• No simplification on the guarantee for the VAT refund of an Italian PE

    An Italian PE submitting a VAT refund cannot benefit from the simplifications on the guarantee. This is the answer given by the Revenue Agency to ruling no. 42, which clarified the requirements for the submission of the VAT refund request by an Italian permanent establishment of a non-resident subject, establishing in this regard that it […]

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  • Self-money laundering if money transfer for invoices for non-existent transaction

    The Supreme Tax Court with the decision n. 6397/2020 ruled that the entrepreneur who transfers money to pay the invoices for a non-existent transaction and then receives the same money, previously paid by wire transfer, commits the crime of self-money laundering as per art. 648 ter1 of the Italian Criminal Code. An Italian company has […]

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  • Black list EU: additional countries

    The Economic and Financial Affairs Council on 18th February, 2020 adopted revised conclusions on the EU list of non-cooperative jurisdictions for tax purposes. The EU decided to include the following jurisdictions in its list of non-cooperative tax jurisdictions: Cayman Islands Palau Panama Seychelles. The Council cleared and removed from the black list 16 jurisdictions that […]

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  • Inbound employees tax regime: extension with a child born after residency relocation

    Article 16 of Legislative Decree 147/2015 introduced into the Italian legal system a particular tax regime for “inbound” employees designed to act as a further incentive to transfer their residence in Italy. This particular tax regime provides that, for persons who move to Italy, the income from employment, self-employment and business is taxable for the […]

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  • INTRASTAT: relevance of registration to VIES and new evidence about release of assets/goods from the Country

    The elements characterizing intra-Community trade are summarized below: the transaction must relate to tangible movable property shipped or transported by the seller or purchaser or by third parties on their behalf from one Member State of the EU to another; the transaction must take place between a taxable person (buyer) and a taxable person (seller) […]

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  • Payment of the annual fee for the corporate books

    Obligated subjects The payment of the fee must be made by the limited company (spa, srl and sapa) including consortium companies. The obligated parties also include companies in ordinary liquidation and companies under insolvency procedures (with the exclusion of bankrupt companies), as long as they keep the obligation to authenticate the corporate books as mentioned […]

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  • Tax effects of rent “a scaletta” (variable)

    A case that occurs with a certain frequency is for example an agreement to reduce the rent in favor of the tenant who, in agreement with the property owner, performs renovations on the property. According to art. 26 of the T.U.I.R. “rental income contribute, regardless of perception, form the overall income of the subjects who […]

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  • Withdrawals In Procurement And Extension Of The Reverse Charge

    Starting from January 1st , the contractors and subcontractors have to determine and pay withholding taxes in procurement, related to income that comes from employed. This obligation is only applied if the amount of the work or service is more than € 200,000, and only if the work is carried out with the prevalent use […]

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  • The effect of the Brexit in 2020

    Effective February 1st 2020, as per the Brexit withdrawal agreement, the United Kingdom will become a non-EU country. The withdrawal agreement provides for a transition period until December 31st 2020 in which the UK will remain in the single market and customs union until the end of the transition. During this 11-month period, the UK […]

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  • Obligations, methods and deadlines for issue and transmission of 2020 Income Certification Form (CU) for remuneration and commissions paid to taxpayers on Flat-Tax regime

    Individuals in a Flat-Tax regime must issue a 2020 CU to entities in which during 2019 had declared: – Income from employment or similar – Income other that the one indicated above, on which withholding tax was optionally operated. The 2020 C.U. must not be issued in reference of income in which the taxpayer has […]

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  • Assonime and new limits for internal control according to article no. 2477 Civil Code: the first financial year for auditing

    With Case Study no. 1/2020 published on 27th January 2020, Association of Joint-Stock Companies – Assonime recalled that the new Code of Company Crisis and Insolvency and D.L. no. 32/2019 set up some amendments on article no. 2477 of Civil Code, modifying the limits for adopting internal control or auditors for limited company. For companies […]

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  • Budget Law 2020 – What the digital tax provides

    The Budget Law 2020 (Law n. 160 of 27 December 2019) published on the Official Gazette on 30 December 2019 amends the Italian Digital Service Tax DST (Article 1, paragraph 678, of the Budget Law 2020) whose main features are. Tax rate is set at 3% and apply to gross revenues resulting from certain B2B […]

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  • Budget Law 2020 – Tax credit for Research and Development (R&D)

    The Budget Law 2020 in the article 1 par. 198-209 introduce the new R&D tax credit for: – R&D activities, – technological innovation activities – design and aesthetic conception activities. The credits are set to apply only for 2020 starting from the FY following the one on going on 31 December 2019 and it are […]

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  • Code of company crisis and insolvency: new changes to Legislative Decree no. 14/2019

    The draft of decree drawn up by italian government a few days before Christmas, will set up significant changes and amendments to Legislative Decree no. 14/2019, containing the New Italian Code of company crisis and insolvency. Please do not hesitate to reach out to our Professionals in case you need further clarifications on the above.

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  • How to treat the Invoices received over the end of the year

    Last year, article 14 of Law 119/2018 has modified the input VAT deduction on purchases. For this reason, it’s useful to remember how to treat the Invoices received over the end of the year. Since the date of receipt of the invoice by the client is crucial, it is useful to briefly analyze the following cases: […]

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  • News regarding IAS 12

    The IASB (International Accounting Standards Board) published the interpretation IFRIC 23 “Uncertainty over Income Tax Treatments” in order to regulate the requirements relating to the recognition and measurement referred to in IAS 12 “Income taxes”, if there is uncertainty about the correct tax treatment. Therefore, with respect to the financial statements for the financial years […]

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  • Deadline of the VAT down payment

    December 27th is the stated deadline for paying the year-end downpayment of VAT for tax year 2019. The amount to be paid can be computed by three different methods: • Historical method; • Forecasting method; • Method of operations “carried out”. The historical method determines the VAT down payment due based on the 88% of […]

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  • IMU and TASI balance for the year 2019

    December 16th is the deadline for the payment of the IMU (property tax) and TASI (city service tax) as a balance for tax year 2019, with regard to real properties held during 2019. The IMU is a property tax that relates to land and buildings and is due either by the owner or the holder […]

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  • Tax simplifications

    At the Article 16 paragraph 1-bis law Decree number 124/2019 – tax Decree linked Budget law 2020 – Government announced new tax simplifications. News from proposal of law provide less fulfillments to taxpayers, they have as object the communications of data concerning the sale of goods and the provision of services performed and received from […]

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  • The presumption of profits allocation to shareholders in limited liability company

    The Supreme Tax Court with the decision n. 27049/2019 ruled that the presumption of the pro quota assignment to shareholders of the extra-accounting profits of LTD company that are verified in tax audit, can be applied even if the same shareholders are set up in the form of a company. The Supreme Tax Court ruled […]

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