A decree establishes a new percentage of capital gains and losses realized by non-resident taxpayers, from the transfer of “qualifying” shares in Italian companies, and included in the taxable income of the seller for purposes of the Italian corporate income tax (IRES).
The new percentage is 58.14% (up from 49.72%) and applies to capital gains and losses realized since 1 January 2018.
This increase in the taxation of the shareholder is designed to offset a decrease in the IRES rate—from 27.5% to 24% since fiscal year 2017—for the “investee” company.
There are special rules that continue to apply for capital gains realized from the transfer of “non-qualifying” shares—such capital gains are still subject to a 26% substitute tax rate or may be exempt from tax if the seller is a resident of a “white-list country.”
Also, if an income tax treaty applies, capital gains are usually taxable only in the seller’s country of residence and, therefore, are not subject to tax in Italy.
Read a July 2017 report [PDF 162 KB] prepared by the KPMG member firm in Italy
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