Italian Real Estate Municipal Tax (IMU) Declaration form released

Transcription

1 Italian Tax News Crowe Horwath Italy Cross-Border Tax Department Rome, November 19, 2012 Italian Real Estate Municipal Tax (IMU) Declaration form released Individuals, real estate funds, and no-profit or corporate entities, either resident of Italy or not, owning real estate properties located in Italy may file their IMU tax Declaration by November 30, 2012 to inform the Revenue on any change occurred as of IMU enactment ie, January 1, 2012 up to September 1, After such deadline, the ordinary 90-day term will apply. In fact, the Declaration form applicable to the newly introduced Real Estate Municipal Tax ( IMU ) was approved together with its explanatory notes by the Italian Ministry of Finance on October 30, Relevant Ministerial Decree has been published on Official Gazette No. 258 of November 5, Background and IMU overview Effective as of January 1, 2012 new IMU tax replaced former ICI real estate tax, providing for a significant increase of both the applicable tax basis and rates. In addition, former exemptions and beneficial regimes were restricted. IMU tax applies to buildings, agricultural lands and building lands located in the territory of the Republic of Italy. Tax basis is determined as indicated in the following table. Avvocati: Francesco Accomando, Elena Aliani, Fabio Ambrosiani, Ettore Bonaccorsi, Fabrizio Filì, Patrizia Gozzoli, Francesca Gravili, Thomas Heller, Giusi Lamicela, Paolo Lisi, Giuseppe Francesco Lovetere, Silvia Lucantoni, Carlo Alberto Marchi, Alessandro Mulinacci, Prof. Angelo Pandolfo, Gaetano Pizzitola, Giuseppe Rigano, Flavia Scarpellini, Marialucrezia Turco; Consulenti del Lavoro: Umberto Signorini; Dottori Commercialisti: Emanuele Borgonovo, Flavio Brenna, Alessandra Cislaghi, Gennaro Di Noia, Daniele Di Paolo, Carlo Dragani, Stefania Fregonese, Barbara Gado, Loredana Genovese, Michele Ghiringhelli, Stefano Luvisutti, Roberto Munno, Fausto Piccinini, Francescomaria Serao, Cristina Seregni, Antonio Sgroi; Ragionieri: Luciana Barbara Dolci, Gian Paolo Giannini, John A. Stewart; Of Counsel: Prof. Ben J.M. Terra, Prof. Tiziano Treu, Prof. Armando Tursi SEDE LEGALE: VIA DELLA MOSCOVA, MILANO - CODICE FISCALE E PARTITA I.V.A UFFICI: MILANO ROMA TORINO VENEZIA

2 Type of real estate property Criterion Buildings registered with the cadastral system Enterprise buildings (*) not registered with the cadastral system, or registered without the attribution of any value Land for construction Agricultural land Cadastral income of the relevant real estate as resulting as at January 1 of the relevant year revaluated by 5%, and multiplied by: 160 for residential buildings, warehouses / storehouses, parking places (no profit), and sheds 140 for colleges, barracks, academies, schools, hospitals (no profit), prisons, public offices, museums, private chapels, workshops, sports halls (no profit), bathing resorts (no profit) 80 for office buildings, and premises of banking and insurance companies 60 for Enterprise buildings: factories, hotels, theaters, cinemas, concert halls, hospitals, sports halls, buildings expressly projected for industrial or commercial purposes, floating buildings, private bridges, and productive buildings connected to agricultural activities this category refers only to activities carried on for profit, the rate is supposed to be increased to 65 as of January 1, for shops and stores Purchase cost, increased by relevant ancillary costs, to be discounted through the applicable discounting rates which are provided for by a Ministerial Decree every year (*) Note: they mainly consist of factories, hotels, theaters, cinemas, concert halls, hospitals, sports halls, buildings expressly projected for industrial or commercial purposes, floating buildings, private bridges, and productive buildings connected to agricultural activities Market value, to be determined by considering the area where the land is located, its amount of construction rights, allowed utilizations, costs for the preparatory works (if any), and average market prices registered on sales of lands provided with similar features Cadastral income (only the Landlord apportionment) as resulting as at January 1 of the relevant year revaluated by 25%, and multiplied by 135, or 110 under certain circumstances in case the land is owned by a farmer - 2 -

