Federico Vincenti and Alessandro Valente discuss the importance of DEMPE analysis and the subsequent challenges in national Courts.
The article focuses also on the difficulty of both Italian Courts and Tax Authorities in implementing the OECD TP principles with reference to the remuneration of intangibles through the application of DEMPE analysis.
Pubblicato su: ITR (International Tax Review) – Febraury 21st, 2023
Federico Vincenti and Alessandro Valente of Valente Associati GEB Partners/Crowe Valente explain how Circular Letter No. 16/E will affect transfer pricing (TP) calculation in Italy.
On May 24 2022, the Italian Revenue Agency published Circular Letter No. 16/E (referred to hereafter as the Circular), clarifying the correct definition of the arm’s-length range for TP purposes.
The arm’s-length range concept was covered in Article 6 of the Decree of the Italian Ministry of Economy and Finance, dated May 14 2018 (hereafter referred to as the Decree).
Pubblicato su: ITR (International Tax Review) - 20 luglio 2022
L’OCSE ha pubblicato la nuova versione delle “Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations”. Le nuove linee guida hanno recepito le indicazioni relative all’applicazione del Transactional Profit Split Method, al trattamento dei cd. Hard-to-Value Intangibles nonché la disciplina sui prezzi di trasferimento inerenti alle transazioni finanziarie. Con riguardo alle transazioni finanziarie, un elemento da valutare attiene al timing: in dettaglio, al fine di valutare se una transazione controllata possa o meno essere conforme ai principi di libera concorrenza occorrerà tenere in considerazione i principi, delineati dalle Linee Guida in materia di prezzi di trasferimento, vigenti al momento in cui tale transazione è stata posta in essere.
Pubblicato su: Ipsoa - 1 febbraio 2022
The Italian Revenue Agency published a circular aimed at providing clarifications on the subject of transfer pricing (TP) documentation on November 26 2021. The circular took into account the comments made by professionals during the public consultation that ended on October 12 2021.
The purpose of the circular is to provide further operational instructions on the new features introduced by the regulation published on November 23 2020, regarding the suitability of the declaration which allows companies to make use of the penalty protection.
Pubblicato su: ITR (International Tax Review) - 9 dicembre 2021
On September 20 2021, the Italian Revenue Agency (IRA) published the draft circular letter (the Circular) aimed at providing a vast range of clarifications on the transfer pricing (TP) documentation’s legal framework.
The Circular has been drafted to provide further operational instructions on the changes introduced by the Administrative Provision No. 360494 of November 23 2020 (containing the new rules on TP documentation).
The Circular was released for public consultation for comments and proposals. The consultation closed on October 12 2021.
One of the most significant changes concerns the obligation of digital signature with the time stamp of the master file and local file. Indeed, before the date of submission of the tax return for the relevant tax year (i.e. November 30 2021), the two documents must be digitally signed and temporally marked by the legal representative of the taxpayer or his delegate.
Pubblicato su: ITR (International Tax Review) - 21 ottobre 2021
L’OCSE ha pubblicato l’aggiornamento dei “Transfer Pricing Country Profiles”, che riflettono la legislazione nazionale in vigore e la prassi di 20 Paesi in materia di transfer pricing. Oltre all’inserimento di alcune nuove giurisdizioni - ad esempio Angola, Romania e Tunisia - l’OCSE ha pubblicato l’aggiornamento dei Country Profiles di alcuni Stati (tra cui Australia, Giappone, Paesi Bassi e Svizzera) includendo nuove sezioni in merito alle transazioni finanziarie e all’applicazione dell’Authorised OECD Approach per l’attribuzione dei profitti alle stabili organizzazioni. Un ulteriore aggiornamento dei TP Country profiles verrà condotto durante la seconda metà del 2021 e la prima metà del 2022.
Pubblicato su: Ipsoa - 7 settembre 2021
In early 2021, two decisions of the Italian Supreme Court dealt with the issue of certain inter-company transactions that were not performed according to the arm’s-length principle due to the existence of an overall advantage for the multinational group.
Pubblicato su: ITR (International Tax Review) - 28 aprile 2021
The mutual agreement procedure (MAP) is an instrument for the resolution of international tax disputes whenever a person considers that the actions of one or both of the contracting states’ tax administrations result or will result in taxation not in accordance with the provisions of a tax convention or of a tax treaty.
To this end, the MAP allows competent authorities designated from the governments of the contracting states to interact with the intent to resolve the international tax dispute. On October 10 2017, the Council of the European Union issued Directive (EU) 2017/1852 with the purpose of increasing tax certainty in the single market. With Legislative Decree No. 49/2020 published on June 10 2020, the Italian legislator approved the decree implementing EU Directive 2017/1852.
Pubblicato su: ITR Transfer Pricing Special Focus 2021 - 24 marzo 2021
Advance tax agreements are binding agreements between taxpayers and the Italian Revenue Agency aimed at enhancing tax compliance and promoting the business of multinational enterprises by providing certainty on international tax issues in advance.
