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…

21 luglio 2017 L’Agenzia delle Entrate, nella Circolare n. 21/E del 20 luglio, fornisce nuovi chiarimenti a seguito delle modifiche introdotte dal D.L. n. 50 del 24 aprile 2017, convertito con modificazioni dalla L. n. 96 del 21 giugno 2017. I chiarimenti riguardano la possibilità di detrazione del credito per imposte pagate all’estero sui redditi di lavoro dipendente ed autonomo, la quantificazione delle somme dovute in caso di autoliquidazione carente degli importi dovuti, l’esonero dagli…

2 giugno 2017 Gli emendamenti al D.L. n. 50/2017 (c.d. manovra correttiva) approvati dalla Camera dei Deputati introducono alcune importanti agevolazioni alla procedura di collaborazione volontaria (voluntary disclosure) di cui al D.L. n. 193/2016: è disposto il recupero del credito per imposte pagate all’estero sui redditi di lavoro dipendente oggetto della procedura; le sanzioni maggiorate trovano applicazione solo nel caso in cui il contribuente non opti per l’autoliquidazione delle imposte dovute, ma attenda il provvedimento…

March 8, 2017 The Inland Revenue has published the Regulations and the Instructions for “new residents” flat tax regime. The aim is to attract and encourage the transfer of the residence in Italy of high net worth individuals, or people with a high heritage. Such option must be exercised in the tax return, provides for the payment of a substitute tax on foreign income, equal to Euro 100,000 for each fiscal year for which it…

September 7, 2016 The Italian Supreme Court, by sentence n. 17646 dated September 6, 2016, clarified that conventional remunerations on employment income are allowed only for tax purposes, denying the application of such remunerations for social security purposes in case employees are assigned to Countries which have signed a Totalization agreement with Italy. Such opinion, which clashes with previous Court’s jurisprudence, confirmed the approach of many multinational companies which have seconded employees outside of Italy…

March 30, 2016 The inter-ministerial Decree dated March 25, 2016 rules the measurement criteria of productivity, return, quality, efficiency and innovation linked to the payment of variable performance premiums (subject to a flat tax rate of 10% under certain conditions) within collective or local contracts, and provides eligibility criteria for sums paid as company share earnings. Furthermore, the Decree sets out tools and modalities in order for Employers to involve employees in the Company organization…

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.