Payroll for company in Italy

Commercial agents or commercial representatives of foreign companies operating in Italy don’t constitute a permanent establishment in Italy; anyway, if the foreign company recruits any employee which perform their activity in Italy the company have to register the contribution position of the employees and also pay to Italian authorities the social security and income taxes.

INPS and INAIL Registration

In order to get the tax code (codice fiscale) the foreign companies have to submit application to the tax authority (Agenzia delle Entrate); after that the foreign investor has to register with:

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• the Istituto Nazionale della Previdenza Sociale (INPS) which is the public body competent for employee’s pension, maternity benefits, unemployment support and other economic measures in favor of employees

• the Istituto Nazionale per l’Assicurazione contro gli Infortuni sul Lavoro (INAIL) which is the national institute for insurance against injuries of workers, it is competent for supply of medical assistance and financial measures in favor of employees injured or who had an illness at workplace.

Contributions for pension and social security in Italy

The amount of contributions for pension and social security are variable on:

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• rank of employee

• kind of business

• size of the business and the rank of the employee.

In Italy the pension and social security scheme contributions for employees are stated by law; these contributions have to be paid by employer to INPS (the public social security body) includes:

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• health

• life insurance

• disability

• maternity

• family allowances

• unemployment.

The employer:

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• withholds from the wage of the employee the pension and social security contributions due by the employee

• pays the part of the contributions directly by the employer.

The social security contributions paid by the employer are deductible from the corporate income tax.