"CIRC. 43/2016-transactions with entities established in countries not covered by the "White list"

Posted by on Jun 21, 2016

Near the end of the period for the submission of Declaration Only SC income tax return for the year to December 31, 2015, we would like to remember the rules of deductibility for goods or services received by country not included in the "White list".

With art. 5 co. 1 of Decree No. 14.9.2015 n. 147 of international tax reform, the legislature significantly altered the discipline of costs arising from transactions with entities established or located in privileged taxation States or territories (art. 110 co. 10, 11, 12 and 12 bis of the tax code). Due to the above changes:

  • the costs do not exceed the normal value are deductible tout court (no, that is, the need to demonstrate the actual economic interest of the operation);
  • costs that exceed normal value are deductible, per over, against the demonstration of the actual economic interest (it is, however, suppressed the former Act because extenuating circumstance represented by the demonstration of effective activity of the foreign counterparts);
  • remains the obligation to separate indication of costs in the tax return, whether or not they exceed normal value.

These changes take effect from the fiscal year in progress at the 7.10.2015 (date of entry into force of Decree No. 147/2015) and, then, by 2015, if the Italian company has the tax year coincides with the calendar year.

In addition, with art. 1 co. 678 law 190/2014 has been established that the identification of States or territories to privileged taxation for the purposes of art. 110 co. 10 ss. of the tax code is made taking as reference the only property of the absence of tools for the exchange of information for tax purposes.

Compared to the previous black list, were removed the following States and territories: Alderney, Anguilla, Antilles, Aruba, Belize, Bermuda, Costa Rica, United Arab Emirates, Filip-pine, Gibraltar, Guernsey, Herm, Isle of Man, the Cayman Islands, Turks and Caicos Islands, British Virgin Islands, Jersey, Montserrat, Mauritius, Malaysia, Singapore

Expenses and other negative components of income incurred towards companies established in one of the countries listed above must be separately stated in the single template which increase under item 52 RF29 and decrease the rigoRF.

The need for such a designation is confirmed even after changes made by the Decree.

In particular, as provided for in paragraph 11 of article. 110, the separate designation covers both the portion of cost "automatically" deductible, as it does not exceed the open market value, both the excess whose deductibility is subject to proof of circumstance extenuating circumstance.

The study will send tax returns and assumes that all purchases of goods and services were made to normal value for cost.

If not, please indicate the share of cost, to be highlighted in a box of rigo F53, whose deductibility and referred to the ability of the company to demonstrate the real economic interest (exemption 2)

Finally, the study remains at your disposal for any clarification with regard to the behaviour of your company for the annuities payable by fiscally still open.

 Available for any clarification on this occasion best regards.