2020 turned out to be a year unlike any other as businesses and governments all over the world faced the most unexpected challenges. Italy responded to the economic distress caused by COVID-19 through the introduction of unifying tax measures to protect the economy and the livelihood of its people.
To ease business dynamics, policy makers notably sought to improve Italy’s tax disputes framework by adapting clearer guidelines when handling advance pricing agreements (APAs) and mutual agreement procedures (MAPs). The government were also busy with the interpretation and application of EU law to improve tax compliance and reporting functions.
Looking ahead, ITR has partnered with three leading firms to bring you practical insight from the Italian tax world to consider for 2021.
The article by Chiomenti explains why Italy’s implementation of Council Directive 2017/1852 on tax dispute resolution mechanisms, has been largely welcomed by businesses and taxpayers. The measures will broaden the scope of MAPs and provide additional effective tools to taxpayers affected by international double taxation issues.
The 2021 Budget Law modified the APA procedure, introducing new aspects concerning the application of ‘roll-backs’ and providing the payment of a fee in order to start these procedures. Crowe Valente/Valente Associati GEB Partners discuss the changes and consider how multinational corporations may be affected.
Italy’s DAC6 Law is predominantly in line with the scope and requirements of the European original, which seeks to increase the level of transparency surrounding harmful tax practices. LED Taxand explore the peculiarities in the country’s DAC6 implementation that must be considered in cross-border arrangements.
We hope you find the third edition of our Italy guide to be an interesting read.
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