With Circular No. 17 of 24.05.2022, the Revenue Agency provided some clarifications on the extension of the facilitated regime for researchers and teachers who returned to Italy before 2020.
Which are the options for extending the benefit?
In Circular No. 17 of 24 May 2022, the Italian Revenue Agency provided clarifications on the opportunity introduced by Budget Law No. 234/2021, which allows teachers and researchers residing abroad and relocated to Italy, to extend the favourable regime (provided for by Article 44 of Decree-Law No. 78 of 31 May 2010) up to a maximum of 13 tax periods in total, resolving some doubts as to whether the tax benefits will be extended to the same period up to a maximum of 13 tax periods in total, thus resolving certain doubts of researchers and lecturers who returned to Italy from abroad before 2020 and who intend to continue to benefit from this favourable tax regime.
In particular, the 2022 Budget Law introduced the possibility for teachers and researchers who returned to Italy for tax purposes until 2019 to opt for the extension of the application of the favourable regime for up to eight, eleven or thirteen tax periods in total, subject to the payment in a single instalment of an amount equal to 5% or 10% of the income from employment and self-employment produced in Italy, relating to the tax period preceding the one in which the option is exercised.
Who has access to the benefit?
This option can be exercized, in particular, by teachers and researchers who:
- have been registered with AIRE or
- who are citizens of European Union Member States
- have already transferred their tax residence in Italy before the year 2020
- who, on 31 December 2019, are beneficiaries of the facilitated regime provided for by the aforementioned Article 44 of Decree-Law No. 78 of 2010
The Circular in question clarifies that the aforesaid option may also be exercised by teachers and researchers for whom the favourable regime ended in the 2019 or 2020 tax years, provided, however, that they meet, at the time of the option, the requirements set forth in Paragraph 5-ter of Article 5 of the Growth Decree.
When is it possible to apply?
In relation to such cases, considering that the provision set forth in the aforementioned paragraph 5-ter came into force on 1 January 2022, teachers and researchers who benefited from the favourable regime until the year 2019 or the year 2020 will be able to apply the aforesaid regime only starting from the 2022 tax year.
As from 1 January 2011, the facilitation applies:
- in the tax period in which the teacher or researcher becomes resident for tax purposes in Italy and in the following three tax periods (five, starting from 2020), provided that the tax residence in Italy remains.
- in the tax period in which the researcher or lecturer transfers his or her tax residence in the territory of the State and in the following seven tax periods, provided that he or she remains tax resident in Italy, in the case of teachers or researchers with a minor or dependent child, including in pre-adoptive foster care, and in the case of teachers and researchers who become owners of at least one real estate unit of a residential nature in Italy, after the transfer of residence to Italy or in the twelve months preceding the transfer the real estate unit may be purchased directly by the teacher and researcher or by his/her spouse, cohabiting partner or children, even in co-ownership;
- for teachers and researchers who have at least two underage or dependent children, including in pre-adoptive foster care, in the tax period in which the researcher or teacher becomes resident in the territory of the State and in the ten tax periods thereafter, provided that tax residence in the territory of the State remains;
- for teachers or researchers who have at least three children who are minors or dependents, including in pre-adoptive foster care, in the tax period in which the researcher or teacher becomes resident in the territory of the State and in the twelve tax periods thereafter, provided that they remain resident for tax purposes in the territory of the State.
N.B.: the Revenue Agency has established a new deadline to apply for the extension of the special regime. In addition, the tax benefit is now available also in the case of teaching and/or research activities abroad with unpaid leave and also in the event that the teaching and/or research activity is not carried out in the immediately preceding two years. Learn more in our dedicated article.