SUNNYVALE, Calif. -- 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.
For more information about international expansion services (http://www.nair-co.com/) or to learn more about our global regulatory compliance team please contact us (http://www.nair-co.com/global-offices.aspx).
Subscribe (http://www.nair-co.com/subscribe.aspx) 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 (http://www.nair-co.com/newsandannoucement.aspx).
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
Contact
Yvonne Smith
408 501 8867
