Ritenuta d’acconto
Thread poster: garrett higgins
garrett higgins
Local time: 22:33
Italian to English
Mar 19, 2014

Hi. I am a translator in Ireland. I did a job for an Italian company who are now asking me to fill out a 'Notula OCCASIONALE' in which they have the gross figure agreed - a 20% 'Ritenuta d’acconto' and a net fee. Is this right?
thanks, Garrett


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2G Trad  Identity Verified
Italy
Local time: 23:33
Member (2000)
English to Italian
+ ...
Where do you pay taxes? Mar 20, 2014

Hi Garrett,

unless you pay taxes in Italy, your client is not right.

The 'ritenuta d'acconto' amount can be applied only to tax payers in Italy, since it is a witholding tax the client gives to Italian tax administration on behalf of the tax payer (the freelance translator in this case).
The tax payer then deducts this amount from his own tax bill.

Obviously, tax payers in other countries will never be able to deduct this advance tax payment (ritenuta d'acconto) since they don't pay taxes in Italy.

You can tell your client you will issue an invoice in accordance to your country tax laws (without the 'ritenuta d'acconto'), since you are not subjet to Italian tax laws.

Bye!
Gianni


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garrett higgins
Local time: 22:33
Italian to English
TOPIC STARTER
help! Mar 28, 2014

thanks, Gianni, the client is insisting and now thinks it may be 30%.
Do you know where I can get a link or documentation to prove them wrong (in Italian). Cheers....


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2G Trad  Identity Verified
Italy
Local time: 23:33
Member (2000)
English to Italian
+ ...
Burden of proof Mar 28, 2014

garrett higgins:
thanks, Gianni, the client is insisting and now thinks it may be 30%.
Do you know where I can get a link or documentation to prove them wrong (in Italian). Cheers....


Hi Garrett,
you should ask them which is the Italian law (legge + articolo + comma) allowing them to deduct 30% from the invoice of a translator who is:
- Irish citizen
- Irish resident
- working from Ireland

Cheers!
Gianni


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Giles Watson  Identity Verified
Italy
Local time: 23:33
Italian to English
Italian tax law Mar 28, 2014

2G Trad wrote:

Hi Garrett,
you should ask them which is the Italian law (legge + articolo + comma) allowing them to deduct 30% from the invoice of a translator who is:
- Irish citizen
- Irish resident
- working from Ireland



They probably mean this.

The problem is that if you aren't VAT-registered, you can't invoice your customer indicating that value added tax should be paid using the reverse-charge mechanism. You won't be the only self-employed translator in Ireland, though, so perhaps someone out there can tell us how they deal with this. In the meantime, have a word with your local tax people and/or an on-the-ball accountant. At the very least, there's probably some piece of boilerplate to include on your invoice.

I seem to remember that people here have said tax authorities in countries with high VAT-registration earnings thresholds may issue special codes that show up in the VIES VAT database but don't entail all the hassle of full registration.

Doesn't hurt to ask.


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2G Trad  Identity Verified
Italy
Local time: 23:33
Member (2000)
English to Italian
+ ...
Keyword Mar 28, 2014

Giles Watson:
2G Trad:
Hi Garrett,
you should ask them which is the Italian law (legge + articolo + comma) allowing them to deduct 30% from the invoice of a translator who is:
- Irish citizen
- Irish resident
- working from Ireland

They probably mean this.


That's why I pointed out Garrett works from Ireland.

In fact, in the following excerpt (taken from your link):
"Se, invece, i compensi sono corrisposti a soggetti non residenti per prestazioni svolte sul territorio dello Stato, si applica una ritenuta a titolo di imposta in misura del 30% dell'ammontare corrisposto."
the keyword is "soggetti non residenti per prestazioni svolte sul territorio dello Stato" (non resident people for services done inside Italy), and Garrett is not.

So, Garrett: ask them which law entitles them to deduct 30% from your invoice.

Ciao!
Gianni


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Giles Watson  Identity Verified
Italy
Local time: 23:33
Italian to English
Ah, yes Mar 28, 2014

2G Trad wrote:

That's why I pointed out Garrett works from Ireland.

In fact, in the following excerpt (taken from your link):
"Se, invece, i compensi sono corrisposti a soggetti non residenti per prestazioni svolte sul territorio dello Stato, si applica una ritenuta a titolo di imposta in misura del 30% dell'ammontare corrisposto."
the keyword is "soggetti non residenti per prestazioni svolte sul territorio dello Stato" (non resident people for services done inside Italy), and Garrett is not.



And, as this site says:

Riassumendo quindi, per i redditi di lavoro autonomo, ad eccezione dei compensi per cessione di diritti d’autore, per i redditi assimilati a quelli di lavoro dipendente di cui alle lettere a), b), c-bis), e per i redditi diversi, l'’imposta si applica solo se i redditi sono corrisposti per attività svolte nel territorio dello Stato.

I seem to remember it took the Fisco quite a while to clear this up, which confused a lot of people. Including me.


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