Italy publishes guidance on clarifying application of R&D tax credit
The Italian tax authority during 2018 issued guidance to clarify application of the existing tax rule of Research and Development (R&D) tax credit for eligible Italian companies and Italian permanent establishments of foreign companies investing
See MoreItaly : Law Decree entered into force following its publication
Italy Published Law Decree No. 87 of 12 July 2018 was entered into force following its publication in Official Gazette No. 161 of 13 July 2018. Details of the tax measures are summarized below: Regarding Incentives: Under article 7 of the Law
See MoreItaly issues final transfer pricing regulations on the application of the arm’s length principle
Italy issued final transfer pricing regulations on May 14 regarding the application of the arm’s length principle. The publication follows the release of a draft for public consultation in February and a consultation in May. The guidance supports
See MoreItaly: Transfer pricing consultation responses published
On 5 April 2018, the Ministry of Economy and Finance published the responses received to the public consultation on transfer pricing legislation launched in February 2018. Comments and proposals are available on the website of the Ministry of
See MoreIncreased VAT in Draft DEF (4) in Italy
A draft of the Economic and Financial Document (DEF showed that VAT hikes under fiscal safeguard clauses will remain intact for the next two years after being frozen for this year. The 10% reduced VAT rate will rise to 11.5% from January 1, 2019,
See MoreItaly: launches public consultation regarding implementation measures for transfer pricing provisions
The Italian Ministry of Economy and Finance launched a public consultation on the implementation measures associated with the application of domestic transfer pricing provisions on 21 February 2018. The main purpose of the Draft Decree (supported by
See MoreItaly: Draft transfer pricing regulations and corresponding adjustments
On February 21, 2018 the Italian Ministry of Economy and Finance released its draft transfer pricing rules to comply with the Article 8-10 OECD/G20 Base Erosion and Profit Shifting (BEPS) project. The draft rules are declared in their website for
See MoreItaly: Real-time e-invoices
Mandatory real-time electronic sales invoice reporting has been introduced by the Italian Revenue Agency. The process will be effective from 1 January 2019. The Italian Revenue Agency named it Sistema di Interscambio (SDI) and according to them all
See MoreItaly: Detail Explanation of the New Regulation on Patent Box Regime
On the 6 February, 2018 the Italian Ministry of Economic Development and Ministry of Economy and Finance published its Official Gazette on the new patent box regime. The regulation explains the criteria for qualified tax payers, qualified IP,
See MoreItaly: Ministerial Decrees IFRS 9 and IFRS 15 Published
The Ministerial Decree of 10 January 2018 on the International Financial Reporting Standard 9 Financial Instruments (IFRS 9) and the Ministerial Decree of 10 January 2018 on the International Financial Reporting Standard 15 Revenue from
See MoreItaly: Resolution for Exempting Foreign Branches
Pretty hefty amount of complications were found between the content of instructions related to the income tax return for the fiscal year 2016 and the subsequent ITA Protocol of January 28th, 2017 bringing in rules for implementation for the option.
See MoreItaly: New Regulations Imposed on Corporate Income Tax and Regional Tax
The Budget Law came into effect since 1 January 2018 after being published into the Gazette on 29th December 2017. The following regulations have been imposed in the section of direct tax in the Budget Law: Electronic submission of tax returns
See MoreItaly: Manual for Tackling Tax Evasion and Fraud
The Italian Tax Police updated its practical instructions regarding performance of tax audits by releasing the Circular n. 1/2018 i.e. the operational manual for tackling tax evasion and fraud, which was later on updated on 1st December, 2017 and
See MoreItaly: Publication of Income Tax Return Form
An approval was undergone by the ITA on the individual income tax return form and related instructions for the fiscal year 2017 through the issuance of Protocol No. 10793/2018 on 15th January 2018, and the form is available on ITA’s
See MoreItaly: Setting up new rules and regulations on pharmaceutical companies regarding VAT and Paybacks
New rules has been brought on pharmaceutical companies regarding VAT and Paybacks which has been already undergone since 1st January 2018, mostly instructing for the inclusion of VATs in different forms of Paybacks. According to the new rule any
See MoreItaly: Parliament Approves 2018 Budget Law
The Italian Parliament approved the Budget Law on 23rd December 2017 and it will come into force on 1st January 2018. The law prolongs the extra-amortization regime for entities investing in new assets between 1st January 2018 and 31st January 2018
See MoreItaly: Approves budget Law for 2018
The Italian Budget Law for 2018 (Law no. 205 of 27 December 2017) published on 29 December 2017 and entered into force on 1 January 2018. Some of its most significant corporate tax measures are summarized below: Dividends: Dividends from
See MoreItaly: Approval of 2018 Budget Bill including new tax on digital services
The main agenda of this Bill being approved by the Italian Senate was to offset differences on tax on digital services so that it can target large multinational companies like Facebook, Apple and Google providing digital services in Italy. Italy has
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