How to submit a travel reimbursement request: Italian tax deduction

THE INFORMATION PROVIDED IN THIS PAGE IS NOT UPDATED.

SINCE FEBRUARY 2016 ANY FISCAL DOCUMENT IS REQUIRED.

 

Taxation of flat rate reimbursements

According to the Italian rules for reimbursements including payments not supported by receipts, the Grant Holder will be forced to apply a taxation (ritenuta d’acconto) to all expenses. The taxation rate depends on whether the participant pays her/his taxes in Italy or not:

  • for participants paying their taxes in Italy the taxation applied is equal to 20%. Based on the rates set by the COST, this would lead for example to 120*0.8=96 €/night for hotel and 20*0.8=16 €/meal.
  • for participants paying their taxes outside Italy the taxation applied is equal to 30%. Based on the rates set by the COST, this would lead for example to 120*0.7=84 €/night for hotel and 20*0.7=14 €/meal.

Taxation of flat rate reimbursements are not due if: (a) the subject receiving  the reimbursement is a Public Body or (b)  the subject is a fiscal resident in a country where there is a treaty between Italy and the country itself to avoid double taxation *, or (c) the expenses incurred for accommodation and meals exceed the flat rate reimbursed (120 euro per night, 20 euro per meal).

 

Details

A. Participants paying their taxes in Italy

There are two possible options:

  1. If Italian taxpayers register on eCost an institutional bank account (of a University or a public body e.g. a government-funded research center)  rather than a personal one, the reimbursement will not be subject to any tax deduction. The Grant Holder will reimburse the Institution where the Participant belongs to, and the Institution will reimburse the Participant according to the rules internal to the Institution.
  2. If all the expenses incurred for accommodation and meals exceed the flat rate reimbursed (120 euro per night, 20 euro per meal – 40 euro per day). In this case the Grant Holder needs all the receipts.

B. Participants paying their taxes outside Italy

There are three possible options:

  1. If the participant register on eCost an institutional bank account (of a University or a public body e.g. a government-funded research center)  rather than a personal one, the reimbursement will not be subject to any tax deduction. The Grant Holder will reimburse the Institution where the Participant belongs to, and the Institution will reimburse the Participant according to the rules internal to the Institution.
  2. Send a declaration released by the tax office stating that the participant is a fiscal resident in the country, taking advantage of a treaty between Italy and the country itself to avoid double taxation, if such treaty exists*. The declaration must be sent in electronic form, together with the travel reimbursement form and a scanned copy of passport of the participant. Finally, the form linked below requiring the application of the agreement has to be filled in. The declaration and the form should also be provided in original *preferably* during a meeting or at the mailing address indicated above (if possible by express courier). 
  3. If all the expenses incurred for accommodation and meals exceed the flat rate that will be reimbursed (120 euro per night, 20 euro per meal – 40 euro per day). In this case the Grant Holder needs all the receipts.

 

* the list of countries that signed a fiscal treaty with Italy can be found here (http://www.finanze.it/export/finanze/Per_conoscere_il_fisco/fiscalita_Comunitaria_Internazionale/convenzioni_e_accordi/convenzioni_stipulate.htm).