Italy Payroll Compliance Map

Email: mxp4ww@evershinecpa.com
The Engaging Manager from Headquarter
Ms. Anna Wang, Speak Italian, English and Chinese.
skype: burlinna

WWT – Italy Payroll Income Tax Deduction

WWT-DE-01 WWT Tax Entity

Question from client:
Is the Italian salary income tax levied in federal or state? Or both federal and state?
Are the federal and st

GLA – Italy Corporate Income Tax

WWT-IT-01

WWT Tax Entity

Is the Italy salary income tax levied in national or local? Or both national and local?
Are the national and local personal income tax that levied separately? Or levied together?
What is the standard withholding tax rate?

Evershine RD:

Payroll tax is levied at both national and local.
Italy’s 20 regions are authorized to impose an additional income tax.
The national government in 2011 set a base tax of 1.23% for the regional tax.
Regions may increase the tax annually from the base rate, within limits set by the national law.
The tax deducted by an employer from an employee’s wages, varies among the regions.
In addition, municipalities may impose a surtax, called the municipal surcharge to the income tax, with rates ranging from zero to 0.8%.
At National level,

At Region level (for example Tuscany),

WWT-IT-02

Registration

The Italy salary income tax collection is under the jurisdiction of which government unit?
The registration of the Italy salary income tax collection status, that is, the application procedure for the employer withholding certificate number, paper certificate number application, or online account application? Website? Employer withholding certificate
What is the advance certificate number of the number? Do you need to use the industrial and commercial certificate e-card to apply?

Evershine RD:

The Italian Revenue Agency (Agenzia delle Entrate), which is under the Ministry of Economy and Finance, collects income taxes and administers the income tax system.
Each individual must have a tax code (Codice Fiscale), which consists of 16 letters and numbers taken from the person’s name, date of birth, and a code for the person’s birthplace.
The tax code, issued by the Italian Revenue Agency (Agenzia delle Entrate) to a resident individual, is used for identification with government authorities, including the national health service.

WWT-IT-03

WWT Order (OD)

What is the order of Italy salary income tax withholding declaration (information flow determines tax base) and payment (fund flow)?
Pay first and then declare? Report first and then pays?
At the same time as the declaration and payment?

Evershine RD:

Deposit First (DF): Make monthly payments then file the required forms

WWT-IT-04

Mechanism of Filing (MOF)

Italy’ salary income tax withholding declaration (information flow determines the tax base)
What is the method of account return?
Reporting cycle: every month? Every bimonthly? Every season? every half year? Per year?
Electronic filing? Manual filing? Electronic filing and manual filing coexist?
If electronic filing is possible: Web site URL?

Evershine RD:

Taxes must be filed by the 16^th of the next month after they are withheld.
A business that conducts activities involving value added taxes (VAT) must file electronically.
The employer must also submit an annual statement (CUD or Certificazione Unica dei Redditi) to the Italian Revenue Agency by July showing the total amounts of income paid and taxes withheld.

WWT-IT-05

Mechanism of Payment (MOP)

What is the funding method for the Italy salary income tax withholding payment (funding flow)?
Payment cycle: M per month? B every bimonthly? Q every season? H every six months? A every year?
Automatically authorize deduction of ACH (that is, take the initiative of the recipient)?
Electronic remittance to EFT (that is, the payer takes the initiative)?
Bank counter payment OCT? Or the above methods coexist?

Evershine RD:

Taxes must be remitted by the 16^th of the next month after they are withheld.
If the 16^th falls on a weekend or public holiday, payments may be made on the next working day.
An employer uses Form F24 to remit payments electronically or through banks, post offices or tax collection agents.

BNF – Deduction of Employee Social Welfare

BNF-IT-01

BNF Entity

Italy social insurance, medical insurance, pensions, and other employee social welfare levy, is it national? Is it local? Or is there a national plus local? If there is a national and local, are they levied separately? Or levied together? What is the withholding tax rate?

Evershine RD:

BNF-IT-02

Registration

Social Security Certificate Number? What is the name of the government agency in charge of social insurance?
Medical insurance certificate number? What is the name of the government agency in charge of medical insurance?
Pension certificate number? The name of the government agency in charge of pensions?
How to apply for the social welfare certificate number for employees in the country? Paper certificate number application? Or online account application? Website? Need to use the industrial and commercial certificate electronic card to apply?
Are the above three certificate numbers unified or separate?

