THE CHANGES TO THE CFC (CONTROLLED FOREIGN COMPANIES REGIME)

With the adoption of the Atad directive, the distinction between “Black List” countries and “White List” Countries is no longer valid for the approval of the discipline of controlled forregn companies (CFC).

The outline of the decree incorporating the new directive, presents the following changes:

-          Application of CFC (with consequent taxation for transarency) whenever there is effective taxation lower than a half of the Italian and over 1/3 of the revenues  originated from passive income (without distinuishing countries with privileged taxation or to ordinary);

-          Only one exemption provided: the performance  of an effective economic activity of the controlled entity (employee, equipment, assets and offices).

 However, the location of the affiliated company in a privileged  tax regime Country is still relevant for the purposes of full taxation of dividends and capital gains. Our staff is available for any clarification.