Agenzia delle Entrate (Italian Revenue Agency), codice fiscale (tax code) and dichiarazione dei redditi (tax return)

“In this world nothing can be said to be certain, except death and taxes.”
— Benjamin Franklin

The Agenzia delle Entrate (Italian Revenue Agency) is the Italian public body responsible for managing, monitoring and collecting taxes, and for handling other tax matters. Below is a short overview of the Agency’s main functions and powers.

Main functions of the Agenzia delle Entrate:

• Collecting direct taxes, such as IRPEF and IRES, and indirect taxes, such as VAT (IVA), registration tax (imposta di registro) and stamp duty (imposta di bollo).

Tax assessment (accertamento fiscale)

• Checking that tax returns are correct and that individuals (persone fisiche) and legal entities (persone giuridiche) meet their tax obligations, and correcting inaccurate returns.

Enforced collection (riscossione coattiva)

• Working with the Agenzia delle Entrate-Riscossione (the tax collection agency) to recover debts arising from unpaid taxes, through injunctions and seizure of assets.

Assistance to taxpayers (assistenza ai contribuenti)

• Helping taxpayers fill in their tax returns (the 730 form and the Unico form, which since 2017 has been the Modello Redditi PF/SP/SC) and providing information on legislation and procedures. The Agency has local offices and offers online services through the “FiscoOnline” portal and its app.

Registration of deeds and contracts (registrazione di atti e contratti)

• Registering notarial deeds, rental and sale contracts, inheritances, gifts and other documents.

Monitoring and combating tax evasion (evasione fiscale)

• Carrying out investigations to prevent tax offences.

Managing tax relief (agevolazioni fiscali)

• Managing tax bonuses and deductions, such as the home bonus (bonus casa) and deductions for renovation work.

Managing the land registry (gestione del catasto)

• Handling land registry operations, such as registering properties and recording changes of ownership.

Issuing the tax code and the VAT number (partita IVA)

• Issuing and managing tax codes (codice fiscale) and VAT numbers for individuals and businesses.

Managing income certification (certificazione unica)

• Issuing the Certificazione Unica (CU), which certifies the income of employees, the self-employed and pensioners.

Powers of the Agenzia delle Entrate:

• Tax powers (competenze fiscali): managing all taxes provided for by Italian law.
• Regulatory function (funzione normativa e regolamentare): issuing interpretative circulars that clarify how tax rules apply.
• Tax disputes (contenzioso tributario): representing the State in tax proceedings.

The difference between direct and indirect taxes:

• Direct taxes (imposte dirette): levied directly on the taxpayer’s income or assets.
  Examples: IRPEF, IRES, IMU.
  Features: progressive, varying according to ability to pay.
• Indirect taxes (imposte indirette): levied on consumption or transactions.
  Examples: IVA (VAT), registration tax, excise duties.
  Features: proportional, depending on the value of the goods or service.

Key definitions:

1. Riscossione (Collection): the process by which the State or an authorised body (for example the Agenzia delle Entrate-Riscossione) collects the sums owed by taxpayers. It covers both voluntary payments and the enforced recovery of debts, including injunctions (ingiunzioni) and seizures of assets (pignoramenti).
2. Imposte dirette (Direct taxes): taxes levied directly on the taxpayer’s income or assets. Examples of direct taxes are IRPEF (personal income tax) and IRES (corporate income tax).
3. Imposte indirette (Indirect taxes): taxes levied on consumption or transactions, such as VAT (IVA) and registration tax (imposta di registro). They depend not on the taxpayer’s income but on the value of the goods or services purchased.
4. IRPEF (Imposta sul Reddito delle Persone Fisiche): personal income tax. It is a progressive tax that rises as income increases, and applies to income from employment, self-employment and other sources.
5. IRES (Imposta sul Reddito delle Società): a proportional tax on the income of legal entities such as companies and organisations.
6. IVA (Imposta sul Valore Aggiunto): value added tax, an indirect tax applied to sales of goods and services in Italy. It is calculated on the value added at each stage of production or distribution.
7. Registro (Registration tax): a tax on documents that must be registered, such as rental or sale contracts. It is paid to register the document legally with the Agenzia delle Entrate.
8. Bollo (Stamp duty): a tax paid to give legal validity to certain documents or administrative acts. It may be a fixed or a proportional amount, depending on the type of document (for example contracts, invoices, notarial deeds, etc.).
9. Dichiarazione dei redditi (Tax return): the document by which taxpayers (individuals and legal entities) report to the Agenzia delle Entrate the income they received in the tax year. The return is used to calculate the taxes due or any tax credits.
10. Persone fisiche (Individuals): taxpayers subject to income tax (IRPEF) and other tax obligations.
11. Persone giuridiche (Legal entities): companies, associations or foundations that have legal and tax capacity and are subject to taxes such as IRES.
12. Ingiunzione (Injunction): a legal act requiring the taxpayer to pay the sum owed. It is issued by the Agenzia delle Entrate to start the enforced recovery of the debt.
13. Pignoramenti (Seizures of assets): enforcement measures by which the Agenzia delle Entrate-Riscossione or another creditor seizes the debtor’s assets or money (for example wages, bank accounts, property) to pay off an unpaid debt.
14. Dichiarazioni fiscali (Tax returns): the documents taxpayers must file with the tax authorities to report their income, taxes, deductions and credits. They include various forms, such as the Modello 730 or the Modello Unico (now known as Modello Redditi PF/SP/SC).
15. Modello 730 (Form 730): one of the main tax returns for individuals (employees or pensioners), which allows any refund to be received directly through their pay or pension. The form is simple to fill in and does not require complex calculations.
16. Modello Unico (Unico form, now Modello Redditi): a return used by individuals, companies and entities subject to IRES to report income, losses, tax credits and tax debts. It is more complex than the Modello 730 and is used by those who cannot use the Modello 730.
17. Contratti di locazione (Rental contracts): agreements under which one person (the landlord) lets a property to another (the tenant) in exchange for rent. Registering these contracts is compulsory and subject to registration tax.
18. Contratti di compravendita (Sale contracts): agreements that transfer ownership of property from one person to another in exchange for payment. These contracts must also be registered and are taxed (for example with registration tax or VAT).
19. Successione (Inheritance): the legal and tax procedure by which the rights, assets and obligations of a deceased person pass to their heirs. Inheritance may be testamentary or by operation of law and is subject to inheritance tax.
20. Donazione (Gift): an act by which one person transfers property to another free of charge. These transactions are also taxed, depending on the value of the property and the degree of kinship between donor and recipient.
21. Evasione fiscale (Tax evasion): unlawful conduct by a taxpayer consisting in failing, wholly or partly, to declare income or to pay the taxes due, in breach of their tax obligations.
22. Bonus fiscali (Tax bonuses): tax relief that allows taxpayers to reduce their tax burden. Examples are bonuses for housing and renovation, or energy incentives, which provide tax deductions or tax credits for specific expenses.
23. Bonus casa (Home bonus): tax relief allowing deductions from IRPEF for expenses on home renovation, energy efficiency improvements and earthquake-proofing work, up to a certain percentage of the costs.
24. Detrazione per ristrutturazioni (Renovation deduction): tax relief allowing a certain percentage of building renovation costs to be deducted. The deduction is claimed in the tax return and spread over several years.
25. Incentivi energetici (Energy incentives): tax relief granted to taxpayers for improving the energy efficiency of buildings (for example installing solar panels, condensing boilers or thermal insulation). They allow a certain percentage of the costs to be deducted.
26. Gestione del catasto e del sistema catastale (Management of the land registry and the cadastral system): the Agenzia delle Entrate manages the catasto, the public register of buildings and land in Italy. The cadastral system records ownership rights and the taxable value of properties, which matters for calculating property taxes (for example IMU).
27. Partita IVA (VAT number): a tax number assigned to businesses, professionals and the self-employed. It is required for economic activities involving transactions subject to VAT, and is used to declare and pay VAT.
28. Codice fiscale (Tax code): a personal identification code issued by the Agenzia delle Entrate to all Italian citizens and to foreign nationals resident in Italy. It is used to identify a person unambiguously in dealings with public authorities and in private contracts.
29. Certificazione Unica (CU, Single Certification): a document issued by employers and clients certifying the income received during the year by an employee, a self-employed person or a pensioner. It is used to fill in the tax return.
30. Contenzioso tributario (Tax disputes): the legal process that begins when a taxpayer challenges a decision or notice from the Agenzia delle Entrate. Tax disputes are heard by the tax tribunals (commissioni tributarie), which specialise in tax matters.
31. Cassetto fiscale (Online tax drawer): an online service provided by the Agenzia delle Entrate that lets taxpayers view their tax information. In the cassetto fiscale you can see the returns you have filed, taxes paid, land registry data, refunds and payments.
32. Commissioni tributarie (Tax tribunals): the judicial bodies that hear tax disputes. They are divided into provincial and regional tribunals and hear appeals lodged by taxpayers against acts of the tax administration.

Conclusion: taxes are not only every citizen’s duty but also the foundation on which the State runs, providing public services and supporting development. Understanding the tax system helps each of us take a responsible part in this important side of economic life.