A draft legislative decree was approved by the Italian Government on 21 April 2015 introducing an advance pricing agreement (APA) rollback provision and provisions relating to costs of transactions with tax havens.
The draft decree introduces roll-back provisions for all APAs and extends the potential APA scope to cover exit and entry values of assets and liabilities in the event of outbound and inbound transfers of tax residence.
The costs deriving from transactions with entities resident in tax havens, under the so-called “Black List” rules, which are currently non-deductible unless certain specific exemption conditions are met will be deductible up to their “normal value”, provided the underlying transactions have actually taken place.
The draft decree is currently under review in the Italian Parliament.
