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AIDA Cruises, Italian tax

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  • AIDA Cruises, Italian tax

    Hello,

    I am a british engineer, qualified last year but only recently secured my first job. It is with the German company AIDA Cruises, they operate Italian flagged vessels.

    In my contract it states gross pay and then that there will be tax deductions per Italian tax authority of 30-40% based on annual income declaration, covering health insurance, pension and unemployment benefits. Will I be able to claim this back at the end of the tax year?

    I am wondering if anyone can tell me how this will work or has ever worked with them before?! I don't fancy paying tax for a country I don't live in or ever visit!

    Cheers

  • #2
    Not sure if this helps;

    "Tax facilities regarding seafarers
    IRPEF tax credit
    According to ordinarily applicable rules, resident employers must withhold income taxes from the salaries paid to their employees. The employer must calculate the tax on the basis of the progressive rate for individual income tax (IRPEF).
    Taxpayers can however benefit from a tax credit equal to 100% of the IRPEF withheld by the employer for European seafarers employed on board ships registered in the Italian International Shipping Register.
    The tax credit is granted to the employer acting as withholding agent and, as expressly provided by the law, is fully exempt for IRES purposes.

    Relief from social security contributions
    According to generally applicable rules, a substantial part of the social security contributions for employees is normally borne by the employer. The rest is borne by the employee and must be withheld by the employer in conjunction with the withholding of tax on salaries.
    Taxpayers can however benefit from a total relief from contributions for the social protection of seafarers employed on board ships registered in the Italian International Shipping Register. Social charges for seafarers are therefore reduced to zero.
    These benefits are granted directly and entirely to employers and cover both the quota of social contributions borne by the seafarers and the quota of social contributions borne by the employer."

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    • #3
      To be honest I dont fully understand all that! But its stuff ill look into now.

      Thanks for the reply bro.

      I did email the company asking about it last week, no reply yet so feel like I shouldn't bother them again. Regardless of pay, i'm happy to have finally got my way in after qualifying, even if I cant get this italian tax back, this job is the stamps in the book to get other work in future..

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      • #4
        A summary of YM's post in simple speak: Europeans on Italian flagged ships will not have to pay income tax to Italy. They either won't pay it at all or will be refunded 100% of whatever they do pay.

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