Glossary of tax terminology
A practical dictionary of tax terminology
The glossary contains the most frequent words present in our tax documents, even though it is impossible to prepare a complete list as the language itself is constantly evolving and growing.
ABITAZIONE PRINCIPALE - MAIN RESIDENCE
It is the house where is habitually resident the taxpayer who owns the possessory title or other real right, or other family members (spouse, relatives within the third degree and in-laws up to the second degree). The main residence benefits from a range of tax reliefs both for income tax and local taxes on real estate.
ACCANTONAMENTI - PROVISIONS
Apportionment of quotas of income to funds aimed at covering risks or expenses. Tax legislation allows the deduction of some types of provisions from income within established amounts. The main provisions concern the fund set aside for severance pay, the credit risks fund and the exchange risks fund.
ACCATASTAMENTO - CADASTRAL REGISTRATION
Registration of real estate properties in the cadastral register with the consequent attribution of cadastral income.
Owners must report, to the local office of the Agenzia del Territorio, new buildings within 30 days from the moment they become habitable or in any case suitable for the use to which they were intended.
Currently, with the DOCFA (Documenti Catasto Fabbricati, Land documents) online procedure, the taxpayer can, with the assistance of a qualified professional, suggest the cadastral value.
For real estate properties that have not yet been registered, for tax purposes the owner can refer to the value established for similar buildings.
If it rectifies the cadastral value already established or suggested by the taxpayer, the Agenzia del Territorio must notify the person concerned of the new value against which it is possible to make an appeal to the competent Tax Commission within 60 days.
ACCERTAMENTO - ASSESSMENT
Action or actions taken by the Revenue Agency, within precise deadlines, to determine the taxable income and tax of the taxpayer. For main taxes it can be of various types (analytical, synthetic, inference, etc.) depending on the way in which it is carried out.
For the assessment, the offices generally use the elements resulting from the database of the tax registers and information acquired directly (also through access, inspections and verifications at the taxpayer’s property) or indirectly. The assessment procedure is normally concluded with the notification of the charges through a specific notice.
There is usually only one assessment, which is all encompassing and, therefore, cannot be “integrated” with the notification of further assessment, except on the basis of the subsequent discovery of new elements.
However, the offices can notify the taxpayer of a partial assessment, based on information in the tax register or communications sent from the Finance Police or public administrations or resulting from the statistics-based tax assessment. The partial assessment may, for example, concern income from company stocks, from buildings, undue deductions, exemptions and reductions and does not exclude the possibility of subsequent assessments of a general nature, always within the established deadlines.
ACCERTAMENTO CATASTALE - CADASTRAL VERIFICATION
An operation consisting in the identification, even by a specific on-site visit, of the property unit reported, in order to verify the correctness of the data and elements declared, as well as the correspondence between the planimetry and the actual state of the property.
ACCERTAMENTO CON ADESIONE (CONCORDATO) - VERIFICATION WITH ACCEPTANCE (COMPOSITION)
Procedure on the basis of which the correction of the declared taxable base (or its determination in case of no tax return) is made through discussions between the financial office and the taxpayer. It is concluded with a document of the office signed, in acceptance, also by the taxpayer.
Taxpayers who agree to the verification have various advantages, among which:
- the reduction to a quarter of penalties;
- the reduction of the penalties envisaged for tax crimes (up to half) and the non-application of accessory sanctions, if the verification with acceptance is finalised before the first level case is started;
- the total closing of the dispute (the Revenue Agency cannot carry out verification of the taxable income agreed on, except in specific and strictly particular cases).
The definition may concern all the main taxes (direct taxes such as Irpef, Ires, Irap, substitute taxes) and indirect taxes (VAT, registration fee and mortgage and cadastral taxes). The procedure is finalised with the payment of the amounts owed, which can even be made in instalments. In such case legal interest is due and the taxpayer is also expected to give a guarantee. (See: judicial conciliation).
ACCESSI, ISPEZIONI, VERIFICHE - ACCESS, INSPECTIONS, VERIFICATIONS
Verification activities of various types carried out at the taxpayer’s business premises.
After they have begun the taxpayer loses the right to avail of certain options envisaged in his/her favor (for example, voluntary correction of tax return).
ACCESSO - ACCESS
Power to enter a place and stay there, even without or against the consent of the taxpayer, in order to carry out the operations authorized by the person in charge at the competent Revenue Agency Office.
Current legislation allows access to both business premises or agricultural activities and in those intended for the exercise of crafts and professions. If it needs to be carried out in other places (for example a private house) the authorization of the Public Prosecutor is required, justified by the existence of serious evidence of tax violations (see: Powers of the offices).
ACCISE (o imposte di fabbricazione e consumo) - EXCISE DUTY (OR TAX ON PRODUCTION AND CONSUMPTION)
Indirect taxes that affect certain fuel products or alcohol. Depending on the case, the tax may be due from the moment of production or import or from the moment in which the product is made available for consumption. The following activities are subject to excise duties: production of spirits and beer, production of mineral oils, consumption of electricity, consumption of methane gas, consumption of lubricant oils.
ACCONTO ADDIZIONALE COMUNALE IRPEF - DOWN PAYMENT OF THE COUNCIL SUPPLEMENT IRPEF
Since 2007 a down payment of 30% is required for the council supplement tax. This is calculated on the basis of the supplement tax owed on the taxable base of the previous year, according to the rates established by the Municipality, which is retained starting from the month of March in a maximum number of 9 instalments. The final payment of the supplement is determined at the moment of the balance operations and the relevant amount is retained in a maximum number of 11 instalments, starting from the payment period subsequent to the one in which they were carried out, but no later than December.
ACCONTO IRPEF - DOWN PAYMENT OF IRPEF
It is the amount that the taxpayer is generally expected to pay as down payment on the income tax due for the current year. In order to establish if the down payment is due or not, it is necessary to refer to the tax calculated in the tax return of the previous year. If the resulting Irpef debt:
- is no higher than euro 51.65, then no payment is due;
- is higher than euro 51.65, then a down payment of 99% of the amount is due.
In this case, the taxpayer must pay the sum owed:
- in a single payment (by the end of the month of November) if the amount due is lower than 257.52 euro;
- in two instalments (the first one of 40%, to be paid within the deadline envisaged for the closing balance of the tax relating to the previous year; the second one of 60%, to be paid by the end of the month of November) if the amount due is equal to or higher than 257.52 euro.
The taxpayer who expects to declare a lower tax in the subsequent tax return can determine the down payment on the basis of the tax expected.
ACQUIESCENZA - ACQUIESCENCE
Payment within the deadlines of the amounts due following an assessment carried out by the Revenue Agency, without contesting it and without having recourse to the verification with acceptance, with a right to a reduction of the sanctions. The amounts due following assessment can also be paid in installments. In this case legal interest has to be paid and the taxpayer is expected to give a guarantee.
ACQUISTI IN SOSPENSIONE DI IMPOSTA - PURCHASES WITH TAX SUSPENSION
Right granted to frequent exporters to purchase goods and services without incurring VAT, within the limits of a certain amount (ceiling). The status of frequent exporter is acquired if the level of exports or similar operations registered in the previous solar year or in the previous twelve months has been higher than 10% of the volume of business. The aim is to prevent an excessive build up of VAT credit, since this would end up penalising exporting companies.
ACQUISTI INTRACOMUNITARI - INTRA-EU PURCHASES
All the acquisitions, deriving from deeds against payment, of the ownership of property or of other real property rights, sent or transported on Italian territory from another member State by the seller, in his/her role of taxable subject, or by the purchaser or by third parties on their behalf.
ADEMPIMENTO - FULFILMENT
The carrying out of a duty required to the taxpayer: for example, the submission of the income tax return or the payment of taxes.
****ADDIZIONALE IRPEF - SUPPLEMENTS TO IRPEF
Taxes owed by natural persons. Supplements are calculated by applying a fixed rate to Irpef. They are intended for the Region (regional supplement) and for the Municipalities where the tax domicile is (council supplement). For employees and similar subjects it is the withholding agents that withhold the tax. Other taxpayers have to calculate and pay the supplements at the moment of their tax return.
AGENTI DELLA RISCOSSIONE - TAX COLLECTION AGENTS
Companies that, within a certain territory, are entrusted on a concession basis with the task of collecting taxes, even by force, on behalf of the Revenue Agency.
AGENZIE FISCALI - TAX AGENCIES
Non-economic public bodies created from the organisational review of the Ministry of Finances, carried out with the legislative decree 300/99. The four agencies (Revenue Agency, Customs, Territory and State Property Office) carry out the functions previously entrusted to the departments of the old ministry. They have full autonomy in regulation, administration, treasury, organisation, accounts and finance within the limits set by a convention agreed every year with the Ministry of Economy and Finances, which sets the strategic aims and carries out a constant monitoring of their activities. From 1 December 2012 the Italian Revenue Agency has incorporated the Real Estate and Land Registry Agency (Agenzia del Territorio).
AGEVOLAZIONE FISCALE - TAX CONCESSION
Preferential treatment granted in certain cases; it generally consists of the application of a reduced rate or in the concession of tax credits, deductions from the taxable base, detractions, and exemptions.
AGEVOLAZIONI‘DE MINIMIS’ - ‘DE MINIMIS’ CONCESSIONS
Limited economic aid that EU Member States can freely grant to companies without having to wait for the issuing of the prescribed authorisation from the European Commission. Starting from 1st January 2007 the ‘de minimis’ regime allows companies to receive aid on this basis of up to 500,000 euro over three years.
AGEVOLAZIONI PER DISABILI - CONCESSIONS FOR DISABLES
Tax benefits provided for disables, considerably increased by the tax laws of recent years. The main reductions are:
- For vehicles
- For other means of assistance and technical and IT equipment
- For general medical expenses and expenses for specific assistance for disabled people
- For the elimination of architectural barriers
- For personal assistance
AGGIO - PREMIUM
Sum that the agent receives for the collection of taxes.
ALIQUOTA - RATE
Percentage applied to the taxable base to determine the tax. The rate indicates the amount of money deducted for tax and can be fixed (as, for example, for Ires) or can vary depending on the increase of the taxable base. In this case it is said to be ‘progressive’ (for example Irpef rates).
ALIQUOTA MARGINALE - MARGINAL RATE
Percentage of tax applied to the portion of income falling within the last tax bracket.
ALIQUOTA MEDIA - AVERAGE RATE
Deriving from the difference between the overall amount of the tax and the taxable income.
AMMORTAMENTO DEI BENI - AMORTIZATION OF GOODS
Accounting procedure in which the original cost of a product of durable nature, both tangible (machinery, installations, buildings, vehicles) and intangible (goodwill) is taken into consideration in order to determine the costs relating to each tax period.
This procedure is carried out in cases when the contribution of a certain product to the economic activity has a longer duration than the period of time in which the business result is calculated (usually a year).
ANAGRAFE TRIBUTARIA - TAX REGISTER INFORMATION SYSTEM
Centre for gathering and processing data of financial interest concerning all natural persons, companies, and entities to which an identification code (tax code , VAT number) has been attributed by the Revenue Agency. From the Tax Register the offices of the Revenue Agency can obtain the information needed for the purposes of carrying out the assessment of income and of combating tax evasion. It also collects elements and information regarding economic movements that are relevant for tax purposes, which can be used by other public administrations with cross-reference verifications.
ARMONIZZAZIONE FISCALE - FISCAL HARMONISATION
Process of integrating the tax systems of member States of the European Union, based on the convergence of all national legislations towards common principles.
ASSEVERAZIONE - ASSEVERATION
Certification that applies to all taxpayers to whom statistics-based tax assessments are applied. It is issued, at the taxpayer’ request, by the persons in charge of the fiscal assistance centres for companies (CAF IMPRESE) as well as by professionals qualified for the on line transmission of tax returns. The asseveration certifies that the accounting and non-accounting data transmitted to the tax administration, and relevant to the application of statistics-based tax assessments, correspond to those shown in the accounting records and in other documentation.
Connected items: fiscal certification, tax certification, conformity permit.
ASSISTENZA TECNICA - TECHNICAL ASSISTANCE
During the tax trial , this is the possibility to use the services of a qualified legal counsel. Technical assistance is optional when the dispute concerns taxes of an amount no higher than 2,582.28 euro. It is compulsory in other cases. Persons who cannot afford it are guaranteed free assistance.
ATTIVITA’ - BUSINESS
Practice of an enterprise, craft or profession in Italy. Businesses are grouped in socio-economic categories according to a classification deriving from the national accounting system. The list can be consulted on the Revenue Agency website. Whoever sets up a business in Italy must communicate it – also by the Internet – to the Revenue Agency within 30 days, which will then assign a VAT code. Variations and closing down of businesses must also be communicated.
Connected items: Business (setting up of a business, variation, closing of business), Electronic commerce, VAT number
ATTIVITA’ AGRICOLE - AGRICULTURAL ACTIVITIES
For the purposes of income tax these are:
- activities involving the cultivation of land and silviculture;
- the raising of animals with fodder, at least a quarter of which can be obtained from land and activities aimed at the production of plants with the use of fixed or mobile structures, even provisional, if the surface reserved for production does not exceed twice that of the land on which the production is carried out;
- activities aimed at the processing, transformation and alienation of agricultural and zoo-technical products, even if not carried out on the land, which fall within the normal exercise of agriculture according to the relative techniques aimed at products of which at least half are obtained from the land and from the animals raised on it.
ATTIVITA’ (chiusura di) - BUSINESS (CLOSING OF)
Declaration that must be submitted in case of closing down of business within thirty days from the date on which the operations relating to the company’s liquidation are terminated.
ATTIVITA’ (comunicazione di inizio) - BUSINESS (SETTING UP)
Declaration that must be submitted, also via the Internet, to the Revenue Agency within 30 days from the beginning of any type of economic activity or by the establishment of the company. The Revenue Agency assigns a VAT code that remains unvaried until the moment of closing down of the business, even in case the taxpayer’s tax domicile changes. From 1 April 2010, to submit the declaration of business setting up, change of data or closing down, taxpayers required to register in the Business Register or in the Rea (Economic and Administrative Register) should submit, on line or in electronic form, the “Comunicazione unica” (Single Communication) to an office of the Business Register.
ATTO A TITOLO ONEROSO - AGAINST PAYMENT (DEED)
Deed that implies an expense or compensation.
For example, sales (as opposed to donations, which are “free deeds”)
AUTOCONSUMO - PERSONAL CONSUMPTION
Personal consumption, by the individual entrepreneur or by the individual practising a craft or profession, of the goods or services produced. This use is subject to a particular fiscal discipline with regard both to direct taxes and to VAT.
AUTOFATTURA - SELF-INVOICING
Fiscal document that in some cases the client must issue, thus substituting the supplier.
AUTOLIQUIDAZIONE - AUTOTASSAZIONE - SELF-ASSESSMENT TAXATION
Calculation and payment of taxes due carried out directly by the taxpayer in cases envisaged by the law.
AUTONOMIA TRIBUTARIA - TAX AUTONOMY
Power bestowed on Regions and local authorities to set and collect their own taxes, in compliance with the Constitution and according to the principles of coordination of public finance and of the tax system.
AUTOTUTELA - SELF-DEFENCE
The possibility that every public administration has to correct its own errors without the need for a judicial decision.
The Revenue Agency makes the correction either on request of the taxpayer or on its own initiative. It is not necessary for the taxpayer to have submitted an appeal to the Tax Commission. Any deed which in itself has the potential of harming the interests of the taxpayer can be the object of re-examination.
The same office that issued the deed is competent to annul an unlawful deed. In the event that the office omits to follow up the annulment without justified reason, the Regional Direction on which the office depends can do so instead.
The power to annul the deed, or to renounce the imposition, exists in all cases of unlawfulness of the deed or imposition, such as for example in cases of:
- mistaken identity;
- obvious logical or calculation error;
- error concerning the tax due;
- double imposition;
- lack of consideration of payments regularly made;
- lack of documentation subsequently remedied (not after the deadlines);
- existence of the requirements to benefit from deductions, detractions or concessions, previously denied;
- material error of the taxpayer, easily recognisable by the administration.
The annulment can be carried out even if the judgement is pending or if the deed has already become definitive due to the expiry of the deadline to appeal and even if the taxpayer has submitted an appeal and this has been rejected for reasons of formality (the appeal is inadmissible, it cannot proceed, it cannot be accepted, etc.) where the ruling has become final. The only case in which the annulment is not allowed is when there is a judgement favourable to the office with regard to merit.
The annulment of the unlawful deed automatically entails the annulment of the deeds consequent thereto (for example, the withdrawal of an unfounded verification notice entails the annulment of the subsequent enrolment on the tax register and of the relative notices of payment) and the duty to return the sums unduly collected.
