Agenzia delle Entrate clarifies how the italian special regime of the impatriate workers is applied. According to a recent interpellation (Ris. 904-107 / 2019), the regime also applies to workers returning to Italy and employed by the same employer after having been posted abroad for at least 24 months as long as it carries out different tasks and the return is the result of a new agreement.
Established by Legislative Decree 147/2015, the regime has undergone a couple of changes before settling – from 2017 – in its current formulation. In practice, the income from employment or self-employment produced in Italy by the worker contributes to the formation of his total income only for 50% of its amount (for the tax period in which the residence is transferred in Italy and for the four later).
The circular 17 / E (part II, par. 3.1) excludes the regime for workers posted abroad as their return, taking place in execution of the clauses of the pre-existing work contract, is in substantial continuity with the former position of workers resident in Italy and therefore does not meet the attractive purpose of the standard. However, resolution 76 / E clarifies that it is always possible to grant the regime in “specific hypotheses in which the return to Italy is not a consequence of the natural expiry of the posting but is determined by other elements functional to the ratio of the facilitating rule. Quoting, for example, the cases in which the posting has been repeatedly extended (so as to determine a relaxation of the links with the Italian territory) or those in which the return is not in continuity with the previous job position carried out in Italy.
The question discussed in the recent resolution concerns the case of a manager, an Italian citizen and an Italian company, who is in the following situation:
- he was seconded to the Singapore subsidiary, to develop the group’s presence in Southeast Asia;
- he has transferred residence abroad and qualifies as a non-resident subject for the 2016-18 tax periods;
- the posting formula was chosen to preserve the contributory position (on the one hand) and obtain the local work permit (on the other);
- the secondment contract, initially scheduled for the end of 2017, was renewed until December 31st 2018 and also provided for the possible relocation to other foreign companies of the group;
- the secondment contract was revoked in writing on 30 July 2018 and from the following 1 September the manager returned to Italy holding a different and more important position than the one he worked abroad.
Agenzia delle Entrate confirm the application of the favorable regime noting that, in the specific case, the requirements set by previous interpretation documents are respected. In fact, the posting was first extended and then interrupted earlier than the natural deadline; furthermore, the worker has shown that he has been assigned to tasks superior to the previous ones.
The clarification comes while the a recent decree (actually subject to a parliament discussion) prefigures an enhancement of the advantages for the workers who will transfer their residence in Italy from 2020. The hypothesis is to increase to 70% the tax reduction, applying the regime also to those who will work “mainly” in Italy and to those who will start here a company from 2020.