New totalization agreement between Italy and Israel: brand new Memorandum issued by the Italian social security authority

Foreign companies posting their employees to Italy must be compliant with the provisions of the Posted Workers Directive and the Italian law. In order to ascertain that the assignment in Italy matches the law provisions, the Italian Labour Authority must assess: whether the seconding company carries out activities not encompassed within simple personnel management or administration, so they cannot be considered fictitious companies (letter box companies); whether the employee is actually posted, analysing the employment…

Italian employees hired by foreign companies with a local contract must carefully evaluate the social security obligations which vary according to the country where the employee is hired. In such circumstances, a distinction must be made between: EU countries, countries adopting EU legislation via specific agreements with the European Union countries with which Italy has entered into full Totalization Agreements: the employee is required to pay contributions in the host country as per the local…

The social security position in Italy for inbound employees is becoming more important for multinational companies. In fact, the presence of a Totalization Agreement with Italy may risult in keeping the contribution of the employee in the country of origin, with an obligation for the foreign company to pay social security in Italy or minor contributions. In both cases, it is necessary to open a social security position in Italy in the name and on…

The Italian social security authority (INPS) has released some clarifications in relation to the exit of the United Kingdom from the European Union (so-called Brexit). In this regard, INPS specifies that a transition period has been established, from 1 February 2020 to 31 December 2020, during which EU Regulations on social security still apply to the United Kingdom, including Regulation n. 883/2004 and Regulation n. 987/2009. In particular, the interim period until 31 December 2020…

October 30, 2017 The Italian Social Security Authority, with Circular Letter No. 154 of October 25, 2017, provides instructions on changes and additions to the bilateral Totalization Agreement between Italy and Canada, which entered into force on 1 October, with particular reference to: – determination and uniqueness of the applicable legislation – assignments – pension benefits – health controls in order to grant disability benefits – family benefits for pensioners – economic benefits for tuberculosis…

April 3, 2017 The Italian tax authority released a Provision on 31 March 2017, extending the deadline for employees who have transferred their residence to Italy by 31 December 2015 in order to access to the special tax regime provided by Legislative Decree no. 147/2015. The employees may opt until 2 May 2017 for the facilitated measure that provides a 30% reduction of the taxable basis (year 2016) and 50% reduction (year 2017) for the…

June 16, 2016 The Italian tax authority has just released Memorandum n. 28/E commenting on the news introduced by 2016 Stability Law regarding tax advantages on salary premiums and on the implementation of welfare plans for the benefit of companies and employees, with the opportunity to obtain substantial tax and cost savings. For any further information, please contact us.

January 20, 2016 The Italian Social security authority, by releasing Message n. 218/2016, notifies Companies of the new electronic procedure regarding the issuance of A1 model concerning employees assigned abroad as per EU Regulation n. 883/2004 and Regulation n. 987/2009. Feel free to contact us for any further clarification.

October 9, 2015 INPS Memorandum dated October 9, 2015 comments on the applicability of the new Totalization agreement signed between Italy and Turkey last August, the 1st, giving clarification on the application field, on the secondment of employees and self-employed individuals, the pension payments relating to the agreement, the totalization mechanism and the relevant social security forms now available. For any further information, feel free to contact us.  

March 13, 2015 The Italian Tax Authority releases Memorandum n. 10/E dated March 13, 2015, containing the guidelines about the Voluntary Disclosure procedure, clarifying the application field, the fulfillments, the application range and related penalties. For any further information, please contact us.