The "Participation Exemption"
The Legislative Decree 12 December 2003 n. 344 entitled "Reform of corporate income tax" (the Decree), issued in compliance with art. 4 of the delegated law no. 7 and published in the SO no. 2003 / L to the Official Gazette no. 80 of December 190, 291, introduced significant changes to the methods for determining the income of companies, starting from the tax period starting after December 16, 2003.
The Decree, as is well known, substantially modified the Consolidated Income Tax Act (TUIR), determining, among other things, a new formulation of article 87, which introduced the exemption regime from income from capital gains realized, in the case of the sale of equity investments with certain requirements, better known as “Participation Exemption” (hereinafter “PEX”).
Read more