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.
\nThe inclusion of foreign-sourced income in the calculation of total taxable income in Italy is a necessary condition for subsequently deducting the foreign tax paid from the Italian tax due. If the foreign income is not included in the Italian taxable income, and thus does not contribute to the overall income, it becomes impossible to determine the corresponding tax credit.
\nIt is worth recalling that the country of residence calculates tax on the total income, including foreign income which, according to the Double Taxation Convention, may also be taxed in the source country. The country of residence then allows a deduction of the taxes paid abroad from the domestic tax due. There is therefore a causal link between the inclusion of<\/p>\n
foreign income in the overall taxable income in the country of residence and the recognition of the tax credit for taxes already paid abroad.
\nThe amount of the credit may not exceed the portion of Italian tax attributable to the foreign-sourced income, in proportion to its contribution to the total income.<\/p>\n","protected":false},"excerpt":{"rendered":"
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 […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3101","post","type-post","status-publish","format-standard","hentry","category-unkategorisiert"],"yoast_head":"\n