Monthly Archives: October 2017

By 9th October 2017

A bulletin from the front line of short term tourist rental contracts. Keen readers will recall the new law introduced earlier this year, requiring agents and intermediaries to deduct 21% from rental sums received in relation to short-term bookings of properties in Italy. The sums were to be paid directly to the Agenzia as a payment on account of the tax due from the owner – where the owner used the cedolare secca system the early payment would represent all the tax due; where the income was to be taxed under the marginal rates there would be a difference to be settled. As reported, Airbnb was not impressed by the idea of being required to act as unpaid tax collector on behalf of the Italian State and launched two major actions: the first was an appeal to the regional tax tribunal (TAR). More recently they have also launched an action on the basis of Anti Trust, claiming that the law is anti-competitive. Both actions refer to the law as a violation of the right to provide services and claim that  Airbnb is unfairly penalised in comparison to other sector operators. This last on the basis that Airbnb’s biggest rival, Booking. com, is unaffected as they do not collect monies on behalf of the owners. Both decisions are expected on 15th October, the day before the first round of the 21% tax withholdings is due: we will keep you informed.

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By 6th October 2017

Tucked away in the corners of last year’s budget lies a very generous incentive to incoming workers. It comes in the form of an extension to a scheme which originally aimed to encourage graduates to live and work in Italy. The scheme was then broadened to cover anyone working in specialist or highly qualified positions and finally has now been extended to cover any persons coming to work in Italy, including those registering as self-employed. Under the scheme, qualifying workers are granted a 50% reduction in their chargeable income. Further, where INPS (social security) is calculated on the basis of chargeable income this will also effectively be reduced by 50%. – not a bad offer in a high-tax environment. The incentives last for a period of 5 years. The qualifying requirements are that the worker is registered as resident in the local Comune, and that the work they do is carried out principally in Italy. Workers are expected to remain resident for a minimum of 2 years. The taxman is entitled to recover the value of the underpaid tax if you move away before the end of the two-year period. You need to be quick, though – if you want to qualify you have to show that you started work, whether as employed or self-employed, within 3 months of making your permanent move to Italy. If you want more details of this, or any of the other anti brain-drain schemes, please contact us.

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