AVVISO DI ACCERTAMENTO - VERIFICATION NOTICE
Deed through which the fiscal office formally notifies the taxpayer of a debt.
The notice, which must always be motivated, otherwise it is invalid, also according to the dispositions of the Taxpayers’ Statute, must indicate:
- the taxable base ascertained and the rates applied;
- the taxes settled, gross and net of deductions, withholding tax and tax credits;
- the office where it is possible to obtain information as well as the person responsible for the procedure;
- the modalities and deadline for payment;
- the judicial authority to which it is possible to appeal.
The notice can be appealed by the tax payer within 60 days from its notification.
Connected items: Assessment, Appeal, Payments, Verifications.
AZIONE ESECUTIVA - EXECUTIVE ACTION
(See Forced Execution).
BASE IMPONIBILE - TAXABLE BASE
Value on which the rate must be applied to determine the tax due. Concerning direct taxes (Irpef and Irpeg), the taxable base corresponds to the amount remaining after having applied to the gross income all the deductions and reductions envisaged; for Ici, it is a multiple of the revaluated cadastral value. Concerning indirect taxes it varies for each tax: for example in VAT it is normally represented by the amount due for transfers and provision of services, while in registration fee it is the value of the product or right.
BENE AD USO PROMISCUO - PRODUCT FOR MULTIPLE PURPOSES
Goods used both for carrying out a business or profession and for other purposes. This category includes, for example, the vehicle used both for carrying out one’s professional activity and as private vehicle.
BENEFICI ACCESSORI - FRINGE BENEFITS
Goods and services granted to some employees as a form of extra salary; generally speaking they are intended to facilitate the beneficiaries in the performance of their duties, or are given as an incentive. The use of a company vehicle or company houses, or loans at particularly favourable interest rates, for example, are fringe benefits
BENI AMMORTIZABILI - AMORTIZABLE GOODS
Goods used for carrying out a business, the cost of which is charged over several financial years according to their level of obsolescence and their use.
BENI STRUMENTALI - CAPITAL GOODS
The so called goods of repeated utility, essential for carrying out a business, craft or profession. Their cost is not entirely deducted in the purchase period but distributed throughout several financial years according to the logic of amortization.
BLACK LIST - BLACK LIST
(see: Tax haven)
BOLLA DI ACCOMPAGNAMENTO - WAYBILL
Fiscal document containing the description of the travelling goods, generally replaced by the transport document.
Currently the waybill is compulsory only for some types of goods (tobacco, matches, products subject to excise duty and tax on consumption).
BOLLO (IMPOSTA) - STAMP DUTY
Tax owed for the preparation of deeds, documents and registers specifically identified by law. It can be paid by computer-generated stamp, using the form F23 or the "F24- identifying elements" only for stamp duties on lease contracts).
BONUS FISCALE - FISCAL BONUS
Synonym of tax credit granted when specific conditions occur. It can be used for the payment of taxes and for the payment of withholding taxes.
BUONO D’IMPOSTA - TAX CREDIT BONUS
Tax concessions consisting in the grant of a credit by the Tax Administration and that can be used exclusively to repay tax debts.
It was introduced to replace other concessions in relation to direct taxes.
CAF CENTRI DI ASSISTENZA FISCALE - CAF FISCAL ASSISTANCE CENTRES
Organisations, listed in a specific register kept by the Revenue Agency, which give fiscal assistance to taxpayers who ask for it.
CAPACITÀ CONTRIBUTIVA - TAXPAYING CAPACITY
Availability of the resources necessary to sustain the payment of taxes. According to the Italian constitution, taxes must always be proportionate to the citizen’s taxable capacity.
CAPIENZA - CAPACITY
Possibility of a certain amount or value to include a second one. In the fiscal field the term refers to cases in which the taxpayer would have the right to a detraction of a higher amount than the tax he must pay; it is then said that the detraction “doesn’t find capacity” in the tax. Normally in this case the exceeding part of the detraction should be lost. The recent trend of Italian tax laws however is to allow the beneficiary to postpone it to following tax periods or to transfer the benefit to a family member.
CAPITALE (redditi da) - CAPITAL (INCOME FROM)
The interest or proceeds deriving from the value of bonds and shares and other income deriving from the use of financial capital. They can be distinguished in two main groups:
- proceeds deriving from stocks in companies and businesses, such as the dividends distributed by investment companies;
- interest and other income deriving from loans or other forms of investment.
(See also Income from Capital (taxation of).
Gain following the transfer of company stocks, or the sale of titles and rights related to them (warrants, convertible bonds, options, etc.) at a price higher than the purchase price
(see terms Administered savings, Managed savings).
CARICO FISCALE - FISCAL CHARGE
Overall amount of the tax payment to which the taxpayer is subject following the application of a tax.
CARTELLE DI PAGAMENTO - NOTICES OF PAYMENT
Notices prepared by the collection agents and notified to the taxpayer through their staff or sent by registered post, containing the invitation to pay the amounts registered within sixty days.
The notices include, among other things, the date on which the role became effective, the description of charges with the relative motivations, instructions on how to pay and indications of how to appeal.
If the taxpayer considers the request to be correct, he/she can pay the notice at the offices of the collection agent, in a bank or at the post office; if he/she doesn’t consider the request correct, the taxpayer can ask for clarifications from the office responsible for the charge (and therefore not to the collection agent, who is a simple executor) even by telephone: this can be done through the multi-channel assistance centre (number 848.800.444). If the taxpayer still believes that the charge is unfounded he/she can present an appeal within 60 days from notification.
CASSETTO FISCALE - TAX BOX
Internet service provided by the Revenue Agency that gives taxpayers the possibility to consult, in complete security, their fiscal data. In practice, by way of the tax postbox, citizens can question the tax register and ask for any information concerning:
- the tax return submitted;
- refunds of direct and indirect taxes;
- payments made using the F23 and F24 forms;
- deeds of the register that concern them;
- their tax code , personal data and residence;
- the denomination, VAT number , tax domicile, legal address and description of the business of an sole propietorship.
To access the service a PIN code is necessary.
CATEGORIE CATASTALI - CADASTRAL CATEGORIES
Five categories into which immovable properties are classified: A (private houses), B (buildings for collective use, such as schools and barracks), C (commercial buildings, such as garages, shops, shelters), D (industrial buildings), E (special buildings). In each category there are various sub-categories.
CENTRI DI ASSISTENZA MULTICANALE - MULTI-CHANNEL ASSISTANCE CENTRES
Offices of the Revenue Agency that provide fiscal information and that, in some cases, can also annul the payment reminders and the communications relating to the settlement of the tax returns.
The service, which can be accessed by calling the number 848.800.444, is open from Monday to Friday, from 9 am to 5 pm and on Saturday from 9 am to 1 pm. The cost of the call, from anywhere in Italy, is always at the standard local timed tariff.
CENTRI OPERATIVI - OPERATIVE CENTRES
Organisations established in Venice, Cagliari and Pescara in concurrence with the suppression of the Service Centres. The two Operative Centres carry out all the ad hoc activities related to the settlement of the tax returns until 1997 together with some other specific tasks such as:
CERTIFICAZIONE TRIBUTARIA (O “VISTO PESANTE”) - TAX CERTIFICATION (OR “HEAVY ENDORSEMENT”)
Certification attesting that the subject entrusted with the tax inspection (the so-called “certifier”) has ascertained the exact application of the tax norms relating to the business income and carried out the tasks, inspections and activities annually indicated with a specific decree. Those authorised to issue the certification are: accounting auditors registered for at least 5 years in the professional registers of certified public accountants, accountants, qualified book-keepers and business consultants, qualified for the internet submission of tax return.
As for the conformity permit and the asseveration, the certifiers must first communicate this inspection activity to the competent Regional Direction of the Revenue Agency and stipulate an insurance policy covering damages possibly caused.
The certification can be obtained by all taxpayers who have a business income in a regime of ordinary accounting (individual entrepreneurs and companies).
CERTIFICAZIONI FISCALI - FISCAL CERTIFICATIONS
Instruments of fiscal “supervision” the practise of which is entrusted to third parties professionally qualified, with the purpose of guaranteeing, to those taxpayers who use them, that certain fiscal obligations are correctly fulfilled. At the same time, the use of the fiscal certification system facilitates the carrying out of inspections by the Revenue Agency. Fiscal certifications can consist of a conformity permit, asseveration and tax certification.
CESSIONI INTRACOMUNITARIE - TRANSFERS WITHIN THE EU
Transfers within the EU not subject to VAT are represented by transfers of goods carried out from the territory of one State to that of another State within the EU, provided the following conditions are met:
- the seller is a taxable subject in Italy;
- the purchaser is a taxable subject in another member State;
- the transfer is carried out against payment.
In the execution of tax verifications, it attests that the investigation complies with the inspection methodology.
The checklist summarises both the mandatory and the optional inspections, and marks them with a specific symbol.
It is paid by the owners of combustion.
CHIUSURA DI ATTIVITA’ - CLOSING OF BUSINESS
CINQUE PER MILLE - FIVE PER THOUSAND
The expression ‘five per thousand’ defines the mechanism by which the taxpayer can choose to reserve 5 per 1000 of his/her income tax to support the no-profit sector, universities, scientific and medical research.
CLASSE CATASTALE - CADASTRAL CLASS
Criteria to distinguish immovable property belonging to a certain cadastral category in relation to the finishing, its position, etc.
CODICE FISCALE - TAX CODE
Sequence of characters that identifies every taxpayer (natural persons, companies, legal persons, etc.) in relations with the Revenue Agency and with other bodies and public offices. For natural persons it is determined on personal data, for judicial entities it generally corresponds to the VAT code.
The tax code is automatically assigned to all citizens by the Information System . If it has not been assigned, it is necessary to go to the Office of the Revenue Agency with an identification document; for foreigners, a passport or residence permit (if required by the foreign citizen) are necessary; for newborn infants the birth certificate or the relative self-certification by the parent are sufficient.
The tax code can also be assigned by the offices of the Revenue Agency, by the Municipalities (for newborn infants, within sixty days from their birth) and by consulates (for individuals residing abroad), if they are connected to the IT system of the Revenue Agency.
For natural persons the characters (letters and numbers) of the tax code have the following meaning:
- the first three letters correspond to the first three consonants of the surname; if the surname has less than three consonants, the initial vowels are used in order to have three characters. If the surname has only two characters, the third character will be the letter X;
- the same criteria is valid for the first name, which provides the second set of three letters; if the name is formed by more than three consonants, the first, third and fourth are used;
- the first two numbers correspond to the last two numbers of the year in which the person was born;
- the ninth character is a letter that represents the month in which the person was born (the following letters are not used: F, G, I, N, O, Q, U, V, Z);
- the following two numbers are the day of birth, which for females is increased by 40 units;
- characters from 12 to 15 indicate the place of birth;
- and finally, the last character (check box) is calculated by the Tax register according to a specific algorithm.
See also: Homocode
CODICE PIN - PIN CODE
Sequence of ten numbers necessary to access the services offered by Fisconline, such as the internet tax return, the payment of taxes by using the online F24 form, the registration of lease contracts and access to the tax box. The PIN code can be requested through the Internet following the instructions provided or, alternatively, by going to any office of the Revenue Agency with an identification document.
If the code is requested through the Internet, it is necessary to indicate one’s personal data and the details relating to the last tax return. Once the data required has been provided and confirmed, the system assigns to the taxpayer the first four characters of the pin code. The second part of the code (six characters), as well as the password to access the protected areas of the Revenue Agency’s website are delivered by ordinary mail at the residence of the applicant, within around 15 days from the request.
For the issue of the PIN code to individuals residing abroad see Internet tax return.
CODICE TRIBUTO – DUTY CODE
Sequence of numbers and letters that identify the tax to which the payment refers. The various tax codes can be found on the website.
COEFFICIENTI DI AMMORTAMENTO - COEFFICIENTS OF AMMORTIZATION
Rates to apply to goods in order to determine the rate of amortization for the tax period concerned. They vary according to the sector and type of amortizable goods.
COMMERCIO ELETTRONICO - ELECTRONIC COMMERCE
Internet activity of selling products. To carry out e-commerce it is necessary to request a VAT code to the competent office of the Revenue Agency and send communication of the setting up of business to the Municipality where the person carrying on the business is resident.
COMMISSIONI TRIBUTARIE - TAX COMMISSIONS
Jurisdictional bodies competent for disputes relating to tax matters. The Commissions are competent for all disputes involving taxes of all kinds and character, including regional, provincial and municipal taxes and the now suppressed contribution to the National Health Service, surcharges and supplements, administrative sanctions issued by the financial offices, interest and all other accessories.
The Tax Commissions of the first instance are based in the main town of each province (provincial Tax Commissions), while Commissions of the second instance are in the head town of each region (regional Tax Commissions).
COMPENSAZIONE - COMPENSATION
Possibility to make use of one’s credits in order to reduce the amount of taxes, sanctions, contributions and sums due. Compensations are made effective by indicating them in the F24 form.
COMPENSO IN NATURA - REMUNERATION IN KIND
Goods or services provided as payment for services rendered: for example, the concession to use the apartment, which is property of the business, granted to the employee. Remunerations in kind granted to employees are subject to tax following particular criteria.
COMPETENZA FISCALE DEI COSTI E DEI RICAVI - TAX COMPETENCE OF COSTS AND EARNINGS
Principle on the basis of which costs and earnings are apportioned to the appropriate financial year by considering the tax moment at which the earnings were achieved and the costs sustained.
Communication that, as of 1 April 2010, taxpayers required to register in the Business Register or in the Rea (Economic and Administrative Register) are obliged to use to submit a declaration of business setting up, change of data or closing out. The Single Communication (ComUnica) is an electronic file consisting of a set of files with the various electronic forms for the administrations involved. The communication must be submitted on line or submitted by digital media to the Business Register.
COMUNICAZIONI - COMMUNICATIONS
Notices sent to taxpayers containing requests or information of various kinds. Communications include the notices informing of the outcome of the automatic inspection (settlement) carried out on their tax return. They can be communications “of regularity” if the tax return is correct, communications “of irregularity” or requests for clarification, if the inspection has detected some errors.
Communications also concern the outcome of the formal inspection of tax return, with which the Revenue Agency checks that the data provided in the tax return is in conformity with the documents in possession of the taxpayer and with the information contained in the tax returns of other subjects or provided by other legal entities.
Communications deriving both from automatic inspections and formal inspections allow the taxpayer to redeem the possible irregularities by paying a reduced sanction.
The taxpayer can also send communications to the Tax Administration, for example to report variations in land income or losses due to missed cultivation and natural events or to communicate the beginning of building renovation works.
CONCESSIONE - CONCESSION
Administrative deed with which the Tax Administration assigns activities for which it is competent to external subjects meeting particular requirements. Currently, for example, the service of tax collection and of managing the Tax registers are carried out through a system of concession
CONCORDATO - COMPOSITION
(see: Verification with acceptance).
CONCILIAZIONE GIUDIZIALE - JUDICIAL CONCILIATION
Deed that allows to close a dispute started against the tax authorities following an appeal. It ends with an agreement between the taxpayer and the Tax Administration in which the amounts of taxes and other due sums are set in order to settle the dispute. With conciliation, which can only be reached in disputes before the provincial tax commission, the taxpayer can obtain the following benefits:
- reduction of the sanctions to 40%
- decrease of up to half of the penalties envisaged for tax crimes, without the application of accessory penalties;
- compensation of the expenses incurred for the judgment.
Conciliation can also concern only some aspects of the dispute; in this case, it proceeds in the ordinary way, but only with regard to the issues on which no conciliation has been reached. The procedure ends with the payment, within 20 days, of the whole sum or, if payment in instalments is chosen, of the first instalment accompanied by a suitable guarantee (bank guarantee).
CONDONO FISCALE - TAX AMNESTY
Legislative instrument with which particular reductions are granted to those who want to define their tax relation with the tax office or put an end to a pending lawsuit of a fiscal nature.
CONGUAGLIO - BALANCE
Definitive determination of the taxes due in a certain year in order to regulate the possible differences in debit or credit. As regards income deriving from subordinate work, by the month of February the employer (withholding agent) is obliged to effect the balance between the advance tax deductions operated and the taxes due on income from subordinate employment relating to the previous year.
CONSOLIDATO NAZIONALE - NATIONAL CONSOLIDATED ACCOUNTS
Overall income of a group formed by companies (parent and subsidiary) established in the territory of the State.
CONTENZIOSO TRIBUTARIO - TAX LITIGATION
Proceedings initiated before the Tax Commissions.
(see: Tax trial).
