30 June 2016 Italy provides confirmation of requirements for new tax regime for inbound employees The Italian Ministry of economics and finance published a decree on June 8, that confirms who is able to benefit from the new tax regime aimed at highly skilled individuals who have lived in a foreign country and are willing to live and work in Italy. The decree also includes some procedural aspects associated with claiming the regime which can be effected in payroll or claimed on a tax return. The new law is directed at EU and non-EU citizens living and working abroad who meet specific requirements, in particular employees who transfer their domicile and tax residence to Italy. The new regime applies to seconded employees as well as international transfers and local hires and allows a reduction of 30% of their taxable employment income, so that 70% of their total employment income is subject to Italian tax. A Tax Alert prepared by EY's People Advisory Services group, and attached below, provides additional details. Document ID: 2016-1149 |
