INFORMATION TECHNOLOGY
Internal Revenue National Agency: Circular 25/E on tax treatment of the smart working.
With Circular No. 25/E of 18 August 2023, the Internal Revenue National Agency illustrated the tax profiles of so-called smart working as well as the tax discipline of frontier workers, in view of the changes introduced by Law No. 83/2023.
Subject of analysis are in particular:
With respect to the tax residence of individuals working remotely, the Italian Revenue Agency indicates that the criteria to be applied are those covered by Articles 2 and 3 TUIR, i.e. the work is deemed to be carried out where the worker is physically present to perform the remunerative activity.
With reference, on the other hand, to the special regime for expatriates working remotely, the Agency specifies that it also applies to those who move their residence to Italy even if they work for a foreign employer.
It is recalled that natural persons are considered to be resident in the Italian State if they meet one of the following conditions during the tax period:
Law No 83/2023 raised the exemption for employment income to €10,000 and the IRPEF taxable base is calculated net of the support allowances paid by foreign States to Italian workers carrying out their activities there.
Subject of analysis are in particular:
- the application instructions on the tax profiles of remote work, with particular attention to the most recent guidelines of practice on the subject, also for the purposes of the application of facilitative regimes aimed at individuals who transfer their tax residence in Italy to carry out a work activity mainly in the Italian territory
- the special rules concerning frontier workers in view of the new Law No. 83/2023.
With respect to the tax residence of individuals working remotely, the Italian Revenue Agency indicates that the criteria to be applied are those covered by Articles 2 and 3 TUIR, i.e. the work is deemed to be carried out where the worker is physically present to perform the remunerative activity.
With reference, on the other hand, to the special regime for expatriates working remotely, the Agency specifies that it also applies to those who move their residence to Italy even if they work for a foreign employer.
It is recalled that natural persons are considered to be resident in the Italian State if they meet one of the following conditions during the tax period:
- they are registered with the resident population registry office even if the work is carried out abroad
- have domicile and/or residence in Italy.
Law No 83/2023 raised the exemption for employment income to €10,000 and the IRPEF taxable base is calculated net of the support allowances paid by foreign States to Italian workers carrying out their activities there.