CONTO FISCALE - FISCAL ACCOUNT
Account opened with agents used by individuals who possess a VAT code to regulate the relations of debit and credit with the Tax Administration.
CONTRIBUENTE - TAXPAYER
Subject in relation to whom the tax assumptions occurs and who, therefore, is required to pay taxes (taxpayer ‘by law’).
On the contrary, the person who, although sustaining the tax duty, is not the subject directly obliged, is instead defined taxpayer ‘in fact’ (this is for example the case of the final consumer in relation to VAT).
Taxpayers can be natural or legal persons and, in general, all forms of organisation and individuals, even without a juridical status, in relation to which the tax condition has occurred.
CONTRIBUTO IN CONTO CAPITALE E CONTO INTERESSI - CONTRIBUTION IN CAPITAL ACCOUNT AND INTEREST SUBSIDY
A contribution is issued in capital account when it is generically intended to increase the patrimony of the business. Interest subsidy is issued by the State or a public body for the total or partial payment of interest of those who have agreed to a mortgage.
CONTROLLO DELLA DICHIARAZIONE - INSPECTION OF THE TAX RETURN
Examination of the tax return in order to verify whether it is correct. An initial inspection the so-called settlement, is carried out automatically by the Information System on all tax returns; a second inspection (the so-called formal inspection) is carried out on samples of tax returns by the office of the Revenue Agency. A third phase (substantive inspection) is intended to rectify the individual incomes declared and to identify subjects who, although being obliged to submit the tax return, have not provided to do so.
(see also Assessment).
CONTROLLO FORMALE (delle dichiarazioni) - FORMAL INSPECTION (OF TAX RETURN)
Activity carried out by the offices of the Revenue Agency concerning the tax returns selected on the basis of criteria established by the Director of the Revenue Agency.
The formal inspection, which must be concluded by 31st December of the second year following the year in which the tax return was submitted, verifies whether the information declared is in conformity with the documentation kept by the taxpayer and with the data gathered from the tax returns of other subjects or transmitted, as legally required, by welfare and social security organisations, banks and insurance companies.
To this end the taxpayer whose tax return is subject to formal inspection is invited by the office to exhibit or transmit the documentation demonstrating the correctness of the information declared and provide clarifications in the event that discrepancies are encountered between the latter and the information possessed by the Revenue Agency.
The formal inspection allows to:
- exclude completely or partly the deduction of the withholding taxes;
- exclude completely or partly the undue tax detractions and the deductions from income on the basis of the documents requested from taxpayers;
- determine the tax credits owed on the basis of the information resulting from the tax returns and from the documents requested from taxpayers;
- correct the material and calculation errors committed in the withholding agents’ tax return.
The outcome of the formal inspection is communicated to the taxpayer.
The taxpayer who pays the sums requested within thirty days benefits of a reduction of the sanction.
CORREZIONE DEL MODELLO 730 - CORRECTION OF THE 730 FORM
Possibility to integrate the 730 Form by presenting the Modello Unico form (when the taxpayer realises that he has not declared all or some of his/her income) or by submitting a new 730 form by 31st October (when the correction entails a greater refund or a reduced debt).
CORRISPETTIVO - SUM DUE
Sum paid for the purchase of a product or service. It can include value added tax (VAT), which is debited to the purchaser as a reimbursement.
COSTI - COSTS
The sums that the business has to sustain in order to acquire goods, services and production items necessary for its activities. They represent the negative elements in the formation of income; they can be deducted, according to specific tax norms.
COSTITUZIONE IN GIUDIZIO - ENTRY OF APPEARANCE
The filing of the appeal at the secretariat of the Tax commission appealed to (with certification that the submission has occurred) and of other documents required by law, to be carried out within the non-extendable deadline of 30 days from the submission of the appeal. According to a recent jurisprudential trend it cannot be sent by means of ordinary mail.
COSTRUZIONI RURALI - RURAL BUILDINGS
Buildings or portions of buildings and relative outbuildings belonging to the possessor or tenant of the lands. In particular, these buildings are intended for:
- the accommodation of the persons responsible for the cultivation of the land, and for looking after the land and the livestock, as well for the accommodation of the dependant family members living with them;
- the shelter of the animals necessary for the cultivation of the land;
- the storing of the machines, equipment and provisions needed for the cultivation and conservation of agricultural products.
The new rules have introduced the obligation to report at the Building Cadastre all rural buildings that are still recorded in the Land Cadastre.
CREDITO DA DICHIARAZIONE (ECCEDENZA D’IMPOSTA) - CREDIT DERIVING FROM TAX RETURN (TAX SURPLUS)
The difference, in favour of the taxpayer, between the tax due for the year to which the tax return refers and the amount already paid in the form of withholding tax and down payment; the surplus can be requested as a refund or used to compensate present and future tax debits.
The credits resulting from the tax return, which the taxpayer chooses not to use in compensation or to carry over to the following year, are refunded by the offices on the basis of automatic procedures.
If the taxpayer has not provided the details of his bank/post office account, the refund is paid in different ways, depending on the amount:
- for amounts up to € 999.99, inclusive of interest, the taxpayer receives the communication to go to any post office where, showing an identity card, can collect the refund in cash
- for amounts over € 999.99 and up to € 51,645.69, inclusive of interest, the taxpayer is invited to communicate his bank details, together with a form to be filled and delivered, by the specified deadline, to a post office. If the taxpayer fails to deliver the model and does not provide the details of his account, the refund is made by bank draft issued by the Bank of Italy
- for amounts exceeding � 51,645.69, inclusive of interest, and interest-only repayments for any amount, the refund is made, for safety reasons, only by bank or post office credit.
CRITERIO DI CASSA E DI COMPETENZA - CASH BASIS AND ACCRUALS BASIS
Method of allocation of income and costs: in the period in which they were collected or sustained (cash basis) or in the period in which they matured, irrespective of the moment of collection or payment (accruals basis).
CUD - CERTIFICATION OF THE WITHHOLDING AGENT
Certification valid for both tax and social security purposes, given to employed and retired workers and to those who earn income treated as income from subordinate employment. Starting from 1998 it replaced the 101 and 201 forms. It must be issued by the month of March of the following year or, if the relationship of employment ends, within 12 days of the employee’s request.
CUMULO GIURIDICO (delle sanzioni) - JURIDICAL ACCUMULATIVE SANCTIONS
Application of the sanction that should be imposed for the most serious violation, increased by a quarter to half, when the taxpayer, even at different times, commits a number of violations that, in their progression, prejudice or tend to prejudice the determination of the taxable income or of taxes. If the violations refer to various taxes, the basic sanction is first increased by a fifth. If they concern different tax periods, the basic sanction is first increased by half or triple.
They differ from the “material” accumulative sanction, which is a simple sum of the applicable sanctions.
Juridical accumulative sanctions (which obviously cannot be higher than the material ones) cannot be applied for non-payments.
CUNEO FISCALE - TAX WEDGE
The tax wedge or contribution wedge is the difference between the cost of the work sustained by the company and the net retribution that remains available to the worker. It is formed by the taxes and contributions commensurate with retribution, which are paid by the employer and by the employee. It is therefore formed by a heterogeneous group of components that affect different subjects.
DEBITO D’IMPOSTA - TAX DEBT
Sum that the taxpayer is obliged to pay when the conditions set by tax law occur. Sometimes it is determined as a fixed amount but more often it is calculated by applying the tax rate to the taxable base.
DECADENZA - LAPSE
Loss of the right because it was not exercised within a certain deadline. In the tax field, limitation terms are frequent, such as for example for the proposition of an appeal to the Tax Commissions or in order to avail oneself of concessions, such as voluntary correction of tax return, acceptance, and composition.
DEDUZIONE PER ABITAZIONE PRINCIPALE - DEDUCTION FOR MAIN RESIDENCE
The possibility to subtract from the aggregate income the amount corresponding to the value of the main residence and of its outbuildings. With this deduction the first house is thus made practically exempt from Irpef.
The deduction is also within the taxpayer’s right when the building represents the main residence only of his/her family members.
It is granted only for one building unit, therefore if the taxpayer possesses two buildings, one intended for his/her own main residence and one used by a family member, the deduction is granted exclusively for the income of the building used personally by the taxpayer.
The deduction is also due when the habitual residence is transferred following the permanent admission to a hospital or other health institution, as long as the building unit is not rented.
DEDUZIONI - DEDUCTIBLE EXPENSES
Expenses that, by law, can be deducted from the aggregate income (see also deductions).
The main deductible expenses are: social and insurance contributions paid in compliance with legislative dispositions, periodic cheques paid to a legally separated spouse, spontaneous donations in favour of religious institutions, medical expenses and specific assistance expenses for disabled people, etc.
Deductibility is granted on condition that the expenses are paid by the taxpayer and have remained his/her responsibility for the entire tax period.
DEDUZIONI - DEDUCTIONS
Expenses that can be subtracted from the aggregate income, with an advantage related to the marginal rate reached by the taxpayer. They differ way from detractions, which lower the tax due.
Expenses that can be deducted from the income are:
- general medical expenses and expenses for the special assistance of disabled persons;
- compulsory and some voluntary social and insurance contributions;
- contributions for complementary welfare and for premiums and contributions paid to individual pension schemes;
- welfare contributions paid for personal or family carers and for home helps;
- donations to religious institutions;
- monthly cheques to the separated or divorced spouse;
- periodic cheques paid on the basis of a will or gift by contract;
- subsistence allowances ordered by the judge and paid to the family members as per art. 433 of the Italian Civil Code;
- contributions to obligatory consortiums;
- contributions for developing countries (see the list on the website of the Ministry of Foreign Affairs www.esteri.it);
- contributions paid to the supplementary funds of the National Health System;
- indemnities for loss of starter value paid to the tenant by law;
- sums paid to employees called to carry out election functions;
- sums returned to the withholding agent, if previously subjected to tax;
- 50% of expenses sustained by adoptive parents for the adoption of foreign minors, provided they are certified by the organisations authorised to arrange the relative procedures (a list can be found at the following website: www.giustizia.it);
- sums paid as a donation for the payment of the legal expenses of those individuals who have been admitted to benefit from free legal representation.
DETRAZIONI - DETRACTIONS
Concessions consisting in the possibility of subtracting certain sums from the gross tax.
In particular, detractions are due to taxpayers who have dependant family members or who possess income deriving from subordinate work or pension, self-employed or freelance work or small businesses.
The following items also give the right to tax detraction, to the fixed amount of 19%:
- medical expenses (for amounts higher than 129.11 euro);
- expenses incurred for the purchase of vehicles, technical and technological equipment and other assistance instruments for disabled people;
- interests paid on loans taken out for the purchase of the main residence or for refurbishment agreed in 1997, interests paid on mortgages taken out starting from 1998 for the building and refurbishment of the main residence;
- interests paid for agricultural loans and mortgages;
- funeral expenses;
- school fees;
- insurance premiums for life and against accidents (for policies drawn up until 2000);
- premiums for insurances to insure against death, permanent invalidity not less than 5% or leading to the absence of self-sufficiency in carrying out every day activities (contracts agreed or renewed from 1st January 2001);
- veterinary expenses;
- expenses for the conservation of historical and artistic heritage;
- donations for the performing arts and/or opera houses;
- donations for cultural and artistic activities;
- donations to Onlus organisations (non-profit organisations for social welfare);
- donations to associations of social assistance;
- donations to political parties and associations;
- contributions paid to mutual friendly societies;
- donations to “Società di cultura La Biennale” in Venice;
- donations to amateur sport associations.
- payments made to real estate agents for purchasing the main residence;
- expenses encountered for the annual enrolment fee and membership of sport associations, gymnasiums, swimming pools and other structures and sport facilities intended for amateur sport activities of youngsters aged from 5 to 18 (up to a maximum of euro 210.00);
- lease contracts entered into by students enrolled in a degree course at a university located in a different municipality from where they have their residence address;
- expenses (up to a maximum of euro 2.100,00) encountered for personal carers in situations where there is no self-sufficiency in carrying out everyday activities.
DICHIARANTE - DECLARANT
The person who presents the income tax return.
DICHIARAZIONE CONGIUNTA - JOINT TAX RETURN
Possibility allowed to married couples who submit the income tax return by using the 730 form to complete only one tax return when certain conditions occur.
DICHIARAZIONE CORRETTIVA (entro i termini) - CORRECTIVE TAX RETURN (WITHIN THE DEADLINES)
Tax return rectifying the Modello unico form previously submitted, which can be transmitted by taxpayers who realise that they have omitted to declare some sources of income or some detractable or deductible expenses (provided this is done within the deadline for submitting the tax return).
On the form the specific box ‘Correction within the deadlines’ must be ticked.
If the new calculations of the corrective tax return result in a higher tax or a lower credit, the taxpayer must pay the due sums within the deadlines established. If the result is a higher credit or a lower tax, he can opt to request a reimbursement or to carry it over as credit for the following year, or he can use it in compensation(see also Supplementary Declaration).
DICHIARAZIONE DEI REDDITI - INCOME TAX RETURN
The document with which the taxpayer states his/her income. The tax return must be submitted by all individuals who registered an income the previous year (entrepreneurs and those practising a craft or profession must submit it even if they did not receive any income), by using the forms provided every year by the Revenue Agency. The forms vary depending on whether the tax return concerns natural persons, partnerships or corporations. For natural persons, the form to be used can be the standard tax return form or – if the declarant is an employee or pensioner – the 730 form.
DICHIARAZIONE DEI REDDITI (con il modello 730) - INCOME TAX RETURN (WITH THE 730 FORM)
Simplified form of tax return that employees, persons working with CO.CO.CO contracts and pensioners can submit to their employer or pension trust or to one of the specific Fiscal Assistance Centres (CAF) formed by the trade unions or employers. All the necessary documentation must be submitted to the CAF - which can also complete the tax return in exchange for a payment. This obligation exists even if the tax return submitted to the CAF is already completed. The addresses of the regional CAF are available on the website of the Revenue Agency (www.agenziaentrate.it).
The use of the 730 form has considerable advantages:
- it is easier to complete and does not require calculations; the taxpayer doesn’t even need to worry that the tax return reaches the Revenue Agency. All this is the responsibility of the employer or of the pension trust or of the CAF to which the taxpayer refers;
- the taxpayer obtains the reimbursement of any tax that may have been overcharged, directly with his/her pay slip or in the pension instalment for the month of July (for pensioners who receive their pension in instalments every two months the reimbursement is carried out starting from August or September). In case of paying outstanding amounts, these will be withheld directly from the salary or pension. If the salary or pension is not sufficient for the payment, the remaining part, increased by the monthly interest, will be withheld from the amounts due in the following months. The taxpayer can also request (by completing a specific box in the tax return form) to divide the deductions into monthly instalments, paying an interest of 0.5% per month.
The 730 form cannot be used by individuals who possess business income and income deriving from the practice of crafts and professions. These individuals must submit the tax return using the Modello Unico form.
From 2014, the 730 form can also be used by taxpayers, employees and assimilated, without a withholding agent required to effect the balance (excluding some income assimilated to those of employees, such as the allowance received by members of the European Parliament). In this case, refund is paid directly by the Revenue Agency.
DICHIARAZIONE DEI REDDITI (CON IL MODELLO UNICO) TAX RETURN (WITH THE MODELLO UNICO FORM)
Standard form of tax return that includes, as well as the tax return, the annual declaration of VAT taxpayers and the Italian Regional Tax on Productive Activities (Irap) declaration.
For methods of presentation, see the entry submission of the income tax return (Modello Unico Form).
DICHIARAZIONE DEI SOSTITUTI D’IMPOSTA - WITHHOLDING AGENTS’ TAX RETURN
Tax return with which the employer communicates the overall amount of the payments and of other sums made to his/her employees and to the independent collaborators who have carried out activities for the company, as well as the amount of the substitute taxes and of the withholding taxes made on different incomes and on capital gains (see also 770 Form).
DICHIARAZIONE ICI - ICI DECLARATION
The declaration that the taxpayer, within the deadline for submitting his/her tax return, must submit to the Municipality where the buildings he/she owns are located, and for which variations during the previous year occurred. It must be submitted directly to the Municipality or sent by registered post without receipt of delivery to the council tax office.
DICHIARAZIONE TRAMITE INTERMEDIARIO - INCOME TAX RETURN THROUGH AN INTERMEDIARY
Tax return using the Modello Unico form, submitted through certified public accountants, CAF and other professionally qualified individuals. If the tax return has been prepared by the taxpayer, the intermediary responsible for its Internet submission must issue:
- a declaration, appropriately dated and signed, proving he/she has taken responsibility to transmit via the Internet the information contained in the form;
- the original copy of the tax return, signed by the taxpayer and written on the form in conformity with the one approved by the Revenue Agency, within 30 days from the deadline envisaged for the Internet submission, together with the communication (so called “receipt”), that certifies that tax return has been received by the Revenue Agency.
