NOTION OF REGULATED MARKET
For income tax purposes, "regulated markets" are those defined as such for regulatory purposes and recognised by the respective Italian sectoral authorities (CONSOB and Bank of Italy). In addition to the market recognised by CONSOB and the market listed in the register of the European Securities and Markets Authority (ESMA), "foreign regulated market" means "any other regulated market that operates regularly, is recognised and open to the public".
Hence, "foreign regulated markets" include markets in EU or EEA Member States; other markets recognised by CONSOB and indicated in the corresponding list; markets classified as regulated by the professional associations of asset management companies in view of the sector-specific regulations.
Moreover, except in special cases, the notion of "multilateral trading system" may generally be equated with that of "regulated market" for income tax purposes. In both cases the price of listed or traded shareholdings may be established on the basis of objectively ascertainable values (Italian tax authority, newsletter no. 32 as of 23 December 2020).
REPATRIATES TAX REGIME
The Italian tax authority provides clarifications on the legal amendments to the repatriates tax regime pursuant to section 16 of Italian legislative decree 147/2015, referring in particular to the personal and material conditions to benefit from such tax regime, the conditions to benefit for a further five-year period, the time frame of application of the tax regime and the legal amendments to the condition of registration with the Registry of Italians Resident Abroad (AIRE) to benefit from the tax regime (Italian tax authority, newsletter no. 33 as of 28 December 2020).
SALE OF SHARES AND SUBSEQUENT TAX ASSESSMENT OF THE TRANSFERRED COMPANY
In the event of sale of shares, the seller may undertake in respect of the purchaser to assume any tax claims that should be levied against the transferred company following a tax assessment.
In this case, the amounts refunded by the seller to the purchaser may be classified as income of the buyer (Italian tax authority, answer to request for advance ruling no. 566 as of 04 December 2020).
EXCHANGE OF EQUITY INVESTMENTS
In the case of a contribution by exchange of equity investments the tax regime under section 177(2) of the Italian Tax Code (so-called "realizzo controllato") is not affected by, and may not exclude, any subsequent capital increase by cash payment that should affect the transferee (also by the same shareholder by means of a tax-neutral equity investment) (Italian tax authority, answer to request for advance ruling no. 568 as of 09 December 2020).
BUSINESS CONTRIBUTION OF PERMANENT ESTABLISHMENT
The contribution of the entire business of an Italian permanent establishment of an EU company to another Italian permanent establishment of another EU company is tax neutral under section 176 of Italian Tax Code (TUIR).
However, if the shareholding acquired as a result of the contribution:
- is assigned to the "contributing" permanent establishment and then transferred to its parent company, or
- is assigned directly (upon contribution) to the parent company, or
- is not functionally connected with the permanent establishment,
the capital gain, if any, realised by the "contributing" permanent establishment is taxable (possibly under the PEX regime if the conditions are met) (Italian tax authority, answer to request for advance ruling no. 633 as of 31 December 2020).
REVALUATION OF COMPANY ASSETS
The tax-free revaluation referred to in section 6-bis of Italian Decree-Law 23/2020 may also be carried out by the lessor that has leased the hotel business to another company by means of two agreements, namely a business lease agreement for the hotel business and, at the same time, a lease agreement for the hotel property (Italian tax authority, answer to request for advance ruling no. 633 as of 31 December 2020).