Working in Italy

[Sumita Singha]

I've received a contract to work in Italy but has some clauses regarding double taxation tax and 'IPNS'. It says that you can avoid paying tax twice by availing 'of the convention on double taxation between Italy and the UK' but a 'declaration of Tax Status issued from your Country's government's tax office is needed. This Certificate must be released during the year when the payment will occur and related to the same year, the Certificate must also refer to the Convention between Italy and the UK.'
Also, I was asked to tick a box Engagement to perform services on an ongoing and coordinated basis
which I am subject to payment of the INPS contribution at the rate of 34,23%.
Does anyone know
1. If there is any convention about double taxation between Italy and UK
2.how I can get the Fiscal certificate
3. What INPS is- it seems to be very high if it is a kind of tax
I'm afraid I haven't got much help from the Italian side to understand this- they've just asked me to tick all boxes. I could be losing out by not understanding what I'm ticking

 

[Deleted member 59730]

I've received a contract to work in Italy

Will you be doing the work in the UK or Italy? Will you still be based in the UK while working on the contract and paying tax in the UK?

Double taxation rules vary around the world but most of the time a latter/certificate from HMRC is sufficient.

 

[The Byre]

1. Yes.
2. HMRC website https://community.hmrc.gov.uk/forums/customerforums/pt/05d2eb53-7e5d-ea11-b69a-00155d3bd04f
3. State retirement fund. It is compulsory if you are to be taxed in Italy.

 

[WaveJumper]

INPS stands for The Istituto Nazionale della Previdenza Sociale and is the social security and welfare institute in Italy. The current level of this tax in itself is around 9.14%

https://www.gov.uk/tax-foreign-income/taxed-twice

 

[Sumita Singha]

Will you be doing the work in the UK or Italy? Will you still be based in the UK while working on the contract and paying tax in the UK?

Double taxation rules vary around the world but most of the time a latter/certificate from HMRC is sufficient.

INPS stands for The Istituto Nazionale della Previdenza Sociale and is the social security and welfare institute in Italy. The current level of this tax in itself is around 9.14%

Many thanks, at present I'll be working online especially as Milan is in the red list.

If the IMPS is 9.14% then why I am paying 34.23%?

 

[WaveJumper]

It makes up part of that 34.23% actually I take that back it may well be on top of the income tax
just got these rates of Google

EUR 0 - 15,000 23%
EUR 15,001 - 28,000 27%
EUR 28,001 - 55,000 38%
EUR 55,001 - 75,000 41%
EUR 75,001 and over 43%

 

[Sumita Singha]

1. Yes.
2. HMRC website
3. State retirement fund. It is compulsory if you are to be taxed in Italy.

Many thanks, but regarding the third point, I'm not going to retire in Italy, so I still have to pay this? It seems with all the hassle, it's not worth it as I will have lost more than a third of my income

 

[Sumita Singha]

It makes up part of that 34.23% actually I take that back it may well be on top of the income tax
just got these rates of Google

EUR 0 - 15,000 23%
EUR 15,001 - 28,000 27%
EUR 28,001 - 55,000 38%
EUR 55,001 - 75,000 41%
EUR 75,001 and over 43%

Eeks!

 

[WaveJumper]

Have a read its about third of the way down the page
https://taxsummaries.pwc.com/italy/individual/taxes-on-personal-income

 

[Sumita Singha]

Have a read its about third of the way down the page

Many thanks!

 

[UK Contractor Accountant]

INPS

i thought it was some sort of contribution to Italy's National Penaltytaking System

 

[Zeb Buzz]

website: clearygottlieb

Under these rules, any employed or self-employed worker who is a E.U. citizen or a citizen of a country with which Italy has a tax or information exchange treaty in force and transfers his/her tax residence to Italy, can access the special tax regime if he/she (i) has not been resident in Italy in the 2 preceding tax years, (ii) maintains an Italian tax residence for no less than 2 tax years following the move, and (iii) will work mostly in Italy (i.e. for more than 183 days in each tax period). Athletes, artists or performers, as well as entrepreneurs meeting these conditions and starting a new business in Italy, are also eligible.

Such individuals currently enjoy a 70% personal income tax exemption on any employment, self-employment or business income earned during the five-year period including the year of the transfer and the following four. The exemption is increased to 90% if the individual moves to certain southern regions. There is no cap to the income amount eligible for the exemption.

 

[WaveJumper]

I could scroll up but not sure if you confirmed if you working from the UK or actually moving to Italy for a short time

 

[Deleted member 59730]

I could scroll up but not sure if you confirmed if you working from the UK or actually moving to Italy for a short time

We hardly ever get the important answers!