Giovedì 27 Aprile 2017 - Aggiornato alle 8:51
AIRE Registration. A further step towards the strengthening of the fight against tax evasion
A package of new fiscal controls in sight for foreign assets and income. Italy’s Revenue Agency is speedily sharpening its efforts and tools aiming at curbing international tax evasion and the amounts of capital income held abroad but still not declared, as due, by Italian citizens. With the Revenue Decision issued today, in fact, the Agency gives a full implementation to the Law Decree 193/2016, particularly Article 7, paragraph 3, which defines methods and procedures to apply for the acquisition by the Revenue Agency of a huge set of new fiscal data related to the Italian citizens who have transferred their residence abroad. At the same time, the new fiscal measure provide the criteria to follow to pile up specific selective lists based on these data.
The half a year new data-timing – As regard the timing, within six months after the call of AIRE registration, the Agency will receive by the municipalities the personal data of each single applicant.
It’s important to take in mind, as cleared by the Revenue Decision, that also those taxpayers who have moved their residence abroad with effect from January 1, 2010, will be included in the selective lists arranged to conduct future tax checks on financial activities and undeclared foreign capital investments, following the criteria listed in the new measure.
Resident or non-resident, this is the real tax dilemma - These criteria are primarily based on signaling of elements indicating an effective presence in Italy of monitored citizens, such as, for example, the headings of users active contracts, the availability of vehicles, the ownership of a VAT number and the residence of other family members. It will also take into account the accession to the voluntary cooperation procedure (voluntary disclosure), whose terms of were reopened with the same regulatory intervention.
For an accurate and prompt data crossing coordinated by the Revenue Agency, will be crucial to receive and assemble the data on real estate and financial assets held abroad that come from foreign tax authorities under European Directives and Agreements of automatic exchange of information. In particular, Council Directive 2011/16 / EU (the so-called DAC1) provides for the exchange of information, among others, relating to foreign real estate properties held by residents.
A further step forward in the field was taken thanks to Council Directive 2014/107 / EU (so-called DAC2), which introduced the mandatory exchange of financial information on accounts held abroad. Is important to notice how the same type of information can be exchanged, at extra-EU level, within the fiscal framework of international agreements based on the Common Reporting Standards.
Here’s the number of a new World-fiscal commitment - All jurisdictions that have committed themselves to exchange information according to the global standard starting from 2017 (so-called early adopters) are 53 (including the EU states) and, to date, 47 other jurisdictions have committed to the exchange with effect from 2018.
The Us special tax clause - With regard to accounts held in the United States, the exchange of information takes place on the basis of the Fatca agreement.
Brand-new fiscal opportunities make never so easy to invest in Italy-1
An overview on the most important measures to attract capitals
Italy has made important strides on the road of the attractiveness of foreign investments, recently approving fiscal measures to stimulate economic growth and competitiveness. Companies and individuals, wishing to invest in Italy, are now eligible for several tax allowances, such as the allowance for corporate equity, the tax credit on Research & Development activities and the patent box regime, the super and extra amortization, the Vat grouping rules and the new residents regime for individuals. Furthermore, running from fiscal year 2017, they will benefit of the reduction of Italian corporate tax rate from 27.5% to 24%. Moreover, foreign investors can count on a direct dialogue with the Italian Revenue Agency thanks to several initiatives to ensure certainty and compliance, such as the advance tax ruling on new investments, the general taxpayer’s advance ruling, the advance tax agreements for enterprises and to the cooperative compliance program. In this way investors will know in advance the correct taxation model. Let’s go into the new regulation and its advantages.
Allowance for corporate equity - It is a tax incentive, commonly named ACE, aimed at promoting the recapitalization of undertakings and to mitigate the different tax treatment applied to companies funded with debt and others funded with equity. Investors can count on a notional deduction from corporate income taxable base; the deduction corresponds to the net increase in the “new equity” employed in the entity multiplied by a rate yearly determined annually, which is 4,75% for FY 2016, 2.3% for FY 2017 and 2.7% for FY 2018 and thereafter.
Tax credit on research & development activities – For enterprises investing at least 30,000 euro per year in Research and Development activities, Italian law provides for an R&D tax credit up to 50% of the increase of annual R&D expenses, which is neither included in the income tax base nor in the regional tax on productive activities base. The maximum annual credit for each beneficiary is 20 million euros and taxpayers have to sustain R&D qualifying costs between 2015 and 2020.
Patent Box regime - It is a tax bonus introduced in order to improve the development of intellectual property, granting tax benefits to resident and non-resident taxpayers carrying out investments in research and development of intangible assets, such as software protected by copyright, patents, trademarks business and technical-industrial know how, designs and models. The “Patent Box businesses” shall be entitled to exclude from their income up to 50% of income derived from direct use or licensing of qualified intangible assets.
Super-Amortization and Extra-Amortization – These measures aim at facilitating business investments by allowing an extra-amortization on the purchase of certain tangible assets, in order to stimulate the renewal of capital goods. Under super-amortization rule, the increased amortization charge is fixed at 40% and is applicable in relation to purchases realized from 15 October 2015 to 31 December 2017. Another additional 40% super–amortization is also introduced for certain intangible assets such as software, IT systems and platforms related to the Government plan for industrial growth named “Industry 4.0 Plan”. Instead, under extra-amortization rule, the amortization charges are increased up to 150% of their value for some listed “smart equipment” which is allowed to benefit from specific digital and technological transformation processes under the model promoted by the Italian Government plan Industry 4.0.
Vat grouping rules - Running from FY 2018, this measure will simplify the application of Vat rules for company groups and will reduce fiscal burdens, considering the group as a single Vat taxable person. The option is reserved to company closely bound by specific financial, economic and organizational links. As a consequence of the application of this regime, transactions carried out between the companies of the group will not be subject to Vat and transactions carried out between a group member and a third party will be treated as being made by the group as an entity.
New Residents regime - Enanching investments and attracting to Italy high-net-worth individuals is the aim of this new fiscal rule. Foreign nationals wishing to transfer their tax residence to Italy will be enabled to apply a substitute tax to their foreign income and gains, in lieu of the Italian income tax, amounting to 100,000 euro for each fiscal year. This favorable tax regime is available for who have been non-tax resident in Italy for at least 9 years out of the 10 years preceding their transfer to Italy. The incentive regime may be also extended to the family members of these individuals, applying a substitute tax of 25,000 euro per member.
1. To be continued