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Italy - Special considerations for short-term assignments

Special considerations for short-term assignments

Taxation of international executives

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Residency rules
Payroll considerations
Taxable income
Additional considerations

For the purposes of this publication, a short-term assignment is defined as an assignment that lasts for less than one year.

Residency rules

Are there special residency considerations for short-term assignments?

There are no special residency rules for short-term assignments.

Payroll considerations

Are there special payroll considerations for short-term assignments?

There are no special payroll considerations for short-term assignments.

Taxable income

What income will be taxed during short-term assignments?

Any income related to the Italian working days will be taxed if the exemption provided by the double taxation treaty cannot be applied.

Additional considerations

Are there any additional considerations that should be considered before initiating a short- term assignment in Italy?

Considering the worldwide taxation principle applicable for tax resident individual, a short- term assignment should be well structured in order to avoid the Italian taxation on any foreign income.

Disclaimer

All information contained in this document is summarized by Studio Associato, the Italian member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. The information contained in this publication is based on the Italian Unified Income Tax Code DPR 22 December 1986 n.917; D.Lgs. 15 December 1997 for the Regional Taxes, n. 446, D.Lgs. 28 September 1998, n. 360 and Law 27 December 2006 n. 296 for Municipal Taxes, Circular Letter 23 December 1997 n. 326/E for the types of Employment Income; D.Lgs. 21 November 1997, n.461 for Taxation of Capital Gains with update of D.M. 2 April 2008, n.2; DPR 7 December 2001, n.435 and DPR 22 July 1998, n.322 for Tax compliance rules; D.Lgs. 18 December 1997 n.471 and n.472 for the Administrative Sanctions, and Legislative decree No. 286. published on 1998, “testo-unico immigrazione” 2 Law No. 68, published on 2007.

© 2021 KPMG S.p.A., KPMG Advisory S.p.A., KPMG Fides Servizi di Amministrazione S.p.A. and KPMG Audit S.p.A., Italian limited liability share capital companies, KPMG Business Services S.r.l., Italian limited liability company, and Studio Associato - Consulenza legale e tributaria, Italian professional partnership, are member firms of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

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