Do I need to file an Italian Tax Return?

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The answer is most probably yes as the reader will desume from reading the instructions from the Italian tax return (these are from the 2023 return). The rules are complex and there are many exceptions and derogations. The rules can be summarised as follows, but with the caveat that one needs to check, starting from […]

Tax Relief for the Purchase of Furniture and Household Appliances

What is the Tax Relief? Italy’s recent Finance Law for 2020 extended the tax credit equal to 50% of a maximum of €10,000 of expenditure for furniture and household appliances in connection with buildings subject to renovation.  The relief applies to expenditure during the course of 2020 for renovation that commences on or after 1 […]

Short Term Rentals – Italian Government proposes new restrictions

Italy’s centre left administration proposes to introduces limitations for those who rent rooms, holiday homes or apartments for short periods An amendment to the “Milleproroghe Decree” (one thousand extensions), presented by the “Democratic Party” to the Italian Chamber of Deputies, proposes a squeeze for those who rent tourist houses, or rooms  on sites such as […]

Tax changes for paper and electronic meal vouchers

  The Italian 2020 Finance Law has made some changes to the tax rules applicable to “Ticket Restaurant” (luncheon vouchers or meal tickets). These vouchers are commonly used by Italian businesses to assist employees traditionally predominantly to cover the cost of the mid-day meal. In recent years many supermarkets have also started accepting vouchers in […]

Tax Relief for Donations in favour of Italian Art and Culture

This tax relief known as the “Art Bonus” is available to individuals, institutions and companies who support Italian cultural heritage by making financial donations. The Art bonus consists of a tax credit equal to 65% of the donation subject to the following annual limits:- 15% of taxable income, for individuals and non commercial entities; 0.005% […]

Payments on account for small businesses

The Italian Tax Agency has recently published (in Resolution no. 93/E of November 12, 2019) clarification on the remodeling of payments on account for taxpayers small businesses subject to the new rules and taxpayers on the lump sum flat tax regime (regime forfettaria)  following the issue of Decree no. 124/2019. That decree changed as from […]

ISA (Summary Reliability Indices) – What are they?

With the establishment of the “Indici sintetici di affidabilitĂ ” – ISA’s or Summary Reliability Indices, the Italian Tax Agency aims to “facilitate the compliance of tax obligations and encourage the spontaneous emergence of taxable income.” These indices form part of a wider initiative for Italian taxpayers carrying on business activities, arts or professions, that aims, […]

VAT refunds – Deadline is 30 September 2019

EU Directive 2008/9/EU (implemented in Italy by Legislative Decree no. 18/2010) allows VAT registered businesses that incur costs in countries that are members of the European Union (and Switzerland, Norway, Israel and the Principality of Monaco, thanks to reciprocal agreements) to request refund of VAT paid abroad on purchases of products and services. Most purchases […]

Definition of “partecipazione qualificata” – the significant shareholding

Tax Code Definition The definition of qualified participation can be found in section 67 of the Italian Tax Code.A qualified/significant shareholding is defined as any shareholding (excluding savings shares – “azioni di risparmio”) in the capital or assets of a Company (as defined – see below) carrying, either: a) more than 2% (5% for non-quoted […]