According to art. 53 of the Italian Constitution “All are required to contribute to public expenses because of their ability to contribute. The tax system is informed by progressive criteria.”
The tax collection in Italy follows a progressive principle and is aimed at financing the welfare and services to be provided to citizens themselves.
The obligation to pay taxes must therefore be in accordance with the taxpayer’s ability to pay, that is to say, his economic potential. The competent body for taxes is the Revenue Agency to which must be communicated annually its “income tax return”.
At the beginning of the stay in Italy, a foreign or community citizen who does not stay for short-term reasons, must request the territorial offices of the Agency, called Revenue Offices, the issue of their Tax Code.
It is an identification code assigned to each citizen, for tax purposes, which serves the tax registry to record and check data relevant to the tax. The person must indicate his code for opening a current account, for collecting a payment, for buying and selling real estate or a car, for starting an employment relationship, for paying or refunding taxes.
Community citizens are always subject to the tax rules of the country in which they reside. In some cases there may be a risk of double taxation if two countries have the right to tax the income of the Community citizen under the following conditions:
- cross-border commuter (when living in one EU country but working in another);
- worker posted abroad for a short period;
- pensioner of an EU country living in another Member State.
In these situations, although the citizen is always subject to the tax legislation of the country in which he resides, he may also have to pay taxes in his home country.
Most countries sign double taxation agreements, which prevent it from being taxed by both Member States.
Under most bilateral tax agreements, taxes paid in the country where you work are deducted from taxes you pay in your country of residence; in other cases, the income you receive in the country where you work could be considered taxable only in that country and tax-free in your country of residence. If the tax rate in the country where you work is higher, it will be the one you have to pay – even if it is offset by the tax applied in your country of residence, or if the latter exempts you from any other tax.
LINK
https://europa.eu/european-union/topics/taxation_it
https://europa.eu/youreurope/citizens/work/taxes/income-taxes-abroad/index_it.htm
https://europa.eu/youreurope/citizens/work/taxes/double-taxation/index_it.htm
