Italian Companies Given Paths To Avoid Double Taxation
Profound changes are afoot generally, both politically and technologically. However, it’s good to know that beneath the quaking and shaking, it’s business as usual. And there’s nothing like a good transfer pricing development to distract you from the turbulence and turmoil generated at government level in various places.
In Italy, for example, we can forget for a moment the uncertainty caused by the recent election of the most unlikeliest of coalition arrangements and instead get our teeth into “Provvedimento 108954/2018,” setting out how Italian companies can request a “downward adjustment” to their taxable income in Italy following a transfer pricing adjustment in another territory, to avoid double taxation. If that doesn’t take your fancy, then there’s always the Ministry of Finance’s consultation on whether to support the EU’s digital tax plans, and in particular, its proposal for an “interim tax” on otherwise untaxed turnover earned by certain digital economy firms. Although, this could be a little bit racy, given the controversy the EU proposals have caused worldwide.
There’s much doubt about whether the new Italian administration will be able to deliver on its radical promises, including in the area of taxation, or, indeed, whether it will survive long enough to even attempt to legislate for them. But at least we now know government and tax administration continues to function at a reassuringly mundane level, and that the foundations look firm even if the new house topples down.
For more information on this, and other topical international tax matters, please visit: https://www.cchgroup.com/roles/corporations/international-solutions/research/global-tax-weekly-a-closer-look