Italy's Digital Services Tax took effect 1 January 2020.
Italy has published a new law decree that outlines urgent measures for Italian economic growth.
The Italian Supreme Court has denied a withholding tax exemption under the EU Parent-Subsidiary Directive.
The Italian government published a decree implementing the EU's Anti-Tax Avoidance Directive into Italian law.
The Italian Parliament approved the 2019 budget law, including a reduction in corporate income tax.
Italian tax authorities have clarified that foreign exchange gains and losses are included in realized capital gains and losses.
An Italian ruling confirms that expenses incurred when conducting research on behalf of a foreign company are within the scope of the R&D tax credit mechanism.
A new tax amnesty program has been launched in Italy (please refer to Law Decree No. 119, dated October 23, 2018). The program is already effective, but has to be converted into law by December 22, 2018.
The program offers relief from certain penalties and interest if taxes are paid in full. In some instances, the taxes could be paid in instalments over a period of time.
In October 2018, the Italian Tax Authorities (ITA) issued clarifications on the possibility of transfers of excess tax credits between group companies. The transfers relate to excess tax credits generated by a company before entering into the group consolidation. The information issued by the ITA includes a clarification that qualifying excess tax credits must be certified in the tax return of the assignor as well as the consolidated tax return of the group.
A bill has been issued in Italy to transpose the EU directives on anti-tax avoidance (ATAD) into Italian law. If accepted the bill would replace current laws on interest deduction for corporate entities, exit and entry tax rules, and CFC rules. Once enacted, the legislation is likely to apply to calendar year 2019.
Italy’s 2018 budget measures have changes that will affect multinationals operating in Italy and trading with Italian businesses.
Among other measures announced in Italy’s budget for 2017, the corporate income tax rate will decrease from 27.5% to 24%.