{"id":6507,"date":"2023-10-20T11:05:20","date_gmt":"2023-10-20T09:05:20","guid":{"rendered":"https:\/\/www.hrcapital.it\/observatory\/agenzia-delle-entrate-trattamento-fiscale-al-lavoratore-distaccato-allestero\/"},"modified":"2023-10-20T12:38:56","modified_gmt":"2023-10-20T10:38:56","slug":"agenzia-delle-entrate-trattamento-fiscale-al-lavoratore-distaccato-allestero","status":"publish","type":"post","link":"https:\/\/www.hrcapital.it\/en\/italian-revenue-agency-tax-treatment-of-workers-posted-abroad\/","title":{"rendered":"Italian Revenue Agency: tax treatment of workers posted abroad"},"content":{"rendered":"\n

The Italian Revenue Agency, in its answer to a request for ruling no. 428 of 12 September 2023, provided some clarification on the tax treatment applicable to remuneration paid to a worker posted abroad, in light of the provisions of Article 51, paragraph 8-bis of Italian Presidential Decree no. 917\/1986 (Italian Income Tax Consolidation Act, Testo unico delle imposte sui redditi<\/em>, \u2018TUIR\u2019).<\/p>\n\n\n\n

Reference legislation<\/strong><\/strong><\/p>\n\n\n\n

The reference legislation applicable to the case in question which identifies the criteria for determining income from employment produced abroad<\/strong> is Article 51, paragraph 8-bis<\/em> of the TUIR which, derogating from the provisions of the previous paragraphs of the same Article 51, provides that \u201cincome from employment, performed abroad on a continuous basis and as the exclusive purpose of the relationship by employees who over a period of 12 months stay in the foreign state for a period exceeding 183 days<\/em>, is calculated on the basis of the remuneration agreed by convention identified annually by the decree of the Ministry of Labour and Social Policy referred to in Article 4, paragraph 1, of <\/em>[Italian] Decree-Law no. 317 of 31 July 1987, converted by <\/em>[Italian] Law no. 398 of 3 October 1987<\/em>\u201d.<\/p>\n\n\n\n

That remuneration is fixed annually by 31 January of each year and is determined with reference to, and in any case not less than, the minimum salary provided for by the national collective agreements grouped by comparable sectors.<\/p>\n\n\n\n

Applicant\u2019s request for ruling<\/strong><\/strong><\/p>\n\n\n\n

In the case examined by the Italian Revenue Agency, the applicant is a commercial business that, from 1 January 2022 and until 31 December 2023, has posted<\/strong> one of its employees, in charge of carrying out CEO functions, to its German subsidiary to ensure better coordination between the various operational activities. The employee was considered to be tax resident<\/strong> in Italy<\/strong> for the 2022 tax period as he\/she had maintained his\/her family and, therefore, his or her centre of interest in Italy.<\/p>\n\n\n\n

In light of the managerial nature of the tasks entrusted to the employee and the consequent responsibilities, he\/she, as also specified in the international posting <\/strong>letter, is to carry out the work activities on a continuous basis and as the exclusive purpose of the relationship with the German subsidiary for the entire duration of the posting; although the main place of work is identified at the secondee company, in addition, the worker makes occasional trips<\/strong> to various countries other than Germany, including Italy.<\/p>\n\n\n\n

The applicant, therefore, asked whether, as a result of the trips made to Italy, the requirements of exclusivity<\/strong> and continuity<\/strong> of the employment relationship carried out abroad were no longer met and therefore raised interpretative doubts about the application of the rules for calculating the taxable base of income from employment using remuneration agreed by convention(retribuzioni convenzionali<\/em>). <\/strong>  <\/p>\n\n\n\n

Italian Revenue Agency\u2019s Opinion<\/strong><\/strong><\/p>\n\n\n\n

In response to the applicant\u2019s request, the tax authority specified that the criterion for calculating income <\/strong>for those workers who, while working abroad, continue to be classified as tax residents in Italy under Article 2, paragraph 2, of the TUIR, means that the income deriving from employment performed abroad is subject to taxation<\/strong> taking as the taxable base the remuneration agreed by convention<\/strong> fixed by the aforementioned decree of the Ministry of Labour and Social Policy, without taking into account the remuneration actually received by the worker.<\/p>\n\n\n\n

On the basis of the conditions set out in the aforementioned legislation, therefore, the tax regime referred to in Article 51, paragraph 8-bis<\/em> of the TUIR applies provided that:<\/p>\n\n\n\n