The arrangements are based on mutual cooperation and transparency between taxpayers and the Italian Revenue Agency. An advance tax agreement may be requested by resident companies conducting international activities, meeting a set of requirements.
The 2021 Italian Budget Law modified the advance pricing agreement (APA) procedure, including new aspects about the ‘roll-back’ and providing the payment of a fee in order to start these procedures.
Pubblicato su: ITR Italy Special Focus 2021 - 16 marzo 2021
Favorire le aggregazioni societarie (fusioni, scissioni e conferimenti di azienda) riconoscendo un bonus che permetta al soggetto risultante dall’operazione straordinaria di trasformare in credito d’imposta una quota di attività; estendere l’arco temporale del credito d’imposta per il rafforzamento patrimoniale delle imprese; incentivare la rivalutazione degli intangibles e il riallineamento dell’avviamento. Sono alcune delle proposte emerse nel corso del XXII Forum Bilancio, organizzato da Wolters Kluwer in collaborazione con ANDAF, per sostenere le imprese nel periodo post Covid.
Pubblicato su: Ipsoa - 05 marzo 2021
The 2021 Budget Law introduced significant innovations regarding advance rulings (including advance pricing agreements) provided for by Italian legislation (Article 31-ter of D.P.R. No.600/1973).
Through the instrument of advance rulings, companies with international business activities can enter into agreements with the Italian tax authorities, in relation to the following instances:
a) Prior definition of the transfer pricing methods applicable in intercompany transactions;
b) Exit or entry values in the event of transfer of residence;
c) Attribution of profits and losses to the permanent establishment in another country of a company resident in Italy or to the permanent establishment in Italy of a non-resident entity;
d) Prior assessment of the existence or otherwise of the requirements for a permanent establishment situated in Italy; and
e) Application to a concrete case of rules, also of conventional origin, concerning the payment or receipt of dividends, interest and royalties and other income components to or from non-resident parties.
Pubblicato su: ITR (International Tax Review) - 3 febbraio 2021
Nel documento “Guidance on the transfer pricing implications of the Covid-19 pandemic”, l’OCSE affronta le implicazioni della diffusione del Covid-19 sulle transazioni infragruppo. La pandemia ha imposto alle imprese multinazionali di adeguare i modelli di business al mutato contesto economico e sociale, di valutarne l’impatto sulla catena del valore e sulle politiche di transfer pricing e di attuare nuove metodologie/analisi per supportare la conformità delle politiche di transfer pricing al principio di libera concorrenza.
Nella Guidance dell’OCSE, che fornisce indicazioni pratiche sull’applicazione dell’arm’s length principle nelle transazioni infragruppo, vengono affrontate quattro tematiche: analisi di comparabilità, perdite e allocazione dei costi sostenuti a seguito della pandemia, programmi di assistenza del governo e Advance Pricing Agreements.
Pubblicato su: Ipsoa - 19 gennaio 2021
On November 23 2020, the Italian Revenue Agency published a provision by which it amended the Italian regulation on transfer pricing documentation, making it more compliant with the OECD Transfer Pricing Guidelines.
The new measures replace those of the provision of September 29 2010 and are applicable from the 2020 tax period. The preparation of transfer pricing documentation remains optional for Italian companies. In the case of the predisposition of suitable documentation, companies can benefit from the so-called penalty protection in case of transfer pricing adjustments by the Italian tax administration.
Pubblicato su: ITR International Tax Review - 2 dicembre 2020
In attuazione di quanto previsto dal D.M. 14 maggio 2018, l’Agenzia delle Entrate ha modificato la disciplina italiana in tema di documentazione sul transfer pricing, con effetto dal periodo d’imposta 2020. In particolare, l’Agenzia ha indicato nel Masterfile e nella Documentazione Nazionale i documenti che consentono di considerare idonea la documentazione sui prezzi di trasferimento e ne ha illustrato in dettaglio la struttura, cui devono attenersi i contribuenti nell’attività di predisposizione della documentazione sui prezzi di trasferimento, al fine di poter beneficiare del regime premiale della penalty protection. Un’importante novità del provvedimento riguarda infine la documentazione relativa ai servizi a basso valore aggiunto.
Pubblicato su: Ipsoa - 24 novembre 2020
With Legislative Decree No. 49/2020 published on June 10 2020, the Italian legislator approved the decree implementing EU Directive 2017/1852 on the resolution of disputes in EU tax matters.
By means of this legislative decree, the rules relating to mutual agreement procedures have been transposed into Italian law related to:
The international conventions to avoid double taxation stipulated with EU member states; and
The convention 90/436/EEC of July 23 1990 on the elimination of double taxation in connection with transfer pricing.
Pubblicato su: ITR - 28 agosto 2020
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