On December 23, 2019, the Italian Ministry of the Economy and Finance published on its web site a draft of the Ministerial Decree setting forth the provisions for the establishment and operation of the Register of Beneficial Owners of business entities, non-commercial entities and trusts. The establishment of the Register of Beneficial Owners is required
Italian Taxation of Individuals
Italy Enacts New Provision On Taxation Of Distributions From Foreign Trusts
Law Decree n. 124 of October 26th, 2019 (which is immediately effective, but needs to be converted into law within 60 days to become final) includes, at article 13, new provisions on taxation of certain distributions from foreign trusts to Italian resident beneficiaries (individuals and non-business entities).
By way of background, Italy does not have…
No Gift Tax On Transfer Of Property To Trusts, Italian Supreme Court Rules, Creating New Challenges and Planning Opportunities
By way of thirteen decisions issued in June and July (numbers 15451, 15453, 15455, 15456 of June 7, 2019, numbers 16699, 16700, 16701, 16702, 16703, 16704, 16705 of June 21, 2019, no. 19167 of July 17, 2019 and no. 19319 of July 18, 2019), the Italian Supreme Court ruled that the Italian gift tax does…
Italian Tax Agency Rules on Tax Effects of Early Termination of Trust, Treats It As Gift Back to Settlor Subject to Gift Tax
In its Private Letter Ruling n. 355 of August 30, 2019 the Italian Tax Agency considered the tax implications, for Italian gift tax purposes, of a transaction involving the early termination of an irrevocable trust by way of mutual consent of the trustee, settlor and beneficiaries of the trust, with a return of the trust’s…
Italian Tax Residence For Individuals: A Refresher And Look At Open Issues And New Matters
Italian tax residence is a very important topic for foreign nationals who travel regularly to Italy, own houses and spend significant time with their family there, while living and working abroad, as well as for those who relocate to Italy and work, do business or just retire there.
For the former, it may be surprising…
Italian Substituted Tax On Financial Income At Odds With Tax Treaties
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,…
The Italian Tax Agency Clarifies The Meaning of Beneficial Owner For Purposes of International Tax Reporting of Foreign Assets Held in Trust
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…
Italian Tax Court Rules Against The Use Of Unit Link Insurance Policy For Tax Avoidance Purposes
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…
Italy Enhances Special Tax Regime For Foreign High Skilled People and Entrepreneurs
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…
Italian Special Tax Regime For High Net Worth Individuals: A Review, Two Years Later
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…