Italy Tax Guide 2012

Italy Tax Guide 2012

foreword A country s tax regime is always a key factor for any business considering moving into new markets. What is the corporate tax rate? Are there any incentives for overseas businesses? Are there double tax treaties in place? How will foreign source income be taxed? Since 1994, the PKF network of independent member firms, administered by PKF International Limited, has produced the PKF Worldwide Tax Guide (WWTG) to provide international businesses with the answers to these key tax questions. This handy reference guide provides clients and professional practitioners with comprehensive tax and business information for 100 countries throughout the world. As you will appreciate, the production of the WWTG is a huge team effort and I would like to thank all tax experts within PFK member firms who gave up their time to contribute the vital information on their country s taxes that forms the heart of this publication. I would also like thank Richard Jones, PKF (UK) LLP, Kevin Reilly, PKF Witt Mares, and Kaarji Vaughan, PKF Melbourne for co-ordinating and checking the entries from countries within their regions. The WWTG continues to expand each year reflecting both the growth of the PKF network and the strength of the tax capability offered by member firms throughout the world. I hope that the combination of the WWTG and assistance from your local PKF member firm will provide you with the advice you need to make the right decisions for your international business. Jon Hills PKF (UK) LLP Chairman, PKF International Tax Committee jon.hills@uk.pkf.com I

important disclaimer This publication should not be regarded as offering a complete explanation of the taxation matters that are contained within this publication. This publication has been sold or distributed on the express terms and understanding that the publishers and the authors are not responsible for the results of any actions which are undertaken on the basis of the information which is contained within this publication, nor for any error in, or omission from, this publication. The publishers and the authors expressly disclaim all and any liability and responsibility to any person, entity or corporation who acts or fails to act as a consequence of any reliance upon the whole or any part of the contents of this publication. Accordingly no person, entity or corporation should act or rely upon any matter or information as contained or implied within this publication without first obtaining advice from an appropriately qualified professional person or firm of advisors, and ensuring that such advice specifically relates to their particular circumstances. PKF International is a network of legally independent member firms administered by PKF International Limited (PKFI). Neither PKFI nor the member firms of the network generally accept any responsibility or liability for the actions or inactions on the part of any individual member firm or firms. II

preface The (WWTG) is an annual publication that provides an overview of the taxation and business regulation regimes of 100 of the world s most significant trading countries. In compiling this publication, member firms of the PKF network have based their summaries on information current as of 30 September 2011, while also noting imminent changes where necessary. On a country-by-country basis, each summary addresses the major taxes applicable to business; how taxable income is determined; sundry other related taxation and business issues; and the country s personal tax regime. The final section of each country summary sets out the Double Tax Treaty and Non-Treaty rates of tax withholding relating to the payment of dividends, interest, royalties and other related payments. While the WWTG should not to be regarded as offering a complete explanation of the taxation issues in each country, we hope readers will use the publication as their first point of reference and then use the services of their local PKF member firm to provide specific information and advice. In addition to the printed version of the WWTG, individual country taxation guides are available in PDF format which can be downloaded from the PKF website at www.pkf.com PKF INTERNATIONAL LIMITED APRIL 2012 PKF INTERNATIONAL LIMITED ALL RIGHTS RESERVED USE APPROVED WITH ATTRIBUTION III

about pkf international limited PKF International Limited (PKFI) administers the PKF network of legally independent member firms. There are around 300 member firms and correspondents in 440 locations in around 125 countries providing accounting and business advisory services. PKFI member firms employ around 2,200 partners and more than 21,400 staff. PKFI is the 10th largest global accountancy network and its member firms have $2.6 billion aggregate fee income (year end June 2011). The network is a member of the Forum of Firms, an organisation dedicated to consistent and high quality standards of financial reporting and auditing practices worldwide. Services provided by member firms include: Assurance & Advisory Corporate Finance Financial Planning Forensic Accounting Hotel Consultancy Insolvency Corporate & Personal IT Consultancy Management Consultancy Taxation PKF member firms are organised into five geographical regions covering Africa; Latin America; Asia Pacific; Europe, the Middle East & India (EMEI); and North America & the Caribbean. Each region elects representatives to the board of PKF International Limited which administers the network. While the member firms remain separate and independent, international tax, corporate finance, professional standards, audit, hotel consultancy, insolvency and business development committees work together to improve quality standards, develop initiatives and share knowledge and best practice cross the network. Please visit www.pkf.com for more information. IV

