Clifford Chance

Italy: breakthrough tax and legal measures to foster credit to Italian businesses

19 June 2014

The Italian Government just presented a set of measures to boost access to financing for Italian businesses. The new measures will soon be published through a law decree "Decreto Competitività" and will then have to be converted into law by the Italian Parliament.

The Decree introduces the following key aspects:

1. wider exemptions from interest withholding taxes, including on cross-border loans; scope of the 0.25% substitute tax substantially widened (to include secondary trading);
2. Italian insurance companies allowed to extend financing to borrowers directly (primary market);
3. Italian securitisation vehicles also allowed to grant financings within the scope of the Italian securitisation law.

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