Income paid by a foreign partnership: A new path for the tax credit opens (Italian Supreme Court decision no. 25698/2022)

With decision no. 25698 of 1 September 2022, the Italian Supreme Court acknowledged the possibility for individuals who, outside their business, are partners of US partnerships to obtain a credit for the tax paid abroad even though the capital income received is mandatorily subject to substitute tax in Italy.

The Bank of Italy clarified the application of the definition of “Default” pursuant to Article 178 of EU Regulation No. 575 of 2013

With a recent memorandum, following updates dated 23 September 2022, Bank of Italy provides some guidelines on the application of “Delegated Regulation (EU)” No. 171/2018 on the relevant threshold for credit obligations in default pursuant to Article 178 (par. 2) - (lett. D) CRR, as well as clarifications in relation to the implementing provisions of the EBA (European Banking Authority) guidelines on the application of the definition of Default.

Brief note on tax process reform

Law no. 130/2022 related to the tax process reform provides important developments about the burden of proof and witness evidence for proceedings started after September 16th, 2022.

Focus on Securitization: National Adaptation to EU Legislation

With Legislative Decree No. 131 of 3 August 2022, European Regulation No. 2017/2402 was transposed into national law. It made significant changes to the regulatory framework of securitization transactions by introducing the figure of "simple, transparent and standardized" securitizations with the aim of forging a "virtuous" market for the financial instruments related to them.

Hybrid Mismatches: documentary burdens on taxpayers in view of the approaching deadline for the income tax return filing

Throughout the Circular, the Italian Revenue Agency pointed out that as a best practice for tax risk management, taxpayers are encouraged to perform an appropriate anti-hybrid analysis, also by cooperating with associated enterprises, to understand whether any hybrid mismatches arrangements have arisen along their organization structure before submitting the income tax return. The analysis would enable them to collect an accurate probative documentary set (“anti-hybrid Dossier”) explaining the hybrid mismatches’ assessment process they developed and implemented to determine their taxable base for income tax purposes.

The Italian Tax Authorities provide clarifications on the VAT registration through the appointment of a VAT representative

With the answer to Ruling No. 442/2022 dated 2nd September 2022, the Italian Tax Authorities provide clarifications on a case submitted by a taxpayer on the VAT registration in Italy through the appointment of a VAT representative according to Article 1, paragraph 4 of the Presidential Decree No. 441/1997.