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1.1ÌýÌýÌýÌý Introduction: overview of the domestic payroll system

Tax year

The fiscal year, also known as the financial year, is a 12-month period. At the end of the fiscal year, companies are required to submit official reports and statements. In Italy, it corresponds to the calendar year, from 1 January to 31 December (with the exception of some public sectors).

The tax administration is known as the Agenzia Entrate, the Revenue Agency.

Note that reference is often made in Italy to the 'income year'. So tax returns filed in 2023 are in reference to the income earned in the 'income year 2022'.

Tax residence

New measures took effect from 1 January 2024, regarding the tax residence rules applicable to natural persons for personal income tax purposes (Legislative Decree No 209/2023, Art 1).

An individual is tax resident in Italy if, for more than half of the tax year, they:

1. Ìý

   •ÌýÌýÌýÌý are physically present in Italy, or

2. Ìý

   •ÌýÌýÌýÌý have a residence in Italy in accordance with the civil code, or

3. Ìý

   •