Taxation of Intellectual Property in the 730/2024 Model

Income from Intellectual Works

Income from intellectual works is subject to taxation and must be declared in the 730/2024 form.
Not all incomes come from dependent work or continuous collaboration relationships.
A worker, during the previous tax period, may have performed occasional freelance work that does not require professionalism, regularity, and direction.

Occasional Freelance Work

When we cannot speak of freelance work (due to lack of professionalism and continuity), according to Article 53 of the Tax Code, we are talking about occasional freelance work and in some cases the exploitation of intellectual works.
Both types of income are very similar and do not require the use of the PF Income model (used by freelancers) but can also be declared using the 730 form.
However, in this case, the individual must have also received income from dependent work during the reference tax period.

It is also valid in cases where the declarant does not have an income substitute in the year of filing, as it is possible to submit the declaration even without an income substitute.

Income to be Declared in Box D3 of the 730/2024 form

These types of income must be indicated in Box D3 of the 730/2024 form.
In this box, you must indicate:

• proceeds from the economic utilization of intellectual works and industrial inventions (patents, know-how) received directly by the author or inventor;
• income from association contracts in participation, if the contribution consists exclusively of work performance;
• income from profit sharing for founding members of joint-stock companies, in joint-stock partnerships, or limited liability companies.

Income from Freelance Work

Compensation from freelance work, classified as different income according to Article 67 of the Tax Code, must be reported in section D, in box D5, specifying the type of income by indicating the identification code (column 1), the sums actually received (column 2), and the withholding taxes suffered (column 4).

Furthermore, in this section, it is necessary to indicate the amount of expenses actually incurred related to the production of income (column 3).
These expenses, to be deducted from income, can never exceed the consideration received for each individual operation.

Exploitation of Intellectual Works

Intellectual works are the highest expression of human creativity, originating from the mind and inspiration of the authors, protected by copyright.
They include artworks, songs, and writings, characterized by originality and creativity.

Authors have legal protection to exclusively use, reproduce, or distribute their works.
However, authors can also assign the use of their works in exchange for fair compensation.

The proceeds from the economic use of intellectual works are reported in Box D3 of the 730 form if received by the author or inventor.
If received by successors for free or by subjects who have acquired these rights for consideration, they constitute different incomes reported in Box D4 code 6.

Income Tax Deduction

For all these income categories, a decreasing tax deduction is provided, not cumulative with that for dependent and assimilated incomes and unrelated to the work period.