For the service of receiving and transmitting the tax returns, intermediaries can request a fee.
(see also Internet tax return submission).
DIFENSORI ABILITATI - QUALIFIED LEGAL COUNSEL
Individuals – generally listed in professional registers – who can represent and defend the taxpayer before the tax commissions.
In tax trials the assistance of a qualified legal counsel is compulsory when the value of the dispute is higher than euro 2,582.28; the “value” is the amount of tax, net of the interest and possible sanctions (if there are only sanctions, the value is given by the sum of these).
The category of qualified legal counsels includes, if they are listed in the respective professional registers, the following professionals:
- certified public accountants;
- book-keepers and qualified accountants;
- business consultants, for matters concerning deductions at source on income deriving from subordinate employment and similar and the relative obligations of the withholding agent;
- engineers, architects, surveyors, building experts, agronomists, agro-technicians and agricultural experts for matters concerning extension, classification of land and allocation of the assessable value, consistency, classification of the individual urban real estate units and assignment of the cadastral income;
- under certain conditions, also other categories among which officials of the Tax Administration and of the Finance Police retired after twenty years of service, qualified representatives of professional associations, employees of companies for the disputes that concern them.
Qualified legal counsels must be assigned the task by means of a public or private deed or even at the foot of or in the margin of a procedural deed; in this case the same individual certifies the signature.
To individuals with a low income, recognised as such by a specific Commission established at every Tax Commission, free assistance is guaranteed.
DIRITTI DEL CONTRIBUENTE - RIGHTS OF THE TAXPAYER
Prerogatives recognised by the Taxpayer’s Statute
DIRITTO DI ABITAZIONE - RIGHT OF RESIDENCE
Property right on the house intended for family residence and on its outbuildings to which the separated partner, in fact or by law, and the members of his/her family, are entitled. The assignee who has been assigned accommodation in a public residential building, on the basis of an agreement of future sale or leasing, is also entitled.
The holder of the right of residence must pay the Ici and declare the income of the building as part of Irpef.
DIRITTO DI INTERPELLO - RIGHT OF QUESTIONING
DOCUMENTO DI TRASPORTO - TRANSPORT DOCUMENT
Document that following the abolition of the waybill must be issued in the following cases:
- whenever the deferred invoice is used;
- for the movement of goods for purposes other than the transfer of property (for example for processing, storage, gratuitous loan, etc.).
DOMICILIO FISCALE - TAX DOMICILE (MUNICIPALITY OF)
For natural persons, the municipality where they are listed in the municipal register. For subjects other than individuals, the municipality where their legal office is based or, in the absence of this, their administrative office. For non-resident individuals, the municipality where they have produced their income or highest income; for other non-resident subjects, the municipality in which they have established a secondary office or branch or some form of stable organisation and, in the absence of any of these, the municipality where they mainly carry out their business.
The transfer of residence, just as the transfer of legal offices, to a different municipality, automatically entails the transfer of the tax domicile, with effect from the sixtieth day. When certain circumstances occur, the transfer of the tax domicile can also occur on the Revenue Agency’s initiative or at the subject’s request.
DOPPIA IMPOSIZIONE - DOUBLE TAXATION
This occurs when the same income is taxed twice. Tax legislation states that this is prohibited, even when it occurs with regard to various subjects under the same conditions.
Double taxation, which normally happens in international relations, is eliminated by national laws (such as, for example, the granting of a tax credit) and by specific international agreements for the avoidance of double taxation.
DRENAGGIO FISCALE - FISCAL DRAG
The increase in fiscal pressure due to inflation, even when there is no increase in real income or in rates. Fiscal drag can be neutralized by adjusting the value of deductions and tax bands to the dynamics of inflation.
DIVIDENDI - DIVIDENDS
Shares of profit distributed to shareholders of joint stock companies and partnerships limited by shares. Dividends are subject to deductions at source or to withholding tax. In some cases they also give right to a tax credit.
Transfer transactions of shares ‘profit included’, which allow to receive dividends on which the taxes have been lifted and to deduct capital losses incurred from sales.
ELUSIONE FISCALE - TAX AVOIDANCE
Activity, lacking of valid economic reasons, aimed at avoiding obligations or prohibitions envisaged by the tax system and at obtaining tax reductions, which would not be otherwise due.
ENTRATE TRIBUTARIE - TAX REVENUE
Sums the State, and other bodies that impose taxes, receive following the application of mandatory rules.
See also Tax, Levy, Fee.
EROGAZIONI LIBERALI (Deducibili o detraibili) - DONATIONS (DEDUCTIBLE OR DETRACTIBLE)
Offers made voluntarily to the State or other bodies or organisations that work in the no-profit sector and carry out activities such as study, research, cultural and artistic documentation, entertainment and other activities of social utility. They can be detracted from the tax to be paid; in some cases (for example, those in favour of religious institutions) can be deducted from the income.
ESECUZIONE FORZATA - FORCED EXECUTION
Coercive procedure started by the collection agent against the taxpayer in arrears, consisting in the sale by auction of his/her goods up to a value sufficient to guarantee the payment of the credit.
ESENZIONE FISCALE - TAX EXEMPTION
Particular form of tax concession with which the legislator excludes certain types of income from tax.
ESERCENTI ARTI E PROFESSIONI - PRACTITIONERS OF CRAFTS AND PROFESSIONS
Natural persons, partnerships and associations without a legal personality, usually self-employed.
ESONERO DALLA DICHIARAZIONE DEI REDDITI - EXEMPTION FROM INCOME TAX RETURN
Some categories of taxpayers are not obliged to submit an income tax return. Among these, those who possess only:
- income from subordinate employment or from a pension paid by a sole withholding agent required to make withholding taxes;
- income from subordinate employment paid by various subjects, if the last employer has carried out the balance operations;
- income from buildings, only deriving from the possession of the main residence and its possible outbuildings (garage, cellar, etc.);
- income from land and buildings for an overall amount of not more than 185.92 euro;
- only exempt income or income subject to deduction at source.
In any case, individuals are not required to submit the income tax return, unless they are obliged to keep book-keeping entries, if (after the application of the detractions for income from subordinate employment and from family charges, and of the withholding tax) the gross tax owed is no higher than 12 euro.
The complete list of subjects exempt is provided every year with the instructions on how to complete the income tax return with Modello Unico.
ESTEROVESTIZIONE - RELOCATION ABROAD
Setting up of a company in the countries with a more favourable tax regime compared to the Italian one, with the aim of imputing the income in the foreign country which would otherwise be taxed in Italy. Usually the income invested abroad consists of the capital gains resulting from the transfer of stocks.
ESTIMO (tariffe di ) - ESTIMATED RATES
Rates used by the tax legislation for determining the various types of land incomes (from land and buildings). They are envisaged by the cadastral law and are established for each category and class of land and building.
EVASIONE FISCALE - TAX EVASION
Behaviour by which the taxpayer avoids paying tax, completely or in part (total or partial evasion).
Form to be used at banks, collection agents and post offices for all payments in favor of institutions other than Tax Administration offices (the town council, judicial offices etc.) and for some indirect taxes (such as registration fee and mortgage and cadastral taxes).
Form to be used at banks, collection agents and post offices for payments of most taxes due, starting from those which have been declared in the income tax return with Modello Unico form.
F24 CUMULATIVO - F24 COMBINED
A service for online payment which enables intermediaries to pay their clients’ taxes via the Internet and then directly debit the clients’ current account. No money directly changes hands between intermediary and client. The service is available on the Entratel website.
FAMILIARI A CARICO - DEPENDANT FAMILY MEMBERS
Taxpayer’s family members who do not earn more than a certain sum (currently fixed at Euro 2.840,51 gross of the deductible expenses)
The following are considered dependant:
- the spouse not legally or actually separated;
- the children, even if natural, recognized, adopted, fostered or affiliated;
- other family members such as: the spouse legally and actually separated, descendants of any children, parents and near ancestors, even natural, adopted parents, sons-in-law and daughters-in-law, father-in-law and mother-in-law, brothers and sisters, even unilateral. To be able to take advantage of the deduction for “other dependant family members”, as well as not exceeding the predetermined income limit, they must be living with the taxpayer or be receiving maintenance cheques from him/her which do not come from orders by the judicial authorities.
FATTURA - INVOICE
A document which anyone who transfers goods or provides a service requiring VAT must issue.
FATTURATO - TURNOVER
The amount of sales or services supplied by a company in a year. Also called the volume of business, the turnover helps establish the size of a company and possibly, when not exceeding a given amount, it triggers the right to access certain tax concessions.
The principle according to which no one can be subjected to a sanction for something that, according to a subsequent law, is no longer a punishable violation. If, on the other hand, the law in force at the moment in which the violation is committed and the subsequent laws establish different sanctions, the most favourable law is applied, unless the infliction measure has become definitive. It has always been in force in penal issues, and for fiscal issues it was introduced in 1997.
FERMO AMMINISTRATIVO - ADMINISTRATIVE BLOCK
A provisional measure aimed at the protection of tax credits, which can be issued by collection agents on registered movable goods. When it concerns cars, in journalistic terms it is called electronic “wheel clamp”, which means that the car cannot circulate and the owner cannot use it.
FIDEIUSSIONE - GUARANTEE
A contract by which a subject (usually a bank) guarantees to the creditor the execution of an obligation undertaken by the debtor. As regards fiscal issues, the guarantee is frequently required to grant the extension of payments of taxes and VAT refunds.
GANASCE ELETTRONICHE - ELECTRONIC “WHEEL CLAMPS”
A block on the possibility to circulate of a car, carried out by authorised collectors to protect a credit (see also Administrative block)
GARANTE DEL CONTRIBUENTE - TAXPAYERS' WATCHDOG
A collective body set up by the Taxpayers’ Statute, at every regional office of the Revenue Agency(and at similar offices in the autonomous provinces of Trento and Bolzano). It has the task of protecting the taxpayer and defending his/her rights.
It is made up of three members, one for each of the following categories:
1. Magistrates, university professors, notary public (the President of the watchdog committee is chosen from this category);
2. Directors of Tax Administration or other higher officials from the Finance Police, who have been retired for at least two years;
3. Lawyers, accountants, book-keepers who should also be retired and members of their professional associations.
On the basis of information sent to it by the taxpayer, the watchdog can request clarification from various offices who must reply within 30 days. Furthermore it can send recommendations to the offices in order to protect the taxpayer, to improve the organisation of services, to remind the respect of the provisions of the Statute or the relevant terms of the refunds, to check the suitability of the offices for public access and the proper functioning of their information and assistance services, to activate self-defence, to identify norms or behaviour liable to cause prejudice for the taxpayers. The watchdog presents a six-monthly report on its activities to the Ministry of Economy and Finance which in turn refers annually to Parliament on the working of the watchdog body and the actions taken following its report.
GETTITO TRIBUTARIO - TAX REVENUE
Total amount of the Revenue Agency income (taxes, fees, contributions, special levies) relating to a particular period of time.
GIUDIZIO DI OTTEMPERANZA - COMPLIANCE JUDGEMENT
A legal proceeding that the taxpayer can start, through the appropriate appeal, so that a final sentence is executed.
The appeal is admissible only after the deadline has expired, prescribed by law, within which the office should have executed the sentence or, if there is no deadline, within 30 days of the default action notified by the bailiff.
IMMOBILI (identificazione degli) - REAL ESTATE (IDENTIFICATION OF)
Activity carried out by the Agenzia del Territorio in order to attribute income.
For this purpose, the territory of each municipality is shown on a map; each real estate unit is identified by the name of the municipality, and by the number of the Sheet, Parcel and Subaltern.
The latter identifies the single unit within the framework of the building (parcel). The territory of the largest municipalities is then further divided into “census zones”. Each real estate unit is then classified according to its characteristics and destined use.
Urban real estate units are classified as follows:
A Units for use as dwelling or similar
B Units as collective accommodation (barracks, boarding schools, etc)
C Units for commercial use
D Units for particular use (cinemas, theatres, factories etc.)
Group A (dwellings) includes the following categories:
A/1 high quality dwellings
A/2 civil dwellings
A/3 economic dwellings
A/4 common dwellings
A/5 low quality dwellings
A/6 rural dwellings
A/7 detached houses
A/9 castles and historical-artistic buildings
A/10 offices and private studios
A/11 houses and dwellings typical of the area.
IMMOBILI (IMPOSTE SUGLI) - TAXES ON REAL ESTATE
Taxes on the income from land and buildings (Irpef and Irpef supplements), on ownership (Imu), on transfer of property (registration fee, VAT, mortgage and cadastral taxes).
When the property is transferred through a sale, the taxes applied are the registration fee (or alternatively VAT), mortgage and cadastral taxes; when the property is transferred through donation (or inherited) the taxes applied are the mortgage and cadastral taxes and the registration fee if the donation is between two strangers and the exemption is exceeded.
For Irpef purposes, the income from real estate accumulates with other income of the owner and is taxed according to the rate fixed for that amount. Because Irpef rates are progressive, income from real estate is therefore taxed at a more or less higher level depending on the whole income it is put together with.
IMMOBILI STRUMENTALI - INSTRUMENTAL PROPERTIES
Property used exclusively for carrying out a business, craft or profession. Instrumental properties, indicated in the register of amortizable property, do not produce income inasmuch as they contribute to forming the income of the business or of self-employment.
IMPOSTA - TAX
Part of the wealth of the private person that the State, the Regions and the local authorities take compulsorily in order to sustain the necessary maintenance expenses and to satisfy public needs. From a juridical point of view, the tax is an obligation deriving from the law and its main features are: a) it is compulsory and b) there is no direct counter-service from the State.
Connected items: fee, levy
IMPOSTA DI FABBRICAZIONE E CONSUMO - TAX ON PRODUCTION AND CONSUMPTION
(see Excise duty).
IMPOSTA DI REGISTRO - REGISTRATION FEE
Tax raised on the transfer of wealth.
Deeds are subject to tax on the basis of the rates indicated in the tariff attached to the institutive decree, proportionally to the value of the deed registered. In some cases there is a fixed tax.
IMPOSTE IPOTECARIA E CATASTALE - MORTGAGE AND CADASTRAL TAXES
Taxes applied whenever there is a formal transcription, registration, renewal, cancellation and annotation in the public mortgage registers.
IMPOSTA ACCERTATA - ASSESSED TAX
A debt determined following an assessment, which must be paid by the taxpayer within 30 days of receiving the verification notice or, in case of appeal, gradually according to increased rates depending on the various levels of the appeal case
IMPOSTA LORDA - GROSS TAX
The amount obtained by applying the marginal rates to the individual bands of taxable income for the purposes of Irpef. Subtracting the deductions from the gross tax you get the net tax.
IMPOSTA PERSONALE - PERSONAL TAX
A tax which hits wealth insofar as it belongs to a particular person. A typical example of personal tax is Irpef. In applying personal tax certain conditions are taken into account, such as dependant family members, particular jobs or the payment of certain expenses of social importance.
IMPOSTA PROVINCIALE DI TRASCRIZIONE - PROVINCIAL REGISTRATION TAX
Tax on the formalities of registering, transferring and annotating a vehicle in the public vehicle register; it pertains to the provinces.
It is proportionate to the type and horse power of the vehicle.
IMPOSTA SOSTITUTIVA - SUBSTITUTE TAX
Generally, a payment of a small amount which substitutes the tax normally applied. For example the substitute Irpef taxes of from 12.5% to 20% applied, depending on the cases, to the appreciation deriving from selling stocks (see also: Capital gains).
IMPOSTE DIFFERITE - DEFERRED TAXES
Taxes due in future financial years but regarding the current financial year. For example they derive from positive components of taxable income in the financial years following the one in which they were listed in the balance sheet, or from negative components deductible in financial years preceding the one in which they were listed.
IMPOSTE DIRETTE - DIRECT TAXES
Taxes on the taxpaying capacity of a subject and therefore his/her income and capital. For example: Irpef, Ires.
As opposed to indirect taxes.
IMPOSTE INDIRETTE - INDIRECT TAXES
Taxes which are not in proportion to the income of the taxpayer but are determined on an action which indirectly shows the taxpaying capacity, such as the purchase or transfer of property.
Examples of this tax are: VAT, Registration fee, Mortgage and cadastral taxes, Stamp duty, Excise Duty.
IMPRESA - COMPANY
An economic business to manufacture and exchange goods and services. For tax purposes, companies are distinguished according to whether they are subject to Irpef (sole proprietorships or partnerships) or Irpeg (corporations, commercial institutions).
