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12 April 20234 minute read

Cooperative tax compliance for HNWIs

Cooperative tax compliance 4.0 in Italy will be extended to newly resident high-net-worth individuals (HNWIs).

Extending advance tax agreements with the Italian tax authorities could create a new relationship between taxpayers and authorities. And this might lead to Tax Risk Certification.

The Deputy Minister of Finance and the Director of the Revenue Agency discussed the issue recently at a conference in Milan organised by Assonime and Agenzia delle Entrate.

There are 90 large companies (with revenues exceeding EUR1 billion) admitted to the cooperative compliance programme with the Italian tax authorities. According to the recently approved tax delegation bill, the aim is to lower the threshold for large corporations. The bill will also introduce, for small taxpayers, the chance to access a two-year arrangement to define taxable income in advance, using AI and predictive analytics to measure tax sector risk.

One of the changes concerns the tax regime for HNWIs. The cooperative compliance regime for natural persons should also be extended. There are already several interesting tax measures for those who transfer their tax residence to Italy. They can benefit from a 100,000 lump sum tax on foreign income. The existing regime will be reinforced by a dialogue with the Italian tax authorities. And the authority will also look at cases involving foreign trusts, inheritance and gift taxes and cryptocurrencies.

This sounds like good news for those who choose to live and invest in Italy.