Insights

  • Permanent establishment: business activities and the “de facto” administrator’s role

    The Supreme Tax Court with the decision n. 21693/2020 ruled that a permanent establishment is set when a non-resident or resident Company carries on all or part of its business activity in the territory of the State with a fixed place of business. In the present case, the Tax Office has notified to a non-resident […]

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  • Exemption of dividends and capital gains paid to EU/EEA funds

    Undertakings for Collective Investment Schemes (UCIs) under foreign law (compliant with Directive 2009/65/EC, or non-compliant but subject to supervision under Directive 2011/EU) may collect dividends from Italian companies exempt from withholding tax. The same exemption applies to capital gains realized on Italian qualifying holdings. This is provided for by art. 109 of draft Budget Law […]

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  • Obligation to justify shareholders’ resolutions

    We can observe, as also stated on several occasions by the Court of Cassation[1], that, according to the rules of the Italian Civil Code, there isn’t a general principle of obligation to justify shareholders’ resolutions passed by limited liability companies or joint-stock companies. On the contrary, the provisions of the Italian Civil Code show the […]

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  • The Italian Competition Authority investigate Google over advertising market abuse

    Following a complaint filed by an Italian digital advertising lobby group, on 20 October the Italian Competition Authority (the Authority) have opened an investigation into Google for alleged abuse, of its dominant position in the display advertising market (prohibited under article  Article 102 of the Treaty on the Functioning of the European Union) . Display […]

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  • Extension of Income Tax and Irap payment

    Art 6 DL “Ristori bis” extend the second instalment of Income tax in accordance with art 98 del DL 104/2020. The payment of income tax and IRAP has been postponed until 30/04/2021. (tax period 2020). Also covered by the previous rule are substitute taxes, income tax additions and property taxes. The extension is to be […]

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  • New Code of Company Crisis

    On November 5, 2020, the Legislative Decree No. 147/2020 was published in Official Journal. This Decree had made some adjustments to New Code of Company Crisis and introduced, inter alia, some changes to provisions on adequate organizational structures in Corporate Law. These amendments will enter into force on fifteenth day following the publication of regulatory text […]

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  • The Corrective Decree of the Crisis Code in the Official Gazette

    Legislative Decree no. 147 of 26 October 2020 was published in the Official Gazette on 5 November 2020. This Decree contains supplementary and corrective provisions to the Code of Business Crisis and Insolvency (Legislative Decree no. 14/2019). It intervenes on a regulatory text already amended to resolve disputes arising from unclear provisions, eliminate possible misprints, […]

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  • The shareholders’ loan needs a special minute

    The loans of the shareholders can be opposed to the tax authorities only if provided by a special minute and then accounted accordingly. If not, it can be considered as  hidden profit for the company. This is what the Court of Cassation has stated with ordinance no. 24746 of November 5th  2020. The Court of […]

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  • First IRAP advance for 2020

    With Circular no. 27 published on October 19, 2020, Revenue Agency provided clarifications and overcame some operating uncertainties regarding the method to determine first IRAP advance payment for 2020 fiscal year excluded from the IRAP balance payment. Please do not hesitate to reach out to our Professionals in case you need further clarifications on the […]

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  • Probable extension of the so-called “Zero Rate” on anti-Covid-19 goods

    In the Official Journal of the European Union, L 359 of 29 October, EU Decision No 1573/2020 of 28 October was published, in which the Commission considered it necessary to extend the temporal effect to 30 April 2021 of exemption from customs duties and VAT on imports of goods intended for the containment and management […]

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  • VAT deductible on rechargeable mobile services

    The taxable person who purchases, as an end-user, rechargeable mobile phone services can exercise the VAT deduction if indicated on the invoice separately from the consideration. This was confirmed by the Revenue Agency with the Resolution n.69/E of 22 October 2020 in response to the request submitted by a company that had signed a contract […]

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  • Art. 9 – Cancellation of both the balance and the second instalment of IMU

    Art. 9 of the new Law Decree so-called “Decreto Ristori” confirmed the cancellation of both the balance and the second instalment of IMU due on December 16th for buildings in which specific economic activities are carried out, as identified by the Legislator. The Law provision, included in article 9 is addressed to the categories listed […]

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  • Credit refund of the extinguished company to the sole shareholder

    By the decision no. 19641, filed on September 21th 2020, the Supreme Court ruled that, in case of a company cancelled from the company register, the previous shareholder is entitled to request reimbursement of the credit due to the company not only for the proportional amount to its share in the company but for the […]

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  • Transfer of non-controlling shares and “Realizzo controllato” tax regime

    In reply to question no. 309 of 4 September 2020, the Tax Revenue Office provided some clarifications regarding the application of the transfers of non contolling shares according to art. 177, paragraph 2 bis, of the Consolidated Income Tax Law, introduced by Italian decree (Decreto Crescita). The case concerns Alfa S.p.A., an unlisted company with […]

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  • The vat refund for non-resident taxpayer with fiscal representative

    The Italian Supreme Court with the decision n. 21684/2020 ruled that taxpayer resident in another EU State may apply for VAT refund even if they appointed a fiscal representative in Italy. The matter concerned a VAT refund application for fiscal year 2000 submitted by a French company. The Tax Office denied the VAT refund arguing […]

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  • The possibility of suspending amortizations

    The possibility of suspending amortizations in the 2020 balance sheets in order to reduce any operating losses accrued as a result of Coronavirus has been confirmed by the conversion law of the “Decreto Agosto”. The companies that shall establish the financial statement without the application of international accounting principles, cannot account for up to 100% […]

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  • The procedural effects of the cancellation of the company from the Commercial Register

    The effects of the cancellation of a company from the Commercial Register are described in article 2495 of the Italian Civil Code, introduced by the 2003 company law reform. The cancellation, however, does not imply the automatic disappearance of the relationships belonging to the company; article 2495 of the Italian Civil Code only partially defines […]

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  • It is now possible to identify the correct VAT rate for all EU countries

    A few days ago the European Commission made available a software through which it’s possible to identify the correct VAT rate applicable to the supply of goods and services in each Member State of the European Union. This tool is available at the following address: https://ec.europa.eu/taxation_customs/tedb/vatSearchForm.html. In order to be able to correctly use the […]

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  • Vat benefits for sale of “anti-Covid-19” goods: clarifications from Financial Administration

    The Financial Administration, with Circular No 26/E of 15 October 2020, has provided any clarifications about the VAT benefits for sales of goods necessary for the containment and management of the epidemiological emergency from Covid-19. Article 124 of Law Decree No 34/2020 establishes that for sales of goods listed in the 1st paragraph apply: an […]

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  • New technical specifications in reverse charge

    With measure n. 166579/2020 the Revenue Agency has approved the new technical specifications in the reverse charge “internal and external”, which contain 9 different encodings corresponding to as many cases, that at the moment and until 31/12/2020 may be used optionally, but that will become mandatory from 01/01/2021. For information purposes, the “internal” reverse charge […]

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