Defying age through versatility – ITR's Italy Special Focus launched

Italy takes pride in tinkering its way to tax efficiency, frequently taking an alternative approach from its counterparts across Western Europe.

In the coming years, we can expect the notional interest deduction regime to be reinstated and the reduced corporate income tax rule to be repealed, as well as the enactment of a unilateral digital services tax. New indirect taxes have already been proposed for both plastic and sugar, while a revamp of the VAT rate is regularly debated.

As Italy’s policymakers deliberate tax policies to keep up with the evolving market, the demand for expert advice remains high. The unforeseen outbreak of COVID-19 means that authorities and taxpayers are already preparing for another unexpected challenge. 

Partnering with leading tax advisors who are closest to the action, ITR brings you an exclusive insight into some of the most significant recent developments from the Italian tax world.

The resurgence of high-level private equity work in Italy, especially within the real estate sector of the North, is the subject of Belluzzo International Partners’ article. European regulations and national tax rules have effectively paved the way towards a clearer framework for investors.

The article by Loconte & Partners discusses how Italy seeks to mitigate economic double taxation and remain attractive to foreign companies, while taking note of related changes triggered by the EU Anti-Tax Avoidance Directive (ATAD).

In the area of transfer pricing (TP), the number of advanced pricing agreement (APA) requests registered have increased year-on-year in stark contrast to the pattern in France, Germany and the UK. Studio Legale Tributario EY’s article examines how Italy can take away multiple benefits from the distinctive strategy.

Mutual agreement procedure (MAP) cases have also been on the rise because of the increased scrutiny on tax risks deriving from TP matters. The article from LED Taxand explores how tax authorities are progressively aligning with international standards.

Alongside agreement schemes, Italy is actively embracing technological innovation. The article from Hager & Partners looks at how businesses can gain from tax incentives designed to promote the markets of tomorrow.

Over 2000 years in the making, Italy’s tax system will likely continue to surprise and transform in the 2020s. We hope that you find the second edition of our Italy guide beneficial.

Prin Shasiharan

Commercial editor

ITR