Italy: Increase of standard withholding tax rate approved
The Italian Parliament has approved the Economic and Financial Plan 2014 (“Documento di Economia e Finanza 2014”).
As a consequence, on 24 April 2014, Decree 66/2014 was published in official Gazette N°95 and is currently available (in Italian only1).
This is further to our Taxflashes LT14028, dated 14 March 2014, and LT14040, dated 10 April 2014.
The Decree includes the increase, as of 1 July 2014, of the standard withholding tax rate on income from Italian securities from 20% to 26%.
Customers should note that the current reduced tax rate of 12.5% will continue to apply as follows:
- On income and gains from Italian government bonds, public entity issues and similar securities;
- On income and gains from bonds issued by governments of countries allowing for an exchange of information with the Italian Tax Authorities (the so-called “white-listed countries”);
- For certain supranational organisations.
The Decree also provides, among other things, that income and capital gains from bonds issued by foreign public entities of white-listed countries will be taxed at 12.5% instead of the current 20%.
In addition, the current domestic tax exemptions and lower rates provided under Double Taxation Treaties (DTTs) are expected to remain unchanged.
N.B.: Until the conversion of the Decree into law, which must be accomplished within 60 days from the date of its publication, the provisions of the Decree may still be changed.
Further information
We will continue to monitor the progress of the Law and will provide more information as it becomes available.
For further information, customers may contact the Clearstream Banking Tax Help Desk on:
| Luxembourg | Frankfurt | Singapore | |
| Email: | tax@clearstream.com | tax@clearstream.com | tax@clearstream.com |
| Telephone: | +352-243-32835 | +49-(0) 69-2 11-1 3821 | +65-6597-1665 |
| Fax: | +352-243-632835 | +49-(0) 69-2 11-61 3821 |
or Clearstream Banking Client Services or their Relationship Officer.
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1. In this Announcement, we reflect the market interpretation; when the English version of the final law is available, we will publish more concrete information regarding the impacts for our customers.
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