Evershine RD:

National Institute for Social Security (Istituto Nazionale Previdenza Sociale, INPS)
Pensions, disability, and survivors’ benefits; benefits for sick leave, maternity, paternity and parental leave; workers’ compensation; and unemployment and disability benefits.

The National Institute for Occupational Accidents (Istituto Nazionale Assicurazione contro gli Infortuni sul Lavoro, INAIL)

Workers’ compensation (E’er 0.5% to 16%).

Mario Negri Fund (Fondo Mario Negri)
For commercial executive to pay for supplemental pension fund

Antonio Pastore Association (Associazione Antonio Pastore)
For commercial executive to pay for second supplemental pension and insurance fund

Mario Besusso Fund (Fondo Mario Besusso)
For commercial executive to pay for supplemental health insurance fund

Each person must have a tax code (Codice Fiscale), which consists of 16 letters and numbers taken from the person’s name, date of birth, and a code for the person’s birthplace.

The tax code, issued by the Italian Revenue Agency (Agenzia delle Entrate) to a resident individual, is used for identification with government authorities, including the national health service.

BNF-IT-03

BNF Order (OD)

What is the order of the withholding declaration of social welfare for Italy employees (information flow determines the tax base) and payment (fund flow)?

Pay first and then declare? Report first and then pays? At the same time as the declaration and payment?

Evershine RD:

Same Period: Report and pay at the same time.

BNF-IT-04

Mechanism of Filing (MOF)

What is the method of reporting for withholding of social benefits for Italy employees (information flow determines the tax base)? Reporting cycle: every month? Every bimonthly? Every season? Every half year? Per year?
Electronic filing? Manual filing? Electronic filing and manual filing coexist? If electronic filing is possible: Web site URL?

Evershine RD:

Social security payments must be remitted by the 16^th of the next month after they are withheld.
If the 16^th falls on a weekend or public holiday, payments may be made on the next working day.
A business that conducts activities involving value added taxes (VAT) must file electronically.
The employer must also submit an annual statement (CUD or Certificazione Unica dei Redditi) to the Italian Revenue Agency by July showing the total amounts of income paid and taxes withheld.

BNF-IT-05

Mechanism of Payment (MOP)

What is the funding method for Italy employee social welfare withholding contributions (funds flow)?
Payment cycle: M per month? B every bimonthly? Q every season? H every six months? A every year?
Automatically authorize deduction of ACH (that is, take the initiative of the recipient)?
Electronic remittance to EFT (that is, the payer takes the initiative)?
Bank counter payment OCT? Or the above methods coexist?

Evershine RD:

Social security payments must be remitted by the 16^th of the next month after they are withheld.
If the 16^th falls on a weekend or public holiday, payments may be made on the next working day.
An employer uses Form F24 to remit payments electronically or through Banks, post offices, or tax collection agents.

Contact Us

Milan Evershine BPO Service Limited Corp.
Email: mxp4ww@evershinecpa.com
The Engaging Manager from Headquarter
Ms. Anna Wang, Speak Italian, English and Chinese.
skype: burlinna

or
For investment structure relevant to multi-national tax planning and Financial & Legal Due Diligence for M&A (Merge and Acquisition), send an email to HQ4mxp@evershinecpa.com
Dale Chen, Principal Partner/CPA in Taiwan+China+UK will be accountable for your case.
LinkedIn address:Dale Chen

Additional Information

Evershine CPAs Firm Headquarter
6th Floor 378 Chang Chun Rd., Taipei City, Taiwan ROC
Partner Kerry Chen,  USA Graduate School and a well-English speaker
Tel No.: +886-2-27170515 ext. 105
Mobile: +886-939357000
Email: kerrychen@evershinecpa.com
Skype: oklahomekerry

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Evershine Potential Serviceable City (2 months preparatory period):
Evershine CPAs Firm is an IAPA member firm headquartered in London, with 300 member offices worldwide and approximately 10,000 employees.
Evershine CPAs Firm is a LEA member headquartered in Chicago, USA, it has 600 member offices worldwide and employs approximately 28,000 people.
Besides, Evershine is Taiwan local Partner of ADP Streamline ®.
(version: 2024/07)

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