ITALIAN TAXATION FOR COMPANIES RESIDING ABROAD

The Italian fiscal system provides a “relative legal presumption” of residency in the territory in order to counter phenomenons of international fiscal pianification, imputable to multinational groups.

In fact, according to the art. 73 comma 5-bis Tuir, a foreign / firm entity, which has a controlling participation in an Italian company, until proved otherwise wrong is considered fiscally resident (and subject to taxation) in Italy, if it is controlled, also indirectly, from entities therein resident or administrated by a board of directors composed for a majority of Italian residents.

Circular n. 1/2018 of the General Command of the Italian Fiscal Police underlined that the occurance of this case (implicates a direct taxation of the controlled entity and makes not applicable the CFC discipline in accordance with that would be taxed the Italian controlling entity.

Our staff remains available for any clarification.