AT A GLANCE
ADVANCE TAX RULING ON NEW INVESTMENTS
Aim: provide an opinion to resident and non-resident investors concerning any kind of tax issues with respect to a specific investment plan (at least €30 million) and its implementation.
In the scope of business activities
Outside any business activities
Benefits: the reply is binding for the Italian Revenue Agency (no space for amendment) with respect to the specific business plan as described by the investors and it is valid in so far as the legal and factual circumstances remain unchanged. Eventual assessment activities directed to the investors must be coordinated by the same Department providing the reply to the query.
The advance tax ruling on new investments enables resident and non-resident investors, going to realize long-lasting and relevant investments within the Italian territory, to obtain the preventive opinion from the Italian Revenue Agency about the tax treatment applicable to business plans and related extraordinary operations. The main aim is to give more certainty to the economic operators in the determination of fiscal burdens connected to relevant investments in Italy.
The advance tax ruling on new investments can be submitted by persons carrying out business activities and promoting the realization of a relevant investment in the exercise of these activities.
Persons eligible to file the ruling are, for example:
The investment project must necessarily present the following characteristics:
Moreover, the definition of investment includes either projects involving the realization of a new economic initiative, having a lasting nature (such as those involving the introduction of new liquidity), and all operations involving the re-use of already available undertaking's financial resources, aimed at restructuring, optimizing and streamlining an existing business. The investment must have as its target a company located in the State and may also entail share deal transactions.
The reply is binding for the Italian Revenue Agency with respect to the specific business plan as described by the investors and it is valid in so far as the legal and factual circumstances remain unchanged. The Italian Revenue Agency cannot amend the reply to the application for advance ruling on the new investments.
Regarding issues covered by the reply, any administrative act (even if containing impositions or penalties) emitted by Tax Authorities in violation of the same reply provided by the Italian Revenue Agency (including the interpretation on which the tacit assent was formed) shall be null and void. Moreover, eventual assessment activities directed to the investors must be coordinated by the same Department providing the reply to the query.
How to present a query
Resident and non-resident investors can present a query to Italian Revenue Agency ̶ Central Directorate for Tax Regulations - Office for Rulings on New Investments – Via Cristoforo Colombo, 426 c/d 00145 Roma – by:
In case a non-resident applicant has not appointed a domiciliary in Italy, the query could be sent by email to firstname.lastname@example.org.
Investors who have had access to the regime of cooperative compliance have to submit the query to Italian Revenue Agency ̶ Central Directorate for Tax Assessment – Cooperative Compliance Office – Via Cristoforo Colombo, 426 c/d 00145 Roma – by:
The Italian Revenue Agency has to provide a reply (express or inferred under the tacit consent) to the investors' queries within 120 days.