19th January 2017
When relocating across borders there are numerous cultural differences to consider: from simple nuances such as gestures that can inadvertently be offensive to variances in acceptable business etiquette. While being unaware of some of these can result in slightly embarrassing situations, there are some differences that can have rather hefty implications, particularly when it comes to taxes.
A commitment to compliance
Regular readers of this blog will be aware of warnings we have made – and continue to make – to contractors regarding the correct payments in their chosen location, but it’s vital not to fall into the trap of believing you have all the requisite information. Indeed, there are many weird taxes that need to be paid around the globe that could have previously unforeseen financial impacts on businesses and individuals.
Take for example the shadow tax in Conegliano, Italy. No that’s not a typo, we did indeed say ‘shadow tax’. The town in Veneto – commonly known for its dry prosecco – has been charging small businesses a shadow levy on signs and awnings that have created a shady area on public walkways. Interestingly, many company owners effected by these payments of approximately €100 per year were unaware of being charged.
Of those who knew of the charges, none challenged them as they believed it to be too costly to do so. However, this is no longer the case. With the help of a business association which is leading the fight against these payments, many local firms are now preparing to challenge the shadow tax with the hope of also preventing it being rolled out across the whole of Italy.
Know your taxes
As a contractor working across borders there are many unforeseen tax payments that you could face. Regardless of the knowledge and experience you already have, given that requirements are constantly changing – and authorities are focusing their attentions on incorrect payments – seeking expert guidance is highly recommended. So if you want to remain compliant in your chosen location and avoid hefty fines or potential criminal charges, speak to the team today.