Several tax treaties concluded by Italy provide that the former country of residence of the individual may exercise its taxing rights on capital gains from shareholdings realized by non-residents. This applies when a person was resident in State A, moves to State B, and disposes of shareholdings in companies located in State A within a [...]

In its ruling of 25 August 2025, No. 23842, the Court of Cassation endorsed the view that the artificial relocation of a company’s registered office abroad constitutes an abusive practice that cannot be challenged in the absence of a purely artificial arrangement, where the company actually carries out an effective economic activity abroad. In the [...]

A supply of goods initially declared by the supplier as an intra-EU transaction, but which – without the supplier’s knowledge – was transported by the purchaser outside the EU, is eligible for the VAT exemption applicable to exports provided that proof of exit from the EU customs territory is available (CJEU, 1 August 2025, C-602/24). [...]

he ruling issued by the Italian Tax Authority (Agenzia delle Entrate) on July 24, 2025, No. 193, analyzes the conditions under which the permanent establishment of a non-resident company in Italy plays a significant role in purchases carried out in Italy.According to the Authority, it is not sufficient for the Italian permanent establishment to conduct [...]

The waiver of dividends by individual shareholders who are not entrepreneurs does not generate taxable extraordinary income for the investee company, as the shareholders’ receivable corresponds to the nominal value of the dividends. However, since the dividends have already been resolved, they are deemed to have been received by the shareholders and are therefore subject [...]

In the case of companies that exercise the branch exemption (BEX) option and transfer their tax residence abroad, the capital gain relating to the foreign permanent establishment is not relevant for Exit Tax purposes (Italian Revenue Agency Ruling No. 185 of 8 July 2025).

June 30 marks the deadline for filing the web tax declaration for the 2024 tax period. This obligation concerns the self-assessment of the tax due on digital services, through which the revenues subject to taxation are declared.

The law on employee participation in company management, capital, and profits – definitively approved by the Senate on 14 May 2025 – is pending publication in the Official Gazette. In implementation of Article 46 of the Italian Constitution, the law governs four forms of employee participation: managerial; economic and financial; organisational; consultative. Under economic and [...]

The Italian Revenue Agency, in its response no. 129 dated May 13, 2025, clarified that proceeds from the transfer of surface rights alone are classified as miscellaneous income and are no longer subject to capital gains taxation.

Taxes paid abroad entitle the taxpayer to a foreign tax credit under Article 165 of the Italian Income Tax Code (TUIR), provided that: They relate to income earned in a foreign country; Such income is included in the total income of the Italian resident taxpayer; The foreign taxes have been paid definitively (i.e., there is [...]