Italy: double taxation

The Italian Government has signed several conventions with other foreign governments aimed at avoiding double taxation. These conventions are international treaties with which the contracting states regulate the exercise of their taxing powers in order to eliminate double taxation on the income and/or the assets of their residents.

Italy: double taxation

If, for example, you are posted abroad for an assignment, or if you live in Italy but work in another country, or if you have retired to one country and receive a pension from another, you will be subject to the tax rules of your country of residence, but you may also have to pay taxes in the other country. This means that your income/assets may be taxed twice if both countries have the right to do so.

However, to avoid this matter and, therefore, spare you from paying taxes twice on the same income/asset, most countries, including Italy, over the years, have signed double taxation agreements.

As a matter of fact, the Italian Government has signed several conventions with other foreign governments aimed at avoiding double taxation. These conventions are international treaties with which the contracting states regulate the exercise of their taxing powers in order to eliminate double taxation on the income and/or the assets of their residents.

Furthermore, the same conventions have the additional aim of preventing tax evasion. In this respect, they contain some provisions on administrative cooperation.

These agreements usually establish that the amount of tax you pay in the country where you work will be offset against the tax you owe in your country of residence.

We suggest checking with the tax authorities that are competent in your specific case to learn what proof and documents you need to submit, in order to avoid double taxation.

Here follows a list of the conventions on double taxation signed by Italy and other countries. n.1

David

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