CONVENIENCE OF THE RELEASE OF THE CAPITAL GAIN DERIVING FROM QUALIFIED PARTECIPATIONS

The Italian Budget Law 2018, changing the fiscal discipline on financial income received by natural persons who do not carry on business activities, has equated the taxation of capital gains deriving from the sale of qualified shareholdings to the non-qualified, establishing the application of a substitute tax equal to the 26%.
This Law has also intervened on the administered regime, making it usable also for qualified share holdings (after exercising the option), and on the managed savings, including in the option of capital gains deriving from the sale of qualified shareholdings the elimination of the withholding tax on profits coming from investments in non-resident companies, as well as the consequences envisaged in the hypothesis of exceeding the "qualified" limit.

All these changes will undoubtedly have an impact on the reopening of the terms (probably in January 2019) for the recalculation of the value of land and investments in unlisted companies owned by a natural person who does not carry on business activities. Consequently, the taxpayer who intends to sell his qualifying participations may have a significant expediency to free the value of the shareholding by paying a substitute tax of 8%, due to the different tax regime of capital gains and must therefore monitor with attention the reopening of the terms for the re-evaluation.
The provisions concerning the new taxation of qualifying holdings will take effect from 1 January 2019.

Our staff is available for any clarifications.