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News on Italian Vat refunding procedure for EU companies

Author: Giovanni Amendola News on Italian Vat refunding procedure for EU companies EU established companies  are entitled to recover Italian VAT if: They are not registered or liable to be registered for VAT in Italy; Do not  have residence, seat or a fixed base in Italy; Have not carried on  any taxable supply of services nor goods sale in Italy. Starting from FY 2017 it is possible to claim a Vat refund up to € 30,000 without providing any warranty; self-certifications are required above the latter amount. In addition,  following  the ruling n° 110/2016 (November 26th, 2016) of  the Italian Tax Administration  by a specific...

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UNIT LINKED INSURANCE POLICIES AND SETUP OF SUCCESSION: RISK ANALYSIS

  Many individuals, predominantly of Anglo-Saxon origin, living in Italy, as well as a  growing number of Italians are placing their savings into life insurance policies for financial and tax planning. In this connection, we would like to highlight some of the risks that should be taken into account. Reclassification of the Insurance contract An insurance contract, in fact, may be reclassified as a financial brokerage contract (and insurance policies as financial products) with effects from both a statutory perspective (being subject to the Consolidated Finance Act (“TUF“), the non-applicability of the rules of the Civil Code and a fiscal perspective (related to...

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International Investment Opportunities: the new Italian White List

The approval of the decree of the Ministry of Economics and Finance on August 9, 2016, published in the Official Gazette August 22, 2016,  significantly updates the list of countries with which  Italy has an exchange of information.  The new whitelist contains 123 countries compared to the previous 73. Among the new countries included are Switzerland, Hong Kong, Liechtenstein, the Cayman Islands, and Saudi Arabia.  This will have a great impact on financial intermediaries who may, for example,  be able to exempt from withholding tax Italian real estate funds proceeds paid to pension funds and collective investment undertakings established in...

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VOLUNTARY DISCLOSURE COMING SOON IN ITALY

The return of capital is finding a definition with an amendment to the Financial Stability Act now before the House . The first drafts on voluntary disclosure provide   for a reduction of penalties by half  if the assets are held in whitelist countries and only reduced by a quarter if it were hidden from the Italian tax authorities  in the blacklist’s countries . There will also be a shield from criminal violations . Nothing punishable to taxpayers who have committed offenses of cheating and non-declaration ordinarily subject to 1 to 3 years’s jail, while for the most serious crimes of fraudulent...

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Taxation outline for employees of international organizations in Italy

Hardly a day goes by in my working life in Rome (as an international financial consultant) that the question of whether or not a person should report and pay tax in Italy is not raised. The most common people to contact me about this are those working within one of the many international organizations that are based here in Rome. The nature of their enquiry usually revolves around their confusion of their actual tax status here in Italy and the conflicting information they are given compared to information they find on the internet? When looking for some comfort they turn to colleagues...

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MONTHLY TAX UPDATES FOR INTERNATIONAL PEOPLE AND CORPORATIONS

The Italian Tax System is renewing to better fit taxpayers needs and international environment.  Thanks to  the assistance  of Manuela Stefoni, international legal tax expert, to follow you will find monthly tips on the Italian Tax system in order to help  International individuals  and corporations in their life and activities. ITALY REAL ESTATE: As with automobiles, it will now be possible to rent-to-buy one’s first home. The Italian Government  has approved an amendment to the 2016 Stability Law, which lays down the rules for the starting up of property leasing.  The amendment clarifies that with finance lease contracts, the bank or intermediary commits...

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FATCA: how to be in compliance with US tax authorities

The Foreign Account Tax Compliance Act (FATCA) is a regulation introduced by the US Congress on March 18, 2010 as anti-avoidance provision whose aim is to hit the subjects of US origin who make use of foreign vehicles in order to conceal their income from US tax authorities. Once having identified a US Taxpayer, the Italian Financial Intermediary must communicate all its data (amounts invested, accrued interest, dividends, etc.) to the Italian tax authorities (Agenzia delle Entrate), which, in turn,  will pass the information on to the US Internal Revenue Service (IRS) who will check the coincidence of such data...

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Annual tax credit of 80 million to pension funds that invest medium to long term

After months in the making, the decree that offers a tax reduction to pension funds and social security funds that invest in the real economy has finally seen the light of day.  Minister Pier Carlo Padoan  signed the measure that allows these institutional investors to get a tax credit, for an annual value of 80 million euros, if they allocate a portion of their resources to stocks, bonds or shares  of collective investment undertakings, with a goal of medium-long term investment.  Pension funds and social security funds will have to have among their assets, for a period of at least...

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