Italian CPA Firms are adjourned with all FATCA new regulations.
The Foreign Account Tax Compliance Act—is a U.S Federal Law requiring Americans living in the United States and abroad to report on yearly basis, their non U.S financial accounts (and most importantly assets) to the Financial Crimes Enforcement Network (FINCEN) with non compliance leading to detrimental consequences including a potential loss of 30% of the value of specific payments and 100% of FATCA amounts not-withheld in addition to substantial penalties and interest. Furthermore, foreign banks are required to reveal Americans’ accounts that exceed $50,000.
The IRS requires the filing of Form 8938 with income tax returns.
If you have a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account, exceeding certain thresholds, the Bank Secrecy Act may require you to report the account yearly to the Department of Treasury by electronically filing a Financial Crimes Enforcement Network (FinCEN) 114, Report of Foreign Bank and Financial Accounts (FBAR).
American citizen lived abroad MUST file a US TAX return and comply with new FATCA regulations.
Streamlined procedures and offshore voluntary disclosure are available to these citizens to comply properly.
In Italy there is a law currently enforced that is called “esterovestizione”
The practice to open a company in another country favoured by lower taxes.
The Italian tax law determines residency based either on the place of management or principal place of business.
Basically that means that a foreign company that is effectively managed from Italy is treated as an Italian company for Italian tax purposes hence has to file a tax return there on its worldwide income.
Taxpayers can rebut this presumption by providing evidence the foreign company is effectively managed outside of Italy and to win this assumption you need a Firm like our who will do a deep analysis on a one by one case.