Italy has published Legislative Decree No. 192/2024 in the Official Gazette on 13 December 2024, introducing a key amendment in which the regulations on loss limitations have been updated following a reorganisation that leads to a change in control.
The amended states that tax losses cannot be carried forward if: the majority of voting rights in the loss-reporting company are transferred or acquired by third parties (change in control); and the main business activity during the period of the losses changes in the fiscal year of the control change or within two preceding or following years.
The restriction will not be enforced if the company’s gross receipts and labor costs exceed 40% of their two-year average before the change of control.
