2023 budget bill introduces the permanent establishment Investment Management Exemption

he 2023 Budget Bill (Budget Bill), expected to be enacted before year end, introduces in the Italian income tax act (IITA) the Investment Management Exemption (IME) that, in a nutshell, is a safe harbor aimed at providing certainty to foreign investment fund (and controlled entities) over the no triggering of a PE due to the activities in Italy of fund’s (senior) asset managers.

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.