The tax treatment of a university professor residing in a foreign country belonging to the European Union can follow two paths:
- payment of tax in Italy through a 30% withholding tax on the established remuneration, in accordance with Article 25 of Italian Presidential Decree No. 600 of September 29, 1973;
- payment of tax in the country of residence, by requesting the application of the bilateral convention between Italy and the country of residence against double taxation. The list of countries and conventions can be consulted on the MEF website at the following address: Dipartimento Finanze – Convenzioni per evitare le doppie imposizioni
In order for the bilateral convention to be applied, the professor must submit an explicit request, filling out the form specifically provided for this purpose and presenting, before payment of their remuneration, an official certificate from the foreign tax authority, attesting to their actual foreign tax residence and their tax liability in the foreign country.
The Italian Tax Agency has unilaterally prepared, in several languages, a special form (FORM D) to be presented to the tax offices of other countries in order to apply the conventions to avoid double taxation: as an alternative to the tax residence certificate, the foreign professor may present this documentation to the tax offices of their home country. These offices must affix their stamp and signature to it.
In the absence of such a certificate, or if documents presented are deemed inadequate, the University will withhold 30% tax.
In any case, within two years of payment, the foreign professor to whom the 30% withholding has been applied may request reimbursement of this withholding tax directly from the Operational Center of the “Agenzia delle Entrate” in Pescara (Via Rio Sparto, 21, 65100 PESCARA – ITALY), attaching to the request their occasional service invoice and their tax residence certificate.
For the purpose of payment of the agreed remuneration, the foreign professor must have an Italian tax code. If the professor has never worked in Italy, they must apply for their tax code by filling out the form specifically provided for this purpose, available in several languages (English, French, Spanish, German), at the “Agenzia delle Entrate.” In their application, they must indicate their personal details and tax domicile. It is very important that the foreign teacher sign in the power-of-attorney box and attach a valid identity document to the form.
The foreign professor will be paid upon completion of their teaching activity, upon submission of the following documents:
- a personal and tax information form, indicating personal details, bank details, and the request to benefit from the convention to avoid double taxation.
- proof of foreign tax residence (only if application of the double taxation convention is requested).
- copy of passport or identity card and Italian tax code (or Italian tax code application form).
- duly signed occasional service invoice, certifying the amount to be paid.
