Italian Tax Incentives and International Mobility

27 December 2021

Over the last 5 years, Italy introduced tax incentives and facilities to attract foreign resident individuals, that are very competitive compared to similar regimes applicable in other European countries (e.g. UK, Spain, Benelux, Switzerland, Greece, Portugal). The regimes are linked to the acquisition of the Italian tax residence. Italian Immigration law has also been modified to ease immigration procedures for non-EU nationals that are interested in benefit from special tax regimes.

This was one of the topics addressed in the seminar "Italian Tax Incentives for Neo Residents and the Impact of Covid on International Mobility in China" organized on December 15th 2021 by our member Pirola Advisor China.

Four speakers, from Italy via video conferencing and onsite, kicked off the discussion in a webinar that offered the opportunity to interact and exchange real situations in the tax field.

Ms Daniela Xue, Associate Partner at Pirola Advisory China, shared her knowledge of travel restrictions (PU letters, family member’s visa, quarantine, etc.) and tax implications for Expats working in and out of China.

"Forging ahead with zero-Covid approach, China’s Travel and Immigration Restrictions keep changing and will not be lifted for a quite long time."

— Daniela Xue, Associate Partner at Pirola Advisory China

While Mr Jonathan Qiao, Senior Associate at Pirola Advisory China, Mr Luca Valdameri, Partner at Pirola Pennuto Zei & Associati, and Ms Claudia Schiavone, Immigration Consultant at Pirola Pennuto Zei & Associati, discussed remote working, prolonged uncertainty and tax implications, focusing on how to best handle international assignments in the age of Covid-19.

"Expatriates are suggested to consider existing developments in Chinese tax regulations when planning their international mobility. Tax treaties can play an important role in avoiding potential double taxation to expatriates."

— Jonathan Qiao, Senior Associate at Pirola Advisory China

The seminar was moderated by Mr Antimo Cappuccio, Partner at Pirola Advisory China.

Who can enter in China?

• Foreigners with Chinese diplomatic, service (official), courtesy, or C (flight attendants, seamen) visas;

• Foreigners holding Chinese valid visas issued on or after March 28th 2020 (for some countries, such as Italy, UK, France, foreigners holding Chinese valid visas issued on or after November 3rd, 2020 );

• Foreigners holding valid Chinese residence permits for work, private affairs, or reunion purpose; if residence permit expired after March 28th 2020, a new visa may be applied with the same purpose as the last entry.

Note: Local Chinese embassy or consulate may adjust the above policies according to the local situation, e.g. Italy: any valid residence permit + certificate of vaccination or PU letter + new visa

About Pirola Pennuto Zei & Associati

Pirola Pennuto Zei & Associati, with over 550 professionals, is one of the largest Italian advisory firms providing tax and legal service to mid-size companies and multinational groups.

The Firm’s services cover tax matters such as domestic and international tax compliance and planning, transfer pricing, VAT and tax advisory to expatriates as well as legal matters in Mergers and Acquisition, Private Equity transactions, Banking and Financial matters, including regulatory aspects, Corporate and Commercial Law, Aviation Law, Labour Law, IT Law, Copyright and Litigation. The Firm also provides financial services to businesses.

Recognizing China’s strategic role in the global market, Pirola Pennuto Zei & Associati operates in China through its associated companies Pirola Advisory China and Pirola Advisory Hong Kong (Pirola Advisory China) to help international companies succeed in this fast-growing economy.

With offices in Beijing, Shanghai and Hong Kong, Pirola Advisory China is dedicated to provide advice and assistance with respect to the development of business in the Greater China region and in the Far East area, assisting clients and investors in the areas of tax, legal, administrative and accounting consultancy.

Email: info.china@studiopirola.com

Link: http://www.pirolapennutozei.cn.com/

Special thanks to the speakers, the moderator and all the participants who joined the seminar and to Pirola for collaborating with us.

We look forward to seeing you all at our next events!

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