In 2022, the Internal Revenue Service (IRS) fundamentally changed the rules regarding credit for foreign taxes paid by U.S. companies, introducing strict requirements that limited the creditability in the United States of a range of foreign taxes (e.g., withholding taxes incurred at source on certain payment streams received by U.S. companies such as from Brazil).
The draft law AS 571 ("Delegation to the Government regarding the revision of the system of incentives for companies, as well as provisions for the simplification of the related procedures") proposes, among other objectives, an organic renewal of the system of incentives for companies, to improve its effectiveness both from the point of view of economic development and social cohesion.
A draft law for a "Growth Opportunities Act" was sent to the German Industry Associations for consultation on 14 July 2023. In addition to a new law introducing an investment grant for certain investments aiming to achieve energy savings, various adjustments to national and international tax law provisions are proposed (as briefly summarized hereinafter and without any claim to comprehensiveness).
A significant milestone for the world of Italian Industrial Property was reached on the 18th of July, with the approval by the Chamber of Deputies of the amendments to the Italian Industrial Property Code.
On 9 December 2022 the United Arab Emirates (“UAE”) issued the Federal Decree-Law no. 47 of 2022 on the taxation of corporations and businesses (“CIT”), which is a form of direct tax levied on the net income or profit of corporations and other entities from their business. By introducing the CIT Law, the UAE aims to reaffirm its commitment to meeting international standards for tax transparency and preventing harmful tax practices. In order to provide more clarity on the application of the UAE CIT Law, FAQs have been published on the MoF (Ministry of Finance) website and several implementing Ministerial, and Cabinet Decisions were issued in the last few months.
Last 26 June it was released by the Italian Ministry of Economy and Finance the Decree implementing the new temporary and optional regime for the tax redemption of profits and profit reserves in non-resident entities held by Italian residents introduced by the 2023 Italian Budget Law (Article 1, paragraphs 87-95, Law no 197/2022).
On July 12, 2023, the European Securities and Markets Authority (ESMA) launched the first public consultation under the so-called MICAR Regulation (Market in Crypto-Assets Regulation) i.e. Regulation (EU) 2023/1114 of the European Parliament and of the Council of May 31, 2023 on crypto-assets markets.
On 10 July 2023, Consob launched a public consultation aimed at defining the Regulations governing the list of “digital circulation register managers”, in implementation of the so-called “FinTech Decree”, i.e. Law decree no. 25 of 17 March 2023, converted, with amendments, by Law no. 52 of 10 May 2023.
On June 29, 2023, in its judgment in Case C-232/22, Cabot Plastics Belgium SA, the Court of Justice of the European Union clarified that a taxable person who is the recipient of production services carried out by a subsidiary, which operates exclusively for the taxable person in question, does not have a fixed establishment in the EU Member State in which the subsidiary operates, unless it has the power to dispose of the human and technical means of the subsidiary as if they were its own.
Edited by Francesca Tironi, Marzio Scaglioni, Leila Rguibi, Marco Bove and Lorenzo Vassalli On July 3rd, 2023, Law No. 85/2023 converting, with amendments, Law Decree No. 48 of May 4th, 2023, the so-called “Employment Decree”, was published in the Italian…