A GUIDE TO TAX RETURN IN ITALY(730)

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tax return

Tax returns are filed annually by an individual or business with reportable income

According to investopedia, a tax return is a form or forms filed with a tax authority that reports income, expenses, and other pertinent tax information. Tax returns allow taxpayers to calculate their tax liability, schedule tax payments, or request refunds for the overpayment of taxes.

 In Italy, tax returns are filed annually by an individual or business with reportable income, which includes wages, interest, dividends, capital gains and so on. The tax agency responsible for these is the Agenzia delle Entrate, or the Revenue Agency in Italy.

In Italy, tax returns are filed annually by an individual or business with reportable income, which includes wages, interest, dividends, capital gains and so on.

There are two types of forms available, the Modello Redditi, and the much simplified Modello 730. Let’s us now take a look at the forms and why it is important

What is Modello Redditi

This is the traditional tax return form used in Italy. Tax payers are required to input the necessary details online using the software RedditiOnLine Pf (IT), with which the form can be completed, creating a file which is sent electronically through the Revenue Agency online services and generating the payment form F24.

Tax payers who have a partita IVA (VAT number) and need to submit both tax return and VAT return and non residents in Italy for tax purposes during the tax year and/or during the year of filing of the tax return can submit form REDDITI PF.

What is Modello 730

The 730 is a simplified form mainly used by employees. Tax payers who are either Italian or foreign citizens who are residents in Italy can submit the modello 730.

To submit your tax return with modello 730 you can choose to use one of the two models:

  • Modello 730 ordinario (ordinary). This template must be filled with all your information for your tax return and it is submitted through a CAF (Tax Assistance Center) or an accountant (commercialista).   
  • Modello 730 precompilato. This template is already compiled by the Agenzia delle Entrate, or the Revenue Agency with your information including deductible expense for health care expenses, school fees, public transportation fares, insurance premiums, social security contributions, any mortgage costs and energy efficiency subsidies etc. You just need to log in to your personal area on the site, check if the information is correct, and send. You can access the Modello 730 precompilato, which is a free online service by means of;
  • Public Digital Identity System (Spid) login
  • Electronic Electronic Identity Card (CIE)
  • National Services Card (CNS).

It is Obligatory to file Tax Returns?

It is not obligatory to declare your tax returns in Italy unless you have something big to declare like a new house, a big family with dependent members or unless you have already started in previous years, in which case you are obliged to continue.

Why is it Important to file a Tax Return

Once you have started the process to file tax return in Italy, it becomes obligatory to continue or otherwise you risk being fined. Filing for a tax return will help you to find out if you have a debt which means you have to pay taxes to the government or credit which means you must receive a refund from the government after deductible expenses.

The law establishes what expenses are deductible. Some are always deductible every year, others can change from year to year. Deductible costs are, for example: health care expenses, school fees, public transportation fares, insurance premiums, social security contributions, any mortgage costs and energy efficiency subsidies etc.

What is the Tax Refund method used in Italy?

The payment or refund, takes place directly in the paycheck or la busta paga from the following month in which you filed for tax return. For example, if you submitted the modello 730 in July 2021 you will pay taxes, or get a refund, in the August 2021 paycheck.

Where can I filed a Tax Return?

To file your tax return you can go to:

  • CAF: authorized offices that offer assistance in filing and sending the tax return for you. You can find the CAF in your area by searching online: CAF + name of your city (for example CAF Mantova).
  • An accountant (commercialista): a professional in tax services and can help you fill out and send the tax return for you.
  • Online through the Revenue Agency’s (Agenzia delle Entrate) precompiled template (modello precompilato). You must access your personal area via PIN, SPID, or INPS-issued credentials and verify the information. 

What are the documents to Submit?

You will need the following documents to file a tax return in Italy:

  • Certificazione Unica (CU) The CU is the document that summarizes all your earnings from employment or self-employment. You can get your CU from your employer (if you are an employee), the person who commissioned your work (if you are in self-employment with partita IVA), or from the INPS (if you have been on cassa integrazione or unemployment).
  • Your Italian Tax Code (codice fiscale) and that of dependent family members (if any);
  • Receipts of deductible expenses that you saved from the previous year. 
  • Family status (stato di famiglia) if you are a foreigner living in Italy.

What are the Tax Return Deadlines in Italy?

A tax return must be submitted every year, by the following deadlines:

  • For Modello 730, by 30 September of the year following the tax year, directly online or by a Tax Assistance Center (CAF) or an accountant , or with tax deducted at source (i.e. by the employer).
  • For form Redditi PF, by 30 November of the year following the tax year, online or by a Tax Assistance Center (CAF) or an accountant

Please note that Non-residents who are abroad at the time of filing of the tax return and are unable to send the tax return electronically may submit the REDDITI PF form by registered post or equivalent by no later than 30 November of the year following the tax year.

Please note that Non-residents who are abroad at the time of filing of the tax return and are unable to send the tax return electronically may submit the REDDITI PF form by registered post

The registered post must be addressed to the Agenzia delle Entrate – Centro Operativo di Venezia, Via Giuseppe De Marchi n. 16, 30175 Marghera (VE) – Italy, and must be clearly marked with the taxpayer’s first name, surname and tax code, as well as the words ‘Contiene dichiarazione Modello REDDITI 2022 Persone Fisiche’ [Contains tax return form REDDITI 2022 for natural persons].

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