Itálie | Neotax

FAQ

• 1. I worked in the Italy and paid taxes. Do I file a tax return?
  • Everybody who works abroad and pays an income tax should file a tax return. Under certain conditions, you can refund some of the taxes you (your employer) paid. To estimate if you are eligible for a tax refund, we prepared an easy to use application which calculates your taxes and let’s you decide what to do next.

• 2. How much taxes are paid in the Italy?
  • The tax rate varies by your income between 23 - 43 %. There are nevertheless special options for expats living long-term in Italy to decrease the tax burden - so called impatriati. Further, you can decrease your tax burden if you have children or spouse.

• 3. What a “tax refund” means?
  • A refund means that your employer paid on your behalf more taxes than was supposed to, and you can get them back. By filing a tax return, you are actually reporting to the Italian Tax Office, how much you earned as gross income and how much you paid on taxes, while you stayed in Italy.

• 4. What documents do you need for your tax refund?
  • In order to get your income tax refund in as quickly as possible and to apply for the highest amount, you need to have:

    • A CUD form from each employer.
    • Documents related to your children or spouse if you claim them as dependents.

• 5. What is a CUD form?
  • The CUD form is a form, that each employer has to give to his employees at the end of the year. The form reports the employee's annual wage and the taxes withheld from each paycheck. The Italian employer must send the CUD form to employees before January 31 of each calendar year.

• 6. What if you do not have all the necessary documents?
  • Even if you do not have all the above-mentioned documents, you can still apply for your tax refund. We offer a “replacement” service - we will contact your former employer/s and will request copies of your earning documents as your agent. Nevertheless, we cannot guarantee that we will be able to obtain those documents so it is preferable if you make sure that your employer provides you with the CUD form himself.

• 7. How many years back can I file my tax refund?
  • You can go back as far as 3 years from the year in which you apply.

• 8. How long does it take to get my tax refund?
  • On average it takes 6 to 12 months if the tax return is submitted on time for the most recent tax year. If you miss the deadline, the processing time can increase significantly, on average by 1 year.

• 9. When is the deadline for filing the tax return?
  • Your tax return should be filed at the Italian tax office on June 30th for the most recent year and by September 30th for older tax years. Nevertheless, it is highly advised to provide us with all documents as soon as possible, preferably by March/April.

• 10. Why is your tax calculation different from the actual Tax Office calculation?
  • In some cases, the tax preparer calculates the tax on your Tax Return higher or lower than the Tax Office shows in the final calculation. What are the most frequent causes?

    • The Tax Office had different data on your record (your employer reported different data, than you have on your CUD form)
    • Your employer wrongly paid less/more than was supposed to
    • You may have some debt/overpayment from previous year