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RATEIZZAZIONE (DIVISION INTO INSTALMENTS): the option, specifically indicated on the F24 form, for taxpayers to extend the payments owed according to their income tax return. Amounts that must be paid as a down payment or full payment in November and December cannot be divided into instalments. The instalments are subject to a yearly interest rate of 4%, calculated at a flat-rate according to the commercial method, taking into account the period running from the day following the deadline of the first instalment until the deadline of the second instalment.

RATEIZZAZIONE DELLE IMPOSTE ISCRITTE A RUOLO (DIVISION INTO INSTALMENTS OF LISTED TAXES): taxpayers who are in temporary situations of objective difficulties, namely that are unable to pay a registered debt as indicated in the notice of payment, can apply to the collection office to obtain the rescheduling of the debt. Application must be submitted on plain paper, along with appropriate documentation indicating the temporary situation of objective difficulties. The extension may be granted up to a maximum of 120 monthly installments (10 years). The minimum amount of the installment, without exception, is euro 100,00.

RAVVEDIMENTO (VOLONTARY CORRECTION OF TAX RETURN): the possibility of rectifying omissions or irregularities made both when completing and submitting the income tax return, and when making the payments. Voluntary correction of tax return entails a reduction of the minimum sanctions applicable and is admitted until the deadline for the submission of the following year’s declaration or, in the absence thereof, within one year of the violation. In order to benefit from voluntary correction of tax return, violations must not already have been detected and access, inspections and verifications or other assessment activities (summon to appear, questionnaires, requests to submit documents, etc.) must not already be in progress. The following violations can be rectified by spontaneously paying the tax or the difference owed, the interests on arrears (calculated at the annual legal rate from the day the payment should have been made to the day it is actually made) and the reduced sanction:

• omitted or insufficient payment of taxes due as down payment or full payment according to the income tax return;

• omitted or insufficient payment of deduction at source made by the withholding agent;

• omitted or insufficient payment of Vat, even as down payment, resulting from the annual tax return or from the periodic settlement. 

In order to rectify the omitted payment alone, it is not necessary to submit an additional declaration.

REATI TRIBUTARI (TAX CRIMES): violations generally consisting in the failure to meet tax obligations, or in delays therein. Lawmakers reformed the laws disciplining tax crimes with the legislative decree n. 74/00, concentrating penal sanctioning powers on those cases that effectively damage the interest of the Treasury (the power to collect taxes).

REDDITI ASSIMILATI AL LAVORO DIPENDENTE (INCOME TREATED AS INCOME FROM SUBORDINATE EMPLOYMENT): income of a heterogeneous nature, treated for tax purposes as income from subordinate employment and therefore which must be declared, without the right to detractions, in a specific Section of the table regarding employees. Examples of such incomes are: scholarships or apprenticeships, allowances for public functions.

CATEGORIE DI REDDITI (CATEGORIES OF INCOMES): these are the different types of remuneration or earnings indicated by the TUIR (Italian tax consolidated text):

• from capital:

  • interest, earnings from stocks and bonds and other incomes deriving from the investment of capital;

• from land:

  • income from land and real estate situated in the territory of the State, registered or to be registered in the land register or in the building register. This income is divided into rental income from lands, agricultural income and real estate income;

• company:

  • from commercial activities and businesses;

• self employment:

  • from practising crafts or professions;

  • from subordinate employment;

  • from working in the employment of and under the direction of another party, including work at home in the cases provided by labour legislation. Pensions and equivalent benefits and other incomes considered equivalent by the law (e.g. scholarships, income from co-ordinate and continuative collaboration, etc) are also considered incomes from subordinate employment;

• others:

  • residual category including incomes from different events that cannot be included in the other categories, but which still entail an increase in wealth.

TASSAZIONE DEI REDDITI DI CAPITALE (TAXATION OF INCOMES FROM CAPITAL): taxation of interests, earnings from stocks and bonds and other incomes deriving from the use of capital. It is imposed according to the principle of cash without the possibility of deducting the costs incurred in their production. Incomes from capital are subject to deduction at source by the withholding agents that pay them. Except for particular cases, this deductions – 20% – is generally applied by way of tax (therefore definitively) to physical persons who do not have commercial activities and businesses. In this case, the taxpayer is exonerated from reporting them in the income tax return.

