The Financial Situation (86 Viewers)
- Thread starter ReBeL
- Start date
Yes it will be applicable to all players who agree to stay for minimum period of two years in Italy the reduced tax rates will come into force from January 2020
https://www.lawinsport.com/content/...n-benefit-the-sports-industry?category_id=153
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Bond of 175 million https://www.juventus.com/en/news/news/2019/placement-of-a-bond-of-175-million.php
https://www.lawinsport.com/content/...n-benefit-the-sports-industry?category_id=153
- - - Updated - - -
Bond of 175 million https://www.juventus.com/en/news/news/2019/placement-of-a-bond-of-175-million.php
From 2020, an employee, a self-employed professional, or an entrepreneur who:
Individuals who meet these criteria are subject to Italian individual income tax only on 30% of their employment / self-employment / business income (individual income tax can be reduced to 13% approximately).
Said taxable income is further reduced to only 10% for those who transfer their residence to the southern regions of Italy (individual income tax can be reduced to 4.3% approximately).
The Regime applies for 5 years and can be extended for another 5 years (in total 10 years) subject to some additional conditions (e.g. a residential property is purchased or there is an underage child, etc.).
Relocations in 2019
Those who become Italian tax resident in 2019 (e.g. those who relocated to Italy in the first half of 2019), would only be allowed to benefit from the “former version” of the Regime, which has more stringent requirements and less incentives (e.g. taxable income reduced to 50% and no extensions allowed).
- becomes Italian tax resident (regardless of his/her foreign State residence);
- commits to remain an Italian tax resident for the following two years;
- has not been Italian tax resident in Italy for the last two years (the Regime also applies to Italian returnees); and
- mainly works within the Italian territory for either an Italian or a non-Italian enterprise, regardless of his/her role or qualification.
Individuals who meet these criteria are subject to Italian individual income tax only on 30% of their employment / self-employment / business income (individual income tax can be reduced to 13% approximately).
Said taxable income is further reduced to only 10% for those who transfer their residence to the southern regions of Italy (individual income tax can be reduced to 4.3% approximately).
The Regime applies for 5 years and can be extended for another 5 years (in total 10 years) subject to some additional conditions (e.g. a residential property is purchased or there is an underage child, etc.).
Relocations in 2019
Those who become Italian tax resident in 2019 (e.g. those who relocated to Italy in the first half of 2019), would only be allowed to benefit from the “former version” of the Regime, which has more stringent requirements and less incentives (e.g. taxable income reduced to 50% and no extensions allowed).
Ronaldo would have different tax rates
The 2017 Budget Law, approved by the Italian Parliament, provided for a privileged tax scheme for natural persons residing abroad who decide to transfer their residence to Italy.
The favorable scheme consists in the possibility of taxing all income from foreign sources by paying a flat-rate substitute tax equal to €100,000 for each tax period (a so-called flat tax) regardless of the amount of taxable foreign income. This tax must be paid by 30 June each year.
The types of foreign income that comes under the Italian flat tax scheme for “res non dom” subjects are the following:
• income from land and buildings located abroad;
• capital gains paid from foreign countries or by non-residents;
• employment income earned abroad;
• income from self-employment arising from activities carried out abroad on a continuous basis;
• business income deriving from activities carried out by permanent organisations abroad;
• capital gains achieved as a result of the sale for consideration of investments in resident companies;
• other income deriving from activities carried out abroad and from assets located abroad.
The only exception relates to capital gains deriving from the sale of shareholdings equal to or greater than 25% in Italian or foreign companies; these are taxed with a substitute tax equal to 26%.
Besides the exemption of all the income produced abroad, as listed above, the person transferring their residence to Italy and requesting the application of the flat tax enjoys additional tax savings:
• no obligation to pay the IVIE levy (a tax which the Italian residents usually pay on real estate property held abroad);
• no obligation to pay the IVAFE levy (a tax which Italian residents pay on foreign financial assets);
• no obligation to indicate in the Italian tax declaration all the assets owned abroad (the Italian tax return form provides a special section where Italian residents indicate which assets they own abroad, the so-called RW field, new residents are not obliged to compile it).The flat tax includes the taxation of all foreign income produced in any state of the world; if the taxpayer wants to exclude some State from this tax scheme, they can inform the Italian Revenue Agency of this intention at the moment in which he/she will request the application of the tax benefit scheme
The 2017 Budget Law, approved by the Italian Parliament, provided for a privileged tax scheme for natural persons residing abroad who decide to transfer their residence to Italy.
The favorable scheme consists in the possibility of taxing all income from foreign sources by paying a flat-rate substitute tax equal to €100,000 for each tax period (a so-called flat tax) regardless of the amount of taxable foreign income. This tax must be paid by 30 June each year.
The types of foreign income that comes under the Italian flat tax scheme for “res non dom” subjects are the following:
• income from land and buildings located abroad;
• capital gains paid from foreign countries or by non-residents;
• employment income earned abroad;
• income from self-employment arising from activities carried out abroad on a continuous basis;
• business income deriving from activities carried out by permanent organisations abroad;
• capital gains achieved as a result of the sale for consideration of investments in resident companies;
• other income deriving from activities carried out abroad and from assets located abroad.
The only exception relates to capital gains deriving from the sale of shareholdings equal to or greater than 25% in Italian or foreign companies; these are taxed with a substitute tax equal to 26%.
Besides the exemption of all the income produced abroad, as listed above, the person transferring their residence to Italy and requesting the application of the flat tax enjoys additional tax savings:
• no obligation to pay the IVIE levy (a tax which the Italian residents usually pay on real estate property held abroad);
• no obligation to pay the IVAFE levy (a tax which Italian residents pay on foreign financial assets);
• no obligation to indicate in the Italian tax declaration all the assets owned abroad (the Italian tax return form provides a special section where Italian residents indicate which assets they own abroad, the so-called RW field, new residents are not obliged to compile it).The flat tax includes the taxation of all foreign income produced in any state of the world; if the taxpayer wants to exclude some State from this tax scheme, they can inform the Italian Revenue Agency of this intention at the moment in which he/she will request the application of the tax benefit scheme
