Effective 1 January 2016, the list of “black list” jurisdictions for purposes of the Italian financial transaction tax are any country that is not listed below. This list reflects the fact that Mauritius, Russia, South Korea, San Marino, Liechtenstein, and Croatia have been removed from the “black list.”
|Czech Republic||India||Poland||United Kingdom|
The Italian financial transaction tax is levied on transfers of shares or participating financial instruments issued by companies that have their registered office in Italy, regardless of where the parties to the transaction are resident and regardless of where the transfer takes place. The financial transaction tax is also due on transactions involving (1) derivatives whose value is linked to that of such underlying shares/participating instruments, and (2) high-frequency trading. The standard rate of the financial transaction tax is 0.2%. The tax must be paid by the party to whom the ownership of the shares is transferred (the transferee). The tax is either: (1) applied by the financial intermediary (e.g., bank, trust or investment company), or the notary (if any) involved in the execution of the transfer; or (2) paid directly by the transferee. Non-resident intermediaries may appoint a tax representative to handle the financial transfer tax liability.
When more than one intermediary is involved in the execution of the transaction, the tax is paid by the one who receives the order directly from the purchaser or the final counterparty. Moreover, intermediaries (i.e., banks, investment companies) are considered as purchasers or final counterparties of the execution order if they are located in countries on the black list used for financial transaction tax purposes and are involved in any way in the execution of the transaction.
Read a June 2016 report [PDF 183 KB] prepared by the KPMG member firm in Italy
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.