REDDITO (INCOME): the total amount of earnings made by a subject during a particular period of time – generally a solar year – as a consequence of a business, a transaction or the use of a product.

REDDITO AGRARIO (AGRICULTURAL INCOME): the income attributed for fiscal purposes to someone (owner, householder, etc) who uses an agricultural land. It is established in a fixed manner by the land register, according to the type of land and the crop (see also rental income).

REDDITO COMPLESSIVO (AGGREGATE INCOME): sum of incomes held by a taxpayer in a tax period. The incomes are calculated independently for each category (from land, capital, subordinate employment, self-employment, company, others). For non-residents persons the aggregate income is only includes the incomes produced in the territory of the State.Possible losses deriving from commercial activities or self-employment also concur to determine, negatively, the aggregate income. The taxable income is determined by subtracting the deductions from the aggregate income.

REDDITO DOMINICALE (RENTAL INCOME): income deriving from the ownership of land, no matter what is farmed there. Rental income, like agricultural income, is determined on the basis of the land register, by applying the provisional rate.

REGISTRAZIONE DEI CONTRATTI DI LOCAZIONE (REGISTRATION OF LEASE CONTRACTS): an obligation met by submitting the contracts to the Revenue Agency and paying the registration fee within 30 days from the date of the deed. All lease contracts of any amount must be registered, providing their validity exceeds 30 days in a year. To register a lease contract, the following must be paid:

• 2% of the yearly rent for urban properties;

• 0.50% of the annual payment multiplied by the number of yearly instalments for rural funds;

• 2% of the annual payment multiplied by the number of yearly instalments for all other real estate.

For the registration of the first yearly instalment, the registration fee cannot be less than euro 67,00. The lessor and the tenant are liable for the payment in equal parts; however, both are jointly and severally liable for the payment of the entire sum.

REGIME FISCALE DI VANTAGGIO PER L'IMPRENDITORIA GIOVANILE E LAVORATORI IN MOBILITA' (TAX ADVANTAGES FOR YOUNG ENTREPRENEURS AND REDUNDANCY WORKERS): tax advantages introduced in 2011 to replace the previous system of “minimum taxpayers&Rdquo;, aimed at encouraging the creation of new businesses by young people and those who have lost their jobs; therefore, starting from January 1, 2012, taxpayers who wish to start a small business or a self-employed activity can apply - if they meet the requirements established by the rules - the new tax advantages. They provide a range of accounting and procedural simplifications and involves the application of a 5 per cent substitute tax both on personal income and on additional regional and municipal taxes.

REGISTRAZIONE DI ATTI (REGISTRATION OF DEEDS): formality consisting in recording the essential elements of a written deed or a verbal contract in public registers, in order to record the date for civil purposes. There are two categories of deeds for which registration is necessary and registration fee must be paid:

• deeds for which fixed term registration is compulsory (for example the sale of real estate, transfer of companies, guarantees and the taking over of debts must be registered within 20 days, lease of urban properties within 30 days);

• deeds to be registered in the event of use (for example contracts subject to Vat). 

RENDITA CATASTALE (CADASTRAL INCOME): the value, for tax purposes, of real estate properties on the basis of the provisional rate. The local tax offices determine the provisional rates taking into account:

• the municipality;

• the census area (generally only one for small–medium sized municipalities and more than one for larger cities);

• the category (for example A/2 if the property is of a higher level, A/3 if an average one, A/4 if a lower one);

• the class.

The tables of the provisional rates can be consulted at the Agenzia del Territorio (the former cadastral offices). The cadastral income is calculated by multiplying the rate by the volume of the property (rooms, square metres or cubic metres).

RESIDENZA FISCALE (RESIDENCE FOR TAX PURPOSES): within the context of the Italian tax system, both for Irpef and for Ires purposes, Italian law distinguishes resident subjects from non-resident subjects, instead of citizens from foreigners. For Irpef purposes, residents and non-residents in Italy are considered as taxable persons. For Ires purposes, commercial and non-commercial entities, equivalent bodies including consortiums, non-recognized associations, other non-incorporated organizations not belonging to other taxable persons if they have their legal premises, administrative premises or their main business in Italy for the main part of the tax period, are considered as residents.

