Advance tax ruling on new investments

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 20 million euros) and its implementation.

Eligible investors
In the scope of business activities
• Companies
• Individual entrepreneurs
• Other bodies carrying out business activities

Outside any business activities
• Individuals
• Non-commercial bodies (Collective Investment Undertakings - CIUs) making investment in an Italian target company


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.

What is it

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.

Who can submit a query

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:

• corporations and other resident entities, even if controlled by non-resident entities
• non-resident companies and institutions of all kinds, regardless of whether they have a permanent establishment in the State or not
• individuals entrepreneurs and non-commercial bodies to the limited extent of any commercial activities carried out
• individuals and non-commercial bodies intending to promote an investment on a "target" Italian company (by means of either asset deal or share deal operations), although they act outside any business activity at the moment of query
•  banking foundations, as well as collective investment undertakings (CIUs). CIUs are allowed to file the request for ruling even if they are not resident in Italy, provided that they are subject to oversight in the Country of residence
• Company groups or groupings of enterprises.

Which investments are involved

The investment project must necessarily present the following characteristics:

• it must be realized within the Italian State
• it must have a significant and long-lasting impact on employment levels
• it must be worth at least 20 million euros (15 million euros for queries submitted after 1 January 2023, even if relating to investments prior to that date)

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.

Benefits

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  ̶  Taxpayers'  Division – Direzione Centrale Grandi contribuenti e internazionale – Ufficio Interpelli nuovi investimenti - via Giorgione, 106 – 00147 Roma – by:

• hand delivery
• registered mail with return receipt
• certified electronic mail interpello@pec.agenziaentrate.it

In case a non-resident applicant has not appointed a domiciliary in Italy, the query could be sent by email to div.contr.interpello@agenziaentrate.it.

Investors who have had access to the regime of cooperative compliance have to submit the query to Divisione Contribuenti - Direzione Centrale Grandi Contribuenti e internazionale - Ufficio Adempimento Collaborativo – via Giorgione, 106 – 00147 Roma – by:

• hand delivery
• registered mail with return receipt
• certified electronic mail dc.acc.cooperative@pec.agenziaentrate.it

The Italian Revenue Agency has to provide a reply (express or inferred under the tacit consent) to the investors' queries within 120 days.