Italy Tax Agency Clarifies Deductions for Mandatory Social Security Contributions Paid Abroad

The Italian Revenue Agency Jan. 15 issued Letter No. 5/2026, clarifying the deductibility of social security and welfare contributions paid abroad under the Income Tax Code (TUIR). The taxpayer, an Italian resident working abroad in 2024, received employment income and paid mandatory social security and welfare contributions abroad. The taxpayer sought clarification on whether these contributions could be deducted from income in Italy. Upon review, the Tax Agency clarified that: 1) although income is determined using conventional wages, the taxpayer could still deduct mandatory social security and welfare contributions paid abroad, if withheld or paid in compliance with legal provisions; ...