At a glance
- The National Institute for Social Security (Istituto Nazionale per la Previdenza Sociale) published Circular No. 52 (Agreement) outlining a new agreement between Italy and Japan.
- It means that Italian and Japanese employees who are on international secondment, will avoid double taxation for a maximum period of five years.
- It facilitates the mobility of employees between the two states.
- It came into effect on 1 April 2024.
On 27th March 2024, the National Institute for Social Security (Istituto Nazionale per la Previdenza Sociale) published Circular No. 52 (Agreement) outlining a new agreement between Italy and Japan regarding social security contributions. From 1 April 2024, Italian and Japanese employees who are on international secondment, will avoid double taxation for a maximum period of five years.
The aim of this Agreement is to streamline the movement of individuals between the two nations by establishing a consistent legislative framework. This framework applies to both private and public sector employees, who perform their work in the jurisdiction, which is not their contracted state, in relation to social security. The National Institute for Social Security has issued procedural guidelines on the text of the Agreement. These guidelines are applicable to the following Italian pension schemes:
- general mandatory insurance for disability, old age, and survivors;
- special schemes of mandatory insurance for self-employed employees;
- separate management referred to in article 2, paragraph 26, of law 335/1995;
- substitute and exclusive management of mandatory general insurance.
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