IMPRESA FAMILIARE - FAMILY-OWNED COMPANY
A company registered in the name of a family member where other members of the family work permanently. The family-owned company is important for relations within the family unit but not with third parties.
IMPUTAZIONE (DEL CREDITO, DEL REDDITO, ECC.) - ALLOCATION (OF CREDIT, INCOME ETC.)
The attribution to a taxpayer of a part of income or a deduction or a credit.
Allocation may also be used with the meaning of attributing an expense to a particular tax period, to a particular item in the profit and loss account, etc.
INCENTIVO FISCALE - TAX INCENTIVE
The exemption from paying certain taxes or the reduction of their amount. The incentive is normally given to companies who make investments in particular economic-social areas.
INDAGINI FINANZIARIE - FINANCIAL INVESTIGATIONS
Investigation by the Tax Administration to translate “patrimonial” and “managerial” evidence into proof showing the actual taxpaying capacity of the subject under investigation.
INDENNITÀ DI ESPROPRIO - EXPROPRIATION INDEMNITY
Amounts received during expropriation proceedings. They are subject to a deduction of 20% as tax. The taxpayer can also choose to determine the tax in the standard way; in this case the indemnity must be declared in the tax return.
INDENNITÀ DI FINE RAPPORTO - RETIREMENT BONUS
Payment received by the employee at the end of a contract of subordinate work; the payment is proportional to the yearly salary paid and to the years worked. Usually, it bonus shall not be included in the tax return: Revenue Agency will set the tax according to the average tax rate of the five years preceding the retirement one, deducting the sums already paid annually by the withholding agent and enrolling on the register (or refunding) the taxes by the 31st December of the third year following the year when the withholding agent submitted the tax return.
INTERESSI MORATORI - INTERESTS ON ARREARS
Amount added to the sum due when payment is made late. Like interest due for extended payment, they are used to compensate the creditor for the delay.
INTERESSI PASSIVI - INTERESTS PAID
Cost of money borrowed. Interests paid deriving from a mortgage loan signed for the purchase or construction of the main residence, and from an agricultural mortgage, are deductible, to a certain extend (19%), from the gross tax; in determining company income they are normally deductible from the revenue.
INTERMEDIARI (del servizio telematico) - INTERMEDIARIES (ON THE INTERNET)
Persons and organisations (accountants, tax information centres, banks, post offices) who have been authorised to send the taxpayers’ tax returns to the Revenue Agency via the Internet.
INTERPELLO - QUESTIONING
The possibility for the taxpayer to ask the opinion of the Tax Administration before completing a certain act, when there is an “objective uncertainty” about the application of the law.
If the taxpayer does not receive a reply within 120 days, it means the Revenue Agency agrees with the interpretation proposed (consent by silence).
The queries which come under the competence of the Revenue Agency concern the following:
- income tax
- Value Added Tax
- Registration fee
- Stamp duty
- Licence taxes
- Entertainments duty and other minor taxes.
INTERPOSIZIONE FITTIZIA - FICTITIOUS INTERVENTION
Allocation of income by one subject (the actual owner) to another subject (fictitious owner), in order to pay a lower tax. If there is a correction or assessment, the office will allocate the income to the real owner, on the basis of serious, precise and concordant assumptions.
Detection system of fiscal statistic data concerning the exchange of goods between member states of the EU. Entities subject to VAT who purchase or sell goods from/to others entities subject to VAT resident in other member States of the EU must periodically send a list (Intra form) of the purchases or sales to the competent local customs office.
IRAP IMPOSTA REGIONALE SULLE ATTIVITÀ PRODUTTIVE - Regional Tax on Productive Activities
A tax on companies and professionals introduced in 1998 at the time when some taxes (Ilor, Iciap, tax on VAT number, tax on the net assets of companies, National Health contributions) were eliminated. The tax revenue from IRAP goes to the Regions to cover health care expenses.
IRPEF IMPOSTA SUL REDDITO DELLE PERSONE FISICHE – Income Tax on Natural Persons
This is the main direct tax of the Italian tax system. It is personal (because it affects anyone with an income) and progressive (because it is subject to an increased rate depending on the tax band). Irpef is paid on any kind of income. All persons, resident or non-resident, must pay Irpef. Non residents only have to pay on their revenue. From 1st January 2004 Irpef was replaced by Ire (Imposta sul Reddito, Italian Tax on Income).
IRES IMPOSTA SUL REDDITO DELLE SOCIET� - Italian Tax on Corporate Income
A tax which is imposed proportionately on legal persons and subjects similar to them. Ires assumes a revenue, in cash or in kind, coming within one of the categories provided by the tax legislation for the purposes of Irpef. Ires must be paid by: corporations, public and private commercial and non commercial bodies, resident in Italy, companies and bodies of all kinds with or without a legal nature, and non residents who have produced revenue in Italy. Ires shall not be paid by: State bodies and administrations including those of an autonomous order even if they have legal nature, as well as the Regions, Provinces and Municipalities. Ires is a tax due for �tax periods�, that is the body�s management period, according to law or the articles of association.
IRROGAZIONE - IMPOSITION
The administration of a penalty, for example a sanction
ISCRIZIONE A RUOLO - ENROLMENT ON THE REGISTER
The insertion of a tax payer in the list of debtors of the treasury for taxes and suchlike, relating to a tax period. After enrolment, the appropriate procedures must be activated by the local collection agents in order to collect the sums due.
ISPEZIONE - INSPECTION
Power of the Revenue Agency to verify if a taxpayer has respected his/her formal and substantive obligations, by examining the book-keeping entries, the account books, and any relevant documentation (see: Powers of the offices).
IVA (IMPOSTA SUL VALORE AGGIUNTO) - VAT (Value Added Tax)
A tax that affects, through a system of detractions and compensation, the increase in value that a product incurs in the production and distribution phases. Its total effect is on the final consumer, who has to pay the entire tax. VAT mainly affects imports, transfer of goods and the performance of services by companies, craftsmen and professions.
LAVORO AUTONOMO (redditi da) - SELF-EMPLOYMENT (INCOME FROM)
Remuneration deriving from the habitual practice of handicrafts and professions (all activities performed as a company are therefore excluded).
LIBRI CONTABILI - ACCOUNT BOOKS
Books that must be kept by all subjects with an economic business which is relevant for tax purposes, apart from specifically provided cases of exemption. Recently, the obligation to keep accounts has been considerably simplified.
LICENZA FISCALE DI ESERCIZIO - FISCAL LICENCE FOR BUSINESS
An authorization required in order to run a commercial business dealing with goods that are subject to excise duty, such as liquors, perfumes, wine, beer and alcohol. It is obtained by submitting a request to the Finance Technical Office (Customs Office) of the main town of the area where the business will be based.
LIQUIDAZIONE DELL’IMPOSTA - TAX SETTLEMENT
The activity performed by the Revenue Agency in order to determine the tax owed.
LIQUIDAZIONE DELLA DICHIARAZIONE - SETTLEMENT OF THE TAX RETURNS
Check on the income tax return carried out automatically by the Information System of the Revenue Agency. Through the settlement it is possible:
- to correct material and calculation errors made when determining the taxable income, taxes, contributions and premiums, as well as the indication of tax surplus and of contributions from previous tax returns;
- to reduce any detractions, deductions and credits claimed in excess of those allowed by law, or that are not due on the basis of the data resulting from the tax return;
- to verify that payments of taxes, contributions and premiums owed, as well as the deductions at source made as withholding agent, are correct and respect the relative deadlines.
When the settlement reveals a different result with respect to the one indicated in the tax return, the Revenue Agency sends the taxpayer or the withholding agent a special notice in order to:
- prevent errors being repeated in next tax returns;
- straighten out formal aspects
- allow the taxpayer or the withholding agent to communicate possible data and elements not considered in the settlement to the Tax Administration.
Starting from the income tax return submitted in 2007, any notices from the Revenue Agency regarding irregularities in the settlement of the tax return submitted are sent as an online notice to CAF and to the qualified professionals, who inform the taxpayers concerned about the result of the settlement of the tax return reported in the notice received.
If no errors are detected in the automatic settlement, the taxpayer receives a notice of regularity, aimed at reassuring him/her about the result of the settlement.
The settlement must be concluded by the beginning of the period when the tax returns relating to the following year must be submitted.
LIQUIDAZIONE IVA - VAT SETTLEMENT
Act of determining the tax owed for the period referred to (one- or three-month period), obtained by deducting the VAT on purchases for which the detraction is allowed from the VAT on taxable sales.
If the resulting difference is in favour of the taxpayer, the relative amount is detracted in the following period. The end of year balance – determined by the difference between the amount of tax resulting from the declaration and the total of the sums paid periodically - must also, obviously, be paid.
LISTE SELETTIVE - SELECTIVE LISTS
Lists of taxpayers who, on the basis of particular criteria and indexes of tax risk, have been selected by the tax administration to undergo inspection.
LOCAZIONE (contratto di) - LEASE CONTRACT
Commonly called rent, by this contract the lessor gives the tenant (lessee) the use of a property receiving a periodic payment, called rent fee(see registration of lease contracts).
LOCATARIO - LESSEE
The person who rents a property, against a payment.
LOCATORE - LESSOR
The person who rents out a property.
MARGINE (regime del ) - MARGIN SCHEME
A special system for determining VAT for certain types of business (i.e. transfer of used goods or objets d’art). The purpose of the system is to avoid double taxation, generally on assets for which the seller was not able to detract VAT when he first purchased them.
For this purpose, the tax owed is determined by discorporating it not from the total amount of the transfer, but only from the “margin”, that is the difference between the sale price plus any extra expenses. (For example, if an art dealer buys a work of art for 1,000 euro by a private person and sells it for 1,500 euro, the margin of the transaction is 500 euro: it is on this amount that VAT will be discorporated, using the asset’s appropriate rate).
MEDIAZIONE TRIBUTARIA - TAX MEDIATION
Deflationary tool of tax litigations aiming to prevent and avoid disputes that can be settled without going to court, taking into account the guidelines of the law and therefore of the reasonably predictable outcome of the trial. Mediation is enforceable and mandatory on the claims of a value not exceeding 20,000 euro, with regard to all impugnable acts issued by the Revenue Agency only and notified from April 1, 2012 (issued from 1 December 2012 for the acts of Provincial offices - Real Estate and Land Registry).
METODOLOGIE DI CONTROLLO - INSPECTION METHODS
Detailed information on the different inspections carried out by the Revenue Agency during verifications, according to the taxpayer’s business.
MINIMI - “MINIMUM”
(see “Minimum” contribution regime).
MINUSVALENZA - CAPITAL LOSS
A loss incurred when, in selling an asset or a stock, the price paid by the purchaser is lower than the residual value of the asset (purchase value net of amortization fund) or than the purchase value of the stock.
MISURATORI FISCALI - FISCAL DEVICES
Cash registers, electronic terminals and electronic scales equipped with a printer that are able to issue a suitable receipt for the sale of goods, food and drink in public services.
MODELLI DI VERSAMENTO- PAYMENT FORMS
Forms that allow the taxpayer to pay taxes (see also F23, F24, and Online payment).
MODELLO 730 - 730 FORM
(see Income tax return with)
MODELLO 770 - 770 FORM
The form used by those subjects (typically, employers) who pay out salaries of any kind to declare deductions. As of 2002 the tax return of these subjects (also known as withholding agents) has been divided into two parts, which represent two distinct tax returns according to the information contained:
- 770 Form – Simplified: it must be used by the withholding agents to send to the Revenue Agency, via the Internet, all fiscal data regarding deductions on employees’ salaries and other tax and insurance data;
- 770 Form – Ordinary: it must be used by the withholding agents, by intermediaries and by other subjects taking part in important operations for fiscal purposes, who are required to communicate all data regarding deductions on dividends, on profits from stocks, on income from issued capital or on operations of a financial nature, as well as summary data regarding payments, compensations and tax credits. All this data must be communicated via the Internet.
MOMENTO IMPOSITIVO - TAXATION MOMENT
For the purposes of value added tax (VAT), this is the moment when the tax debt becomes a legal duty. In particular,
- for transfer of goods, the debt exists from the moment of stipulation in case of immovable properties and from the moment of delivery or of sending in case of movable properties;
- for the provision of services, the debt exists from the moment the payment is made.
MORATORI - ARREARS
(see Interests on arrears)
MOTIVAZIONE DELL’ACCERTAMENTO - REASONS FOR ASSESSMENT
The explanation of the reasons, in fact and in law, that justify the verification notice.
If there is no reason for assessment, or if it is inadequate, the verification notice is to be considered invalid. Invalidity can be claimed by means of an appeal to the competent provincial Tax commission.
MUTUO IPOTECARIO - MORTGAGE LOAN
Loan granted by banks with real guarantees, consisting in a mortgage on real estate property. When the mortgage is given in order to purchase, build and refurbish the main residence, the relative interests can be partially detracted from Irpef.
NEUTRALITÀ FISCALE - FISCAL NEUTRALITY
The characteristic of a single tax, or of a whole tax system, of not influencing, thus changing, the taxpayers’ (whether they are physical or juridical persons) decisions and behaviour and, consequently, of not conditioning economic activity and production.
NOTA DI ACCREDITO - CREDIT NOTE
A document, having the same structure as the invoice, given by the assignor in order to make a downward variation following the detection of inaccuracies or non-existent operations in the original invoice
NOTIFICA - NOTIFICATION
Act through which the addressees are informed of other acts of a substantive nature (for example, verification notice). In fiscal matters, it can be sent by ordinary mail, directly and, subordinately, through intermediaries. Direct notification is regulated by certain rules, including the obligation to deliver the notification deed; it must be signed by the recipient, and the confidential content of the notified act must be protected.
NUCLEO FAMILIARE - FAMILY UNIT
In fiscal matters, it indicates all the people living in the same house, generally connected by a family relationship.
NUDA PROPRIETA’ - BARE OWNERSHIP
The right the owner retains when another subject has the usufruct of his/her property. When the usufruct expires full ownership is automatically restored.
OBBLIGAZIONE FISCALE - TAX OBLIGATION
An obligation on the part of the taxpayer to pay a levy.
It exists when the condition laid down by the law is met, including an income, also imputed, the possession of an asset or any other fact relevant for fiscal purposes.
OMESSO VERSAMENTO - OMITTED PAYMENT
When a taxis not paid, in whole or partially, by the established deadline.
OMOCODIA - HOMOCODE
Anomaly which occurs when two people, born on the same date and in the same municipality and with similar personal data, would receive the same tax code. Information System, the tax-records office, automatically eliminates the homocode and gives a new code to both taxpayers.
ONERI ACCESSORI - ADDITIONAL EXPENSES
Expenses that are added on to a main expense. For example, when signing a mortgage, the expenses of bank charges.
ONERI DETRAIBILI - DETRACTABLE EXPENSES
Expenses that by law can be detracted, as a percentage, from the gross tax (see also Detractions). The main ones are: medical expenses, interests paid on mortgages on the main residence, insurance premiums, funeral costs, education costs and certain cash donations.
ONEROSO - ONEROUS
Something that implies an expense (see also: Against payment).
ONLUS (organizzazioni non lucrative di utilità sociale) - ONLUS (NON-PROFIT ORGANISATIONS OF SOCIAL UTILITY)
Associations, committees, foundations, cooperative societies and other entities that operate in certain fields of “social utility” (for example, social and health assistance, charities, education, training, etc) in favour of people in need. The ‘ONLUS’ organisations benefit from a simplified tax regime.
OPERAZIONI ESCLUSE - EXCLUDED TRANSACTIONS
Transfers of assets and provisions of services that are not considered for the purposes of VAT. As they are irrelevant for tax purposes they are not a part of the subject’s volume of business, they are not subject to invoicing, registration and payment, and are not to be included in the tax return.
OPERAZIONI ESENTI - EXEMPT TRANSACTIONS
Transactions which by law are not subject to VAT, for reasons of fiscal policy. As well as concurring in the determination of the volume of business, these transactions are still subject to invoicing, registration and must be included in the tax return. As opposed to non-taxable transactions, they do not allow (except for particular cases) the subject to recover taxes paid on purchases and imports
OPERAZIONI IMPONIBILI - TAXABLE TRANSACTIONS
Generally, transactions that are subject to a particular tax. In particular, taxable transactions are subject to the regulations concerning VAT.
OPERAZIONI INESISTENTI - NON-EXISTENT TRANSACTIONS
Cases when an invoice(or other similar document) is issued following transactions that have not actually been made, or transactions between subjects other than the real ones.
