Controlled Foreign Companies Simplifications Tax shield
We inform you that the Minister of Economy, on 21 November 2001, signed the Regulation containing the implementing provisions of articles 96 bis paragraph 2ter and 127 bis of the TUIR, introduced by law 342/2000, on the subject of source dividends. non-EU and taxation of income from foreign investee companies (so-called CFC). On the same date, the Minister also issued two decrees with which he identified respectively, the countries with privileged taxation (black list) referred to in Article 127 bis of the TUIR and the States and territories not belonging to the EU, which they benefit from the regime referred to in Article 96 bis paragraph 2-ter of the Tuir (white list).
With these provisions, in particular, the legislative procedure envisaged by the aforementioned law 342/2000 was completed for the operation of the new regulations on CFCs, which will be effective from 1 January 2002.
On the other hand, the Implementing Regulation governing the system of deductibility of costs for transactions carried out with companies or entities (not controlled) located in "tax havens" referred to in Article 76, paragraph 7 bis, has not been issued, as this regime it will be reconfigured by the government in the coming months.
Furthermore, it is recalled that Presidential Decree no. 7 of 2001 December 435 on simplifications was published and finally that the circular of the Revenue Agency no. 99 of 4 December 2001, provided further clarifications to the regulation of the return of capital from abroad.
This circular will be structured in three parts:
- the first provides a summary of the legal provisions relating to CFCs, in the light of the aforementioned provisions
- the second relating to tax simplifications introduced by Presidential Decree of 7 December 2001, n.435
- the third provides further clarifications relating to the tax shield legislation, following the circular of the Revenue Agency no. 99 of 4 December 2001