Italian white list amended
On 22 August 2016 the Ministerial Decree of 9 August 2016 has been published in Official Gazette. The
Decree amends the list of jurisdictions that allow an adequate exchange of information with Italy (white list).
Interest paid to non-residents on bonds issued by the State, banks or quoted companies are exempt if the recipient is a resident of a country with which Italy has an adequate exchange of information system and which is included in the white list. Therefore, the mentioned update of the list will have an impact on the financial investments belonging to the residents of these countries. The update will have effect also on investment funds, indeed, according to article 26(5-bis) of Presidential Decree n° 600/1973, interest from medium and long-term credit operations carried out by qualifying undertakings for collective investment (OICR) established in a country included in the Italian white list are
not subject to withholding tax. This exemption should help Italian companies when they need to ask for a medium and long-term loan to the financial institutions resident in these foreign countries. Moreover, pursuant articles 26- bis and 26-quinques of Presidential Decree n° 600/1973, foreign investors of such countries are not
subject to withholding tax on interest related to participations in the Italian funds (OICR) and repurchase transactions of shares. Among the “new countries” now included in the Italian white list, the most relevant are:
Russia; Hong Kong; Switzerland; Liechtenstein; Virgin Islands. We wish to highlight that, in any case, Italy holds the right to verify the correctness of the procedure connected to the exchange of information. In case of multiple rejection to provide information by these countries, Italy can disregard the treaties.