3 Ordinary tax rate is equal to 0.76%. Every Municipality may increase or decrease such tax rate up to 0.3% in respect of real estate located in its territory. A reduced tax rate of 0.4% is provided for First House (ie, one residential building owned and inhabited by a resident individual). The latter rate may by increased or decreased up to a 0.2% rate by the relevant Municipality. Further reductions may be introduced by every Municipality in respect of real estate assets owned by corporate entities and instrumental buildings owned by entrepreneurs or professionals, as well as leased ones. Two general reliefs are granted in the form of a 50% reduction of the applicable tax base in respect of buildings that are declared: not suitable to be used or not suitable to be inhabited, provided that they are effectively not utilized of Historical and Artistic interest. Exemptions from IMU are provided for: Stations for air, sea and ground transport services, public toll-bridges, buildings for public specific needs, close fence for public needs, fortresses, lighthouses, traffic lights, clock-towers, public churches, cemeteries, other buildings with specific utilization Buildings for cultural purposes Buildings exclusively devoted to place of worship Buildings owned by foreign Countries and international organizations formerly benefiting of exemption from local tax on real estate income under international agreements executed by the Republic of Italy Lands located on hills or mountains Agricultural buildings which are instrumental, and are located on hills or mountains Real estate properties exclusively utilized by no-profit entities for aid, welfare, health, teaching, accommodation, cultural, recreational, and sporting purposes. As anticipated, Municipalities are playing an important role in respect of IMU, in particular, they may adopt a regulation stating on the following aspects: General tax rates reduction or increase between specific thresholds Specific tax rate reductions for real estate assets owned by corporate entities, and instrumental buildings owned by entrepreneurs or professionals, as well as leased ones Additional ways to file the Declaration. Payments are due in two installments, on June 16 and December 16 every year. Triggering events for the Declaration Taxpayer are requested to file IMU Declaration in case a change in the rights on a real estate, as well as on its relevant features, has occurred by. In this respect Revenue clarified that: - 3 -

4 Former ICI declarations filed in the preceding years remain valid and effective also in respect of newly introduced IMU tax, without the need of any additional filing No declaration is to be filed in case of changes that might be otherwise known to the Revenue. In the light of the above, the Declaration is to be filed only in case the real estate may benefit from certain tax reduction, or the Municipality is not provided with the information to verify the correct payment of the tax. In particular, the Declaration is to be filed in the following cases: Buildings declared not suitable to be used or not suitable to be inhabited for the purpose of the 50% reduction, in case such a condition has ceased Buildings declared of Historical and Artistic interest for the purpose of the 50% reduction Real estate assets owned by corporate entities, and instrumental buildings owned by entrepreneurs or professionals, as well as leased ones, provided that the relevant Municipality resolved upon a reduced IMU tax rate in this respect Buildings raised by a construction company for the purpose of selling it, provided that the relevant Municipality resolved upon a reduced IMU tax rate in this respect Agricultural lands owned by farmers Real estate assigned under a financial leasing contract (ie, contratto di leasing ) Public properties assigned through administrative licenses Building lands whose rights have been set-up, modified or transferred Agricultural lands converted into building lands Building lands resulting from a building demolition Real estate assigned to participants who joined a construction cooperative Real estate leased by public entities entrusted with enforcing public housing programs Real estate owned by no-profit entities and utilized for certain no-profit activities Real estate not suitable to be used or not suitable to be inhabited, provided that they are recovered to be utilized for certain aid activities Real estate becoming eligible for IMU exemption, or loosing the relevant requirements Ancillary costs accrued in respect of Enterprise buildings not registered with the cadastral system, or registered without the attribution of any value A right on the real estate other than the property has ceased, provided that the cadastral office has not been notified Common parts of a building are autonomously registered for cadastral purposes, and a condominium is set-up Time-sharing properties A merger, or a de-merger transaction has been executed by a corporate entity owning a real estate A right on a real estate has accrued, or ceased, as an effect of a law provision (eg, parents right of use legal usufruct over children s properties - 4 -

5 In addition, taxpayer are always requested to file the Declaration in case they omitted to file any mandatory update to the cadastral database in connection with a change in the property or the features of the real estate. The Declaration Form The Declaration form is substantially similar to the former ICI one, and is consisting of two counterparts one for the taxpayer, and one for the Municipality in lieu of the previous three. In particular, the counterpart for the Data processing center has been repealed. Filing of the Declaration The Declaration may be filed in the following ways: Physical delivery: to the Municipality where the relevant real estate is located, in this case the Municipality is requested to release a delivery receipt Mail delivery: enclosed with an envelope labeled IMU Declaration 2 0 to be sent to the Municipality through registered mail without delivery receipt Internet delivery (ie, trasmissione telematica ): through an account officially registered with the relevant Italian authorized certification authorities (ie, PEC system Posta Elettronica Certificata ) Any other procedure expressly provided for by the relevant Municipality where the real estate is located. The relevant deadline The Declaration is to be filed within 90 days as of the acquisition of the rights over the real estate, or the relevant change on its features. However, based on the applicable temporary provisions, up to November 30, 2012 taxpayers may file a Declaration in respect of any change occurred as of IMU enactment (ie, January 1, 2012). In case of Mail delivery, the expedition date is considered as the date of filing. Penalties related to the Declaration form Omitted Declaration will result in a penalty ranging from 100% to 200% of the IMU tax due, with a minimum amount of Euro 51. Unfaithful Declaration will result in a penalty ranging from 50% to 100% of the higher IMU tax due. Both aforementioned penalties are reduced to 1/3 in case the taxpayer effectively pays the IMU tax requested by the Municipality through the assessment notice, together with the - 5 -

6 relevant interest and (reduced) penalty, within the deadline provided for the challenge to the Tax Court (ie, usually, 60 days). * * * Crowe Horwath Italy, Rome Office Cross-Border Tax Department Gaetano Pizzitola gaetano.pizzitola@crowehorwath.it Giovanni Ricco giovanni.ricco@crowehorwath.it - 6 -