Italy Amends Tax “White List”
In August 2016, the Italian Government published the amendments to the list of jurisdictions that allow an adequate exchange of information with Italy (“white list”). The white list was expanded by 51 new countries, including Hong Kong, and reserves the right to remove countries that are not compliant with the exchange of information.
The increase in the number of white listed countries implies favourable consequences from a tax perspective for investors residing in countries previously considered uncooperative and Italian resident taxpayers dealing with entities previously considered “black listed,”.
Investors in jurisdictions added to the white list will benefit from domestic tax exemptions for the following Italian-sourced income:
- interest on government bonds
- interest on corporate bonds and similar securities issued by banks and listed corporations
- interest on listed corporate bonds and similar securities issued by non-listed corporations
- interest on non-listed corporate bonds and similar securities issued by non-listed corporations to the extent the bondholders are ‘qualified’ institutional investors as defined by Italian regulatory law (mainly banks and other financial institutions)
- interest on notes issued by securitization vehicles established according to Law
- capital gains derived from the disposal of certain financial investments, such as shares of non-publicly traded Italian companies representing less than 20% of the voting rights or less than 25% of the capital.
The white list now includes the following jurisdictions: Albania, Alderney, Algeria, Anguilla, Argentina, Armenia, Aruba, Australia, Austria, Azerbaijan, Bangladesh, Belarus, Belgium, Belize, Bermuda, Bosnia and Herzegovina, Brazil, British Virgin Islands, Bulgaria, Cameroon, Canada, Cayman Islands, China, Colombia, Congo Republic, Cook Islands, Costa Rica, Croatia, Curacao, Cyprus, Czech Republic, Denmark, Ecuador, Egypt, Estonia, Ethiopia, Faroe Islands, Finland, France, Georgia, Germany, Ghana, Gibraltar, Greece, Greenland, Guernsey, Herm, Hong Kong, Hungary, Iceland, India, Indonesia, Ireland, Isle of Man, Israel, Ivory Coast, Japan, Jersey, Jordan, Kazakhstan, Kirghizstan, Kuwait, Latvia, Lebanon, Liechtenstein, Lithuania, Luxembourg, Macedonia, Malaysia, Malta, Mauritius, Mexico, Moldova, Montenegro, Montserrat, Morocco, Mozambique, Netherlands, New Zealand, Nigeria, Norway, Oman, Pakistan, Philippines, Poland, Portugal, Qatar, Romania, Russia, San Marino, Saudi Arabia, Senegal, Serbia, Seychelles, Singapore, Slovak Republic, Slovenia, South Africa, South Korea, Spain, Sri Lanka, St. Maarten, Sweden, Switzerland, Syria, Taiwan, Tajikistan, Tanzania, Thailand, Trinidad and Tobago, Tunisia, Turkey, Turkmenistan, Turks and Caicos Islands, Uganda, Ukraine, United Arab Emirates, United Kingdom, United States, Uzbekistan, Venezuela, Vietnam and Zambia.
For further information, please contact Alina at alinam@zetland.biz.
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