This post is a PS to the last one.
For those of you planning to start a business, remember that the tax year runs from January 1 to December 31.
If you plan on being a professionista (ie, a consultant, journalist, lawyer, accountant) or are going to have a ditta individuale (sole trade company) you can take advantage of the legge 388. This is a brilliant law because in each of your first three years of business you only have to pay 10pc income tax as long as you don't go over Eur30,000 per annum. You need to ask for this incentive at the Agenzia delle Entrate (tax office) when you open the Partita Iva (VAT number) because you can't apply once you already have it.
And here's the even more genius part: as a professionista or ditta individuale, you can be contracted in one year, and in invoice in the next because it is the date of the invoice that counts not when you carry out the service.
But don't expect your accountant to tell you about this 388 law because if you are paying less tax and only filing your tax returns once a year, he or she is going to be making a lot less money from you than they would if you were paying regular taxes.
So, if you're planning to open a business now ask yourself: can you wait until January?
Hi Emma
I am planning on starting my own business in southern Italy in the next year or two and was kinda thinking of setting up with a friend of mine but I didn't know about the 388 law before. I'd not heard of it. Do you have to be a certain age or can anyone get it? Is there a deadline for applying? Do they only give out a certain number?
Would it be possible for you to clarify it a bit more? Thank you very much, jessica.
Posted by: Jessica | September 21, 2007 at 11:41 AM
Hi Jessica
Thanks for stopping by and congrats on deciding to move to Italy and set up your own business.
I'm more than happy to answer your questions. Here goes:
1) There are no age restrictions
2) There is no limit as to the number of people who apply
3) There isn't a deadline as such. However, it is up to the annual Finanziaria (budget laws) as to whether it is continued. It has been like this for the last six years so it is unlikely to be changing this year. However, we'll only know for sure once the Finanziara has been confirmed in Dec/Jan.
Hope that helps.
Emma
Posted by: Emma Bird | September 22, 2007 at 03:14 PM
I really appreciate your clarifications. Thank you emma.
Posted by: Jessica | September 22, 2007 at 09:23 PM