The Italian government recently introduced legislation ordering all banks to withhold 20% on certain inbound wire transfers. The inbound wire transfers affected include income earned from foreign investments, financial gains, interest, dividends and certain other incomes, made into personal bank accounts in Italy.
Australia Proposes Amendments to GAAR (Part IVA) to Counter Tax Dodging
Italian Government Introduces Withholding Tax on Inbound Wire Transfers
1. Italian Government Introduces Withholding Tax on Inbound Wire Transfers
The Italian government recently introduced legislation ordering all banks to withhold 20% on certain
inbound wire transfers. The inbound wire transfers affected include income earned from foreign
investments,financial gains, interest, dividends and certain other incomes, made into personal bank
accounts in Italy. Although the new practice is effective from 1 February 2014,the withholding
requirements will not apply until 1 July 2014 as the Tax Agency has recently delayed the implementation
date, reports Nair & Co. International Tax Team.
The new regulation states that withholding payments would be due on a monthly basis. These withheld
sums will offset the amount due on the concerned taxpayers’ annual tax returns.
Significant aspects of the new regulations are as follows:
On behalf of the tax payers, Agenzia will receive the tax withheld by the bank.
Tax will be withheld on overseas income earned through investments, interest, dividends, other
financial assets, etc.
Salary and money transferred as capital rather than income will be exempted (evidence must be
submitted).
In order to claim exemption, it is necessary for the taxpayer to submit “autocertificazione” –
self-declaration to his/her bank. Declaration should clearly state that the income source is not
from financial assets held overseas.
Employees are responsible for obtaining and submitting all required documentation to their
banks for the exemption to apply to salary transfers.
Employers are exempt from compliance under this new regulation. However, they should be
mindful to inform employees of wire transfers or other monetary payments that originate from
international locations.
2. For more information about international expansion services or to learn more about our global
regulatory compliance team please contact us.
Subscribe to regular global tax compliance alerts from Nair & Co.
Get the latest news releases and updates on international tax, HR, Finance, compliance and other legal
news at Nair & Co. Industry Alerts.
About Nair & Co.
Nair & Co., the leader in international business expansion services, provides accounting, HR, legal, tax
and compliance services for the set up and management of your international operations. Our model of
a single-point-of-contact, supported by internal teams of experienced advisors, helps clients expand
business and manage risk so they can focus on their core business and sustain growth with minimal risk,
stress and cost. We support nearly 250 clients in over 70 countries. Nair & Co. is headquartered in
Bristol, UK, has 450 employees and offices in China, India, Japan, Singapore, and the US. Learn more
at www.nair-co.com
Media Contacts: For media enquiries or to learn to more about Nair & Co., please email us at
media@nair-co.com or call Yvonne Smith at +1.408.501.8867