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Overview and introduction 

Taxation of international executives

A person’s liability to Italian tax is determined by his/her residence status for taxation purposes and the source of income derived by him/her.


The general rule is that a person who is a resident of Italy is assessable on worldwide income unless they are exempt under the provisions of a double taxation treaty. A person who is a non-resident is only assessable on income derived directly or indirectly from sources in Italy.


The 2011 tax rates for residents and non-residents range from 23 percent to 43 percent plus an additional regional tax of between 0.9 percent and 1.7 percent. Furthermore, an additional municipal tax could be due; the tax rates range from 0 to 0.9 percent depending on the municipality.


The official currency of Italy is the European Euro (EUR).


Herein, the host country refers to the country to which the employee is assigned. The home country refers to the country where the assignee lives when he/she is not on assignment.


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Taxation of international executives