The Ministerial Decree of 2 August 2013 is implementing new rules on 12th August 2013 regarding the income tax treatment of the migration of Italian companies which was published in the Italian Official Gazette n. 188/2013.
According to the Decree, under any elections, the exit tax liability should be determined on the basis of the fair market value of the assets/going concern value at the date of the migration.
The implementing regulations provide that at the time of the corporate migration, the taxpayer may elect for instant tax payment known as “deemed realization” method; tax payments in installments plus interest over a 10-year period under a deemed realization – alternative payment method; or postponement of the tax payment until transferred assets are realized. Taxpayers must arrange for a guarantee that would guarantee payment of the tax to the Italian tax authorities if they wish to elect for the tax deferral treatment.
