A law decree amending the transfer pricing rules in Italy was “converted into law” on 15 June 2017.
Article 59 of Law Decree no. 50/2017 amends the Italian transfer pricing rules by replacing the concept of fair market value (valore normale) with a more direct reference to the arm's length criterion used in the OECD guidelines. The Ministry of Economy and Finance is expected to provide implementing rules and guidance for application of the new transfer pricing rules, by taking international “best practices” into account.
Under another provision of Article 59, a corresponding downward adjustment resulting in lower taxable income will no longer be conditional on a mutual agreement procedure (MAP), but also will be available:
Read a June 2017 report [PDF 183 KB] prepared by the KPMG member firm in Italy
© 2017 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.