On October 9, 2023, the last Ministerial Decree required for the final implementation of Italy’s Register of Trusts was published, and the Register of Trusts is now in effect. The initial filing deadline is December 11, 2023. The filing in the Register is required for domestic trusts, private foundations, and similar legal arrangements, defined as trusts established or resident in Italy and foreign trusts with Italian source income. The place of establishment or residence of the trust and the source of the trust’s income are the key tests applied to determine whether a trust is subject to reporting on the Register. The Ministerial Decree n. 55 of March 11, 2022 setting forth the regulation governing the filing onto the Register of Trusts. Decree n. 55 generally refers to trusts that “produce relevant legal effects for tax purposes.” The concept requires further clarifications and would seem to include a trust with Italian resident settlors or beneficiaries, wherever it may be established and managed, when and to the extent that the trust changes or affects the way in which a settlor or beneficiary is taxed with respect to the assets placed in trust and income arising therefrom. The scope of the reporting includes information on the trust’s settlor, beneficiaries, beneficial owners, and other individuals with substantial powers over the trust, as they are all within the definition of ‘beneficial owner’ outlined in the anti-money laundering legislation, as well as the date and place of establishment of the trust and reference to the trust deed establishing the trust. Taxpayers should carefully review their trust planning structure to determine whether they fall within the scope of the filing on the Register and act accordingly, considering the imminent filing deadline.
