Paragraph 152 of the art. 1 of the Law 11.12.2016, n. 232 (so-called Budget Law 2017) introduced the art. 24-bis in the D.P.R. 917/1986 which provides for a flat-rate substitute tax on income produced abroad by natural persons who transfer their tax residence in Italy and who have not resided there for at least 9 of the 10 tax periods prior to the start of the period of validity option
The amount of the substitute tax, of flat rate, regardless of the amount of income received, is equal to 100,000 euros for each tax period in which the aforementioned option is valid; it must be paid in a single payment by the date scheduled for the payment of the income tax balance for the reference year.
The amount of the flat-rate substitute tax is reduced to € 25,000 for each tax period for each family member (as identified by Article 433 of the Civil Code – the spouse, the adoptive children, the parents, the genders and the daughters-in-law, the father-in-law and the mother-in-law, the siblings or the siblings or the unilateral siblings) in the event that the requesting taxpayer makes an option to extend the concessional system to the same.
The option for access to the tax system under analysis must be stated in the income tax return relating to the tax period in which the residence in Italy is transferred and is effective as from that tax period.
This option is valid for 15 years and is, if deemed appropriate, revocable.
Furthermore, the expiry of the option, with the cessation of its effects, in the event of omission or partial payment, in whole or in part, of the substitute tax, to the extent and within the terms envisaged by the current provisions of law, is envisaged, without prejudice to the effects produced in previous tax periods.
The revocation or the forfeiture of the regime preclude the exercise of a new option.
The Tax Authority, with provision n. 47060 of 8 March 2017, indicated the methods and instructions for exercising the option for the Flat Tax and for the payment of the substitute tax, as well as making optional the presentation of a so-called Probation request.
The tax (Flat Tax) cannot be combined with the incentives for the return to Italy of researchers residing abroad (as per article 44, DL 31.5.2010, No. 78, conv. 30.7.2010, No. 122), or with the facilities for the return of skilled workers (Article 16 of Legislative Decree 14.9.2015, No. 147).