BDO Expatriate Newsletter - January 2019
01 02 2019
Original content provided by BDO
The BDO Expatriate Newsletter provides a brief overview of issues affecting international assignees, predominantly, but not exclusively, from a tax and social security perspective.
This newsletter brings together individual recent country updates. As you will appreciate the wealth of changes across multiple jurisdictions is significant so to provide easily digestible information we have kept it to the key developments that are likely to affect your business and international assignees.
In questo numero un importante contributo dell'Italia: https://bit.ly/2DNm63Q
ITALY - 2019 Budget Act - Italy introduces a new tax relief for foreign retirees moving to Italy and a new flat regime for entrepreneurs and self-employed workers THE NETHERLANDS - 30% ruling – New legislation as of 2019 / Transitional rulesSINGAPORE - Proposed change in the tax treatment of accommodation benefit provided to employeesUNITED KINGDOM - Increase to the Immigration Health Surcharge UNITED STATES - Complexity in reporting virtual currencies
The Italian budget law introduced an attractive tax scheme for entrepreneurs and self-employed professionals. A flat tax rate of 15% for taxpayers who in the previous fiscal year did not exceed the relevant income threshold of EUR 65,000. This will be applicable from 11 January 2019
A second tax regime has been introduced on an analytical basis for taxpayers who in the previous fiscal year earned income over EUR 65,000 but below EUR 100,000. In this case a proportional flat tax of 20% is envisaged. The analytical tax regime will be in operation starting from 2020. Specific requirements will have to be met in order to benefit from this.
In both cases the flat tax (15% and 20%) will substitute any Personal Income Tax (State, Regional and Communal tax). This ranges from 23% to 43%.
The new tax schemes introduced by the Italian budget law for 2019 will have a strong impact on the tax planning of individuals and will require a case by case analysis in order to better investigate the possible scenarios for taxpayers. In fact, the tax reliefs introduced require a detailed analysis to be undertaken in order to be compliant with the requirements set out.
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