The Italian tax authorities released revised and updated versions of forms on 11 July 2013 which is to be used by non-residents in filing claims for an exemption, refund or reduction of Italian taxes on dividends, interest, royalties and other income sourced in Italy.
A specific tax residence certificate has also been approved by the Revenue which will have to be used by Italian residents when applying for foreign tax mitigation under bilateral treaties.
The forms are specifically aimed at the application of the favourable regimes provided under bilateral tax treaties for the avoidance of double taxation, EU Directive n. 90/435/EEC of 23 July 1990 (Parents-Subsidiary Directive) and EU Directive n. 2003/49/EC of 3 June 2003 (Interest and Royalties Directive). The provisions of many double tax treaties provide for a reduced rate of withholding tax on dividends, interest and royalties and sometimes on other income such as technical service fees. Reduced rates of withholding tax are also available to some enterprises within the European Union under the provisions of the EU parent/ subsidiary directive and the EU interest and royalties directive.
To request exemption, refund or tax reduction under a bilateral tax treaty the following forms may be required:
- Dividends-Form A
- Interest–Form B
- Royalties-Form C
- Other Income-Form D
To request exemption or refund under the relevant EU Directives the following forms may be required:
- Form E – Parent-Subsidiary Regime 90/435/EEC Directive
- Form F – Interest and Royalties Regime 2003/49/EC Directive
To obtain a tax residence certificate for the application of the provisions contained in bilateral tax treaties the Italian residents will have to use the form for a “Request of certificate of tax residence for individuals, corporations and other entities”.
