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 affidabilità” – 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
What Is a “Qualified Participation” (Partecipazione Qualificata)? Definition The definition of “qualified participation can be found in section 67(1)(c) 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) […]
Extension of deadline for tax payments from 1 July 2019 to 30 September for Italian individual taxpayers subject to the new ISA’s
The Italian Tax Agency has issued a resolution (no .64/E of 28 June), regarding the changes introduced by Article 12 V of Decree no. 34/2019 (Decreto Crescita/Growth Decree 2019). The Decree extended the tax payment deadline of 1 July (normally 30 June, but being a Sunday the deadline was automatically moved back to the next […]
The Double Whammy
What is the “Double Whammy” in Italian tax? The “double whammy” is what hits certain individuals who have recently moved to Italy and new businesses in the second year after start-up. No tax in your first year You pay no tax in your first year after the move but the tax due for that first […]
Flat tax regime – Tax Agency Resolution
A taxpayer who has worked for an employer in the two tax periods prior to the intended start of the flat tax regime (regime forfettario agevolato) cannot apply for the regime if he or she will be mainly working for the ex-employer once self-employed. The reason for this rule is to reduce the possibility that […]
Our most popular google search terms
Search Term Response Italy Tax Year Italian Tax Year The tax year in Italy ends on 31 December of each year.Companies, partnership and other bodies corporate can choose their own financial year end and direct tax filings will be set according to their chosen accounting period. VAT returns however are based on the calendar year. […]
Cross-border successions
The European Union Regulation No 650/2012 is now in full effect. This covers “jurisdiction, applicable law, recognition and enforcement of decisions and acceptance and enforcement of authentic instruments in matters of succession.” The objective of the Regulation is to facilitate cross border successions making it easier for European citizens to handle the legal side of […]