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Author Topic: Useful tax information  (Read 1384 times)

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Offline levissima

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Offline popinjaykev

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Re: Useful tax information
« Reply #1 on: March 08, 2016, 09:58:22 AM »
Thanks Levi  ;D
In All things be a witness and if necessary use words.

Offline rsetzer99

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Re: Useful tax information
« Reply #2 on: March 08, 2016, 05:40:14 PM »
Thanks, good info.

US Social Security is an item that gets talked about a good deal. On the surface, to Americans, the Tax Treaty seems to be clear. From Article 18, 1999 Treaty.

Payments made by a Contracting State under provisions of
the social security or similar legislation of that State to a
resident of the other Contracting State shall be taxable only in
the other State

Ok. A little counter intuitive, but it seems to say that Social Security is not taxed by the US by is taxed by the Italian system. Hard to imagine the US giving up its grip on the tax, but there it is.

But.....being Italy, I have found references that say that Italian authorities have taken a narrow interpretation of the term Social Security to mean as to include only social welfare payments (for example, unemployment, sickness, or
industrial injury benefits).  Citation provided for this is.  ---  3Circolare Ministeriale n. 41/E of 21 July 2003. (For prior coverage,
see Tax Notes Int’l, 11 Aug. 2003, p. 521, 2003 WTD 149-10, or Doc 2003-17825 (3 original pages); and 2003 WTD
152-6 or Doc 2003-18257 (3 original pages).) -----

So, whats a poor expat to do? Clearly, one has little choice but to rely on advice from professionals when having tax returns prepared and submitted.

As a US CPA who plans to acquire an elective residency visa next year, one of the things I will be planning to do in my retirement is prowl the joyous catacombs of Italian tax law. Hey, everyone has to have a hobby right?