Italy Tax Agency Clarifies Taxation of Nonresident Pension Income Under DTA With Hong Kong

The Italian Revenue Agency Jan. 20 posted online Letter No. 121/2023, clarifying the taxation of pension income under the 2013 DTA with Hong Kong. The taxpayer, a resident of Hong Kong, received pension income from the Italian National Social Security Institute (INPS). The taxpayer sought clarification on the INPS’s withholding of taxes from the pension income. The tax agency clarified that: 1) the INPS can withhold taxes on the pension paid to the nonresident taxpayer, because doing so doesn’t violate the non-discrimination clause under the DTA; 2) the taxpayer is exempt from filing income tax returns in Italy; and 3) ...