20% witholding tax on transfers from outside Italy

First topic message reminder :

From 1st February 2014 ALL transfers to Italian bank accounts from outside Italy will be subject to a 20% witholding tax. For example if you receive €100, the bank will deduct €20 and send it to the Italian tax office on your behalf. This is to do with the tax due on investments abroad. To reclaim the money, assuming it was not the result of an investment abroad, you must reclaim it on your next Italian tax return.

There is some light at the end of the tunnel - you can make an 'autodichiarazione' at your bank regarding the 'ritenute d'ingresso' to declare it is not money from investments abroad and the bank will no longer deduct the 20%.

I suspect but do not know for sure, that the 'dichiarazione' must be made annually.

Some banks have said that despite the 1/2/2014 it will take a little longer to implement.

Thanks very much to everyone for their valuable information  

Several of our friends went to their banks and those that run businesses also to their accountants and all have been told that this 20% ruling doesn’t apply to them. All of them have income paid in from the UK, Denmark, Sweden, the Netherlands and one couple from Namibia. The income varies from state pensions to private pensions to investments. 
 
All academic now if the regulation has been abandoned/withdrawn/suspended… 

Sometimes life is soooo good  even if it's raining

I would like to see SOMETHING from my Bank (Banca marche) saying that they will not (in black and white !) be touching any funds that have arrived since February 1st.

Otherwise one is just watching and waiting ?

V

But V did they tell you they would take the 20% off in the first place??
This is why Italy is so bonkers; rumours fly around, often unsubstantiated, but like Chinese Whispers they take on a life all of their own, like Urban Myths.
It does keep you on your toes though....

Its not the bank's choice, Vicino, but the Tax office (the A d E) .  THe banks would not do any of this given the choice, as it will cost them money and decrease their huge profits!

Flip wrote:But V did they tell you they would take the 20% off in the first place??This is why Italy is so bonkers; rumours fly around, often unsubstantiated, but like Chinese Whispers they take on a life all of their own, like Urban Myths. It does keep you on your toes though....

Hi Flip, no, the bank havn't said a dickie bird about this (now ex ?) law at all.

What I do know is that circa 3rd Feb (2 days after the 'new' law) a transfer arrived in our bank account (BancaMarche) and nothing has been touched. I assume now that it won't !!



Thanks also modicasa................at what point does 'suspended' become 'cancelled' ? I am assuming it is one and the same !!

V

I believe it has currently been suspended until 1 July by which time it is anticipated that new EU information exchange systems are expected to be in place which will make the necessity for these new rules disappear. The original 30 June date for deductions from 1 Feb with payment in July was related to the implementation of the SEPA (Single European Payment) that is being implemented and to integrate the deductions and notification procedures into that system. If they are not in place by then I suspect the suspension will be extended provided it is still on track. If the EU info exchange system is in place the suspension of the deductions should be permanent.

Panner,

Thanks a lot, even I can understand your explanation, it is a therefore carry on as usual, just as I was 3 weeks ago ! What a faff !!

V

Since this "on/off" saga we now have a top-up card with Caxton (looks very easy to use online) for cash and have had a look again at CurrencyFair for making SEPA payments for ENEL etc... €3 a shot is not a lot more than the Poste. Will look at the "pros and cons" of switching residency when we get back over there in a few days time. It might be cheaper/easier for us to retain Italian residency, but we need to see what other changes are coming our way with Renzi...     

Admin wrote:From 1st February 2014 ALL transfers to Italian bank accounts from outside Italy will be subject to a 20% witholding tax. For example if you receive €100, the bank will deduct €20 and send it to the Italian tax office on your behalf. This is to do with the tax due on investments abroad. To reclaim the money, assuming it was not the result of an investment abroad, you must reclaim it on your next Italian tax return.There is some light at the end of the tunnel - you can make an 'autodichiarazione' at your bank regarding the 'ritenute d'ingresso' to declare it is not money from investments abroad and the bank will no longer deduct the 20%.I suspect but do not know for sure, that the 'dichiarazione' must be made annually.

Some banks have said that despite the 1/2/2014 it will take a little longer to implement.

you cannot take money out of a person(s) account without their knowledge here. That's disgraceful. They have to get your permission even if someone acidently put monies into your account, to take it out again.

TAB_Flags wrote:

Admin wrote:From 1st February 2014 ALL transfers to Italian bank accounts from outside Italy will be subject to a 20% witholding tax. For example if you receive €100, the bank will deduct €20 and send it to the Italian tax office on your behalf. This is to do with the tax due on investments abroad. To reclaim the money, assuming it was not the result of an investment abroad, you must reclaim it on your next Italian tax return.There is some light at the end of the tunnel - you can make an 'autodichiarazione' at your bank regarding the 'ritenute d'ingresso' to declare it is not money from investments abroad and the bank will no longer deduct the 20%.I suspect but do not know for sure, that the 'dichiarazione' must be made annually.Some banks have said that despite the 1/2/2014 it will take a little longer to implement.

you cannot take money out of a person(s) account without their knowledge here. That's disgraceful. They have to get your permission even if someone acidently put monies into your account, to take it out again.

It's called Withholding tax in the UK and it's done before the money goes in. They also do it with conversion charges....