LEGAL AFFAIRS Inheritance and estates Inheritance and estates are taxed in the country in which the deceased was resident and agreements on the avoidance of double taxation protect you from having to pay taxes in Italy resultant from inheritance from abroad. Tax deductions In Italy tax deductions are granted for mortgage payments (mutuo), taxes on your rental contract, medical expenses including medicines, veterinary expenses, school transport, children’s extracurricular activities and sports, and university fees. Receipts from the preceding year bearing your codice fiscale number must be submitted together with your tax return (for example 2012 receipts are submitted in 2013). When purchasing medicines at a pharmacy, display your tessera sanitaria (Italian health card) and your fiscal code will be automatically printed on your receipt. Even if a foreign resident has a sole income from a salary which is taxed at source, it is advisable to submit a tax return with your expense receipts as you will be entitled to a rebate on the tax you have paid on your salary. Our advice to foreign residents, employees and pensioners alike, is to seek assistance from a local CAF (Centro Assistenza Fiscale), which are recognised service providers by the Agenzie delle Entrate, and which help you fill in and submit your tax return for a fee usually ranging from €50 – €100 depending on the complexity of the return. Your local CAF office can be located on their website www.caf.acli.it under the banner contatti, or you can contact them at by phone on 199199730 or at firstname.lastname@example.org. www.annino-lawfirm.com Readers are welcome to send suggestions for future topics in this series either to email@example.com or directly to firstname.lastname@example.org.
▶ IVA (VAT) As of 1 October, IVA or Value added tax in Italy on goods purchased or services rendered is levied at 22 per cent. The prices reflected on supermarket shelves and on goods in shops is normally the total price inclusive of IVA, unless otherwise stipulated on the item. ▶ TARES – Tassa Rifiuti e Servizi Contrary to popular belief even among Italians, TARES is not being put in place to replace the abolished IMU. IMU was a property tax, TARES is a service tax. It is a combination of the old TARSU (Tassa Sui Rifiuti Solidi Urbani or garbage removal fee) which all tenants and property owners paid before, and TIA (Tariffa di Igiene Ambientale or a removal and recycling fee) together with a services fee for municipal street lighting and road maintenance. This tax is calculated according to the surface area of your residence and the number of people living there. To get a feel for what TARES will cost you annually, experts in the field say that it will cost each household approximately 29 per cent more than the old TARSU/TIA. On average TARSU cost each household €300 a year, which means TARES would be around €380 yearly. This may seem an alarming hike, but if you compare it to the average council tax in the UK, which according to local community and government figures released 23 March 2011 was £1,196, it is not that hefty. TARES is still being implemented, but when fully in place by 2014 will be split into four instalments payable separately in January, April, July and December to ease the load. Together with this change, municipalities are now obliged to implement differential garbage collection with the view to recycling and environmental protection initiatives, whereas before they were only obliged to remove the garbage which was inevitably dumped elsewhere. *Bilateral agreements between Italy and the following countries: Albania, Algeria, Argentina, Armenia, Australia, Austria, Bangladesh, Belgium, Brazil, Bulgaria, Canada, China, Cyprus, South Korea, Republic of Côte d’Ivoire, Denmark, Ecuador, Egypt, United Arab Emirates (UAE), Estonia, Ethiopia, Russian Federation, Republic of the Philippines, Finland, France, Georgia, Ghana, Germany, Greece, India, Indonesia, Ireland, Iceland, Israel, Former Yugoslavia, Kazakhstan, Kuwait, Latvia, Lithuania, Luxembourg, Former Yugoslavian Republic of Macedonia (FYROM), Malaysia, Malta, Morocco, Mauritius, Mexico, Mozambique, Norway, New Zealand, Oman, Netherlands, Pakistan, Poland, Portugal, Czech Republic, Slovak Republic, Romania, Senegal, Syria, Republic of Singapore, Spain, Sri Lanka, South Africa, Sweden, Switzerland, Tanzania, Thailand, Trinidad and Tobago, Tunisia, Turkey, UK, US, Ukraine, Uganda, Hungary, Soviet Union, Uzbekistan, Venezuela, Vietnam, Zambia. 6 November 2013 | Wanted in Rome
Published on Dec 5, 2013
The English Language Magazine in Rome. News, what's on, classifieds. Serving the Expat and foreign Community in Rome and in Italy since 1985