structure of country descriptions a. taxes payable FEDERAL TAXES AND LEVIES COMPANY TAX CAPITAL GAINS TAX BRANCH PROFITS TAX SALES TAX/VALUE ADDED TAX FRINGE BENEFITS TAX LOCAL TAXES OTHER TAXES b. determination of taxable income CAPITAL ALLOWANCES DEPRECIATION STOCK/INVENTORY CAPITAL GAINS AND LOSSES DIVIDENDS INTEREST DEDUCTIONS LOSSES FOREIGN SOURCED INCOME INCENTIVES c. foreign tax relief d. corporate Groups e. related party transactions f. withholding tax G. exchange control H. personal tax i. treaty and non-treaty withholding tax rates V

international time Zones AT 12 NOON, GREENwICH MEAN TIME, THE standard TIME ELsEwHERE Is: A Algeria....................1 pm Angola....................1 pm Argentina..................9 am Australia - Melbourne.............10 pm Sydney...............10 pm Adelaide............ 9.30 pm Perth..................8 pm Austria....................1 pm B Bahamas...................7 am Bahrain....................3 pm Belgium....................1 pm Belize.....................6 am Bermuda...................8 am Brazil......................7 am British Virgin Islands...........8 am C Canada - Toronto................7 am Winnipeg...............6 am Calgary................5 am Vancouver..............4 am Cayman Islands..............7 am Chile......................8 am China - Beijing..............10 pm Colombia...................7 am Croatia....................1 pm Cyprus....................2 pm Czech Republic..............1 pm D Denmark...................1 pm Dominican Republic...........7 am E Ecuador....................7 am Egypt.....................2 pm El Salvador.................6 am Estonia....................2 pm F Fiji.................12 midnight Finland....................2 pm France.....................1 pm Guernsey................ 12 noon Guyana....................7 am H Hong Kong.................8 pm Hungary...................1 pm I India................... 5.30 pm Indonesia...................7 pm Ireland.................. 12 noon Isle of Man.............. 12 noon Israel......................2 pm Italy......................1 pm J Jamaica...................7 am Japan.....................9 pm Jersey.................. 12 noon Jordan....................2 pm K Kazakhstan.................5 pm Kenya.....................3 pm Korea.....................9 pm Kuwait.....................3 pm L Latvia.....................2 pm Lebanon...................2 pm Liberia.................. 12 noon Luxembourg................1 pm M Malaysia...................8 pm Malta.....................1 pm Mauritius...................4 pm Mexico....................6 am Morocco................ 12 noon N Namibia....................2 pm Netherlands (The).............1 pm New Zealand...........12 midnight Nigeria....................1 pm Norway....................1 pm O Oman.....................4 pm G Gambia (The)............. 12 noon Georgia....................3 pm Germany...................1 pm Ghana.................. 12 noon Greece....................2 pm Grenada...................8 am Guatemala..................6 am P Panama....................7 am Papua New Guinea...........10 pm Peru......................7 am Philippines..................8 pm Poland.....................1 pm Portugal...................1 pm Puerto Rico.................8 am VI

Q Qatar......................8 am R Romania...................2 pm Russia - Moscow...............3 pm St Petersburg............3 pm s Sierra Leone............. 12 noon Singapore..................7 pm Slovak Republic..............1 pm Slovenia...................1 pm South Africa.................2 pm Spain.....................1 pm Sweden....................1 pm Switzerland.................1 pm T Taiwan....................8 pm Thailand...................8 pm Tunisia................. 12 noon Turkey.....................2 pm Turks and Caicos Islands.......7 am U Uganda....................3 pm Ukraine....................2 pm United Arab Emirates..........4 pm United Kingdom.......(GMT) 12 noon United States of America - New York City............7 am Washington, D.C..........7 am Chicago................6 am Houston................6 am Denver................5 am Los Angeles.............4 am San Francisco...........4 am Uruguay...................9 am V Venezuela..................8 am Vietnam....................7 pm VII

