LDP GLOBAL MOBILITY
Global Mobility refers to a multinational corporation’s ability to move its employees to offices in different countries. The procedure is also called International Assignment.
Italian legislation, the multiple international agreements and the prompt response of authorities mean that Italy has one of the speediest processes in the world for the Company that needs to detach their employees. Global Mobility includes many critical aspects like the relevant income tax, social security, secondment or assignment contracts and, last but not least, the immigration issue.
Global mobility is now more critical than ever.
Global Solutions
LDP has matured a significant expertise in Tax matters related the day to day advice, M&A, Transfer Pricing and other areas better describe hereafter
DRAFTING OF SECONDMENT AGREEMENTS
The posting of the worker, governed by art. 30 of the Italian Legislative Decree 276/03, consists of an organizational provision with which the employer, in order to satisfy his own interest, temporarily places one or more workers at the disposal of another party for the execution of specific work activity.
The employer remains responsible for the economic and regulatory treatment of the employee and, in general terms, is not subordinated to the indication of specific reasons or to the consent of the posted worker. However, it should be considered that: the posting that entails a change of duties must take place with the consent of the employee concerned; the posting that involves a transfer to a production unit located more than 50 km from the one in which the worker is employed can only take place for proven technical, organizational, production or replacement reasons.
LDP provides the drafting of secondment letters which includes expat benefit and tax equalization if requested.
SOCIAL SECURITY REPRESENTATIVES
It is possible to hire employees in Italy even a foreign company doesn’t have a branch or a subsidiary. If the overseas employer is located in a Country not fully or partially adhering to the convention in terms of social security with Italy, it must be appointed in Italy a Social Security Representative.
Social Security Representative (SSR) is responsible and jointly liable for the payment of social security charges in Italy and to represent the employer in front of the Authorities.
In case the activity performed in Italy is considering Permanent Establishment based on the OECD rules and the Italian Tax law, either a branch or a limited company should be set up.
LDP Social security Services
- Act as Social Security Representative;
- Preparing the necessary Power of Attorney and other necessary documents;
- Director and company Italian tax codes obtaining (Codice Fiscale);
- Secondment consulting;
- Social and Insurance (INAIL) application;
- Drafting of employment contract
- Payroll service.
IMMIGRATION AND VISA SERVICES
Several categories of NON-EU workers are not included into the quota limitation system applied in Italy.
Italy incentive the attraction of NON-EU High Qualified Employee as managers and trainees on assignment to Italian subsidiaries of the same group or seconded to the Clients; is it considered qualified as highly qualified employees if in possession of a University degree. the timing of the VISA obtaining is about 3 month but depends in which municipality is requested due to the fact that each immigration and labour office has discretionary powers allowed them to require different document requirements and processing time.
Italy offers also the EU Blue card which is a work permit for non-EU highly skilled workers, the main requirement is:
- Education qualification: academic degree on completion of at least 3 years’ duration. The degree must be validated by the Italian Consulate in the released Country.
- Work contract or job offer for a highly qualified position: provided by an employer-based in Italy.
- Minimum Salary: as stated by the EU Blue card salary requirement.
LDP provides Immigration services for NON-EU employer need to seconded employees in favor of group subsidiary or Clients
SALARY AND SOCIAL SECURITY PAYMENTS
LDP acting as Social Security Representative (SSR) will take care of the social security payments,
The SSR will open a bank account fully dedicated to the Social Security payments and salary if needed; the SSR will inform in advance the employer about the calendar and the fund amount to be transferred.
LDP Salary and Social Security payments Services
- open a bank account exclusively for Social Security and Salary payments;
- take care of the Social Security payments and salary payment only if requested by the employer.
SHADOW PAYSLIPS AND TAX EQUALIZATION (HYPO)
Shadow payroll allowed to assist with an expat employee’s host-country compliance, reporting and tax obligations while the worker is under assignment in the host country due to the fact that the employee remains on a home-country payroll. The host country payroll will “shadow” what is reported in the home country payslip even the employee will not receive any compensation from the host country.
About hypothetical Tax ( Hypo), the employer could be offsetting any tax difference for the employee, applicable when the employee is hosting Country tax resident; so that working abroad becomes for the employee tax neutral.
LDP Shadow Payslips and Tax Equalization (Hypo) Service
- Shadow payslip;
- Seconded tax calculation;
- Seconded tax form application.
TAX AND SOCIAL SECURITY COMPLIANCE
If the overseas employer is located in a Country not fully or partially adhering to the convention in terms of social security with Italy, it must be compliant with the Social Security obligation of the hosting Country.
