Payroll Tax Summaries for Selected Countries Taxable employment income Taxable employment income includes all compensation, including cash and noncash benefits received during the tax year. Taxable fringe benefits in a typical expatriate compensation package include: * personal use of a company car; * foreign location allowances; * school tuition reimbursements; * employer contributions to rent; * reimbursements of foreign and/or home country taxes; * free or below-market value use of employer furnished living accommodations; * home leave allowances; and * the fair market value of company shares given by the employer. Tax rates Income taxes. Tax rates range from 23% to 43%. There is also a regional tax, in which rates range from 1.23% to to 3.33%, and a municipal tax, in which rates go up to 0.8%. The Inbound Expatriate Regime (amended in 2019) allows certain inbound employees who transfer residency to Italy for at least two years to have 70% of income exempt from income tax, under certain conditions. This also applies to European Union (EU) citizens and to citizens from countries with tax treaties with Italy, under similar conditions. Social security taxes. Social security benefits include disability pay, pensions for old age; disease and maternity leave; a fund guaranteeing the staff leaving indemnity; family allowances; and unemployment benefits. Employees make social security contributions at a rate equal to about 10% of gross compensation; employers contribute about 30% of employees' gross pay. Relief from double taxes Italy has both an income tax treaty (see Appendix A, page A-38) and a totalization agreement (see Appendix B, page B-27) with the U.S. C-31