When an invoice is issued for non-existent transactions, VAT is still owed for the amount shown therein. In case of specific fraud (the intent to evade or to help others evade), issuing an invoice for non-existent transactions constitutes a tax offence.
OPERAZIONI INTRACOMUNITARIE - TRANSACTIONS WITHIN THE EU
Transfers and purchases of goods between two VAT subjects operating in countries of the European Union, with a physical movement of goods between EU countries. Such transactions are subject to a particular tax regime, which is to remain in place until a definitive system for international trade within EU is defined.
OPERAZIONI NON IMPONIBILI - NON-TAXABLE TRANSACTIONS
Transfers and purchases that are not subject to VAT but that form part of the volume of business and require that the formal obligations concerning invoicing, registration and tax return are met.
These transactions still allow the detraction of the VAT paid on purchases and imports of goods and services.
OPZIONE - OPTION
Possibility given to taxpayers who fulfil the conditions envisaged (for example, concerning their aggregate income or remuneration) to make certain choices, for example, to adopt a more favourable system for establishing their income, or an easier accounting system than the one ordinarily provided. As regards VAT, the option is exerted in the annual tax return or, for new businesses, in the declaration of setting up of a business. Lacking an explicit choice, this may be also deduced from the taxpayer’s de facto behaviour (the so-called “conclusive” behaviour).
PARADISO FISCALE - TAX HAVEN
A country with a privileged tax regime, characterized mostly by low or even non-existent taxes. The Italian tax system has a series of lists, also known as black lists, of those countries considered tax havens. Generally, each tax system has norms aimed at limiting or eliminating the distortional effects deriving from relations with countries on the black list.
PARAMETRI PRESUNTIVI - ESTIMATED PARAMETERS
An assessment method applied to subjects for whom the statistics-based tax assessments have not yet been approved. Using certain known accounting data concerning the business, a mathematical formula allows to determine the “presumed” incomes.
If the taxpayer does not spontaneously accept the result of the procedure, the Tax Administration can proceed with an assessment.
PARTECIPAZIONE NON QUALIFICATA - NON-QUALIFIED STOCK
The percentage of rights to vote that can be asserted in the ordinary assembly that is no higher than 20 per cent, or the share of capital no higher than 25 per cent. For shares traded on regulated markets the aforementioned percentages are 2 and 5 per cent respectively. The appreciation deriving from the transfer of non-qualified stocks is subject to a substitute tax of 20 per cent.
PARTECIPAZIONE QUALIFICATA - QUALIFIED STOCK
The percentage of rights to vote that can be asserted in the ordinary assembly that is higher than 20 per cent, or the share of capital higher than 25 per cent (it is sufficient to surpass one of the two limits). For shares traded on regulated markets the aforementioned percentages are 2 and 5 per cent respectively.
PARTITA IVA - VAT NUMBER
A sequence of numbers that identifies those subjects whose business is relevant for VAT purposes. It is issued by the Office of the Revenue Agency when the VAT position is created.
The VAT code is made of 11 numbers: the first 7 numbers identify the taxpayer by means of a progressive number, the following 3 numbers identify the province where the Revenue Agency issuing the code has its premises, the last number is a control number.
PENSIONI ESTERE - FOREIGN PENSIONS
Payment made by a public or private entity of a foreign State to someone resident in Italy who worked in that foreign country.
With certain countries there are agreements for the avoidance of double taxation of income, according to which pensions coming from a foreign source are taxed differently, depending on whether they are state or private pensions. In the first case, generally, they are taxed only in the country of origin; in the second case, they are taxed only in the beneficiary’s country of residence.
PERIODO D’IMPOSTA - TAX PERIOD
The period of time for which a subject is obliged to pay taxes, and which is referred to by the taxpayer when determining his/her taxable income.
For physical persons it always coincides with the solar year, for other subjects it can also span two consecutive years.
PERTINENZE (di un fabbricato) - OUTBUILDINGS
Land, buildings or parts thereof (gardens, courtyards, access pathways, garages, basements, etc) permanently destined for and actually used as part of a main building. For Irpef purposes the income of the main residence’s outbuildings is subject to the same deduction as the house.
PIANIFICAZIONE FISCALE - FISCAL PLANNING
The behaviour of a taxpayer who intends to use his/her sources of income so as to reduce as much as possible his/her taxable base.
PLUSVALENZA - APPRECIATION
A profit deriving from the transfer of certain assets at a price higher than that which was paid for them; it is taxable as company income if it is made through commercial activities and can be charged in constant amounts in the tax period in which it was made and in the following four. On the contrary, it can be taxed as other income in the other cases specifically listed by the law.
POTERI DEGLI UFFICI - POWERS OF THE OFFICES
The powers of the offices are exerted on the taxpayers through accesses, inspections and verifications, or mainly in the offices themselves, with requests for information and documents to the taxpayer and to third parties, such as for example through the questionnaire. Once the accesses, inspections and verifications have begun, the taxpayer loses the right to certain opportunities granted in his/her favour (i.e. voluntary correction of tax return, legalization of illegal labour). Amongst other, offices also have the power to inspect the bank accounts of the taxpayer undergoing inspection, through particular procedures.
PREAVVISO TELEMATICO - ONLINE NOTICE
Notice sent by the Revenue Agency to the intermediary who has submitted the tax return of a client online, when an anomaly, an error or an omitted payment emerges during its settlement.
The notice is sent via email and the intermediary is allowed to examine the irregularity noted and evaluate whether it is founded or not. If the intermediary thinks the irregularity exists, he/she can advise the taxpayer to pay the amount owed, thus benefiting from a reduction of two thirds of the sanction. If the intermediary, instead, thinks that the irregularity noted is groundless or only formal, he/she may explain the situation, thus preventing his/her client getting a notice of irregularity.
After 60 days from the notice has been sent and the intermediary has failed to act, the taxpayer will be sent, by registered mail, a notice of irregularity and from that moment the thirty days provided by the law begin for the reduced definition of the irregularities detected.
PRESCRIZIONE - PRESCRIPTION
When a person loses a right because he/she has not used it for the period of time established by the law. Tax laws often provide limitation terms of ten years, when not interrupted by an appropriate deed (see: Refund).
PRESUNZIONE DI CESSIONE E DI ACQUISTO - ASSUMPTION OF TRANSFER AND PURCHASE
The possibility for the administration to consider as transferred those assets purchased or imported, or products not found on the taxpayer’s business premises. If the relative operations are not entered into the accounts, they are considered as illegally transferred, thus constituting tax evasion.
PRESUPPOSTO D’IMPOSTA - TAX ASSUMPTION
For direct taxes (Irpef and Irpeg) it is the possession of income, money or in kind, which falls into one of the categories envisaged by the Tuir (Italian Tax Consolidated Text), wherever it is produced (therefore including foreign income, whether continuative or occasional: the so-called world income system). For non-residents, only the income produced in Italy is taxable.
PRINCIPI CONTABILI INTERNAZIONALI - IAS (International Accounting Standards)
International Accounting Standards have been adopted by the International Accounting Standards Board (IASB) (EN) based in London.
PROCESSO TRIBUTARIO - TAX TRIAL
An inquiry in two stages before the Tax Commissions. In the first instance, the competent provincial tax commission considers appeals against deeds issued by the Revenue Agency’s offices, by Customs, by the local authorities or by the collection agents; regional tax commissions consider appeals against the verdicts of the provincial tax commissions whose premises are in their administrative district.
The Central tax commission (abolished by the 1996 reform) continues to consider appeals submitted by 1st April 1996, until all pending cases are resolved.
By initiating a tax trial a taxpayer can:
- request that the tax commission (but only in the first instance) orders the suspension of the execution of the deed appealed against;
- promote, if the final ruling is in favour of the taxpayer, the “compliance judgement” in order to oblige the offices to conform to the commissions’ verdicts.
For cases concerning taxes with a value that exceeds 2,582.28 euro the assistance of a qualified legal counsel is necessary. “Value” here means the amount of the tax net of interests and possible sanctions (if there are only sanctions, the value is determined by their sum).
Whatever their value, technical assistance is not required for disputes whose object is the enrolment on the register submitted after the settlement of the tax return by the Service Centres. The president of the commission (or of the section) or the committee can, however, order the party to avail themselves of technical assistance, even when it is not compulsory.
PROCESSO VERBALE DI COSTATAZIONE - REPORT OF VERIFICATION
The deed written by the officials in charge of tax inspection during and at the end of verifications, accesses and inspections carried out on a taxpayer.
The report – a deed that cannot be appealed against autonomously – highlights the irregularities committed by the taxpayer with regard to his/her fiscal obligations and other violations detected, and includes the observations and the comments of the taxpayer and the professional who assists him/her, if there is one. On the basis of the report – a copy of which is given to the taxpayer – the competent office, after sixty days from the submission of possible comments and requests, can issue a verification notice in order to recover the unpaid taxes and to establish the relevant sanctions (see also Taxpayers’ Statute).
PROGRESSIVITÀ DELL’IMPOSIZIONE - PROGRESSIVE RATE OF TAXATION
An increase in the rate that is more than proportional compared to the increase in the taxable base, so that subsequent equal increases thereof correspond to progressive increases in the tax. This system differs from proportional tax, in which the rate does not change when the taxable base changes, so that the tax owed increases by a constant proportion. Irpef is a typical example of a progressive tax.
PROVENTI SOSTITUTIVI E INTERESSI - SUBSTITUTE PROCEEDS AND INTEREST
Sums acquired as a substitute of income, following the transfer of credits, or as a compensation for the damages caused by the loss of incomes. Substitute proceeds and interest belong to the same category as substituted or lost incomes, meaning those incomes producing the credits on which such interest accrue. For example, the following incomes belong to the same category as employee incomes: redundancy payment, unemployment benefits, mobility, maternity benefits, sums deriving from transactions of any type and subsistence allowance provisionally given to employees with a pending a case before the Judiciary Authority.
QUESTIONARI - QUESTIONNAIRES
Means through which the offices ask taxpayers for data, information and possible documents necessary for verification, to be completed, signed, and returned, within an established deadline, usually no less than fifteen days.
QUESTIONARI (per gli studi di settore) - QUESTIONNAIRES (FOR STATISTICS-BASED TAX ASSESSMENT)
Investigative means through which the Revenue Agency gathers data concerning each economic activity in order to carry out the statistics-based tax assessment. They do not represent a base for tax assessment for the taxpayer who completes them.
RATEIZZAZIONE - DIVISION INTO INSTALMENTS
The option, specifically indicated on the F24 form, for taxpayers to extend the payments owed according to their income tax return. Amounts that must be paid as a down payment or full payment in November and December cannot be divided into instalments.
The instalments are subject to a yearly interest rate of 4%, calculated at a flat-rate according to the commercial method, taking into account the period running from the day following the deadline of the first instalment until the deadline of the second instalment.
RATEIZZAZIONE DELLE IMPOSTE ISCRITTE A RUOLO - DIVISION INTO INSTALMENTS OF LISTED TAXES
Taxpayers who are in temporary situations of objective difficulties, namely that are unable to pay a registered debt as indicated in the notice of payment, can apply to the collection office to obtain the rescheduling of the debt. Application must be submitted on plain paper, along with appropriate documentation indicating the temporary situation of objective difficulties. The extension may be granted up to a maximum of 120 monthly installments (10 years). The minimum amount of the installment, without exception, is euro 100,00.
RAVVEDIMENTO - VOLONTARY CORRECTION OF TAX RETURN
The possibility of rectifying omissions or irregularities made both when completing and submitting the income tax return, and when making the payments. Voluntary correction of tax return entails a reduction of the minimum sanctions applicable and is admitted until the deadline for the submission of the following year’s declaration or, in the absence thereof, within one year of the violation.
In order to benefit from voluntary correction of tax return, violations must not already have been detected and access, inspections and verifications or other assessment activities (summon to appear, questionnaires, requests to submit documents, etc.) must not already be in progress.
The following violations can be rectified by spontaneously paying the tax or the difference owed, the interests on arrears (calculated at the annual legal rate from the day the payment should have been made to the day it is actually made) and the reduced sanction:
- omitted or insufficient payment of taxes due as down payment or full payment according to the income tax return;
- omitted or insufficient payment of deduction at source made by the withholding agent;
- omitted or insufficient payment of Vat, even as down payment, resulting from the annual tax return or from the periodic settlement.
In order to rectify the omitted payment alone, it is not necessary to submit an additional declaration.
REATI TRIBUTARI - TAX CRIMES
Violations generally consisting in the failure to meet tax obligations, or in delays therein. Lawmakers reformed the laws disciplining tax crimes with the legislative decree n. 74/00, concentrating penal sanctioning powers on those cases that effectively damage the interest of the Treasury (the power to collect taxes).
REDDITI ASSIMILATI AL LAVORO DIPENDENTE - INCOME TREATED AS INCOME FROM SUBORDINATE EMPLOYMENT
Income of a heterogeneous nature, treated for tax purposes as income from subordinate employment and therefore which must be declared, without the right to detractions, in a specific Section of the table regarding employees. Examples of such incomes are: scholarships or apprenticeships, allowances for public functions.
REDDITI (categorie di) - INCOMES (CATEGORIES OF -)
These are the different types of remuneration or earnings indicated by the TUIR (Italian tax consolidated text):
- from capital
interest, earnings from stocks and bonds and other incomes deriving from the investment of capital;
- from land
income from land and real estate situated in the territory of the State, registered or to be registered in the land register or in the building register. This income is divided into rental income from lands, agricultural income and real estate income;
from commercial activities and businesses;
- self employment
from practising crafts or professions;
- from subordinate employment
from working in the employment of and under the direction of another party, including work at home in the cases provided by labour legislation. Pensions and equivalent benefits and other incomes considered equivalent by the law (e.g. scholarships, income from co-ordinate and continuative collaboration, etc) are also considered incomes from subordinate employment;
residual category including incomes from different events that cannot be included in the other categories, but which still entail an increase in wealth
REDDITI DI CAPITALE (tassazione dei) - INCOMES FROM CAPITAL (TAXATION OF)
Taxation of interests, earnings from stocks and bonds and other incomes deriving from the use of capital. It is imposed according to the principle of cash without the possibility of deducting the costs incurred in their production.
Incomes from capital are subject to deduction at source by the withholding agents that pay them.
Except for particular cases, this deductions – 20% - is generally applied by way of tax (therefore definitively) to physical persons who do not have commercial activities and businesses.
In this case, the taxpayer is exonerated from reporting them in the income tax return.
REDDITO - INCOME
The total amount of earnings made by a subject during a particular period of time – generally a solar year – as a consequence of a business, a transaction or the use of a product.
REDDITO AGRARIO - AGRICULTURAL INCOME
The income attributed for fiscal purposes to someone (owner, householder, etc) who uses an agricultural land. It is established in a fixed manner by the land register, according to the type of land and the crop (see also rental income).
REDDITO COMPLESSIVO - AGGREGATE INCOME
Sum of incomes held by a taxpayer in a tax period. The incomes are calculated independently for each category (from land, capital, subordinate employment, self-employment, company, others). For non-residents persons the aggregate income is only includes the incomes produced in the territory of the State.
Possible losses deriving from commercial activities or self-employment also concur to determine, negatively, the aggregate income.
The taxable income is determined by subtracting the deductions from the aggregate income.
REDDITO DOMINICALE - RENTAL INCOME
Income deriving from the ownership of land, no matter what is farmed there. Rental income, like agricultural income, is determined on the basis of the land register, by applying the provisional rate.
REDDITO IMPONIBILE - TAXABLE INCOME
(see taxable base)
REGISTRAZIONE DEI CONTRATTI DI LOCAZIONE - REGISTRATION OF LEASE CONTRACTS
An obligation met by submitting the contracts to the Revenue Agency and paying the registration fee within 30 days from the date of the deed.
All lease contracts of any amount must be registered, providing their validity exceeds 30 days in a year.
To register a lease contract, the following must be paid:
- 2% of the yearly rent for urban properties;
- 0.50% of the annual payment multiplied by the number of yearly instalments for rural funds;
- 2% of the annual payment multiplied by the number of yearly instalments for all other real estate.
For the registration of the first yearly instalment, the registration fee cannot be less than euro 67,00.
The lessor and the tenant are liable for the payment in equal parts; however, both are jointly and severally liable for the payment of the entire sum.
REGIME FISCALE DI VANTAGGIO PER LIMPRENDITORIA GIOVANILE E LAVORATORI IN MOBILITA' - TAX ADVANTAGES FOR YOUNG ENTREPRENEURS AND REDUNDANCY WORKERS
Tax advantages introduced in 2011 to replace the previous system of “minimum taxpayers&Rdquo;, aimed at encouraging the creation of new businesses by young people and those who have lost their jobs. Therefore, starting from January 1, 2012, taxpayers who wish to start a small business or a self-employed activity can apply - if they meet the requirements established by the rules - the new tax advantages. They provide a range of accounting and procedural simplifications and involves the application of a 5 per cent substitute tax both on personal income and on additional regional and municipal taxes.
