Regarding the Impatriati regime (art. 16, D. Lgs. n. 147/2015), a question I am often asked concerns the impact of this tax scheme on social security contributions (Gestione Separata INPS).

“Will social security contributions (ed. 25.98%, 2021 rate)  be calculated on a reduced amount of income (10%, 30% or 50%), thus following the rules for determining the taxable income under the Impatriati regime, or will they be calculated on the entire amount of income made?”

Let’s take the example of a person who generates self-employment income up to 65,000 euros who, therefore, hypothetically could benefit from both the Forfettari tax regime (flat tax at 5% for the first 5 tax periods and then at 15%) and the Impatriati regime; if he were to pay contributions on his taxable income in full, he almost certainly  might have no convenience in choosing the Impatriati regime.

So the question above is very pertinent and of no little significance.

Let us go on to analyze this issue starting with the art. 16, D. Lgs. n. 147/2015:

“The income from employment and similar, and the self-employment income produced in Italy by workers who transfer their residence to the territory of the State (…) contribute to the formation of total income limited to 30% [ed. in specific cases to 10% or 50%]”.

From the wording of the law, it is clear that the legislator does not merely provide a tax deduction (a “tax cut”) but intervenes on the taxable income, and this choice is peculiar, as it will be seen below, for the purpose of calculating social security contributions.

What has just been said is also confirmed by the instructions provided by the Revenue Agency, which indicate to directly enter taxable income abated at 10%, 30% or 50% as appropriate, when filling out the tax return of individuals taking advantage of the Impatriati scheme.

INPS, on the other hand, what instructions does it provide? What should the social security taxable base be?

The general rule, always used over the years, and also found in Circolare INPS n. 88/2021, states that:

“For freelancers enrolled in the “Gestione Separata” [INPS], the taxable base on which calculating the contribution due is represented by the total income produced as self-employment income declared for personal income tax purposes.“

(The same treatment in case of business income for sole proprietorships)

From what has been pointed out here, it therefore follows that Impatriati, who produce self-employment income (and business income in the case of sole proprietorships), would unquestionably be entitled to benefit from a reduced contribution obligation directly proportional to the income declared.

Everything would be perfect except that this situation, however, does not occur in a similar way in cases concerning Impatriati who receive income from employment and similar.

In fact, payroll calculation rules dictate that the social security taxable base is the gross income, before the income deduction provided by the Impatriati scheme.

Thus, there is an incomprehensible disparity in treatment among the self-employed, sole proprietors and employees and similar, the latter, in fact, pays contributions without benefiting from the reduction in social security taxable income.

This case, in addition to having obvious profiles of unconstitutionality, does not seem at all responsive to the correct application of the Impatriati regime, given the wording of the rule.

A clarification on this point is therefore certainly desirable as soon as possible, also considering the potential penalties that may be incurred by individuals who, in good faith, have paid reduced contributions in deference to the tax return instructions.