Italy italy Currency: Euro Dial Code To: 39 Dial Code Out: 00 (EUR) Member Firm: City: Name: Contact Information: Milan Salvatore Del Vecchio 02 43981751 s.delvecchio@mgpstudio.it Rome Initial contact-milan office 02 43981751 s.delvecchio@mgpstudio.it a. taxes payable FEDERAL TAxEs AND LEVIEs COMPANy TAx As a rule, corporate income tax is payable by all resident companies on income from any source, whether earned in Italy or abroad. Non-resident companies are subject to corporate income tax (IRES) only on income earned in Italy. IRES is charged at 27.50%. Companies are also subject to a regional tax on productive activities (IRAP) at the rate of 3.90% although regional authorities may increase or decrease the standard rate by up to one percentage point. It is envisaged that IRAP will be gradually eliminated in the near future. An additional 10.5% windfall tax is levied on companies (i) having revenues higher than EUR 25 million in the relevant fiscal period and (ii) carrying on their activities in one of the following fields: - research and exploitation of hydrocarbon - oil refining, production and sale of petrol, gasoline, gas, lubricating oil, liquefied gas of petrol and natural gas - production and sale of electricity. After three years the additional charge will be reduced to 6.5% (fiscal year 2014 onwards). Company tax returns, which cover both IRES and IRAP, must be filed electronically within nine months of the statutory year end. An advance tax payment is due by the 16th day of the sixth month of the accounting period equal to 40% of the previous year s income tax liability. A second advance payment of 60% is due by the end of the eleventh month of the company s financial year. Any remaining amount would be due by the 16th day of the sixth month after the end of the period. For income tax purposes the company can chose either a calendar or a fiscal year. For VAT and withholding tax purposes, the calendar year always applies. BRANCH PROFIT TAx Italian branch profits of foreign companies are fully liable to IRES and IRAP. FIsCALLy TRANsPARENT COMPANIEs Italian limited liability and joint stock companies may opt for this regime and be treated as fiscally transparent companies. In order to qualify for this treatment, joint stock companies must hold between 10% and 50% of the voting rights in another Italian company for a continuous 12-month period, whereas Italian limited liability companies must have gross incomes totalling no higher than Euro 7.5 million and be owned by a maximum of 10 private shareholders. Non-resident companies (regardless of their legal form) may also opt for such a regime only if entitled to apply the EU Parent-Subsidiary Directive to the dividends paid by the Italian controlled company. Under the above regime, the transparent company is not taxed on its own income for corporate income tax purposes. Income produced by its subsidiaries is directly allocated to the parent company according to its percentage of ownership, whether or not these profits have been remitted to it by way of dividend. The election is irrevocable for three years and must be communicated to the Tax Authorities. CONTROLLED FOREIGN COMPANIEs Italian tax law includes a comprehensive set of rules on controlled foreign companies (CFC). These rules are aimed at avoiding hiving off income to foreign subsidiaries located in certain low tax jurisdictions. These are countries typically considered as tax havens i.e. those listed in the so-called black-list. The profits earned by a CFC located in a tax haven country have to be imputed to the Italian resident parent company/individual regardless of any dividend distribution. The CFC rule is also applied to entities resident in jurisdictions other than those on the black list (even EU) if their effective rate of taxation is lower than 50% of the effective Italian tax 1