The employee seconded if it is considered Italy tax resident should pay Italian tax on his worldwide revenues.
LDP Tax and Social Security Compliance Services
- deliver to Social Security all the mandatory communication;
- prepare and submit to the tax authority, the seconded tax return form.
TRAVEL POLICY EMPLOYEE HANDBOOK
Travel policy outlines provisions for company travel. This Policy defines which expenses will be reimbursed and how and provide instructions to the employees to track their expenses correctly when they travel. The Policy is not applied to traveling to and from the office on a daily basis for work.
The Travel policy provision covers also medical expenses, insurance for travelers, vaccinations or examinations, accidents, transportation expenses, accommodation and others.
LDP Travel Policy Employee Handbook Services
- our Specialist will run an assessment in order to map all the scenarios relate to a business trip;
- drafting of the Travel Policy Handbook.
WELCOME AND EXIT MEETING
Both Welcome and Exit meetings are scheduled with the Expat and a Professional (a member of LEADING EDGE ALLIANCE Association) located in the hosting Country.
The first briefing has the scope to inform the Expat about the local law and related compliance the second will have the scope to map with the local advisor what should be done after the Expat leaves the hosting Country.
LDP Welcome and Exit Meeting Services
- Schedule and arrange the meeting or video call, with the Local Professional
What is global mobility?
The term refers to a function – often within the HR function of a company – that defines a multinational corporation’s capacity to move its employees to offices in different nations.
Services includes expatriate payroll, compensation and benefit privileges, immigration, social security and tax matters.
Does an assignee need to pay taxes in Italy?
An individual is due to pay taxes in Italy based on his/her Italian tax residency. It the individual qualifies Italian tax resident, taxes are due in Italy on the worldwide income of the taxpayer. On the contrary, only income sourced in Italy are subject to Italian taxes.
LDP can help you to assess your tax residency and to act in compliance with the Law, optimizing the tax burden.
What are the immigration requirement to work in Italy?
Citizens of the EU do not need permit to live and work in Italy; they are only obliged to register with the Office of Record of Resident Population, within 90 days from the date they enter in the Italian territory.
Extra-EU citizens are required to apply for work permit in order to regularly live and work in Italy. Under conditions, special permits (i.e. investor VISA, start-up VISA and elective VISA) are available for individuals who are self-employee or are not employed but intend to relocate permanently or invest in Italy.
LDP may help you to identify which kind of permit fits your needs and may assist you in obtaining it.
What is the Special regime for "new resident" FLAT TAX for an individual who decide to transfer to Italy?
A special regime for “new resident” is available. Under conditions, the regime allows individuals who transfer their tax residency in Italy to opt for a substitutive tax of 100.000 Euro – to be paid each year – on the income sourced abroad, regardless the amount of the foreign income.
The option for this regime is valid for 15 years and it is extensible to members of the family of the taxpayer who applies for it; the members of the family will pay a reduced amount of 25.000 Euro each.
Under this regime, no inheritance or donation tax is due for the assets located outside of Italy.
LDP may help you to analyse your position in order to understand if you are eligible for this regime and may assist you in the necessary fulfilment requested.
Extra-EU citizens are required to apply for work permit in order to regularly live and work in Italy. Under conditions, special permits (i.e. investor VISA, start-up VISA and elective VISA) are available for individuals who are self-employee or are not employed but intend to relocate permanently or invest in Italy.
LDP may help you to identify which kind of permit fits your needs and may assist you in obtaining it.
What does a mobility consultant do?
A Global Mobility advisor works to implement global assignment services for companies and their workers. It involves making sure all relocations and changes go as smoothly as possible and respect the law requirement of both the Country of origin and in the Country of destination.
Does an assignee need to pay social security contribution in Italy?
Generally social security and pension contributions are due in Italy based on the territoriality principle. However, special provisions apply based on the Country of origin of the assignee and payment of social security and pension could be avoided.
LDP can help you and your employer to assess your social security obligation and to act in compliance with the international and internal regulations.
Which are the tax advantage recognized to an employee who decide to transfer to Italy?
The Italian Government has introduced a special tax regime which provides, under conditions, for a tax exemption of the 70% of the employment income produced in Italy, up to 5 years. The regime can be extended for additional 5 years with a reduced exemption threshold of 50%, if the conditions provided by the Law are met.
LDP may help you to analyse your position in order to understand if you are eligible for this regime and act accordingly.