These agreements are based on income tax and, sometimes, on estate elements. BulgariaThe Bulgarian tax treaty and international conventions In Italy, the risk of double taxation can be tainted in different ways: Arnone-Sicomo Law Firm provides legal aid on international double taxation. The existence of several agreements against double taxation is obviously not a good thing (for example. B, a tax treaty between the United States and Italy or a double taxation agreement between Italy and the United Kingdom), because it increases the risk of using them to avoid taxation through a “dual international non-taxation regime,” thus creating the phenomenon of so-called “treaty abuse.” In the case of double taxation of the same income (between Italy and a foreign country), the person can claim foreign tax breaks for taxes paid abroad. The tax exemption can only be invoked if foreign taxes are paid “definitively” by the presentation of the Italian tax return. Foreign tax relief is calculated on a certain formula. The specific rules for border workers are contained in the following double taxation conventions: the risk of double taxation is made up by the conventions of two states (such as Switzerland or Germany) governing the taxation power of the two states on the basis of the principle of reciprocity. Double taxation in Italy: what is it? How can I avoid paying twice as much tax? Double taxation refers to cases in which two different countries have the right to collect taxes on income collected on their territory by the same subject. On the one hand, there is the country where the income is produced and, on the other hand, the state of residence for tax purposes. Tax stay is fundamental to the issues of the conventions against double taxation, as it determines the application of international conventions and the taxing power of the countries concerned. The risk of double taxation is as follows: in particular, through a detailed analysis of specific cases and international agreements between Italy and other countries, we advise on how they can fulfil their tax obligations in the country where they work or in their country of residence for tax purposes, thus avoiding sanctions in order to avoid double taxation. In particular, these are international agreements where that States parties regulate their respective taxing powers, in order to prevent the same income from being taxed twice.
The agreements also aim to prevent tax evasion or tax evasion. In order to avoid the risk of double taxation, it is recommended to ask the Italian tax authorities for a certificate of residence in tax which will be presented to the foreign country where the income was collected in a given year. If, in the same year, different incomes were obtained in a foreign country and are subject to the same agreement, a single tax certificate is issued. Below, you will find the list of countries with which Italy currently has TTDs: on the basis of specific criteria for the association of a person with a state, it is possible to identify the country of residence of a subject, i.e. in which state he must pay taxes. Among the basic criteria for determining the state of residence for tax purposes are: we advise foreign companies that wish to temporarily place their workers in Italian companies and we fulfil on their behalf all the tax obligations of the Italian financial agency. In Italy, individuals and legal entities can apply for a certificate of tax residence, that is. B, for example, limited companies, commercial and non-commercial entities, mutual funds and pension funds. For partnerships and other “tax-transparent” entities, only members or beneficiaries residing in Italy can apply for a tax residence certificate.