Italy rate, which would be applied if they were resident in Italy, and have more than 50% of passive income (i.e. interest, royalties, dividends). Application of the rule may be avoided by filing a tax ruling proving that the foreign entity does not represent an artificial structure unduly aimed at achieving a tax benefit. To escape the CFC rule, two exceptions can be met: 1. Market Link The business of the CFC is mainly derived from local customers or suppliers. 2. Adequate level of CFC taxation If the Italian company can prove that it has not used the CFC to hive off its profits into a tax haven territory. CAPITAL GAINs Capital gains realised by the company are generally taxable as normal business income subject to IRES and IRAP and capital losses are generally deductible. Tax on gains may be spread over five years for assets owned for more than three years. Capital gains on assets owned for less than three years are taxed in the year in which they are realised. Capital gains arising from stock transfers are 95% exempt, under specific conditions, where they relate to financial assets owned for an uninterrupted period of at least 12 months. FRINGE BENEFITs Fringe benefits are included in the taxpayer s total aggregated income. MINIMUM TAxABLE INCOME Companies with an annual turnover of less than EUR 7.5 million are subject to an automatic evaluation in accordance with the so-called Sector Studies ( Studi di Settore ). This is to determine whether the company s income is higher than that stated in the tax return but it is not sufficient for assessing a greater taxable base. Any amended assessment must be founded on concrete evidence. For income related to 2011 onwards, any taxpayer (individual, partnership or company) not consistent and not congruent with sector studies, is liable to a new and more stringent tax investigation procedure, carried out by the tax authorities. NON-OPERATING OR DORMANT COMPANIEs Such companies are subject to a minimum tax charge as far as IRES and IRAP are concerned. The company must declare an income for the tax period which cannot be lower than the amounts calculated by multiplying percentages to certain balance sheet items (estimated figure). If this amount is higher than the taxable income declared, the company is taxed on this figure. Furthermore, a VAT receivable is not refunded if these non-operating circumstances persist for three years. For income relating to 2011 onwards, a company is considered dormant if: a. it has made a loss for three consecutive fiscal periods b. it has made a loss for two fiscal periods and, in the next, has a taxable income lower than that estimated. Moreover, any Company considered dormant is subject to an additional 10.50% tax (which gives an overall corporate taxation of 38%). sales TAx/VALUE ADDED TAx (VAT) VAT is levied on transfers of goods and services by enterprises or professionals in the course of their business within Italy and on all imports. Items exported or destined for export are not subject to VAT. The standard VAT rate is 21%. Other rates applied, as at today, are 4% and 10%. A specific VAT regime applies to real estate transactions. From October 2012 until the end of 2013, the VAT rates of 10% and 21% will increase to 12% and 23% respectively. From 2014, they will increase again to 12.50% and 23.50%: however, this latter increase will depend on whether or not the Government will be adopting certain specific laws concerning the Public Budget. As an alternative to the nomination of a VAT Representative (which remains the only procedure allowed by extra-eu companies), non-resident EU companies can apply for a Direct VAT Identification. This enables the non-resident to settle any VAT payment directly in Italy or claim back any VAT credit. The direct VAT identification procedure is intended to facilitate the payment of Italian VAT liabilities by the non-resident. This procedure was discontinued with effect from 25 September 2009 in cases where a non-resident EU company has a permanent establishment in Italy. The basic place of supply rule for supplies of services to VAT registered persons is that such supplies are deemed to be made where the customer is established and the related VAT is due in accordance with the so-called reverse charge procedure. 2

