Recently, the draft budget law 2018 proposed an increase in taxes applicable to gains realized on the disposal of “qualifying shares” of Italian companies.
According to the proposed budget law those which will be representing more than 20% of the voting rights or 25% of the share capital of a non-listed Italian company, or incorporating more than 2% of the voting rights or representing more than 5% of the share capital of a public company will be defined as “qualifying shares”.
The draft budget law 2018 also proposes a “flat” rate of 26% substitute tax to replace the current tax treatment and that would be aligned with the capital gains tax of “non-qualified shares” and gains realized by “physical persons.”
If approved, the provision would be effective as of 1 January 2019 and would specifically affect non-resident entities.
