Clarifications of the Italian tax authorities (ITA) on the transfer of a going concern under the EU Merger Directive: full neutrality only if certain conditions are met.

 

Italian tax authorities’ resolution no. 63 issued on the 9^th of August 2018 clarified that a transfer of a going concern belonging to the Italian permanent establishment of a French resident company (Transferor) to an Italian resident company (Transferee) is fully tax neutral only if certain conditions are met.

 

The case addressed by the resolution and the position shared by the ITA

In the resolution the ITA confirm that the contribution of the going concern belonging to the permanent establishment of a company resident in an EU Member State (e.g. France) to a company resident in the same Member State of the said permanent establishment (e.g. Italy) falls under the scope of application of the EU Merger Directive (Directive 2005/19/EC).