow Italian rules on the timing of a receipt for tax purposes. 

Tax For Digital Nomads

Compliance with Tax and Social Regulations Moving to Italy as a digital nomad comports the payment of income taxes, social security contributions according to the rules applicable to your specific situation.  It is clear, from the tenor of the digital nomad visa/permesso legislation that Italy intends digital nomads to comply with their obligations in terms of tax […]