Mr Marco Abramo Lanza

Marco Abramo Lanza

Updates

Corporate Tax

Italy implements OECD definition of 'permanent establishment'
Italy | 05 October 2018

Italy recently implemented the recommendations set out in the Organisation for Economic Cooperation and Development's Additional Guidance on the Attribution of Profits to Permanent Establishments regarding the definition of a 'permanent establishment'. Article 162 of the Income Tax Code now includes a negative list of activities that do not constitute a permanent establishment, the anti-fragmentation rule and details of the requirements that give rise to a permanent establishment.

Tax guidance on leveraged buy-out transactions
Italy | 14 October 2016

The Tax Authority recently issued a circular that provides general guidelines regarding leveraged buy-out transactions and similar acquisition structures, with particular reference to investments made by private equity funds. The guidelines cover interest expenses, fees charged by private equity firms, withholding tax on interest, shareholder loans and exit disposals.

Main provisions of Patent Box regime
Italy | 20 November 2015

The government introduced a 'Patent Box' tax regime for the first time in 2014. The provision applies to corporate income tax and regional tax on productive activities and aims to provide a tax incentive to create, relocate and maintain intangible assets in Italy through the introduction of a tax regime based on the Organisation for Economic Cooperation and Development's 'nexus' approach.

New measures to support economic growth and internationalisation
Italy | 10 July 2015

The Council of Ministers recently approved the implementation of three tax reform decrees. The third decree aims to create a favourable environment for foreign investors and Italian enterprises that want to grow their international business. Accordingly, the changes aim to simplify the existing rules based on international compliance standards.

BEPS Action 10 – discussion draft on profit splits in global value chains
International | 01 May 2015

As part of the Base Erosion and Profit Shifting project, the Organisation for Economic Cooperation and Development (OECD) recently issued a discussion draft on the use of profit split methods in relation to transfer pricing in the context of global value chains. This update provides an overview of the discussion draft and gives recommendations on what further guidance is needed from the OECD.

Changes to withholding and substitute tax on financial income
Italy | 03 October 2014

The government recently approved Decree-Law 66/2014, which introduced changes to the taxation of some types of financial income (ie, interest on loans, notes, capital gains and dividend incomes) effective as of July 1 2014, increasing the tax rate from 20% to 26%.

Stability Law brings changes for taxpayers
Italy | 28 February 2014

Parliament recently approved the Stability Law 2014. The law contains a number of significant measures affecting individual and corporate taxpayers, including an increase in notional interest rate deductions, introduction of the option for companies to step up the tax cost of business assets and new provisions on the deductibility of payments made under finance lease agreements.

New reimbursement and exemption forms introduced for withholding taxes
Italy | 11 October 2013

The Italian Revenue Agency recently approved new and revised forms to be used to claim for reimbursement of or exemption from Italian withholding taxes applicable to certain income of non-Italian residents. The agency also approved a standard certificate of tax residence to be filed by Italian residents with foreign tax authorities in order to obtain reimbursement of or exemption from foreign taxes.

Stability Law ushers in new tax provisions
Italy | 15 March 2013

Parliament recently approved the so-called 'Stability Law' for 2013. The law includes a number of significant measures affecting individual and corporate taxpayers. New provisions include an increase in value added tax, the reintroduction of an elective regime providing for a step-up in the tax basis for participation in unlisted 'revaluation' companies and the introduction of a financial transaction tax.

New anti-abuse provisions introduced for companies incurring consecutive tax losses
Italy | 03 August 2012

Law Decree 138/2011, which was later converted to Law 148/2011, introduced new anti-abuse provisions for companies consecutively incurring tax losses and widened the application of provisions concerning non-operating companies that are required to disclose for tax purposes a minimum income determined on the basis of their assets, notwithstanding the actual result of the application of ordinary tax provisions.

Saving Italy: tax breaks seek to support corporate taxpayers
Italy | 23 March 2012

In order to encourage corporate self-financing, the government has introduced the allowance for corporate equity, which enables companies to deduct an amount equal to the notional return on invested capital from their taxable income for income tax and corporation tax purposes. Further deductions are available for regional tax on production as an incentive to employers.

€54 billion austerity plan seeks to balance the books
Italy | 02 December 2011

Parliament recently approved an austerity package that aims to present a balanced budget for 2012. Its various provisions - with an estimated financial impact of €54 billion - include a number of significant measures for individual and corporate taxpayers. In particular, companies should be aware of new provisions on carry-forward rules, criminal penalties and dormant companies.

