The concrete application of the conventional salary regime, however, requires a careful analysis of some elements ranging from the concept of “business trip” to the specific method of calculating days spent abroad or in Italy
Legislative Decree No. 209 of December 27, 2023, has officially modified the scope of the enforcement of the “Impatriate Regime,” as outlined by Article 16 of Legislative Decree No. 147 of September 14, 2015, and Article 5 of Decree-Law No. 34 of April 30, 2019.
The purpose of the rule is to facilitate the return of workers, both employees and self-employed, who carry out their activity for the most part of the tax period in Italy and, from 2024, the subject should meet specific qualification and specialization requirements. In general terms, the “Impatriate Regime” connects two essential elements, requiring a specific characterization: acquiring tax residency in Italy and carrying out work here, or at least for the majority of the tax period.
The Case of the Employed Worker
Focusing the discussion solely on employed work, it should be noted that even before the legislative amendment and, in particular, the introduction of the qualification and specialization requirements now provided by Article 5, paragraph 1, letter d) of Legislative Decree No. 209/2023, there were situations where, for example, the role within the company held by the individual was not compatible with work performed in Italy for the majority of the tax period. In situations like the aforementioned one—now including cases where the individual does not meet the requirements of high qualification and specialization—it might be useful, from a different perspective, to consider the possible application of Article 51, paragraph 8 bis of the Income Tax Consolidation Act (Tuir), also known as the “conventional salary regime.”
The Conventional Salary Regime
This regime naturally applies to employed workers fiscally resident in Italy who carry out work abroad, continuously or exclusively abroad, according to specific contractual provisions. The regime does not require the worker to be highly qualified or specialized, as it is sufficient to belong to one of the economic sectors specified by the Ministry of Labor in the annual decree. Once these requirements are met, from a tax perspective, the income from employed work produced (abroad) will be subject to taxation in Italy not based on the amount stipulated in the employment contract but based on the “conventional” salary set in the same decree of the Ministry of Labor.
In essence, Article 51, paragraph 8 bis of the Tuir seems to parallel the Impatriate Regime, aiming to favor the worker fiscally resident in Italy for income derived from work carried out predominantly or exclusively abroad. The practical application of the conventional salary regime, however, requires a careful analysis of elements ranging from the concept of a “business trip” to the specific method of calculating days spent abroad or in Italy. The issue, as highlighted by some recent interventions, including those of the Revenue Agency (see response to inquiry No. 428/2023), requires consideration of provisions in Double Taxation Agreements and, more generally, in the OECD Model Convention. Nevertheless, a case-by-case verification remains necessary, even within the context of prudent planning for returning to Italy.
