Business taxes to an Italian citizen with an online business outside Italy

Question

As an Italian citizen, if I open a company outside Italy (for example, a LLC in US) and operate strictly online, will I still have to pay business taxes on the income of this foreign company to the Italian government?

Since I live in Italy, of course I need to pay my personal income tax in Italy, including the money that I receive from this company.

My doubt is about business taxation on the money that my foreign business receive, not me.

Details: I am Italian and I am thinking in opening a LLC in US for my cloud computing company.

My initial understanding is that US-based companies must pay business taxes on US, but the Italian law isn't clear on that and it seems to try to apply business taxes on foreign companies when owned by Italians, even when those companies are not based on Italy.

Vincenzo · Answer

Which income will be taxed in Italy

Are you living in Italy? 
  
  You must pay tax on your worldwide income there. (criteria: you are in
  the Population Registry as having lived there for at least 183
  consecutive days over a 12-month period or your life is centred there)
  
  Are you living in Italy for less than 183 consecutive days over a 12-month period?
  
  You pay tax only on the income you earned in Italy.
  
  Do you receive income from other EU countries?
  
  Make sure you never pay tax twice on the same income.

https://europa.eu/youreurope/citizens/work/taxes/income-taxes-abroad/italy/index_en.htm

Business taxes to an Italian citizen with an online business outside Italy

One Answer

Add your own answers!

Ask a Question