taxes on interest, dividends, capital gains, and IVAFE

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taxes on interest, dividends, capital gains, and IVAFE


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Old 15th March 2018, 11:26 PM
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Default taxes on interest, dividends, capital gains, and IVAFE

Hi There,

Any US expats out there who could share their experience with me about how their commercialista is taxing them on interest income, dividends, and capital gains? I have had two so far, and they have both done my taxes differently. One treated it all as normal income and taxed it at my income rate, and the other taxed it all at 26%.

Also, wondering if anyone can tell me if IRAs are subject to the IVAFE tax. So far, I've been taxed the .2% by both of my accountants, but I've been recently found a lot of info stating that they shouldn't be taxed at all.

Lastly, are there any retired Americans on this forum who are collecting distributions from traditional or ROTH IRAs? Am trying to get information on how the distributions are taxed in Italy, and would love some feedback.

Any info or suggestions would be GREATLY appreciated!!
Thanks

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Old 16th March 2018, 03:28 AM
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26% unless the interest is from government bonds. At least Italian and I think EU bonds

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Old 16th March 2018, 09:31 AM
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Thank you for responding, NickZ. Is that also the case if the interest income is just from a normal bank? I read somewhere that such income could be treated as normal earned income--have you had any experience with this?

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Old 16th March 2018, 09:42 AM
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No bank interest would be 26%.

https://www.guidafisco.it/aumento-re...nanziarie-1127

It's in Italian. If you can't read Italian maybe Google can translate it.

The only time it isn't 26% is if you have a control position in the company paying the dividends.

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Old 16th March 2018, 10:39 AM
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Thanks for the quick reply and the link, NickZ...yeah, unfortunately I have to use that google translate, so there is a limit to how well I can understand these articles!

Any experience with the IVAFE on foreign retirement accounts? I take you don't have an IRA if you are originally from CAN, but maybe you have experience with something similar?

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Old 16th March 2018, 11:10 AM
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The problem is you need to check

Italian tax law
USA/Italy tax treaty
USA/Italy social security treaty.

See if anything covers the issue.

The first treaty is fairly standard. The second I've no idea.

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Old 16th March 2018, 11:14 AM
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ok thanks, I appreciate your quick replies

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Old 28th March 2018, 07:02 PM
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When I was deployed in the US for work, I met an Italian accountant who works in Texas and has an accounting office in the United States, if you have tax obligations in both countries is definitely the right person for you.
https://www.succentrixwichitafalls.com

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