CORRECTION OF STATE AID TABLE IN THE TAX RETURN
The state aid to be shown in the relative tax return's table corresponds to the tax saving or tax credit accrued in the tax period, and not to the deduction or reduction on which such aid is calculated. In case of incorrect compilation, it is possible to submit a supplementary tax return showing the correct amount. Following the filing of the supplementary tax return by the taxpayer, the Italian tax authority will correct the amount entered in the Italian register of state aid (RNA). A fixed penalty of EUR 250 (reduced in case of rectification) shall apply (Italian tax authority, decision no. 26 as of 15 April 2021).
TAX EXEMPTION FOR INTERESTS ON MEDIUM-TERM AND LONG-TERM FINANCING GRANTED TO COMPANIES
The tax exemption scheme for interests on medium-term and long-term financing granted to Italian companies by EU banks pursuant to section 26(5bis) DPR 600/1973 applies to UK banks until the end of the transitional period, i.e. until 31 December 2020 (Italian tax authority, principio di diritto no. 6 as of 9 April 2021).
APPLICATION OF DOUBLE TAXATION AGREEMENT ON INCOME
A VATable Swiss foundation with legal personality being subject to income tax exemption scheme under Swiss law may apply the DTA on income.
The benefits under the DTA also apply in terms of application of withholding tax on Italian source dividends that the foundation receives through an intermediary fund (Italian tax authority, answer to request for advance ruling no. 258 as of 19 April 2021).
CORRECTION OF ACCOUNTING ERRORS
The Italian tax authority has provided clarifications on the fiscal effects of the correction of accounting errors referring to the deduction of goodwill amortisation and on the effects on the base for notional interest deduction (NID) (Italian tax authority, answer to request for advance ruling no. 279 as of 21 April 2021).
REIMBURSEMENT OF EXPENSES INCURRED BY EMPLOYEES WORKING FROM HOME
The sums reimbursed to employees for expenses incurred for working from home (electricity for the use of the computer etc.) are not subject to taxation as long as they are determined on the basis of objective parameters aimed at assessing the expenses saved by the company. In this case, the sums reimbursed may be considered as referring to expenses incurred for consumption purposes in the exclusive interest of the employer (Italian tax authority, answer to request for advance ruling no. 314 as of 30 April 2021).
DEMERGER OF SIMPLE PARTNERSHIP
The demerger of a simple partnership (societá semplice) in favour of another simple partnership does not fall under the tax neutrality scheme provided for by section 173 of Italian Tax Code (TUIR) and does neither qualify as a taxable sale, since the above demerger does not fall within any of the scopes provided for by section 67 of Italian Tax Code (Italian tax authority, answer to request for advance ruling no. 309 as of 30 April 2021).
WITHHOLDING AGENT'S DUTIES NOT REFERRABLE TO A NON-RESIDENT COMPANY
A non-resident company without permanent establishment in Italy does not qualify as withholding agent and is not required to withhold taxes on income paid to its employees in Italy (Italian tax authority, answer to request for advance ruling no. 297 as of 27 April 2021).
Income paid to an employee residing abroad and teleworking from abroad is not taxable in Italy (Italian tax authority, answer to request for advance ruling no. 296 as of 27 April 2021).
GUARANTEE PROVIDED IN FAVOUR OF DIRECTOR
The guarantee provided by a company in favour of one of its directors for a bank loan requested by the director for personal reasons is considered as a taxable benefit in kind. For the determination of the employee's taxable amount, reference shall be made to the normal value pursuant to section 9 of Italian Tax Code (Italian tax authority, answer to request for advance ruling no. 294 as of 27 April 2021).