International Tax Review is part of the Delinian Group, Delinian Limited, 8 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2023

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Italian 2014 stability law: Amendments to international tax ruling provisions

The Italian stability law has been amended in relation to international tax ruling provisions.

The international tax ruling is a legal institution introduced into the Italian tax system by Art. 8 of Leg. Dec. No. 269/2003, available to enterprises carrying out international business activities, intended as any enterprise residing in the Italian territory, that may be qualified as such, in accordance with the provisions in force on income tax matters, which, alternatively or jointly:


  • fulfils, with respect to non-resident companies, one or more of the conditions set

    forth under par. 7 of Art. 110 (transfer pricing regulations) of the

    Italian Income Tax Code;


  • participates in the equity, fund or capital of non-resident entities or rather, which equity,

    fund or capital is participated by non-resident entities; 

  • may have paid out to (or received from) non-resident entities dividends,

    interests or royalties; 


  • namely, any non-resident enterprise that carries out its activity in the Italian

    territory through a permanent establishment, which may be qualified as

    such, pursuant to income tax provisions in force.

The international tax ruling as detailed above is available to enterprises carrying out international activities that intend to define the following aspects with the Italian Tax Authorities, and more precisely:


  • calculation methods of the normal value (arm’s-length value) of transactions set forth

    under Art. 110, par. 7 of the Italian Income Tax Code (transactions

    included within the transfer pricing scope);

  • application of rules – also treaty-sourced – to a concrete case, involving the

    distribution to non-resident entities, or rather, the receipt by

    non-resident entities, of dividends, interests, royalties or other income


  • application of rules – also treaty-sourced – to a concrete case, concerning the

    attribution of profits or losses to a permanent establishment in Italy of

    a non-resident entity, or rather, to the permanent establishment in

    another State of an Italian resident enterprise.

Law No. 145/2013 (2014 Stability Law) amended the international tax ruling regime setting forth: 

  • that the legal provision is extended to the preliminary assessment of whether

    or not the requirements to determine the existence of a permanent

    establishment in the Italian territory actually exist;

  • the extension of the term from three to five tax periods of the legal validity

    of the ruling agreement: during such period, the Tax Authorities carry out

    their auditing activities to ascertain compliance with the terms of the

    signed agreement and to verify whether any amendments were made to the conditions

    that constitute the basis for the agreement.

The second edition of the Bulletin of the International Tax Ruling, published by the Tax Authorities on 19 March, 2013 reveals that the last few years saw an increased adoption of the said legal institution, in particular with reference to the prior determination of transfer pricing methods (89% of signed agreements).


Valente Associati GEB Partners

Viale Bianca Maria, 4520122 MilanoTel 39 02 7626131Fax 39 02 76001091(

more across site & bottom lb ros

More from across our site

The German government unveils plans to implement pillar two, while EY is reportedly still divided over ‘Project Everest’.
With the M&A market booming, ITR has partnered with correspondents from firms around the globe to provide a guide to the deal structures being employed and tax authorities' responses.
Xing Hu, partner at Hui Ye Law Firm in Shanghai, looks at the implications of the US Uyghur Forced Labor Protection Act for TP comparability analysis of China.
Karl Berlin talks to Josh White about meeting the Fair Tax standard, the changing burden of country-by-country reporting, and how windfall taxes may hit renewable energy.
Sandy Markwick, head of the Tax Director Network (TDN) at Winmark, looks at the challenges of global mobility for tax management.
Taxpayers should look beyond the headline criteria of the simplification regime to ensure that their arrangements meet the arm’s-length standard, say Alejandro Ces and Mark Seddon of the EY New Zealand transfer pricing team.
In a recent webinar hosted by law firms Greenberg Traurig and Clayton Utz, officials at the IRS and ATO outlined their visions for 2023.
The Asia-Pacific awards research cycle has now begun – don’t miss on this opportunity be recognised in 2023
An intense period of lobbying and persuasion is under way as the UN secretary-general’s report on the future of international tax cooperation begins to take shape. Ralph Cunningham reports.
Fresh details of the European Commission’s state aid case against Amazon emerge, while a pension fund is suing Amgen over its tax dispute with the Internal Revenue Service.