Italy Services subject to reverse charges also have to be included on Intrastat forms, subject to some exceptions. Returns must be filed on a monthly or quarterly basis, depending on the company s turnover. TAx CLAIMs The taxpayer has the right to seek recourse against assessments and undue payment demands etc by appealing to the tax courts through three ranks of justice. The tax assessment can be settled by paying a lower penalty before appealing to the Tax Court. LOCAL TAxEs Real estate tax (ICI) is currently payable annually in two instalments (June and December) on the value of real estate property owned by companies. It has a variable rate ranging from 0.4% to 0.9% on property value, depending on each county council s assessment. From 2012, ICI will be replaced by a new local tax called IMU. The nature of this indirect tax is the same as that of ICI but its application is different: in particular, IMU will lead to a higher tax payable than ICI and, unlike ICI, it is also charged on the principal accommodation of any taxpayer. Registration tax is levied on the registration of any written contract or deed. The percentage varies depending on the type of deed. A higher rate of 7% applies to contributions or transfers of real estate. Registration tax is not applicable if the contract is subject to VAT, except for real estate rental contracts whereby VAT and 1% registration tax are applicable. OTHER TAxEs From 2008 onwards, stamp duty on the transfer of shares, bonds and similar securities has been repealed. PAyMENTs DUE By VAT REGIsTERED ENTITIEs VAT registered persons are required to effect all tax and social security payments electronically, whether or not an intermediary is involved, by means of a standard form (F24). b. determination of taxable income The taxable income of a company is based on the result of its business profits, which consists of the net income determined during a financial period, adjusted as required by the Tax Act. Non-resident companies are taxed in Italy on certain types of income earned from sources in Italy. CAPITAL ALLOwANCEs Depreciation of tangible assets is permitted on a straight-line basis calculated by applying the co-efficient established by the Ministry of Finance to the cost price, reduced by half for the first tax year. Tangible property with an acquisition cost of less than EUR 516.46 may be written off in the year of purchase. stock/inventory Inventory is valued at cost of purchase. Companies may apply any acceptable method of inventory pricing, i.e. FIFO, average, continuous average, etc. If the cost of purchase is lower than the market value as of the previous month, the stock can be valued using this method. DIVIDENDs (a) Companies are taxed at 5% on dividends received regardless of where the company paying the dividend is resident (except black-listed countries). (b) Individuals and partnerships are taxed on only 49.72% of the value of dividends received if they own more than 20% of the share capital of the company paying the dividend. If they own less than 20%, the dividend is taxed at a fixed rate of 12.5%. Starting from 2012 the tax rate will be 20%. INTEREsT DEDUCTIONs Interest expenses, including interest on leasing costs but excluding capitalised and non-deductible interest and net of the interest income accounted in the same tax period, are not deductible if they exceed 30% of the Company s statutory EBITDA i.e. the earnings resulting from its core business. Interest expenses that exceed the aforementioned limit may be carried forward, with no time limit, and used to offset taxable income within the 30% limit as above in succeeding tax years. Any surplus interest deductions (interest cost lower than the 30% EBITDA) may be carried forward starting from 2010. 3

Italy LOssEs Net operating losses incurred in tax year 2011 onwards may be carried forward with no time limitation from the year in which they originated. However, they can only be used to offset up to 80% of the income arising in later years. Net losses incurred before 2011 and those accruing during the first three years of business can be carried forward for up to five years with no offset limitations. These rules only apply for Corporation tax (IRES) and not for IRAP purposes. FOREIGN source INCOME Only 5% of the value of dividends received from controlled foreign companies is liable to IRES. This 95% exemption is not available if the source of the dividends is a company resident under a privileged tax regime outside the EU. A full exemption is applicable to the dividends paid by a CFC resident in a tax haven already taxed under the transparency method. INCENTIVEs Italian law provides for various forms of incentives to support economic investment in the south of Italy, other depressed areas in the centre/north, and in those areas struck by catastrophes such as earthquakes or floods. BLACK LIsT All transactions with subjects residing in black-listed countries must be communicated to the Tax Authorities. The deduction of the cost is subordinated to specific conditions or to previous ruling procedures. c. foreign tax relief Foreign taxes may generally be credited against the tax liability suffered in Italy on the same income. Any excess foreign credits can be carried forward or backwards for eight years. d. corporate Groups Provisions for the consolidation of resident and non-resident company results were introduced in 2004. These provisions allow for the consolidation of income between group companies at both domestic and international level, resulting in a single tax liability for the parent company. The option is irrevocable for a three-year period where only Italian resident companies are involved and for a five-year period for a worldwide consolidation (or three years if subsequently renewed). The companies participating in the group consolidation are jointly liable for taxes, penalties and interest assessed on the aggregate income. The consolidated income is taxed at the parent company level. e. related party transactions Transactions with foreign affiliated companies are closely scrutinised in order to determine whether transfer prices are at arm s length. There are ministerial guidelines which suggest various limits on payments between affiliates. A set of documentation, consistent with OECD standards, is required from those companies that make cross-border operations with controlled foreign companies. The documentation must contain detailed information and data about the transactions as well as their compliance with the so-called arm s length principle. Although this documentation is not mandatory, it would provide penalty protection to companies should they communicate to the Tax Authorities that they have this documentation on hand for consultation. Furthermore, they must also communicate to the Tax Authorities as to whether they have this documentation available for previous tax periods that are still subject to assessment. f. withholding tax Domestic companies making certain types of payments (eg interest, royalties, professional fees, etc) are required to withhold taxes at various rates. Italian legislation has implemented the EC Directive 2003/49/CE (Parent/Subsidiary Directive). No withholding tax is levied on dividends paid to a parent company in another EU Member State if both the parent and the subsidiary are qualifying companies under the Directive and the parent has held at least 10% of the capital of the subsidiary continuously for at least one year. The EU Interest & Royalties Directive has also been incorporated into domestic law. Outbound interest and royalties are exempt from any Italian tax provided that the recipient is an associated company of the paying company and is resident in another EU Member State or such a company s permanent establishment is situated in another Member State. Two companies are associated companies if (a) one of them holds directly at least 25% of the voting rights of the other or (b) a third EU company 4

