da Marco Vergani | Mar 30, 2021 | Web Tax
The obligations related to the italian Tax on Digital Services (DST) have been postponed to 2021 May 16 for payment for the year 2020 and June 30 to submit the tax return. Once fully operational, within the declaration submission term, it will also be possible to submit a corrective declaration for the previous year. If the DST payment obligations is referable to a non-resident company, attention must be paid to the introduction of a passive solidarity principle for the italian-resident company, even if they are part of the the same company group. The passive solidarity regards the declaration and payment requirements relating to DST on behalf of non-resident taxable persons without a permanent establishment in Italy and located in collaborative states.
It should be noted that the appointment of a tax representative in Italy neutralizes jthis responsability.The non-resident company can designate an italian company of the same group to fulfill the obligations but the italian company must a be subjected to the DST too.
The companies subjected to the DST must keep “a special accounting” for the monthly collection of information on the revenues from taxable services and the quantitative elements used to calculate the part of the revenues generated in Italy, for each digital service performed.
There are two relevant documents, to be signed by the company legal representative and kept until the expiry of the verification terms::
1 analytical prospectus of the information, with monthly recording of the revenues and the quantitative elements used to calculate the tax and its settlement to be drawn up within the payment of the tax (May 16);
2 explanatory note of the information on revenues and quantitative elements used to calculate the tax, to be drawn up by the deadline for submitting the return.
The recent circular 3/E by Agenzia delle Entrate introduce a penalties suspension or the first year of application of the DST, given the objective difficulties and uncertainties, with reference to the accounting obligations for any errors or
irregularities committed during the transmission and compilation of the requested data. There are no penalties for violations
committed before the first 60 days following the date of publication of the legislative provision.
The DST is an indirect tax, deductible for IRES and IRAP purposes.
With reference to double taxation at international level, the problem exists, since the benefits of the double tax conventions cannot be applied.
da Marco Vergani | Feb 2, 2021 | Taxation in Italy, VAT registration in Italy
Since 1st January 2021, the UK has left the European Union and is considered in effect a third-part country. This new position results in the overcoming of procedures previously applicable as a Member State. The VAT matter, beyond the provisions contained in the agreements (both in the withdrawal agreement and in the new commercial one) is certainly one of the most affected by this substantial change.
In a general way a non-resident subject – EU or non-EU – who carries out VAT transactions in Italy can fulfill the related obligations and exercise the related rights or by appointing a tax representative resident in the territory of the State or by identifying himself directly (articles 17 and 35-ter of Presidential Decree 633 / 72).
According to resolution 7 / E / 2021 of 1st February 2021 by Agenzia delle Entrate the same rule is valid for the UK after the Brexit. In particular UK operators who carry out VAT transactions in Italy can operate alternatively through a tax representative or through direct identification. Furthermore, for UK subjects already identified for VAT purposes in Italy or who have already appointed a tax representative, they can continue to operate in these ways without any particular obligation.
da Marco Vergani | Gen 18, 2021 | Impatriate workers, Taxation in Italy
In recent years many foreign individuals are increasingly buying second houses, often prestigious ones, in Italy. The foreign citizen who buys a house in Italy has to deal with the complex Italian administrative and fiscal formalities in addition to having to take care, based on the principle of taxation on a worldwide basis, any further tax and declarative obligations in their own Country of residence.
Basically for non-residents (foreign or Italian citizen who moved abroad) who owns properties in Italy the same legislation as for residents applies. A first distinction must be made between owners who retain possession of the property, for example as a secondary residence, and owners who rent it instead, earning an income. 1. In the first case, no income is taxable in Italy, as the Property Tax (Imu) replaces the personal income tax (Article 8, paragraph 1, Legislative Decree 23/2011) 2. When the non-resident rents the property he own, he produce an income subject to ordinary taxation or the optional flat rate tax regime. Here a particularity of the Italian tax system emerge: the minimal reduction in lump-sum expenses, while abroad the possibility of analytically deducting the costs incurred or significant flat-rate abatements (i.e. for example 50% in France for those who rent furnished apartments). In order to pay taxes with the F24 form a “non-resident” bank account in Italy is needed; alternatively it’s possible to operate bank transfers to specific bank current accounts.
