With reply no. 54 of 31 January 2022, the Revenue Agency has clarified that, in order to be able to apply the conventional wages in the case of employment abroad, the lack of a provision in the ministerial decree regarding the economic sector in which the activity is carried out by the employee constitutes an impediment to application of the scheme.
Determining the employee’s income
The methods for determining the employee income are governed by art. 51 of the TUIR. Paragraph 8-bis of this article establishes that, notwithstanding the provisions of paragraphs 1-8, the income from employment abroad on a continuous basis and as the exclusive object of the relationship of those who within twelve months stay in the foreign State for a period exceeding 183 days, is determined on the basis of the conventional salaries defined annually with the decree of the Minister of Labor and Social Security referred to in Article 4, paragraph 1, of the decree-law of 31 July 1987, n. 317, converted, with modifications, by the law 3 October 1987, n. 398.
Active conditions regulating work activities abroad
The Revenue Agency recalls the conditions for the regulation of the aforementioned art. 51 paragraph 8-bis applies:
- the worker, operating abroad, must be classified in one of the categories for which the decree of the Minister of Labor establishes the conventional salary;
- the work activity must be carried out abroad with the character of permanence or of sufficient stability;
- the work carried out abroad must be the exclusive object of the employment relationship and, therefore, the execution of the work must be carried out entirely abroad;
- within twelve months, the worker must reside in the foreign country for a period exceeding 183 days.
In the present case, the Revenue Agency has established that, being the instant employee of a foreign non-profit association, the conventional salaries cannot be applied as the economic sector of reference is not among those expressly provided for by the ministerial decree.