Just like every year, we are approaching the tax season in Italy; filing taxes and assessing any tax liability (or refund) might be confusing and nerve wracking.
I hope to clear some doubts about filing taxes in Italy.
Who has to file taxes?
Not everybody has the obligation to file taxes. Some individuals are exempt from filing taxes:
I am an Italian resident, should I file taxes?
Italian residents are taxed on the WORLD WIDE INCOME regardless of their citizenship, while non residents are ONLY taxed on INCOME MADE IN ITALY.
It does not matter where your income is made or what citizenship you have, if you are resident you have to pay taxes on any income made anywhere in the world
Which tax module should I file?
Individuals in Italy can pay taxes using two forms:
Which are the deadlines?
Mod. 730 requires taxes to be filed before July 23rd.
Mod. UNICO requires taxes to be file before October 31st.
How long is the Italian financial year?
The Italian financial year starts January 1st and ends December 31st; therefore, in 2017 we file taxes on 2016 income.
Which deductible items can I claim?
The Italian tax code allows individuals to recover deductible items paid during the fiscal year. The following list focuses on the most common deductible expenses:
What about foreign assets?
Italy requires its residents you to declare some financial instruments and properties held outside Italy. The following items have to be declared:
How can Accounting Bolla help you?
Accounting Bolla is a chartered tax accountant in Italy. We can help you out in sorting your tax position as well as filing taxes, keeping your tax affairs in order.
After moving back to Italy from the United States in 2013, I realized how much an accounting and tax firm was needed to help expats living in Italy to comply with the local tax regulations.