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16/10/2019 - Agreement between Italy and Switzerland against double taxation: exclusive taxation of the State of residence

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Articoli Correlati: Italy- Switzerland - income tax treatment - residence

The Revenue Agency with the answer to question n. 429 of 25 October 2019, regarding the tax treatment applicable to the income deriving from the exercise of a professional activity, produced in Italy by a person resident in Switzerland, specified that in such an eventuality the concurrent taxation applies which also allows the State of the source, in addition to the State of residence, to tax the income attributable to this fixed base. The Italian-Swiss Convention against double taxation establishes an exclusive taxing power of the State of residence, provided that the professional does not usually have a fixed base for the exercise of his activities in the other Contracting State. As regards the tax residence of natural persons, it is necessary to refer to the notion of the TUIR, based on which are considered residents the persons who for most of the tax period are registered in the registers of the resident population or have in the territory of the State domicile or residence pursuant to the Civil Code. The three conditions are alternative to each other, as it is sufficient that only one of the aforementioned requirements be verified in order for a natural person to be considered fiscally resident.