REGISTRAZIONE DI ATTI - REGISTRATION OF DEEDS
Formality consisting in recording the essential elements of a written deed or a verbal contract in public registers, in order to record the date for civil purposes.
There are two categories of deeds for which registration is necessary and registration fee must be paid:
- deeds for which fixed term registration is compulsory (for example the sale of real estate, transfer of companies, guarantees and the taking over of debts must be registered within 20 days, lease of urban properties within 30 days);
- deeds to be registered in the event of use (for example contracts subject to Vat).
RENDITA CATASTALE - CADASTRAL INCOME
The value, for tax purposes, of real estate properties on the basis of the provisional rate. The local tax offices determine the provisional rates taking into account:
- the municipality;
- the census area (generally only one for small–medium sized municipalities and more than one for larger cities);
- the category (for example A/2 if the property is of a higher level, A/3 if an average one, A/4 if a lower one);
- the class.
The tables of the provisional rates can be consulted at the Agenzia del Territorio (the former cadastral offices).
The cadastral income is calculated by multiplying the rate by the volume of the property (rooms, square metres or cubic metres).
RESIDENZA FISCALE - RESIDENCE FOR TAX PURPOSES
Within the context of the Italian tax system, both for Irpef and for Ires purposes, Italian law distinguishes resident subjects from non-resident subjects, instead of citizens from foreigners.
For Irpef purposes, residents and non-residents in Italy are considered as taxable persons.
For Ires purposes, commercial and non-commercial entities, equivalent bodies including consortiums, non-recognized associations, other non-incorporated organizations not belonging to other taxable persons if they have their legal premises, administrative premises or their main business in Italy for the main part of the tax period, are considered as residents.
RESPONSABILE D’IMPOSTA - TAX LIABLE PERSON
The person who is liable, together with the taxpayer (main liable party), for paying the tax.
While the withholding agent is obliged to pay instead of the taxpayer, the tax liable person is jointly and severally obliged with the taxpayer, but has the right to claim back from the latter the entire sum paid. Typical subjects are: a notary who has drawn up the deed and authenticated the signatures, as regards the registration fee; public officials who have received or authenticated a deed undergoing transcription, as regards the mortgage tax; customs agent, as regards the taxes wrongfully requested by executive procedure to the owner of the goods.
RESPONSABILITÀ SOLIDALE - JOINT AND SEVERAL LIABILITY
An obligation that arises when two or more parties are all considered the main liable subjects for a tax obligation, which can concern the submission of a tax return as well as the payment of a tax. For example, in the case of the registration fee, a number of subjects (public officials who have drawn up the deed, contracting parties and parties to the case) are usually liable for the payment. Instead, as regards mortgage tax, those in whose interest the request for the transcription of the deed is made, and the debtors for whom the mortgage has been registered or renewed, are jointly and severally liable. When joint and several liability exists the Revenue Agency can demand payment of the entire sum owed to any one of the co-responsible parties whatsoever, which has a redeeming effect with regard to all.
Joint and several liability can also be envisaged with regards to the payment of the sanctions imposed following a violation.
(See also Fiscal solidarity).
The mechanism that allows the final purchaser to declare the tax owed as a debtor and to simultaneously deduct it if he meets the necessary requirements.
RICAVI O COMPENSI - REVENUES OR REMUNERATION
Sums received for the transfer of goods or for supplying services, which characterize the activity of a business or self-employment respectively.
RICEVUTA FISCALE - TAX RECEIPT
Document that must be issued by certain categories of operators (for example, artisans) who supply goods or services for which an invoice is not compulsory. It shows the transactions performed and the amount paid.
RICORSO - APPEAL
The deed through which taxpayers can oppose, within the peremptory time limit of 60 days, the decisions taken by the Tax Administration.
The appeal must be written on stamped paper and contain the following indications:
- the Tax commission to which it is directed;
- the name and surname (or company or corporate name) of the appellant (and, if the case, of his/her legal representative);
- the residence (or the legal premises or the chosen residence);
- the tax code
- the office (or local authority or the collecting agent) appealed against;
- the details of the deed appealed against (assessment notice, imposition of sanctions, etc.);
- the object of the request (for example, to annul the deed);
- the factual and legal issues to prove its grounding;
- the signature of the appellant;
- the signature of the legal counsel, if the case, indicating also his/her tasks.
The appeal shall be submitted directly to the counterparty (the Revenue Agency, the Local authority, the collecting agent) in any of the following ways:
- a notification through a bailiff, following the provisions set forth by the Italian Code of Civil Procedure;
- by means of ordinary mail, with a registered letter, without envelope, with notice of receipt;
- direct delivery to the tax office (or to the Local authority) that has issued the deed appealed against. In this case the clerk who receives it must give a receipt.
The tax proceedings actually begin with the entry of appearance.
RIMBORSI IVA ANNUALI - ANNUAL VAT REFUNDS
Credits resulting from the annual tax return which the taxpayer can claim by submitting two copies of the apposite request (VAT VR form) to the competent collecting agent, and – except in the case of exemption – give a suitable guarantee through a guarantee or fidejussory policy in favour of the Revenue Agency .
RIMBORSI IVA INFRANNUALI - INFRA-ANNUAL VAT REFUNDS
Refund of the excess of the deductible VAT of the three-month period, upon submission of a specific request by the last day of the month that follows the three-month period referred to.
RIMBORSO - REFUND
Amount paid by the treasury to return to the taxpayer an amount paid in excess. It can be requested in the income tax return, and it is automatically arranged by the Revenue Agency when taxes are settled, or requested at a later date. Together with the sum to be refunded, the office also calculates the interests according to the rate set by tax laws.
Refunds are automatic for:
- credits resulting from the income tax return, when the declaring party has not opted for compensation or for the credit to be carried over to the following year or when, having opted for the credit to be carried over, he has then forgotten to do so (in this case submitting a request is still advised);
- credits resulting from material errors committed by the Revenue Agency (for example, the registration of a higher amount than the ascertained one). In these cases, if the administration detects the mistake, it must return the sum charged without the party concerned having to submit the request;
- credits deriving from a decision of the Tax Commission: if the tax to be registered according to the decision is lower than the one already registered and collected, the Revenue Agency must arrange the partial relief, so that the collecting agent will return the sums paid.
Refunds are paid upon request of the party concerned in all other cases of wrongly paid taxes or excessive amounts paid. In these cases it is normally necessary for the taxpayer to submit a written request within:
- 48 months, for income taxes (Irpef, Ires, etc);
- 3 years for indirect taxes (registration, estate and endowments, car duties, etc);
after which terms the right to a refund will lapse.
If the request is rejected, the taxpayer can appeal to the competent provincial Tax Commission within 60 days from the notification of the decision.
RISCOSSIONE (sospensione) - COLLECTION (SUSPENSION)
Concession granted to a taxpayer who has appealed against a notice of payment, when he risks suffering serious damage if he/she has to pay before the decision of the Tax Commission. A taxpayer in this situation can submit a request for suspension to the Commission (judicial suspension) or, at the same time at the Office.
The request should be made on plain paper and, possibly, include a copy of the deed appealed against, as well as a copy of the appeal presented.
See also Administrative and judicial suspension of the tax collection.
RISERVE - RESERVES
Sums of the net capital that are set aside, therefore determining a capital increase. The reserves protect a company from losses and unforeseen events and protect Company creditors. They are considered as liabilities in the assets and liabilities statement. There are two different types of reserves: accumulated profits (including non distributed profits), and accumulated surplus (deriving from contribution of capital). Tax laws envisage certain tax-free reserves which are then taxed if the future event occurs (distributions to shareholders).
RISPARMIO AMMINISTRATO - ADMINISTRATED SAVINGS
Tax regime concerning capital gains, according to which the subject holding or administering the assets (for example banks, security houses, trustees, brokers, etc) applies the substitute tax of 12.5% to the appreciation actually achieved. This regime can be chosen only by physical persons who give the assets to the recognised subjects to hold or administer (for example banks, security houses, trustees, brokers, etc).
RISPARMIO GESTITO - MANAGED SAVINGS
Tax regime concerning capital gains, according to which the manager of the capital (for example banks, security houses, trustees, brokers, etc) applies the substitute tax of 12.5% to the accrued amount of the management, and therefore not actually made, during the tax period.
This regime can be chosen only by physical persons who have handed over the management of the capital to the above subjects.
RISTRUTTURAZIONI EDILIZIE (detrazione per) - BUILDING RENOVATIONS (DEDUCTIONS FOR)
The possibility for the possessor of a building (owner, householder, etc.) of deducting from Irpef up to 36% (50% for 2014 and 40% for 2015) of the costs incurred for renovations. The deduction, introduced for the first time in 1998, has currently been prolonged until 31st December 2012.
RITENUTA ALLA FONTE A TITOLO D’IMPOSTA - DEDUCTION AT SOURCE
The sum detracted from an income by the person who pays it (withholding agent): it represents the total tax owed (as opposed to the withholding tax). Therefore the taxpayer (substituted) has no obligation to declare the income in question.
RITENUTA ALLA FONTE A TITOLO D’ACCONTO (O RITENUTA D’ACCONTO) WITHHOLDING TAX
The sum detracted from an income by the person who pays it (the so-called withholding agent): it represents a part of the total tax owed (as opposed to the deduction at source).
In fact, the W. T. is based on the amount of income from which it is detracted, and does not consider the other incomes of the taxpayer concerned (substituted). In his/her tax income return, the taxpayer must state which incomes have already been subject to the withholding tax. If the taxes owed, based on the total income, are higher or lower than the sum of the withholding tax, the taxpayer must consider this in his/her tax return.
RIVALUTAZIONE DI REDDITE E RENDITE - REVALUATION OF INCOME AND CADASTRAL INCOME
An operation that allows the updating, and thus increase, of the values of the cadastral, rental and agricultural incomes. For example, in order to revalue the cadastral income of buildings, it has to be multiplied by 1.05.
An institution of Anglo-Saxon origin, according to which each taxpayer has the right to know the effects and consequences of his/her actions in the fiscal context (see Questioning).
RUOLO - REGISTER
List of debtors and the sums they owe compiled by the offices of the Tax Administration, in order to demand payment through a collecting agent.
(see: Enrolment on the register).
SALDO D’IMPOSTA - TAX BALANCE
Residual tax owed relating to the year the tax return refers to by. As regards Irpef, its amount is equal to the tax owed net of deductions, credits and down payments already paid. Usually, the credit balance can be compensated by other taxes or contributions. (see Compensation).
SANZIONE PECUNIARIA - MONETARY SANCTIONS
Payment of a sum of money with no interest, imposed on a person who has broken the law alone or together with other people.
SANZIONI AMMINISTRATIVE - ADMINISTRATIVE SANCTIONS
Sanctions given for the breach of tax norms, implying the payment of a sum of money (either a fixed sum or a percentage), or also forbidding certain activities (for example: disqualification from posts of company administrator or auditor, ban from taking part in bids for public contracts or service supplies, disqualification or suspension of licenses, concessions or authorizations for running businesses or self-employed activities).
SANZIONI PENALI - PENAL SANCTIONS
Sanctions imposed by the judiciary authority, upon reports by the financial administration, when the violation of tax obligations constitutes a crime. The system of tax penal sanctions has recently been modified according to the law on decriminalization of minor infractions.
SCAGLIONI IRPEF - IRPEF BRACKETS
Income brackets for which a different Irpef rate has been established. As of 2008, there are five brackets.
SCONTRINO FISCALE - RECEIPT
Tax document that must be given by certain categories of traders when providing goods or services. Amongst others, a receipt must be given (when an invoice is not required) in case of businesses involving the selling of goods in public premises or in closed markets, or providing food and beverages in public bars and restaurants.
SCRITTURE CONTABILI - BOOK-KEEPING ENTRIES
Compulsory registers provided by tax laws and the Italian Civil Code. They must be kept until the deadlines for the verifications relating to the corresponding tax period have expired, even after the deadline established by art. 2220 Italian Civil Code (i. e. 10 years after the last entry) or other tax laws.
SGRAVI FISCALI - TAX RELIEF
Exemptions or reductions that certain categories of taxpayers can benefit from.
They are an indirect form of state intervention in aid of the economy, as they boost new investments, employment and the consumption of certain goods.
SGRAVIO (da autotutela) - ALLOWANCE (SELF-DEFENCE)
Deed through which the fiscal administration recognizes that the sum officially listed and requested with a notice of payment is not due, totally or partially. In the case the taxpayer has already paid, he has the right to a refund of the sum wrongfully paid by means of the same agent.
SGRAVIO (a seguito di decisione di commissione tributaria) - ALLOWANCE (FOLLOWING A DECISION BY THE TAX COMMISSION)
The annulment of a notice of payment by the Revenue Agency in case it has been declared unlawful by a Tax Commission. This has to be completed within 90 days from the notification of the decision.
Along with the allowance, the office has to arrange the refund of the sums officially listed and paid by the taxpayer before the decision. The taxpayer obtains the refund through the collection agent.
The same rules apply for the refund of sums paid for taxes and indirect taxes following a settlement notice (in this case, of course, the refund will be arranged by the office that received the unnecessary payment).
If the competent office does not promptly arrange the refund, the taxpayer can start the so-called compliance judgement.
SOGGETTO PASSIVO - TAXABLE PERSON
Physical or juridical person obliged to pay taxes.
SOLIDARIETÀ TRIBUTARIA - FISCAL SOLIDARITY
A situation where a number of subjects are jointly and severally liable for the payment of a levy. The tax authority can require the payment of the entire sum to any of the liable subjects, although the subject who has paid retains the right to appeal in the civil court against the other co-debtors.
(see also Joint and several liability).
SOPRAVVENIENZE ATTIVE - CONTINGENT ASSETS
Positive entries of a company’s income consisting in a profit or in the extinction of a liability deriving from unexpected and exceptional events. C.A. are essentially a positive capital variation of operations carried out in previous financial years. By law, C. A. are:
- profitsor other proceeds achieved against costs, losses or deducted expenses or liabilities registered in the balance sheet in previous financial years;
- profits or other proceeds higher than the amount of income in previous financial years;
- deducted costs or liabilities registered in the balance sheet in previous financial years that no longer exist.
SOPRAVVENIENZE PASSIVE - CONTINGENT LIABILITIES
Negative entries of a company’s income deriving from the failure to make profits or other proceeds which contributed to form the income in previous financial years, or from other events such as the non-existence of assets registered in previous financial years, or expenses, losses and charges incurred against other proceeds that contributed to form the income in previous financial years.
SOSPENSIONE AMMINISTRATIVA E GIUDIZIALE DELLA RISCOSSIONE ADMINISTRATIVE AND JUDICIAL SUSPENSION OF THE TAX COLLECTION
A request for the deferment of payment submitted to the tax office (Administrative Suspension) or to the Tax Commission to which an appeal has been submitted (Judiciary Suspension.). For the former, the taxpayer needs to prove he will suffer serious damage if he has to make the payment before the Tax Commission issues its ruling. For the latter, the so-called fumus boni juris (when the charge is apparently unlawful) and the risk of serious damage for the taxpayer were he to make the payment, are necessary. The taxpayer can submit his/her request for suspension separately both to the Commission and to the Revenue Agency office.
See also: Collection(Suspension).
SOSTITUITO - SUBSTITUTED
The person to whom the withholding agent makes the deduction at source on the received income.
SOSTITUTO D’IMPOSTA - WITHHOLDING AGENT
The subject (employer, pension fund, etc) that by law replaces the taxpayer (substituted), wholly or in part, in his relations with the Tax Administration, by withholding the taxes owed on the remuneration, salaries, pensions or other incomes paid, and subsequently paying them to the State. Withholding agents are obliged to annually declare the amounts withheld by means of a special tax return (Form 770).
SOTTOSCRIZIONE DELLA DICHIARAZIONE - SIGNING OF THE INCOME TAX RETURN
The signature the assessing party must put on the income tax return form. The tax return must always be signed, under penalty of invalidity, which can always be rectified by the taxpayer within 30 days of receiving the request from the competent Office of the Revenue Agency.
SPESE MEDICHE - MEDICAL EXPENSES
Medical expenses of any kind (general, specialist, surgical, pharmaceutical, etc) which give the right to a 19% tax deduction, after discounting the exemption of 129.11 euro. The exemption does not apply if the expense concerns the means necessary for accompanying, lifting or moving of disabled persons, or the purchase of devices and software/hardware intended to improve their self-sufficiency and opportunities for integration. On the contrary, other medical expenses incurred for disabled people are entirely tax deductible (Concessions for disabled people). Taxpayers who wish to declare medical expenses are required to keep the relative documentation duly receipted.