The non-resident also benefits from the non-taxability of the capital gain, if realized later five years from the purchase of the property (Article 67 of the Tuir). If the transfer occurs within five years, it will be possible to exercise the option for the flat tax currently at 26%. This indication is limited to the Italian side: the non-resident must in fact check – in application of the worldwide principle taxation – any further taxation in it’s own Country even if bound by a Convention signed with Italy.
da Marco Vergani | Dic 29, 2020 | Impatriate workers
The tax regime for “impatriate” workers has been reformulated by Legislative Decree 34/2019. The benefits will apply to workers residing abroad in the 2 periods prior to the transfer and who undertake to reside in Italy for at least 2 years working mainly in the Italian territory. For these subjects the personal income tax is reduced by 70% for 5 years. The regime also applies to those who start an individual business.
For those who move to the South of Italy, the tax reduction is 90 percent. Furthermore, to encourage the come back in our country, the benefits will extend for a further 5 years (with a 50% tax reduction in this additional period of time) in the case of workers with at least one minor child or who become owners of residential properties in Italy after transfer.
The start of these benefits was initially established from year 2020. With the subsequent Legislative Decree 124/2019 the provisions have also been made applicable to the workers who had transferred residence “from” 30 April 2019 with effect from the 2019 tax period.
An “ad hoc” regime for workers operating in the professional sport sector had been also introduced. The regime applies to athletes, coaches, technical-sports directors and athletic trainers who work in the CONI recognized disciplines such as football, basketball, cycling, golf, ecc… For these workers, the income resulting from job carried out in Italy is detaxed by 50%.
The facilitation was in fact used in recent months especially by Serie A clubs in football and basketball to attract in
Italy otherwise unapproachable champions (like Zlatan Ibrahimovic and Christian Eriksen or former NBA Luigi Datome and Marco Belinelli in basketball) thanks to the 50% tax discount on their engagement.
But that measure is non yet operational because a future Presidential Decree should define criteria and implementation modalities of this provision. So that incentives for professional sportsmen cannot be effectively applied until the Decree adoption.
da Marco Vergani | Ott 28, 2020 | Music and taxation
Royalties paid by an Italian company to a singer resident in Switzerland should be taxed in Italy with a 5% reduced tax rate according to Agenzia delle Entrate (ruling n. 2020/493) .
The ruling concerned the contractual relationship by an artist resident in Switzerland which has transferred to an italian company the exclusive rights to use phonic reproductions and duplications or the recordings of his performances as a singer. In exchange, the artist receives royalties equal to a certain percentage of the price of the records sold.
In this case Agenzia delle Entrate, complying with a previous interpretation, found that the royalties received by the Swiss artist are also relevant for tax purposes in Italy, but with the application of the more favorable tax regime (withholding tax of 5%) provided for by Article 12, paragraph 2, of the Convention. This more favorable tax regime would apply not only to “copyrights” but also to “neighbouring rights “(such as royalties earned from the public performance of a master recording).
da Marco Vergani | Ott 14, 2020 | E-commerce, IVA
La fine del periodo di transizione per la Brexit del Regno Unito il prossimo 31 dicembre 2020 impone nuovi obblighi IVA e doganali ai venditori di ecommerce nei confronti dei consumatori del Regno Unito. Le novità impattano sia sulle vendite B2C di beni fisici (e-commerce indiretto) che su quelle di beni digitali (e-commerce diretto).
Ricordiamo tra l’altro:
- Obbligo di registrazione ai fini Iva nel Regno Unito
- Applicazione dell’IVA all’importazione
- Novità per la vendita di beni digitali
- Necessità di un codice EORI per lo sdoganamento di merci in UK
- Revisione dei termini commerciali in vigore (Incoterms) e soglie di esenzione
Le principali novità sono esaminate in queste slides.