Italy holds directly at least 25% of the voting rights of the two companies. The relevant companies must have a legal form listed in the Annex of the Directive and be subject to a corporate income tax. A one-year holding period is required. In general, dividends distributed to non-residents are subject to a final 27% withholding tax. For dividends paid to residents of EU countries and those listed in the white list, a special withholding tax rate of 1.375% applies. This rule applies only to profits earned starting from fiscal year 2008. Any dividends paid that represent profits from previous fiscal years will be subject to previous years rules. In line with the EC Parent/Subsidiary Directive, no withholding tax is levied on dividends paid to a parent company in another EU Member State if both the parent and the subsidiary are qualifying companies under the Directive and the parent has held at least 10% of the capital of the subsidiary continuously for at least one year. G. exchange control/anti-money laundering There are no exchange controls in Italy. However, banks and financial institutions are required to monitor any deposit/withdrawal over EUR 15,000 for anti-money laundering purposes. This duty was extended to audit firms, professionals, etc. With effect from 6 December 2011, cash payments over EUR 1,000.00 (lowering the previous limit of EUR 2,500.00) are no longer permitted. This limit is applicable to all categories. Penalties range from 1% to 40% of the amount transferred with a minimum penalty of EUR 3,000 (and EUR 15,000 when cash payments are greater than EUR 50,000). H. personal tax Resident individuals are subject to a personal income tax called IRPEF on their worldwide income. Individuals carrying on a business or profession are liable to IRAP which is not deductible from IRPEF. Non-resident individuals are subject to tax only on their Italian source income. Individuals are considered resident for fiscal purposes in Italy if they are registered at the official Register of Population; their principal place of business and interests is located in Italy; or if they remain in Italy for more than six months in any calendar year. Progressive rates for IRPEF are as follows: Taxable Income (EUR) Rate (%) Up to 15,000 23 15,001 28,000 27 28,001 55,000 38 55,001 75,000 41 Over 75,000 43 In addition to the above progressive rates, a regional surcharge (variable rate from 0.9% to 1.4%) is payable and an additional municipal tax could be charged and fixed locally. The tax period in Italy is the calendar year and tax is due over two advance payments made during the tax year with the balance due by 16 June of the following year. IRPEF is withheld at source from employee salaries and wages. The payment of taxes on account and settlement functions under a similar system as for companies. There is no wealth tax in Italy. Gift and inheritance tax has come back into force with a range of tax rates and exemptions. i. treaty and non-treaty withholding tax rates Dividends Individuals, companies Qualifying companies (3) Interest (1) Royalties (2) (%) (%) (%) (%) Domestic Rates Companies: 1.375/12.5/27 0 0/12.5/27 30 Individuals: 12.5/27 n/a 0/12.5/27 30 Treaty Rates Treaty With: Albania 10 10 0/5 5 5