SPESE MEDICHE SOSTENUTE ALL’ESTERO - MEDICAL EXPENSES INCURRED ABROAD
Expenses subject to the same regime as those incurred in Italy. For these expenses too, the declaring party shall keep the relative documentation, duly receipted, and, in case this is in its original language, it is necessary to attach a translation into Italian (unless the expense was incurred by a taxpayer resident in Valle d’Aosta or in Alto Adige, where a receipt in French and German, respectively, is accepted). Expenses related to transfers and stays abroad, even if for health reasons, do not give the right to a detraction, as they are not considered medical expenses.
STABILE ORGANIZZAZIONE - PERMANENT ESTABLISHMENT
This is the permanent headquarters through which a foreign company exerts part of or all its activity throughout the territory of the State.
STATUTO DEL CONTRIBUENTE - TAXPAYERS’ STATUTE
The taxpayers’ charter introduced into the Italian system by law 212/2000.
The Statute (integrated by a number of executive regulations) recognizes the following rights:
- to information
- to know all deeds and to transparency
- to the motivation of all deeds;
- to patrimonial integrity;
- to compensation;
- to good faith;
- to ruling;
- of the taxpayer under verification.
Law 212 also established the following principles that the legislator must respect when he intends to establish norms concerning taxation:
- the use of interpretative norms in taxation matters is permitted only in exceptional cases and with an ordinary law;
- changes made to periodic levies are applied only starting from the taxation period following the period during which the relevant laws came into being. In any case, the norms cannot require taxpayers to pay earlier than 60 days of their promulgation;
- extending the limitation terms and deadlines for assessment is forbidden;
- new taxes cannot be established by means of a law-decree;
- laws (or assimilated acts) containing tax provisions must mention the object thereof in the title;
- laws that do not have a fiscal object cannot contain provisions concerning taxes, except for those strictly concerning the object of the same law.
The text of law 212, as all other provisions concerning tax matters and all relevant circulars, is available on the Revenue Agency’s website.
STUDI DI SETTORE - STATISTICS-BASED TAX ASSESSMENT
Special methods used to assess the capacity to produce profits or achieve remuneration of individual economic enterprises. Statistic-based tax assessments are carried out by systematically collecting data, not only of fiscal nature but also structural and of objective nature, that characterize the taxpayer’s business and the economic context in which it develops.
The assessments determine the amount of the profits or remuneration that, with the highest probability, can be attributed to the taxpayer, identifying not only the potential capacity to produce profits or remuneration, but also the elements within or outside the business which can limit the same capacity (working hours, market realities, etc).
By means of the statistics-based tax assessments taxpayers can know what criteria the Revenue Agency follows when carrying out assessments. Knowing what the tax authorities looks for, a taxpayer can behave accordingly:
- by adjusting his/her tax returns to the results of the statistics-based tax assessments;
- by not adjusting them in the light of valid reasons that justify the discrepancy.
The statistics-based tax assessment is applied using a special software called Gerico.
SUCCESSIONE E DONAZIONE (imposta) - SUCCESSION AND DONATION DUTY
A tax that affects free transfers and transfers due to death. The rates used to establish the tax vary according to the relationship between the donor and the beneficiary.
In particular, these are the rates applied:
- 4%, on the excess part of 1,000,000�, to each heir, for spouses and lineal relatives
- 6% on the excess part of 100.000 �, to each heir, for brothers and sisters
- 6%, to be calculated on the total value (ie without exemption), for other relatives to the fourth degree, lineal in-laws, as well as in-laws to the third degree
- 8%, to be calculated on the total value (ie without exemption), for other people.
TASSA - FEE
The compensation a private citizen owes a public entity for the supply of a right or service (for example school fees). There are three main categories: administrative fees, paid in order to obtain permits, certificates or the release of documents; industrial fees, paid to run a business for reasons of social interest; legal fees, paid by private citizens both for civil cases and for voluntary jurisdiction decisions.
A fee is different from a tax, which represents a deduction with no compensation, aimed at financing public needs of a general nature.
TASSA SULLE CONCESSIONI GOVERNATIVE - LICENCE TAXES
These affect administrative measures taken by state or regional offices. The term “licence” is to be intended broadly speaking because the tax actually concerns a wide range of administrative acts determining an advantageous position for the taxpayer.
They can be paid into a post office account in the name of the competent Revenue Agency office, or by using revenue stamps.
TASSA SULLE RADIODIFFUSIONI - TELEVISION FEE
Annual fee due for the simple possession of a television set, which must be paid to the radio and television authority. Payment is made at tobacconists which are lottery offices affiliated to PuntoLis, or at post offices, by means of special current account forms in the name of RAI RadiotelevisioneItaliana (Italian Broadcasting Company). Payment can also be made on the phone or the Internet with a credit card.
TASSAZIONE DEI REDDITI FINANZIARI - FINANCIAL INCOMES (TAXATION OF)
Taxation imposed by means of a substitute tax with a proportional rate (therefore avoiding the application of the progressive rates provided by income tax).
TASSAZIONE SEPARATA - SEPARATE TAXATION
A type of taxation applicable to certain incomes, usually developing over the course of several years. Instead of being subject to normal Irpef rates, incomes under such a regime (for example, sums acquired in cases of withdrawal, exclusion or winding-up of a business, severance pay or for the end of agency contracts, etc.) are subject to an average rate, generally determined on the basis of the incomes earned in the two years preceding the year in which the right to receive these incomes has arisen, or preceding the year in which they have been received.
Connected items: Retirement bonus
TASSE AUTOMOBILISTICHE - ROAD TAX
Road Tax is paid for the possession of vehicles registered in the public car registers, according to the effective power of the vehicle, expressed in kilowatt, as indicated in the car registration documents. The power is multiplied by a coefficient, normally set at 2.58 euro, which can be increased by each regional authority.
For certain vehicles the amount varies according to their load.
Car taxes must be paid during the month following the expiry date, at post offices, authorized tobacconists, Aci (Italian Automobile Club) offices.
TASSO LEGALE - LEGAL RATE
It is the interest rate to apply in most juridical interactions (deposits on rents, tax rebates, payment of taxes following voluntary correction of tax return, disputes in civil and commercial matters).
The level of spontaneous fulfilment of tax obligations by taxpayers, which the Administration obtains by wisely using two forces: on the one hand the service, assistance and information provided to the individual, on the other hand the fight against tax evasion.
TERMINE DI ACCERTAMENTO DELLE IMPOSTE - DEADLINE FOR TAX VERIFICATION
The date by which the office must register the verification notice, under penalty of forfeiture. Such a D. is set for 31st December of the fourth year following the year when the tax return was submitted. If the tax return has not been submitted or the it is not valid, the verificationcan be notified up to 31st December of the fifth year following the year in which the tax return should have been submitted.
TESSERA SANITARIA - NATIONAL HEALTH SYSTEM CARD
The National Health System Card is a personal card that will gradually replace the personal tax code card for all citizens with the right to use the National Health System services and who have a personal tax code. As well as personal and social security data, the card will carry the personal tax code both on a magnetic strip and in a bar code. The card is valid throughout Italy and allows the bearer to use health services in all the countries of the European Union, substituting the E111 form. The card is valid for 5 years, unless otherwise indicated by the Regional/Local Health Authority. Upon expiry, the Revenue Agency automatically sends a new card to all subjects for whom the right to assistance has not expired.
In case of any mistake in the personal data on the card, or in case the card is lost or stolen, the citizen can go to any office of the Revenue Agency and request its amendment or a copy.
In the common economic meaning, it is the control of the compensations applied to commercial and/or financial operations between connected and/or controlled companies resident in different nations, in order to verify that there are no “artificial” adjustments in prices.
TRASCRIZIONE - RECORD
Recording in real estate registers – by the regional offices – of transfers, purchases and modifications of property rights related to real estate and registered properties.
TRASLAZIONE DELL’IMPOSTA - SHIFTING OF TAXATION
Economic process through which the taxed subject (he/she who has to pay the tax) transfers the effective weight of the tax payment onto other subjects; these become, therefore, de facto taxpayers.
TRATTAMENTO DEI DATI - DATA TREATMENT
In Italy, law n. 675/96 (on the protection of personal data) regulates the protection of people and other subjects with respect to how personal information is treated. Treatment is the operation, or operations, carried out with or without the use of electronic means by using personal information.
TRIBUTI LOCALI - LOCAL TAXES
Group of tax revenues of territorial public bodies (Regions, Provinces, Municipalities). According to the current regime:
- Regions are entitled to the Irap revenue as well as an Irpef supplement;
- Provinces are largely entitled to road taxes (provincial record tax, revenuefrom the tax raised by car insurance –RCA-);
- Municipalities are mainly entitled to the tax on real estate (Imu) and by the Irpef supplement.
TRIBUTO - LEVY
Generally indicates an amount of money collected obligatorily (taxes, fees, TV fee, etc).
TUIR (TESTO UNICO DELLE IMPOSTE SUI REDDITI) – Italian Tax Consolidated Text
It is the basic text containing the norms to determine and to tax incomes. It is also available on the Internet, at www.agenziaentrate.gov.it
TUTORAGGIO - TUTORING
A form of assistance concerning all issues related to taxes, given, upon request, by a local office of the Revenue Agency to taxpayers. The service is free of charge and is supplied through the Internet and e-mails.
For these purposes, a revenue officer (called “tutor”) is appointed within the office to deal with the specific assistance, following the case of the “tutored” taxpayer on the basis of the data periodically transmitted via the Internet. In particular, the tutor monitors the timing of the submissions, making sure the deadlines established by the simplified tax regime are respected, and assists the taxpayer in the following actions:
- preparation of the F24 models for the payment of due taxes;
- processing of accounting data submitted by the taxpayer;
- payment of taxes;
- preparation of the Vat refund form, if due;
- preparation of the tables of the consolidated tax return relating to the taxpayer’s activity.
Subjects wishing to use the Internet assistance procedure must, first of all, request a pin code (if they do not yet have one), by filling in the form provided online at http://telematici.agenziaentrate.gov.it.
UNITÀ IMMOBILIARE PRINCIPALE - MAIN REAL ESTATE UNIT
(see Main Residence)
UNITA’ IMMOBILIARI TENUTE A DISPOSIZIONE - AVAILABLE REAL ESTATE UNITS
Real estate properties that are not used as main residence. For Irpef purposes the recalculated cadastral revenue is increased by one third, unless the use of these properties has been given for free to a family member, thus becoming his/her main residence.
USUFRUTTO - USUFRUCT
This is the right to use a property belonging to another person (and to exploit its possible benefits), without however being able to change its destined use.
USUFRUTTO LEGALE - LEGAL USUFRUCT
The right to use a property belonging to another person (and to exploit its possible benefits), recognized directly by law, for example to parents who manage the property of their under-age children. For tax purposes income subject to legal usufruct must be declared together with other income, while income not under usufruct must be declared – in the case of a minor – with separate form, in the name of the minor but filled in by the parent exercising parental authority.
The following are not subject to legal usufruct:
- property purchased by a son or daughter with the profits of his/her own work;
- property left or donated to a son or daughter in order to begin a career, craft or profession;
- property left or donated upon the condition that the parents exercising parental authority power or one of them will not have the usufruct;
- property given to the son or daughter as an inheritance, legacy or endowment and accepted in the interest of the son or daughter against the will of the parents exercising parental authority (if only one of them was in favour of acceptance, the legal usufruct is his/her exclusive right);
- survivorship pensions paid by any party.
UTILE - PROFIT
Positive economic result of a business or of autonomous work over a determinate period of time (usually the solar year).
UTILI PRODOTTI ALL&rrsquo;ESTERO - FOREIGN INCOME
Income deriving paid out by foreign companies or entities. Tax must be paid on the dividend, gross of any deductions that may have been made abroad and in Italy as a down payment. It must always be included in the income tax return since it is not possible to opt for a definitive payment as it is for dividends from an Italian source.
VALORE DEI FABBRICATI - VALUE OF REAL ESTATE
Taxable base for the application of taxes.
For the purposes of Irpef, the taxable base is the value of the recalculated cadastral revenue.
In order to determine the V. of real estate not registered in the land register or that has undergone permanent variations, the taxpayer must refer to the type and to the revenue attributed to similar buildings.
VALORE NORMALE - NORMAL VALUE
The price of a product or of a service usually determined on the market by economic forces, in free market conditions.
VARIAZIONE DI ATTIVITA’ - CHANGE OF BUSINESS
VARIAZIONI E VOLTURE CATASTALI - VARIATIONS AND CADASTRAL TRANSFERS
Registration in the cadastral deeds of the transfer of property or of the property right, performed by the offices of the area upon request by the subject under obligation.
In case of objective variations, which have permanently involved the type, the extent or the destined use of the real estate, interested parties must submit a specific request to the provincial office of the area by 31st January of the year following the year when the works were completed.
VARIAZIONI IVA - VAT VARIATIONS
Change in one of the data shown in the declaration of setting up of a business, which must be communicated within 30 days, also via the Internet, to the relevant office.
VENDITA FORZATA - FORCED SALE
Action of the forced execution the official payment officer can take in order to recover unpaid taxes. It is regulated, as well as by the specific tax norms, by the provisions set forth in the Italian Civil Code and in the Italian Code of Civil Procedure.
VERIFICA - VERIFICATION
Activity performed by the Revenue Agency or by the Finance Police to check that tax obligations are duly respected, with a final report indicating possible violations detected and the relative due payments. It is performed through direct access at the taxpayer’s office following particular methods and, as a norm, it refers to the general tax situation of the taxpayer.
The V. is a broader activity of the documentary inspection as, on the one hand, it checks and verifies how complete, exact and true the compulsory entries, the company’s books and the documents (fiscal and others) relating to the activities of the taxpayer are, and on the other hand it checks and verifies the information gathered by the Revenue Agency regarding the facts that were, or should have been, taken into account in the annual tax return.
At international level, fiscal bodies of different States are allowed to perform simultaneous verifications of taxpayers belonging to the same group and located in different countries.
Connected items: Access, Inspection, Powers of the offices
VERSAMENTO - PAYMENT
The payment of due taxes by means of Forms F24 and F23. The amounts of the taxes deriving from the tax return must be rounded off to the unit of euro, as determined in the Forms. Amounts must always be written with their first two decimal numbers, even when these are equal to zero.
In case of more than two decimal numbers, the second decimal number must be rounded off according to the following criteria: if the third decimal number is equal to or higher than 5, the figure is rounded up; if the third number is lower than 5, the figure is rounded down (e.g. euro 52.752 is rounded down to 52.75; 52.755 is rounded up to 52.76; 52.758 is rounded up to 52.76). It is important to stress that the first two decimal numbers must be written even if equal to zero, for example when the amount is expressed in units of euro (e.g. amount due equal to 52 euro, it must be written 52.00).
VIOLAZIONI FORMALI - FORMAL VIOLATIONS
Omissions or errors that do not hinder the verifications and do not compromise the determination of the tax or its payment. The Taxpayers’ Statute has established that F. V. are not punishable. Taxpayers who realize they made formal errors or omissions in their tax return can rectify their position by submitting a supplementary assessment with a form which conforms to the original, or by using a photocopy of the form published in the Gazzetta Ufficiale (Official Gazette), downloadable from the Internet.
VIOLAZIONI SOSTANZIALI - SUBSTANTIVE VIOLATIONS
Errors and omissions relative to the tax returns that affect the determination of the tax or its payment or that hinder a verification process. They can be regularized by submitting a supplementary assessment within the deadline established for the submission of the following year’s tax return. Taxes or the increased tax owed, the relative interest (calculated on the basis of the annual official rate with a day-to-day maturation) and the fine reduced to a fifth of the minimum established must be paid within the same deadline.
VISTO DI CONFORMITA’ - CONFORMITY PERMIT
Certificate issued, upon the taxpayers’ request, by the CAF (Fiscal Assistance Centres) or by recognized professionals, which certifies that the data on the tax return they have prepared complies with the relative documentation.
It can be issued under the premise that the tax return and the book-keeping entries have been prepared and kept by the CAF or by recognized professionals.
(See also Tax Certifications).
VOLUME D’AFFARI - VOLUME OF BUSINESS
Total value of goods transferred and of services performed with reference to a solar year, valid for the purposes of Value Added Tax (VAT). Concessions of amortizable goods do not form a part of the volume of business.
Tax breaks are provided when the volume of business does not exceed an established amount (see also Turnover).