Remote work from abroad, clarification by the Italian Revenue Agency (Agenzia delle entrate) on tax liability

28 August 2023

With Circular No. 25/E of 2023, the Italian Revenue Agency provided clarifications with respect to the identification of the tax residence and the taxability of the income earned by remote workers (so-called ‘smart workers’), confirming the application of Articles 2 and 3 of the TUIR, i.e. the ordinary provisions relating to the ‘tax residence’, also with respect to this case.

According to the Revenue Agency’s reading, in fact, the place where the remote work is performed does not affect the criteria for determining tax residence. In determining the tax residence of remote workers, therefore, Article 2 of the TUIR, which sets out the ordinary criteria for establishing tax residence, will still be taken into account.

The Italian Revenue Agency, moreover, has clarified that the tax relief for ‘impatriate’ workers is not precluded for those who transfer their residence to Italy, even if to work remotely on behalf of a foreign employer.

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