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Tax In Italy

Discussion in 'Employment' started by MoltoBene, Jul 21, 2013.

  1. What are your thoughts on the general tax situation in Italy? Has the recession become so deep that the only way out is to simplify a system that can see people liable for up to 5 different taxes? In Venice, it is noticeable that the 'hole in the wall' style economy has started to thrive with business scaled down in size to cut costs and minimize taxation payments. Would this be the way for non-tourist Italy to solve its problems?
  2. I think 'inventing' so many taxes is wrong, it only makes people mad and, not only that (also, I doubt the government cares that the people are mad...) but everyone will look for a way to trick the system, so not only the problem will not be solved, but it might create even bigger problems.

    Take the overtime (ore straordinarie) as an example.
    There is a limit or how many hours you can work overtime, the tax grid says that if you work too many hours overtime, you will pay too much money in taxes and it's not worth it.
    Well, in this case, many prefer to either work on the black market, or, work with a contract, but have their overtime hours paid illegally...

    I hope the example is relevant to the topic, since we are talking taxes, bottom line is that the government keeps increasing the taxes, while the people keep finding ways to avoid paying them.
    Chillout likes this.
  3. Very good point about the overtime tax. If you receive any kind of yearly premium with your employment, that could be taxed at the higher rate too.

    I used to do at least 4 hours overtime most weeks but since they started to tax it at the higher rate I lost interest .

    I have also heard that if you don't use all of your yearly holiday allowance in the current year, both you and your employer will pay a higher rate of tax on those hours rolled over to the next year.

    There really is a tax for everything in Italy and it's in ones interest to learn as much as possible about them so that you can legally save yourself some money.
  4. Oh, phew! Glad I chose the right example :D

    I had no idea about the holidays, thanks for mentioning it, I only knew that you can ask for them to be paid off by the employer, but at 50% of their value (because the employer can decide this now), but.. again... it's not very convenient so it's better to just use them all.

    Another thing I have recently heard about taxes in Italy is the fact that they now perceive a tax for the TFR (trattamento di fine rapporto). So, if you want to have that money, you will have to pay a lot of taxes again, which is very unfair compared to two years ago. (this article explains it a bit)
  5. I can't remember the official figures and I'm sure that I'll dig them out, but there are different rates of tax that you pay based on the amount of TFR that you have gained.

    The more you have earned, the higher rate of tax you will pay when you claim back the TFR.

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