It's TAX time of year again.

Since tax reporting time (1st January 2013 - 31st December 2013) is almost upon us once again,  this week I am writing a blog to help you to prepare the necessary information and also to help your commercialista.  Feel free to share this link if you feel it would be of help to others. 

Making life easy for your commercialista.  

As if you needed reminding, here is a list of documents which you need to prepare for your commercialista as of 31st December 2013. 

General documents  

Your tax code (Codice fiscale) 

A copy of your last tax return (if you have one)  - Italian or other jurisdiction  

A copy of any F24 payment forms for any Italian income tax paid in 2012 

Details of any properties bought or sold between 1st January 2013 and 31st December 2013   

Income

If you are an employee - CUD form/P60/any other annual statement of income 

For pensioners - a pension statement/P60 

Assets

A spreadsheet/document showing: 

Bank interest received from overseas accounts (and accompanying documents showing any tax already paid at source), 

Dividends received. 

Losses/gains on investments and the value of those investments (on assets held abroad) as at 31st December 2013. (Remember that for directly held portfolios, i.e those held on a nominee account or with a bank, for e.g), each asset in the portfolio is treated as a separate asset and dividends/losses/gains etc, must be recorded as such for each asset, not just the whole portfolio.  

Properties

Rental income and expenses and the NET income figure (after expenses)

Purchase price of properties held overseas. Council tax band (UK only) 

F24 payment forms for IMU paid in 2013

And here is the nice part: 

Deductibles (all requiring valid supporting documentation) 

Medical expenses; veterinary expenses; mortgage interest payments (with deed of purchase and mortgage contract); rental contracts (those renting a property); notary fees for purchase of property and/or mortgage; agents fees for purchase of prima casa; costs of replacement of fridges and freezers (class A+ and above), costs of purchase of furniture, white goods televisions and computers for renovated properties; health and life insurance; donations to non-profit organizations; school fees; funeral expenses; social security contributions (voluntary, mandatory etc); domestic staff (COLF) contribution payments; adoption of foreign children; donations to various agencies/institutions/associations; home renovations (36/41/50%); payments to supplementary pension funds; rental leases (L.431/98 due to job transfers, students studying away from home etc); expenses incurred by carers in case of disability; energy saving investments (55%); annual registration or subscriptions to sports clubs, gyms, swimming pools (for children between 5 and 18 years); childcare costs (up to 3 years of age).

Most deductibles are eligible for a deduction of 19% of the amount declared (an average figure, not absolute). 

A comprehensive list of requirements for your next tax declaration!

If you think you might be paying too much tax in Italy then it might be worthwhile conducting a financial review to look at the tax efficiency of your affairs.  If you would like to speak to me about this, you can contact me on gareth.horsfall@spectrum-ifa.com or on +39 333 649 2356. 

This information was 'lovingly' complied with the help of Judith Ruddock at Studio del Gaizo Picchioni, a firm of cross border Italian tax specialist commercialisti.  They have in depth knowledge of tax issues for expats (of all nationalities) living in Italy. http://www.studiodelgaizopicchioni.it/