The Tax Code

Introduction

The tax code is the Italian equivalent of the Australian Tax File Number. It is used to identify an individual, whether a natural person or a legal entity, intending to conduct a business with tax implications.

The tax code is also required in several cases for citizens residing in Australia. One of the most frequent cases is when an Australian resident inherits property located in Italy. If so, in order to claim the assets, the heir residing in Australia shall provide the Italian tax agency with their tax code.

Let's see how to obtain it.

Italian citizen living in Australia registered with AIRE (Registry of Italians Resident Abroad).

In this clear and up-to-date guide, we explain what the tax code is, what it is used for, and how to easily request one from Australia through the Italian Consulates.

1. Inheritance Declaration

In case of an Italian deceased estate, in order to become the registered owner of the assets, the beneficiary must file the succession declaration with the Italian Tax Office. This document has the purpose of disclosing the inherited assets, assessing and paying the LTO/cadastral/inheritance tax.

To finalise this procedure, each beneficiary must have an Italian tax code.

2. What is the tax code?

The tax code is an alphanumeric code (letters and numbers) that uniquely identifies each person in their dealings with the Public Administration, banks, private individuals, and Italian entities. For individuals, it is calculated automatically on the basis of their personal details: name, surname, date, and place of birth.

3. What is the tax code used for?

As outlined above, the tax code is required for:

- signing contracts (sale, rental, lease, etc.);

- opening a bank account;

- paying tax and duties;

- accepting an inheritance;

- finance or grants applications.

In short, without a tax code you cannot carry  out any legal or tax dealing in Italy.

4. How to apply for a tax code from Australia

Australian residents can obtain a tax code through the Italian consulate.

Each consulate has jurisdiction over a specific geographic area:

Consulate	Area of Competence
Sydney https://conssydney.esteri.it	New South Wales (except Queanbeyan e Cooma), Norfolk Islands
Melbourne https://consmelbourne.esteri.it	Victoria e Tasmania
Adelaide https://consadelaide.esteri.it	South Australia
Brisbane https://consbrisbane.esteri.it/it/	Queensland e Northern Territory
Perth https://consperth.esteri.it/it/	Western Australia, Christmas Islands e Cocos (Keeling) Islands

5. Procedure for applying for a tax code

Those registered with AIRE can download the tax code certificate on line:

- by accessing the FAST-IT portal (https://serviziconsolarionline.esteri.it/);

- by completing the application;

- by downloading the document in digital format.

6. Conclusions

The distribution of an Italian deceased estate between Australian beneficiaries would definitively be possible, but it requires careful planning. The first step is to apply for an Italian tax code, which is essential for completing the succession declaration and the transfer of the  ownership of assets.

The procedure is:

- easy, because it can be done online;

- free, because there are no fees;

- fast, thanks to the services provided by the Italian consulates in Australia.