Italian Government issued an additional Decree to amend the Italian Patent Box regime in order to streamline the existing differences between the Italian rules and the OECD recommendations set forth under Base Erosion and Profit Shifting (BEPS) Action 5 and to align the domestic provisions to the OECD standards. The new decree suggests the introduction of the following measures to align the Italian Patent Box regime:

  • The new law decree (no. 50 of 24 April 2017) removes trademarks from the list of qualifying intellectual properties under the patent box regime.
  • For elections with respect to trademarks in the years after 31 December 2016 must apply a “Grandfathered” measures.
  • The Italian Revenue Agency must communicate the name of each Italian taxpayer whose Patent Box option also includes trademarks to the tax authorities of the countries as per the BEPS framework.
  • Reduced rates for the allowance for corporate equity.
  • Replacement of Italian concept of ‘normal value’ by specific reference to the arm’s length principle for transfer pricing purposes.
  • Cooperation and enhanced collaboration for multinational enterprises.