Clifford Chance
Interest withholding tax exemption extended to a wider array of fund types: a missed opportunity?
27 January 2015
The Italian Government has published new legislation on 24 January 2015 to widen further the scope of the exemption from withholding tax on interest payments by Italian companies to non-Italian lenders, which was first introduced last summer.
Under current legislation, in terms of non-banks, only collective investment undertakings that are not leveraged and are established in a member state of the EU or EEA allowing for an adequate exchange of information would qualify for exemption.
Under the new legislation, the exemption has been extended to all non Italian institutional investors, whether or not subject to taxation (such as tax transparent or exempt funds), established in a State or territory allowing for an adequate exchange of information, provided that they (or, reasonably, their management company) are subject to "forms of regulatory supervision" in their jurisdiction of establishment.
