Italian Financial Transaction Tax Who Is Responsible for Accounting for the Tax?
Italian Financial Transaction Tax Who is responsible for accounting for the tax?
• • • 2 Stage 1 Stage concerned with the person responsible for paying and reporting the tax. the reporting and for paying responsible person the with concerned liable remains purchaser end note the that Please required. be may still reporting However exempt. or excluded (e.g. are funds) entities and pension market makers, (e.g. loans/repos) stock transactions note certain that Please to drop 0.1% 0.2% and will rates respectively. 2014,January 1 From facilities. the trading multilateral or markets financial regulated certain on is undertaken to 0.12% rate Tax is reduced Transaction The Financial rate Italian is of 0.22% tax. the The transaction the where Is the purchaser itself an intermediary intermediary an itself purchaser the Is the execution of a trade of in-scope of in-scope of atrade execution the Is an intermediary involved with with involved intermediary an Is in a “white list” country? list” a“white in See stage 2 2 stage See securities?
No Yes
for the Italian Financial Transaction Tax. This decision tree is tree Tax. Transaction Financial decision This Italian for the Yes No The purchaser accounts for the tax the for accounts purchaser The The tax is accounted for for accounted is tax The by the end purchaser end by the
collection and reporting. and collection for tax is responsible who client end the from order buy the received who intermediary is the it are involved intermediaries multiple Where 2013, 16th the on of month. each thereafter and on is due payment October 16 Financial Italian Transaction first The to time. time from updated may be US. This and India Australia, countries, EEA most are presently territories list” “White as intermediaries. treated are notaries and companies fiduciary companies, management portfolio companies, management asset circumstances certain However, in are intermediaries. companies investment and Banks €500m. It is also includes depositary receipts over in-scope securities. in-scope over receipts depositary includes is also It €500m. over amarket capitalisation with companies resident Italian by issued instruments) similar (and shares other includes securities In-scope © 2013 Deloitte LLP. All rights reserved. LLP. rights All © 2013 Deloitte Stage 2
Monte Titioli S.p.A is the Italian Central Security The intermediary accounts for the tax. Depositary and is part of London Stock Exchange Yes Is the intermediary resident in Italy? The tax is paid through form F24 or by appointing Group. Monte Titoli.
No
Does the intermediary have The PE accounts for the tax, regardless of whether or not a permanent establishment (PE) Yes it was involved with the trade. The tax is paid through in Italy? form F24 or by appointing Monte Titoli.
No Yes
Has the intermediary appointed a PE in a “white list” Is the intermediary located (i.e. has its No country, which has elected to pay and account for Monte Titoli accounts for the tax. legal seat) in a “white list” country? the tax?
Yes No Yes
Has the intermediary appointed as a fiscal representative Has the intermediary appointed Monte Titoli Does the intermediary have or one of the following entities: (i) financial intermediary for the payment of the tax. intend to appoint a fiscal (or fiduciary company) resident in Italy; or (ii) a PE in Italy No
representative in Italy? of such intermediary/fiduciary company?
No Yes Yes No
The intermediary accounts for the tax. The intermediary will be treated as the final The tax is paid through form F24 (or The appointed fiscal representative accounts for the tax. purchaser and liable party to the tax (even as wire transfer if it does not have an The tax is paid through form F24 or by appointing Monte agent) and should be charged by the selling Italian cash account) or by appointing Titoli. Monte Titoli. “white list” broker.
This information is intended to be indicative only and should not be used as a substitute for a reading of the relevant law and regulations.
© 2013 Deloitte LLP. All rights reserved. Italian Financial Transaction Tax Who is responsible for accounting for the tax? 3 Contacts
Martin Walker Mauro Lagnese Head of Securities Tax, Deloitte UK FS Tax Partner, Deloitte Italy +44 20 7303 7644 +39 0283324097 [email protected] [email protected]
Kamal Aggarwall Raffaele Ciriello Manager, Deloitte UK Senior Staff, Deloitte Italy +44 20 7007 5882 +39 0283324034 [email protected] [email protected]
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