Your Business in Europe
Information and assistance for businesses established in Italy that wish to operate outside national borders or purchase services from a provider located in another European Union Member State.
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Doing business in Italy (PSC Italy)
Information and assistance for businesses established in other European Member States that wish to provide services in Italy on a permanent or temporary basis.
Note No. 2401 of 20 December 2023 of the National Labour Inspectorate (INL) provides guidance on the administrative obligations to be borne by service providers, as referred to in Article 10(3)(a) and (b) of Legislative Decree No. 136/2016.
The Italian Revenue Agency's Circular 25/2023 provides detailed guidance on the taxation of employees operating from home, under the title 'Tax Profiles of Remote Work (commonly referred to as smart working) and the Legal Framework for Taxation of Frontier Workers.' Innovations introduced by Law No. 83 of 13 June 2023'. The tax residency criteria for natural persons are still the ones laid down in Article 2 of the TUIR (Income Tax Consolidation Act) as approved by Presidential Decree 22 December 1986, No. 917) and do not change for people engaged in smart working.
The European framework agreement on cross-border workers' telework has been effective in Italy since 1 January 2024 (Framework Agreement on the application of Article 16 (1) of Regulation (EC) No. 883/2004 in cases of habitual cross-border telework), signed by the Ministry of Labour on 28 December last.
The European Commission has proposed the establishment of a single digital declaration platform for companies providing services and temporarily sending workers to another Member State ("posted workers"). The EU single market comprises 5 million posted workers. A primary administrative challenge for employers is handling a multitude of diverse documents within each Member State.
From 1 January 2025, small and medium-sized enterprises operating within a country that is part of the European Union will be able to adapt to a new simplified Value Added Tax (VAT) regime.
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