RESPONSABILE D’IMPOSTA (TAX LIABLE PERSON): the person who is liable, together with the taxpayer (main liable party), for paying the tax. While the withholding agent is obliged to pay instead of the taxpayer, the tax liable person is jointly and severally obliged with the taxpayer, but has the right to claim back from the latter the entire sum paid. Typical subjects are: a notary who has drawn up the deed and authenticated the signatures, as regards the registration fee; public officials who have received or authenticated a deed undergoing transcription, as regards the mortgage tax; customs agent, as regards the taxes wrongfully requested by executive procedure to the owner of the goods.

RESPONSABILITÀ SOLIDALE (JOINT AND SEVERAL LIABILITY): an obligation that arises when two or more parties are all considered the main liable subjects for a tax obligation, which can concern the submission of a tax return as well as the payment of a tax. For example, in the case of the registration fee, a number of subjects (public officials who have drawn up the deed, contracting parties and parties to the case) are usually liable for the payment. Instead, as regards mortgage tax, those in whose interest the request for the transcription of the deed is made, and the debtors for whom the mortgage has been registered or renewed, are jointly and severally liable. When joint and several liability exists the Revenue Agency can demand payment of the entire sum owed to any one of the co-responsible parties whatsoever, which has a redeeming effect with regard to all. Joint and several liability can also be envisaged with regards to the payment of the sanctions imposed following a violation.

REVERSE CHARGE: the mechanism that allows the final purchaser to declare the tax owed as a debtor and to simultaneously deduct it if he meets the necessary requirements.

RICAVI O COMPENSI (REVENUES OR REMUNERATION): sums received for the transfer of goods or for supplying services, which characterize the activity of a business or self-employment respectively.

RICEVUTA FISCALE (TAX RECEIPT): document that must be issued by certain categories of operators (for example, artisans) who supply goods or services for which an invoice is not compulsory. It shows the transactions performed and the amount paid.

RICORSO (APPEAL): the deed through which taxpayers can oppose, within the peremptory time limit of 60 days, the decisions taken by the Tax Administration. The appeal must be written on stamped paper and contain the following indications:

• the Tax commission to which it is directed;

• the name and surname (or company or corporate name) of the appellant (and, if the case, of his/her legal representative);

• the residence (or the legal premises or the chosen residence);

• the tax code;

• the office (or local authority or the collecting agent) appealed against;

• the details of the deed appealed against (assessment notice, imposition of sanctions, etc.);

• the object of the request (for example, to annul the deed);

• the factual and legal issues to prove its grounding;

• the signature of the appellant;

• the signature of the legal counsel, if the case, indicating also his/her tasks. 

The appeal shall be submitted directly to the counterparty (the Revenue Agency, the Local authority, the collecting agent) in any of the following ways:

• a notification through a bailiff, following the provisions set forth by the Italian Code of Civil Procedure;

• by means of ordinary mail, with a registered letter, without envelope, with notice of receipt;

• direct delivery to the tax office (or to the Local authority) that has issued the deed appealed against. In this case the clerk who receives it must give a receipt.

The tax proceedings actually begin with the entry of appearance.

RIMBORSI IVA ANNUALI (ANNUAL VAT REFUNDS): credits resulting from the annual tax return which the taxpayer can claim by submitting two copies of the apposite request (VAT VR form) to the competent collecting agent, and – except in the case of exemption – give a suitable guarantee through a guarantee or fidejussory policy in favour of the Revenue Agency.

RIMBORSI IVA INFRANNUALI (INFRA-ANNUAL VAT REFUNDS): refund of the excess of the deductible VAT of the three-month period, upon submission of a specific request by the last day of the month that follows the three-month period referred to.

RIMBORSO (REFUND): amount paid by the treasury to return to the taxpayer an amount paid in excess. It can be requested in the income tax return, and it is automatically arranged by the Revenue Agency when taxes are settled, or requested at a later date; together with the sum to be refunded, the office also calculates the interests according to the rate set by tax laws. Refunds are automatic for:

• credits resulting from the income tax return, when the declaring party has not opted for compensation or for the credit to be carried over to the following year or when, having opted for the credit to be carried over, he has then forgotten to do so (in this case submitting a request is still advised);

• credits resulting from material errors committed by the Revenue Agency (for example, the registration of a higher amount than the ascertained one). In these cases, if the administration detects the mistake, it must return the sum charged without the party concerned having to submit the request;

• credits deriving from a decision of the Tax Commission: if the tax to be registered according to the decision is lower than the one already registered and collected, the Revenue Agency must arrange the partial relief, so that the collecting agent will return the sums paid. 

