As is well known, the 2021 Budget Law, in order to reduce the negative effects caused by the health emergency, had provided for a measure of partial exemption from the payment of social security contributions due by self-employed workers (artisans, traders, farmers, settlers and sharecroppers, professionals and collaborators enrolled in the separate management) enrolled in the social security funds of the INPS and by professionals enrolled in private pension funds.

It should be noted that this partial exemption, up to a maximum of €3,000 per year to be apportioned on a monthly basis, is available to those persons who received in the 2019 tax year a total income not exceeding €50,000 and who suffered a drop in turnover, or compensation, in the year 2020 of not less than 33% compared to those of the year 2019. This sum will cover the minimum contribution due by 31 December 2021. Naturally, partners of companies and professionals participating in an associated practice are also included.

Further eligibility conditions are linked to: regularity of contributions; not being a recipient of a direct pension or disability allowance; not being an employee.

There were therefore 2 different deadlines for sending the application, under penalty of forfeiture:

  • 31 July 2021 for those registered with the Inps Gestioni;
  • 31 October 2021 for members of professional bodies.

However, all this was subject to the issuance of a specific Ministerial Decree.

This decree, which had been ready since 17 May, was only published on the ministerial website on 27 July. Hence the inevitable postponement of the deadline of 31 July 2021, given that the Inps should have issued a specific circular setting out the instructions for the application.

In its message no. 2761/2021, the Inps, in view of the aforementioned timeframe, announced that the deadline had been postponed to 30 September 2021, and announced that a circular would be issued in the near future, setting out the instructions for submitting the application.





The Italian Revenue Agency, with answer to question no. 458/E/2021, has provided guidance on the taxation of income from work carried out in smart working by workers posted from Italy abroad.

The question addressed by the Italian Tax Authority concerns the taxation of workers seconded from Italy to China, who were forced to return to Italy due to the COVID-19 epidemic.

The company, having regard to the combined provisions of Article 2, paragraph 2, Tuir, and Article 23, Tuir, asks the Italian Tax Authority to clarify what are the obligations of the withholding agent towards those employees who, being physically in Italy due to the COVID restrictions, continued their activities for the exclusive benefit of the Chinese seconded worker through smart working.

In particular, the Applicant asks:

  • for employees who spent less than 184 days in Italy during the leap year 2020, is the remuneration relating to the days worked in Italy to be regarded as income produced in the territory of the State by non-residents and, as such, is it to be taxed in Italy?
  • whether the residence in Italy for more than 184 days during the year 2020 of the employees of the applicant company entailed, in principle, a change in their tax residence status?
  • if the latter employees were to be regarded as resident in Italy, can the taxable amount for employees be determined pursuant to Article 51(8-bis) of the Tuir, by fictitiously considering income from activities carried out in Italy to be of foreign origin, for reasons attributable to the health emergency and definable as force majeure, with entitlement to credit for the taxes paid abroad?

With regard to the above questions, the Italian Tax Authority specifies that:

  • since the salaries are paid by a company resident in the Italian State, the amounts must be taxed in both States, unless China, as the State of residence of the workers, recognises the tax credit;
  • for the purposes of identifying the tax residence of an individual, under domestic law and in the absence of a specific legislative provision taking account of the COVID emergency, reference must be made to the criteria set out in the aforementioned Article 2, Tuir, the application of which is irrespective of whether an individual’s stay in our country is dictated by reasons connected with the pandemic. In fact, according to Article 2, paragraph 2, Tuir, ‘persons who for the greater part of the tax period are registered in the registers of the resident population or have their domicile or residence in the territory of the State pursuant to the Civil Code are considered residents’;
  • if the employees of the applicant company were to be considered resident in Italy, the tax rules provided for in Article 51, paragraph 8-bis, Tuir, cannot be applied, since that provision requires the worker resident in Italy to stay abroad for more than 183 days in a 12-month period.



LDP Payroll remains at your disposal for any further clarifications.

LDP provides Tax, Law and payroll  scalable and customised services and solutions. LDP Professional have also matured a significant expertise in  M&A, Corporate Finance, Transfer Price, Global Mobility Consultancy and Process Automation. 

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