INPS Withholding Tax

In addition to the standard withholding tax, payment to certain types of contractors is subject to a social security (Istituto Nazionale della Previdenza Sociale [INPS]) withholding tax. The INPS withholding tax is paid to the Italian social security office.

The company must withhold two-thirds of the withholding tax amount that is due to the contractor and pay this amount by the 20th day of every month. The supplier is liable for the remaining one third of the ten percent.

The base amount for the calculation of INPS withholdings can be 95 percent or 100 percent, depending on the type of contractor.

The company is liable for the debt to INPS from the time of payment to the contractor.