Property abroad: Italian tax declaration or not?
Lately we received
information that colleagues who have consulted a local tax adviser (commercialista)
regarding the obligation to make an Italian tax declaration possibly received
the wrong advice. In the cases we are aware of the tax adviser told these
colleagues that he or she had to declare to the Italian authorities all
properties in their possession in countries other than Italy. We believe this
advice is only valid if the colleague has his or her domicile for tax purposes
in Italy, but it is wrong in case the domicile for tax purposes is not in
Italy.
According to Article 13 (ex Article
14) of the PROTOCOL
(No 7) ON THE PRIVILEGES AND IMMUNITIES OF THE EUROPEAN UNION for Statutory
staff their domicile for tax purposes is the country of domicile for tax
purposes at the time of entering the service of the Union (in practice it is
typically the country of your last tax declaration before entering the service
- if in doubt it is clearly indicated in the personal file in Sysper).
Furthermore, both the country of your actual residence and the country of
domicile for tax purposes must consider that you have maintained your domicile
in the latter country (provided that it is a member of the Union) - therefore,
if you have your domicile for tax purposes in an EU country other than Italy
you should do your tax declaration there and not in Italy.
To add insult to injury, not only has the
incorrect advice been given - leading to possible issues with the Italian
authorities - our unfortunate colleagues have also been billed for the advice
and the work. We therefore take the opportunity to remind our colleagues that
not all local tax advisers will have the necessary experience or knowledge to
deal with special situations such as these, so always be careful and seek help
from well-informed sources.
A very useful
document containing advice on many taxation matters related to EU personnel,
"EUROPEAN UNION OFFICIALS AND TAXATION, IMPACT OF THE PROTOCOL ON
PRIVILEGES AND IMMUNITIES ON THEIR TAX STATUS", may be found in Myintracomm.
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