In its Reply No. 101 of 15 April 2025, the Italian Revenue Agency provided clarifications regarding the tax credit on tax paid in France in relation to capital gains subject to the PEX regime. The inclusion of foreign-sourced income in the calculation of total taxable income in Italy is a necessary condition for subsequently deducting [...]

On April 9, 2025, the Italian Association of Chartered Accountants (AIDC) published Interpretation No. 229 regarding the application of the PEX regime to capital gains from the sale of shareholdings in resident companies by entities not resident in the EU or EEA. The AIDC Interpretation No. 229 of April 9, 2025, aims to outline the [...]

The Italian Revenue Agency (Agenzia delle Entrate), in its response to a ruling request dated 7 April 2025, No. 90, clarified that ancillary costs directly related to the disposal of shareholdings generating a PEX (Participation Exemption) capital gain are deductible only to the extent that the capital gain is subject to taxation. Example: If the [...]

Legislative Decree 139/2024 has introduced significant changes regarding the exemption from inheritance and gift tax for the transfer of businesses and shareholdings. These new provisions aim to facilitate generational business transfers by offering greater clarity and expanding tax benefits. The previous legislation already provided for a full exemption from inheritance and gift tax for heirs [...]

Legislative Decree No. 192/2024, reforming IRPEF and IRES, has extended the subjective scope of application of Article 177(2) of the TUIR, which governs the so-called "controlled realisation" regime for share swaps through contributions, to include cases where the company whose shares are exchanged is a non-resident entity.

In its response to ruling request No. 59/2025, the Italian Revenue Agency states that a waiver by individual shareholders of dividends already declared constitutes their legal receipt, thereby necessitating the application of the withholding tax under Article 27 of DPR 600/73.

A subsequent compensation for financial losses, determined not on the basis of the number of users, but on a lump sum basis, does not constitute consideration for a service rendered to the payer and is excluded from the VAT taxable amount.

The Italian Revenue Agency (Agenzia delle Entrate), with replies No. 28 and No. 29 of 12 February 2025, clarified that a non-resident is not required to purchase the property in the last municipality of residence to qualify for the first-home tax relief (Bonus Prima Casa). Furthermore, it specified the necessary documents in cases where the [...]

OECD published the updated list of countries, including Italy (with 15 %), that have obtained the transitional status of qualified legislation concerning the Income Inclusion Rule, the Undertaxed Profit or Payment Rule, or the Qualified Domestic Minimum Top-up Tax, following the review process conducted by the OECD Inclusive Framework on BEPS Pillar II. On october [...]

The provision of the TUIR, which requires a proportional reduction of the deductible foreign tax when foreign income only partially contributes to the taxable base, could be overridden by the rules preventing double taxation contained in many of the treaties signed by Italy, as these do not include such a provision.