The debate around the nature of industrial holding companies and captive companies has recently evolved in the light of the new non-fiscal regulations approved and of the rules recently introduced by the so-called “Decreto Milleproroghe 2017”. The article provides insights into the tax and reporting regulations applicable to industrial holding companies and captive companies, analyzing the regulatory frames currently in force.
Specific focus is given to the deductibility of interest payable and similar charges for IRES purposes as well as to the determination of the taxable base for IRAP purposes. The articles also provides food for thoughts around the proper understanding of the circumstances whereby the exceptions under art. 96, para 5 of the Italian Income Taxes Consolidated Text (T.U.I.R.) do not apply and of the reference made to the previous version of art. 113 of the Consolidated Banking Act (T.U.B.) included under art. 6, para 9, of Legislative Decree no. 446/1997.
For further information, please contact Giulio Tedeschi.