Marco Q. Rossi & Associati

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European Union and Italian International Tax Law Blog

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European Union and Italian International Tax Law Blog

Italian Substituted Tax On Financial Income At Odds With Tax Treaties

By Marco Rossi on August 11, 2019

Italy taxes various categories of financial income – namely dividends, interest and capital gains – earned by private investors outside the carrying on of a trade or business, by way of a substitute tax charged on the gross amount of the income at the flat rate of 26 percent. With effect from January 1, 2018, capital gains are no longer categorized as gains realized from the sale of qualified shareholdings (i.e., shareholdings exceeding a minimum…

European Union and Italian International Tax Law Blog

The Italian Tax Agency Clarifies The Meaning of Beneficial Owner For Purposes of International Tax Reporting of Foreign Assets Held in Trust

By Marco Rossi on June 3, 2019

With its resolution n. 53/E issued on May 29, 2019 the Italian tax agency issued some important clarifications on the exact scope of the Italian international tax reporting rules in case of foreign assets held through trusts, foundations or similar entities. In particular, the ruling focuses upon the interpretation of the term “beneficial owner”, which applies and is used to identify the individuals subject to the duty to report. Under Italian law (article 4, paragraph…

European Union and Italian International Tax Law Blog

Italian Tax Court Rules Against The Use Of Unit Link Insurance Policy For Tax Avoidance Purposes

By Marco Rossi on June 3, 2019

With its decision n. 5608 of December 10, 2018 the Italian Provincial Tax Court of Milan ruled against the (ab)use of so called “unit linked” life insurance policies for tax avoidance purposes. The decision of the tax court refers to the latest rulings of the Supreme Court on the matter and represents a significant step towards a more decisive step towards a crack-down on a potentially abusive tax practice. Under Italian tax law, in case…

European Union and Italian International Tax Law Blog

Italian Tax Agency, Taxpayer Settled The Biggest “Silent” Permanent Establishment Tax Case For a Record Amount of 1.250 Billion Euro In Taxes And Penalties

By Marco Rossi on May 9, 2019

The Italian financial newspaper “Il Sole 24 Ore” reported today that Koering, the French-owned conglomerate which controls some of the most renowned and revered luxury brands in the world, such as Gucci, Bottega Veneta, Saint Laurent, Pomellato and others associated to clothing, jewelry, bags and other luxury products, settled a tax case with the Italian tax agency pursuant to which it will pay to Italy the record amount of euro 1.250 billion in assessed and…

European Union and Italian International Tax Law Blog

Italy’s Regional Tax Court Denies Dividend Withholding Tax Exemption In the Absence Of Actual Taxation In the Country of Residence

By Marco Rossi on May 8, 2019

By way of ruling n. 55/6/2019 filed on January 21, 2019, the Regional Tax Court of Abruzzo held that no withholding tax exemption under the EU Parent-Subsidiary Directive applies, unless the EU parent company proves that it has been “materially charged” with an income tax on the dividends in its own country of residency. The case concerns a dividend paid by an Italian subsidiary to a EU parent company based in the Netherlands. Upon payment…

European Union and Italian International Tax Law Blog

Italy Enhances Special Tax Regime For Foreign High Skilled People and Entrepreneurs

By Marco Rossi on April 13, 2019

In 2015, Italy enacted a special tax regime for high skilled workers who move to Italy to work there for an Italian employer, on assignment to an Italian affiliate of a foreign multinational, or on their own as independent consultants and service providers. Eligible taxpayers (who include Italian citizens, and foreign nationals who are citizens of a country with a tax or exchange of information treaty with Italy) must not have been Italian tax residents…

European Union and Italian International Tax Law Blog

No Taxation Of Gain From Sale of Stock of Italian Company Under Treaty, Except for Treaty Abuse, Italian Supreme Court Rules

By Marco Rossi on March 17, 2019

With its ruling n. 25219 of October 11, 2018, the Italian Supreme Court held that the capital gain realized by a German company from the sale of its shares of stock of an Italian company is exempt from corporate income tax in Italy, pursuant to Article 13, paragraph 4 of the Tax Treaty between Italy and Germany, except in the case the German holding company has engaged in tax evasion by way of abuse of…

European Union and Italian International Tax Law Blog

No Outbound Dividend Withholding Tax Exemption, Under the EU P/S Directive, With No Taxation of Dividend in Parent’s Home Jurisdiction, Italy’s Supreme Court Rules

By Marco Rossi on March 5, 2019

With its ruling n. 32255 issued on December 13, 2018 (“Ruling 32255”), the Italian Supreme Court, Fifth Department (Tax) held that a dividend paid by an Italian subsidiary to a parent company established in a EU Member State is not eligible for the dividend withholding tax exemption granted under the provisions of Directive 90/435/EC (the “EU Parent Subsidiary Directive”, transposed into Italian domestic tax law by way of article 27-bis of Italy’s Presidential Decree n.…

European Union and Italian International Tax Law Blog

Italian Special Tax Regime For High Net Worth Individuals: A Review, Two Years Later

By Marco Rossi on December 13, 2018

In 2017, Italy introduced a special tax regime intended to attract Italian and foreign nationals who have been resident outside of Italy for at least nine of the previous ten years, to transfer their tax residence to Italy and pay a fixed amount of €100,000 in lieu of the Italian regular income tax on their foreign source income. Taxpayers qualifying for the special regime are taxed on their Italian source income at usual graduated rates.…

European Union and Italian International Tax Law Blog

Review of Italy’s Special Tax Regime for New Resident Workers

By Marco Rossi on July 14, 2018

The preferential tax regime for the new resident workers, enacted by way of Article 16 of the Legislative Decree 147 of 9/14/2015, is now permanent and extended to non-EU citizens and independent consultants and service providers (while, originally, it was limited to EU citizens working in an employee capacity). Given its wider scope and increasing relevance, for foreign enterprises which plan to move personnel to Italy, or foreign consultants who consider the opportunity to relocate…

Marco Q. Rossi & Associati

Marco Q. Rossi & Associati Blogs

Blog Authors

Italian Substituted Tax On Financial Income At Odds With Tax Treaties

The Italian Tax Agency Clarifies The Meaning of Beneficial Owner For Purposes of International Tax Reporting of Foreign Assets Held in Trust

Italian Tax Court Rules Against The Use Of Unit Link Insurance Policy For Tax Avoidance Purposes

Italian Tax Agency, Taxpayer Settled The Biggest “Silent” Permanent Establishment Tax Case For a Record Amount of 1.250 Billion Euro In Taxes And Penalties

Italy’s Regional Tax Court Denies Dividend Withholding Tax Exemption In the Absence Of Actual Taxation In the Country of Residence

Italy Enhances Special Tax Regime For Foreign High Skilled People and Entrepreneurs

No Taxation Of Gain From Sale of Stock of Italian Company Under Treaty, Except for Treaty Abuse, Italian Supreme Court Rules

No Outbound Dividend Withholding Tax Exemption, Under the EU P/S Directive, With No Taxation of Dividend in Parent’s Home Jurisdiction, Italy’s Supreme Court Rules

Italian Special Tax Regime For High Net Worth Individuals: A Review, Two Years Later

Review of Italy’s Special Tax Regime for New Resident Workers

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