Tax Law – Income from employment paid to a foreign resident for activities carried out in different states – Art. 15 of Double Taxation Treaty between Italy and Germany – Taxation in Italy implies the calculation of the actual period in which the activity is carried out in Italy. Court of cassation, Tax Section, Rulings 25.9.2023 nos. 27278, 27287 and 27292.

The Supreme Court judges (https://www.mattarelli.eu/wp-content/uploads/2023/11/Cass.-Sez.-Trib-sentenza-25.09.2023-n.-27278-4.pdf ) (https://www.mattarelli.eu/wp-content/uploads/2023/11/Cass.-Sez.-Trib.-sentenza-25.09.2023-n.-27287-4.pdf) (https://www.mattarelli.eu/wp-content/uploads/2023/11/Cass.-Sez.-Trib.-sentenza-25.09.2023-n.-27292-2.pdf) on the reimbursement of taxes withheld from the salary of a German resident employed by an Italian company performing a relevant part of its activity outside the Italian territory. The second tier Court held that the stipulation of the contract with an Italian employer, ex se, implied the of the work activity in the Italian territory. The Court voids the second degree rulings stating that the taxation of the non-resident employee, in compliance with art. 15 of the Germany-Italy DTT, requires the computation of the days of actual activity carried out in the territory of the State.