New clarification on white-list controlled foreign companies
Italy | 05 August 2011

Since 2010 Italy's controlled foreign company rules have applied to foreign subsidiaries that are established in whitelisted jurisdictions. The tax authorities have recently issued a circular which provides new guidelines on the application of the controlled foreign company rules to foreign companies in jurisdictions that are not tax havens.

Controversy over sham trusts and the 'look-through' rule
Italy | 01 April 2011

A circular from the tax authorities provides further details on the Italian tax treatment of trusts. It focuses on when an instrument will be considered a 'sham' trust and must be disregarded for income tax purposes. However, many tax experts have criticised the circular for its basis in a misleading interpretation of trust taxation rules and its disregard for general principles of Italian income tax law.

New REIT decree brings changes for non-resident investors
Italy | 19 November 2010

New legislation has been published which introduces changes to the tax system in respect of real estate investment trusts (REITs). The new provisions are intended to prevent the real estate fund structure from being abused as a vehicle for private investment by a single entrepreneur. They also modify the favourable tax regime for non-resident investors in Italian REITs.

New rules on VAT set-off
Italy | 19 February 2010

New rules have been introduced on offsetting value-added tax credits against corporation tax, regional income tax and social security contributions. Taxpayers wishing to offset a credit of over €15,000 must have the return confirmed by an authorized professional. For companies subject to the mandatory audit procedure under Article 2409(2) of the Civil Code, the return can be signed by the auditors.

Tax Amnesty Allows Regularization of Undisclosed Foreign Assets and Activities
Italy | 16 October 2009

The government has enacted a new tax measure to allow Italian individuals and partnerships to repatriate foreign assets held abroad illegally and to regularize foreign operations. A legislative amendment introduces an extraordinary tax on financial activities and assets - including money, shares, bonds, offshore assets, real estate and works of art.

Fiscal Changes for Start-Up Capital Gains, Interest Expenses and Real Estate Funds
Italy | 03 October 2008

A new law has made wide-ranging changes to the tax system that particularly affect new companies, banks, insurance companies and real estate investment funds. Among other measures, it introduces a rollover exemption system for start-up capital gains realized on qualified and non-qualified participations.

Budget 2008 Overhauls Corporate and Regional Income Tax
Italy | 02 May 2008

The government's report on the 2008 Budget includes significant changes to the tax system, particularly with respect to corporate income tax and regional income tax. This update reviews the new provisions in these and other areas, including interest expenses, tax consolidation and accounting standards.

New Filing Requirements for Financial Operators
Italy | 21 September 2007

Measures introduced by Finance Bills 2005, 2006 and 2007 require financial operators to facilitate the tax authorities' monitoring of taxpayers by filing an electronic notification with the authorities detailing all business links with their clients - such as bank accounts, loans and deposits - established since January 1 2005, even if such links no longer exist.

Early Repayment Option on Loans Does Not Affect Favourable Tax Regime
Italy | 06 July 2007

The tax authorities have recently revised their position on the early repayment of medium and long-term loans, returning to the position held before 2006. Ordinary transfer taxes are not levied on bank loans with a term of over 18 months and a more favourable substitute tax at 0.25% of the loan applies, regardless of whether the borrower has the right to repay the loan before the end of the 18-month period.

New Legislation on Tax Residency and Overseas Dividends
Italy | 17 November 2006

Newly issued legislation introduces a number of new provisions which affect various aspects of tax law, including dormant companies, tax residency of foreign holding companies, dividends from tax havens and the capital gains tax treatment of employee stock options.

Tax Authorities Issue Guidelines on Savings Tax Directive
Italy | 21 October 2005

The EU Savings Tax Directive has now been incorporated into Italian law and the tax authorities recently issued provisions which lay down practical rules for its application. These relate to the taxation of savings income paid or secured by economic operators - or 'paying agents' - in one EU member state in favour of individuals resident in another member state.

The Application of the Thin Capitalization Rules
Italy | 13 May 2005

The Italian thin capitalization rules apply to the extent that a loan is granted or pledged to a taxable enterprise by its qualified holders or their related parties. A permanent establishment in Italy and its foreign parent are considered to be a single entity for thin capitalization purposes. The owners of the parent are regarded as the qualified holders.

The International Ruling Procedure
Italy | 11 February 2005

Italian companies with international activities and permanent establishments of foreign companies are now entitled to apply for the international ruling procedure. This allows for a binding agreement to be reached between the company and the Italian tax authorities on a number of tax-related issues.

Private Client & Offshore Services

Tax Authorities Clarify Rules on Trusts
Italy | 25 October 2007

A circular letter recently issued by the Italian tax authorities sheds light on the application of new income tax and indirect tax rules to trusts. The circular letter includes guidance on establishing the place of residence of a trust and considers the application of the 'look-through' rule.