Refunds are paid upon request of the party concerned in all other cases of wrongly paid taxes or excessive amounts paid. In these cases it is normally necessary for the taxpayer to submit a written request within:

• 48 months, for income taxes (Irpef, Ires, etc);

• 3 years for indirect taxes (registration, estate and endowments, car duties, etc);

• after which terms the right to a refund will lapse.

If the request is rejected, the taxpayer can appeal to the competent provincial Tax Commission within 60 days from the notification of the decision.

RISCOSSIONE (COLLECTION): concession granted to a taxpayer who has appealed against a notice of payment, when he risks suffering serious damage if he/she has to pay before the decision of the Tax Commission. A taxpayer in this situation can submit a request for suspension to the Commission (judicial suspension) or, at the same time at the Office. The request should be made on plain paper and, possibly, include a copy of the deed appealed against, as well as a copy of the appeal presented.

RISERVE (RESERVES): sums of the net capital that are set aside, therefore determining a capital increase. The reserves protect a company from losses and unforeseen events and protect Company creditors. They are considered as liabilities in the assets and liabilities statement. There are two different types of reserves: accumulated profits (including non distributed profits), and accumulated surplus (deriving from contribution of capital). Tax laws envisage certain tax-free reserves which are then taxed if the future event occurs (distributions to shareholders).

RISPARMIO AMMINISTRATO (ADMINISTRATED SAVINGS): tax regime concerning capital gains, according to which the subject holding or administering the assets (for example banks, security houses, trustees, brokers, etc) applies the substitute tax of 12.5% to the appreciation actually achieved. This regime can be chosen only by physical persons who give the assets to the recognised subjects to hold or administer (for example banks, security houses, trustees, brokers, etc).

RISPARMIO GESTITO (MANAGED SAVINGS): tax regime concerning capital gains, according to which the manager of the capital (for example banks, security houses, trustees, brokers, etc) applies the substitute tax of 12.5% to the accrued amount of the management, and therefore not actually made, during the tax period. This regime can be chosen only by physical persons who have handed over the management of the capital to the above subjects.

DETRAZIONE PER RISTRUTTURAZIONI EDILIZIE (DEDUCTIONS FOR BUILDING RENOVATIONS): the possibility for the possessor of a building (owner, householder, etc) of deducting from Irpef up to 36% (50% for 2014 and 40% for 2015) of the costs incurred for renovations. The deduction, introduced for the first time in 1998, has currently been prolonged until 31st December 2012.

RITENUTA ALLA FONTE A TITOLO D’IMPOSTA (DEDUCTION AT SOURCE): the sum detracted from an income by the person who pays it (withholding agent): it represents the total tax owed (as opposed to the withholding tax). Therefore the taxpayer (substituted) has no obligation to declare the income in question.

RITENUTA ALLA FONTE A TITOLO D’ACCONTO (WITHHOLDING TAX): the sum detracted from an income by the person who pays it (the so-called withholding agent): it represents a part of the total tax owed (as opposed to the deduction at source). In fact, the W. T. is based on the amount of income from which it is detracted, and does not consider the other incomes of the taxpayer concerned (substituted). In his/her tax income return, the taxpayer must state which incomes have already been subject to the withholding tax. If the taxes owed, based on the total income, are higher or lower than the sum of the withholding tax, the taxpayer must consider this in his/her tax return.

RIVALUTAZIONE DI REDDITE E RENDITE (REVALUATION OF INCOME AND CADASTRAL INCOME): an operation that allows the updating, and thus increase, of the values of the cadastral, rental and agricultural incomes. For example, in order to revalue the cadastral income of buildings, it has to be multiplied by 1.05.

RULING: an institution of Anglo-Saxon origin, according to which each taxpayer has the right to know the effects and consequences of his/her actions in the fiscal context (see Questioning).

RUOLO (REGISTER): list of debtors and the sums they owe compiled by the offices of the Tax Administration, in order to demand payment through a collecting agent.