Italy Dividends Individuals, companies Qualifying companies (3) Interest (1) Royalties (2) (%) (%) (%) (%) Algeria 15 15 0/15 5/15 Argentina 15 15 0/20 10/18 Armenia 10 5 0/10 7 Australia 15 15 10 10 Austria 15 15 0/10 0/10 Bangladesh 15 10 0/10/15 10 Belarus 15 5 0/8 6 Belgium 15 15 15 5 Bosnia Herzegovina 10 10 10 10 Brazil 15 15 15 15/25 Bulgaria 10 10 0 5 Canada 15 5 0/10 0/5/10 China (PRC) 10 10 0/10 10 Croatia 15 15 0/10 5 Cyprus 15 15 10 0 Czech Republic 15 15 0/5 0/5 Denmark 15 0 0/10 0/5 Ecuador 15 15 0/10 5 Egypt 0/25 15 Estonia 15 5 0/10 5/10 Finland 15 10 0/15 /5 France 15 5 0/10 0/5 Georgia 10 5 0 0 Germany 15 10 0/10 0/5 Ghana 15 5 10 10 Greece 15 15 0/10 0/5 Hungary 10 10 0 0 Iceland 15 5 0 5 India 25 15 0/15 20 Indonesia 15 10 0/10 10/15 Ireland 15 15 10 0 Israel 15 10 10 0/10 Ivory Coast 15 15 0/15 10 Japan 15 10 10 10 Kazakhstan 15 5 0/10 10 Kyrgyzstan 15 15 0 0 Korea (Rep.) 15 10 0/10 10 Kuwait 0/5 0/5 0 10 Latvia 15 5 10 5/10 Lithuania 15 5 0/10 5/10 Luxembourg 15 15 0/10 10 Macedonia (FYR) 15 5 0/10 0 Malaysia 10 10 0/15 15 Malta 15 15 0/10 0/10 Mauritius 15 5 0/ 15 Mexico 15 15 0/15 0/15 6

Italy Dividends Individuals, companies Qualifying companies (3) Interest (1) Royalties (2) (%) (%) (%) (%) Moldova 15 5 5 5 Montenegro 10 10 10 10 Morocco 15 10 0/10 5/10 Mozambique 15 15 0/10 10 Netherlands 15 5/10 0/10 5 New Zealand 15 15 0/10 10 Norway 15 15 0/15 5 Oman 10 5 0/5 10 Pakistan 25 15 30 30 Philippines 15 15 0/10/15 25 Poland 10 10 0/10 10 Portugal 15 15 0/15 12 Qatar 15 5 0/5 5 Romania 10 10 0/10 10 Russia 10 5 10 0 Saudi Arabia 10 5 0/5 10 Senegal 15 15 0/15 15 Serbia 10 10 10 10 Singapore 10 10 12.5 15/20 Slovak Republic 15 15 0 0/5 Slovenia 15 5 0/10 10 South Africa 15 5 0/10 6 Spain 15 15 0/12 4/8 Sri Lanka 15 15 0/10 10/15 Sweden 15 10 0/15 5 Switzerland 15 15 12.5 5 Syria 10 5 0/10 18 Tanzania 10 10 15 15 Thailand 20 15 0/10/ 5/15 Trinidad and Tobago 20 10 10 0/5 Tunisia 15 15 0/12 5/12/16 Turkey 15 15 15 10 Turkmenistan 15 15 15 10 Ukraine 15 5 0/10 7 United Arab Emirates 15 5 0 10 United Kingdom 15 5 0/10 8 United States 15 5 0/10 0/5/8 Uzbekistan 10 10 0/5 5 Venezuela 10 10 0/10 7/10 Vietnam 15 5/10 0/10 7.5/10 Zambia 15 5 0/10 10 7

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