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The Latest News on Brexit, Tax regime for pensioners and Social Security Certificate for Business Traveling

Italy

“Emergency measures” law in case of Brexit – amendments accepted in Italy

Italy has taken “urgent measures” and a “transitional period” to cope with the consequences of the Brexit harsh scenario for the activities of British banks, investment firms, insurance and reinsurance organizations and intermediaries operating in Italy. The goal of these measures is to save financial integration, the stability of the financial system of Italy, regularity of commerce and submitting of financial services. The law is saying that UK companies operating in Italy can continue to work there during 18-months transitional period in case of sending a note to Italian authority.

This means that:

  • British banks may continue to operate if they have previously notified the Bank of Italy
  • Italian affiliated societies of British banks and investment firms can continue to operate if they notify CONSOB in advance
  • Branches of institutions who are dealing with electronic money can continue to function on the basis of the institution’s right if they notify the Bank of Italy in advance
  • Asset managers will have to stop doing business with retail customers and professional customers.

British companies should inform their clients, other persons they are working with and Italian authorities about measures they are taking to provide orderly cease of business.


New tax regime for resident pensioners implemented in Italy

All earnings from foreign sources received in the next six years is subject to a flat tax rate of 7%.

The pensioner regime is accessible to anyone with a foreign pension who is willing to move to southern Italy.

Regime rules are saying that all earnings from foreign sources received in the next six years is subject to a flat tax rate of 7%, which is paid at a time not later than June 30 after a certain tax period.

In addition, the pensioner regime also provides for tax exemption on property of foreign assets.

Applying for a pensioner regime is a simple process that permits applicants to issue their position through the first annual income tax return filed after their move to Italy.

The status of pensioner regime is automatically updating every year, but after 6 year the status expires.


China

Plan of implementing “List of Unreliable Entities” declared in China

The plan was declared during a session conducted by the Ministry of Commerce. All foreign companies, firms or persons who boycott deliveries to Chinese organizations for non-profit reasons will be added to the List.

The reasons for this decision:

  • Such companies or persons might cause a heavy harm to Chinese enterprises
  • They don’t match with market regulations
  • They constitute a menace to the national security of China

The information about the exact measures that will be implemented against listed foreign companies and persons will be available soon.


European Union

Social Security Certificate is needed for Business Traveling in Europe

European employers should provide their employees performing business trips with social security certificate called an A1 certificate. Otherwise the employees who are travelling across European Economic Area (EEA) can be fined of up to 10,000 euros. In order to receive this certificate the employers should apply online.

Why A1 certificate is needed? Simply in order to demonstrate to foreign authorities that the employee is still under his native country social security rules while being on business trip in other EU countries. With the help of this procedure it’s easier to avoid inconsistencies in social security processing.

It’s important to know that the employers must request the certificate even for short business trips.


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