Italy: Tax authority clarify windfall tax for energy sector
On 23 February 2023, the Italian tax authorities have published Circular No. 4/E with clarifications on the temporary solidarity (windfall tax) contribution for the energy sector. The clarifications regarding the solidarity contribution includes
See More
Italy publishes latest withholding tax return form
The Italian tax authorities have recently released the latest withholding tax return form for the fiscal year 2022. The withholding tax return form (Modello 770/2023) and instructions was approved by Protocol No. 25954/2023 on 27th January 2023.
See More
Italy enacts budget law for 2023
On 29 December 2022, Italy has published Budget Law No. 197 in official Gazette No.303 related to the State Budget for 2023 and the multi-year budget for 2023-2025. The provisions of the law generally entered into force on 1 January 2023. The
See More
Italy declares statutory interest rate for 2023
Italy has published the Decree of 13 December 2022 in the Official Gazette, which sets 5% statutory interest rate (previously 1.25%) with effect from 1 January 2023. The statutory interest rate will be used for interest payment in case of
See More
Italy approves draft Budget for 2023
On 21 November 2022, Italian Council of Ministers approved the State Budget for 2023 along with the multi-year budget for 2023 to 2025. The budget increasing the tax credits for the purchase of natural gas and electricity through March 2023 and
See More
IMF Report makes Policy Recommendations to Italy
On 27 July 2022, the IMF issued a report following the conclusion of discussions with Italy under Article IV of the IMF’s articles of agreement. Italy’s economy has recovered from the drop in output during the pandemic and employment and
See More
Italy: New circular clarifies application of ALP
On 24 May 2022, the tax authority of Italy has issued Circular No. 16/E, that clarifies the application of the arm's length principle (ALP) in transfer pricing as per Decree of 14 May 2018 and Decree No. 50 of 24 April 2017 as converted by Law No.
See MoreIMF Report Considers the Economic Situation in Italy
On 19 May 2022 the IMF issued a concluding statement following discussions with Italy under Article IV of the IMF’s articles of agreement. By the end of 2021 Italy’s economy had recovered to a level close to its pre-pandemic output,
See MoreItaly issues latest tax return models with instructions
On 22 April 2022, the tax authority of Italy issued latest models, instructions, and technical specifications for tax returns, that effective for tax filing in 2022 in respect of the 2021 tax period. The updates are
See MoreItaly: Final guidance on hybrid mismatches rules
On 26 January 2022, the Italian Revenue Agency (IRA) has declared the finalization of Circular No. 2/2022. The circular clarifies the hybrid mismatch rules that has introduced as part of the Decree No. 142 of 2018, which transposed the measures
See MoreItaly confirms VAT treatment of TP adjustments
On 30 December 2021, the Italian Revenue Agency has published Ruling No. 884 clarifying the VAT treatment of transfer pricing (TP) adjustments. In the case at issue in Ruling Answer No. 884/2021, a resident company made a number of TP
See MoreItaly: IRA Publishes guidance on CFC legislation
On 27 December 2021, the Italian Revenue Agency (IRA) has issued the publication of Circular No. 18/E, that provides guidance regarding the regulations for controlled foreign companies (CFCs) as amended by Article 4 of Legislative Decree No.
See MoreItaly announces statutory interest rate for 2022
On 15 December 2021, Italy has published the Ministerial Decree that increases the statutory interest rate to 1.25% with effect from 1 January 2022. Previously, the statutory interest rate was
See MoreItaly clarifies TP documentation requirements
On 26 November 2021, the Italian Tax Authorities issued Circular No. 15 providing clarifications on the regulations introduced on 23 November 2020 regarding the content and validity of the elective transfer pricing (TP) documentation available to
See MoreItaly: Council of Ministers Approves Budget for FY 2022
28 October 2021, Italian Council of Ministers has issued a release declaring its approval of the Budget for FY 2022. The key tax measures include plastic tax and sugar tax is postponed until 2023, the VAT rate on feminine hygiene products is
See MoreItaly: New patent box regime uses a cost-based approach
On 15 October 2021 a law decree introduced new rules for the patent box regime. The new rules grant an extra deduction of certain research and development (R&D) costs incurred by Italian taxpayers, including expenses relating to
See MoreItaly launches public consultation on draft circular on TP documentation requirements
The Italian tax authorities have introduced a public consultation on the draft circular clarifying transfer pricing (TP) documentation requirements. Comments should be submitted by 12th October 2021 to the email
See MoreItaly extends tax payment deadlines
Italy has published Law No. 106 with certain amendments, including an extension to 15 September 2021 of the deadlines for tax payments of income tax returns, regional tax on productive activities (IRAP) returns, and VAT returns that otherwise
See More