Everybody who works abroad has to pay income taxes. You will be pleased to know that a big part of it can be refunded. This is exactly what Dendax specializes in! According to the information from Agenzia delle Entrate (the Italian Revenue Agency), over 67% of the foreign citizens who worked in Italy over the last tax year were entitled to a tax rebate.
What is Codice Fiscale?
Codice Fiscale is an Italian identification code consisting of a 16 alphanumeric digit code. Non Italians can have it issued upon request to the Italian Revenue Agency. This code allows the authorities to identify each citizen in Italy with regards to their relationship with public offices and the tax related matters. Everybody, whether Italian or foreigner, who carries out remunerated activities or is employed in Italy needs an active tax code. As a non-resident you’ll be subject to a specific tax system but, once you will have worked in Italy for more than 183 days, you will obtain the status of “resident“; hence you will be subject to the Italian Tax Regime.
What is a CU form?
The CU form (Certificazione Unica, formerly known as CUD) is the final payroll document which the employer is legally obliged to issue to the employee at latest the March 31st of the following year or maximum 12 days after finishing the employment. It shows the amount of earnings and taxes withheld in the relevant year by the employer who acts as tax agent.
Which taxes can be refunded and when is the last chance to apply for the tax refund?
The only refundable tax is the personal income tax (PIT), the so called IRPEF. Tax non-resident individuals are subject to IRPEF only on ‘income produced’ in Italy (i.e. employment income related to the work activity performed in Italy).The taxpayer can claim a refund for the family deductions on the personal income taxes and the sooner you send us the required documents, the sooner you will receive your refund.
The amount of income under which your taxes are totally refundable, depends on your working contract. Bear in mind that the regular deadline for applying for the refund of the taxes withheld during a fiscal year, is the October the 30th of the following year.
Upon payment of a small penalty to the Italian Revenue you can still file the tax return within 90 days following the original due date.
Dendax provides the service of applying for tax refunds from Italy up to 4 years back; hence in 2018 you can still apply up to 2014 tax year; in this case we will need to apply by sending an Amended Tax return, the so called Istanza di Rimborso.
Italy pays out dozens of billions of euros in the form of child benefits every year. If you have children, you are also most likely eligible! Find out more here.
How long do you have to wait?
According to Agenzia delle Entrate the refund is processed on their side in about 1 year, as long as you apply with a tax return for the current fiscal year (i.e. you apply on 2018 for fy 2017). In some cases the processing time may take up to 2 years and in very rare cases even more.
Dendax is processing each tax claim within 5 working days.
What amount could I receive?
Dendax will provide each client with an approximate calculation of the tax refund which stems from the client’s income shown on the income documents (CU). The amount of your tax refund may depend on a couple of main variables, such as the yearly income and dependent family members; on this matter, please consider that having deductible family members significantly raises the chance of getting a tax refund. This service is free of charge and is based on payment income documents provided to Dendax by the client. The calculation service provided by Dendax is fast, safe and free of charge; you’ll also get immediate response and help from our tax refund specialists in your own language.