Categoria: Tax
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THE ITALIAN INTERNATIONAL TAX DECREE AMENDS THE CFC REGIME AND INTRODUCES AN OPTIONAL 15% SUBSTITUTE TAX.
With Legislative Decree no. 209 of December 27, 2023, the Italian Government has finally amended the rules on Controlled Foreign Companies with respect to the determination of the effective tax rate, coordinating them with the new Pillar Two and Global Minimum Tax provisions. The Controlled Foreign Companies (“CFC”) rules set forth in Article 167 of…
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DOES THE RESEARCH AND DEVELOPMENT CREDIT NOT ENTERED IN THE RU SECTION OF THE TAX RETURN QUALIFY AS A NON-EXISTENT OR NON-ALLOWABLE CREDIT?
The answer is not at all obvious. The correct distinction between non-existent and unallowable credits, with the consequent effects, remains a far from settled issue. For the local Revenue offices, there are no doubts: if recovered, the R&D tax credit is non-existent. Jurisprudence and, above all, logic opinions, are of the opposite belief. The starting…
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THE INTRODUCTION OF THE TWO-YEAR PREVENTIVE AGREEMENT BETWEEN TAXPAYERS AND THE ITALIAN TAX AUTHORITIES.
Legislative Decree no. 13 of February12, 2024, in force since February 22, 2024, introduced the two-year preventive agreement, which aims to rationalise returns obligations, as well as to encourage spontaneous compliance by minor taxpayers. Legislative Decree no. 13 of 2024, implementing the Delegated Law to the Government for the Tax Reform (Article 17, Law no.…
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ITALIAN MINISTERIAL CLARIFICATIONS ON THE NEW EXEMPTION REGIME APPLICABLE TO PROFITS PAID TO QUALIFIED INVESTMENT FUNDS ESTABLISHED IN THE EU AND EEA.
In the question time of the Finance Commission, the Italian Ministry of Economy and Finance with answer no. 5-02060 of February 27, 2024 has clarified that the new exemption regime applicable to dividends paid to UCITS, and alternative investment funds established in the European Union (EU) or in the European Economic Area (EEA), with a…
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GOOD NEWS ON THE ESTATE PLANNING FRONT
October brought a couple of positive news for those who are planning the distribution of their assets. First of all, with Circular No. 29 of 19 October, the Revenue Agency finally acknowledged that in the current Inheritance Tax system the so-called Reunion for Inheritance Tax purposes (coacervo successorio) is no longer applicable. This is the…
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NEW TAX RESIDENCE DEFINITION FOR ITALIAN INDIVIDUALS AND LEGAL ENTITIES
October 16th, 2023, the Italian Council of Ministers approved, in a preliminary way, a legislative decree implementing the tax reform on international taxation. Two provisions of the decree entail the review of the notion of tax residence applicable to individuals, companies and other legal entities. The new definition shall finally align the domestic tax rules…
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CRYPTO ASSETS SETTLEMENT BY 30 NOVEMBER: SUBSTITUTE TAX ON FISCAL MONITORING AND PROFITABILITY
The deadline for filing the application for regularisation of past violations concerning crypto assets held up to 31 December 2021 is 30 November 2023: the Italian Revenue Agency clarified this with Provision no. 290480 of 7 August 2023, implementing the rules contained in the Italian Budget Law 2023. Article 1, paragraph 138 and following, of…
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THE ITALIAN SUPREME COURT OF CASSATION ADMITS THE APPEALABILITY OF A SELF-DEFENCE REFUSAL THAT IS CONTRARY TO A FINAL DECISION
With respect to the tax administration’s power of self-defence, the Italian Supreme Court of Cassation in its decision no. 18241 of 26th June 2023 declared null and void a self-defence refusal by the Italian Revenue Agency on the ground that it was in conflict with a previous final decision of the same Court. The dispute…
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REGISTRATION TAX AT 15% ON PHOTOVOLTAIC PLANTS ON AGRICULTURAL LANDS: THE “STEP-BACK” INTERPRETATION OF THE ITALIAN TAX AUTHORITIES
The granting of surface right on agricultural lands is subject to registration tax at the rate of 15% and not 9%, as well as mortgage and cadastral taxes at the fixed amount of Euro 50: this was clarified by the Italian Tax Authorities by answer to Ruling no. 365 of 3rd July 2023, overruling (sic!)…
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THE EU INCREASES ITS “CLIMATE AMBITION”: THE NEW CBAM REGULATION
“Climate change is a global problem that needs global solutions”(European Commission). Among the actions taken at EU level, the most important intervention is represented by Regulation (EU) No. 2023/956, published on 16th May 2023 in the EU Official Journal, which established the Carbon Border Adjustment Mechanism (CBAM). On 10th May 2023, the EU Member States…